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Market Daily Report: Bursa Malaysia Closes Higher On BNM’s OPR Decision, Wall Street Gains

KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.

US Tariffs May Trigger Rise in Bad Loans for Malaysian Banks, Warns CGS International

Malaysian banks could face a  rise in bad debts  in 2025 and 2026 as  US tariff threats  spark new credit risks,  CGS International  warned on Thursday. In a sharp reversal from four years of decline,  gross impaired loans (GIL)  — a key measure of bad debt — are expected to  climb 5.6% in 2025  and further to  7% in 2026  for banks under CGS coverage. “Higher US tariffs on Malaysian exports could hurt the revenue of export-reliant companies, weakening their ability to service loans,” CGS said in a note, adding this could elevate default risks across the banking sector. Trade Tensions Heating Up The warning follows  escalating trade rhetoric  from  US President Donald Trump , who has floated  reciprocal tariffs  of  15% to 50% , with an Aug 1 deadline looming. Earlier this month, the US even threatened to impose a  blanket 25% import tax on all Malaysian goods . What’s at Stake for Banks? A...

CreditSight Offers Outlook on Malaysian Banks After Solid FY24 Performance

CreditSight , a Fitch Group company, has provided an outlook on  Malaysian banks  following the strong performance for FY24/F9M25, maintaining  Market Perform recommendations  for  CIMB Bank  and  RHB Bank , while initiating a  Market Perform  recommendation on  AmBank . Key Takeaways: Stronger Earnings Across Banks : All three major Malaysian banks reported stronger earnings, supported by  stable to higher Net Interest Margins (NIMs)  due to easing liquidity conditions and targeted loan growth.  CIMB  led in profitability growth year-over-year (YoY). Loan Growth Projections for 2025 : Banks are targeting  mid-single digit loan growth (5-7%)  in 2025, with  CIMB  seeing a recovery after a soft FY24 (+2.6% YoY).  AmBank  is on track for  4.4%  YoY growth, while  RHB  expects stable growth.  Medium-sized commercial segments  will be key targets, likely increasi...