US markets extended losses as rising oil prices and a sharp sell-off in tech stocks weighed on sentiment , overshadowing dovish signals from the Federal Reserve. Key Market Moves S&P 500 fell 0.4% to 6,343.72 Nasdaq dropped 0.7% to 20,794.64 Dow Jones rose 0.1% to 45,216.14 Key takeaway: Tech weakness and oil-driven inflation fears are dragging the broader market lower. What’s Driving the Sell-Off? 1. Oil Prices Surge Again Crude oil jumped over 5% to around US$105 Driven by ongoing US–Iran–Israel conflict Higher oil = higher inflation risk = pressure on equities 2. Tech Stocks Lead the Decline Heavy losses in AI, chip, and data-related names: Applied Digital : -13.5% AXT Inc : -13% Micron Technology : -9.9% Arm Holdings : -5% Intel : -4.5% Super Micro Computer : -4.1% AI and semiconductor stocks are facing profit-taking and valuation concerns 3. Fed Comments Not Enough to Lift Sentiment Jerome Powell signaled no immediate rate hikes despite rising energy pri...
Bank Negara Malaysia declared a RM5 billion dividend for 2025, maintaining payouts to the government despite a moderation in earnings.
Earnings Ease After Strong Prior Year
BNM reported net profit of RM12.45 billion in FY2025, down 5.7% YoY from RM13.16 billion.
The decline was driven by:
- Lower total income (RM14.35 billion vs RM14.98 billion)
- Costs related to reserve management and monetary operations
Despite softer earnings, the central bank sustained its second consecutive RM5 billion dividend, following a record RM5.25 billion payout in 2024.
Strong Reserves Provide Stability
A significant portion of profits — RM7.45 billion — was allocated to the risk reserve, which rose to RM155.31 billion.
This reserve acts as a financial buffer against:
- Exchange rate volatility
- Global financial market fluctuations
BNM highlighted that 85% of its assets are denominated in foreign currencies, reinforcing the importance of maintaining strong reserves.
Balance Sheet Remains Robust
BNM’s financial position remains solid:
- Total assets: RM602.22 billion (-3.1% YoY)
- International reserves: RM509.79 billion (major asset component)
- Liabilities: RM405.47 billion (-6% YoY)
The decline in assets was largely due to currency translation effects amid a stronger ringgit.
Self-Funded Operations Ensure Independence
The central bank continues to operate independently, funding its activities through returns on international reserves, without relying on government support.
Operating expenses stood at RM1.86 billion in 2025.
Policy Implication: Fiscal Support Without Compromise
The consistent dividend provides steady fiscal support to the Malaysian government, while BNM continues to:
- Strengthen its financial buffers
- Maintain policy flexibility
Investor Takeaways
- BNM declared a RM5 billion dividend, maintaining strong fiscal support.
- Net profit declined 5.7% YoY, reflecting lower income and operational costs.
- Risk reserves increased to RM155.3 billion, enhancing financial resilience.
- Balance sheet remains robust with large international reserves.
- Central bank retains operational independence, funded by reserve investments.
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