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Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.

Global Bank Layoffs Drive Talent to Chinese Rivals in Hong Kong

  Key Takeaways: Shifting Talent Trends :  40 former bankers  from major global firms such as  UBS  and  BNP Paribas  have joined  Chinese brokerages  in the past year, signaling a shift in the competitive landscape in Hong Kong. This marks a reversal of the previous trend where Chinese talent flocked to global institutions. Cause of the Shift : This talent movement is driven by  layoffs  in global banks and a  weak dealmaking environment  in Hong Kong. As global firms cut costs, Chinese brokerages, despite offering lower compensation, have become attractive options for many bankers seeking promotion opportunities or more structured compensation packages. Cost of Transition : While compensation at  Chinese investment banks  is about  30%-40% lower  than at global firms,  structured pay packages —often tied to client referrals—can significantly boost earnings, making these positions more appealing t...

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...

Bursa Malaysia Achieves Record 55 IPOs in 2024, Highest in Nearly Two Decades

Bursa Malaysia wrapped up 2024 with  55 initial public offerings (IPOs) , marking a  72% increase  compared to the 32 IPOs in 2023. This milestone represents the  highest number of listings in 19 years , solidifying Bursa's position as a leader among Asean exchanges in terms of IPO numbers and funds raised. Key Highlights Strong IPO Momentum : 11 Main Market listings  (up from 7 in 2023) 40 ACE Market listings  (up from 24 in 2023) 4 LEAP Market listings  (up from 1 in 2023) Capital Raised : RM7.42 billion  in total proceeds, a  107% increase  from 2023. Market capitalisation of  RM31.37 billion , a  130% rise  compared to 2023. Top IPOs : The  five largest IPOs  contributed  RM20.32 billion  in market capitalisation, led by companies such as  99 Speed Mart Retail Holdings ,  Johor Plantations Group ,  Alpha IVF Group , and  Prolintas Infra Business Trust . Leadership Comments CEO Da...

Swiss Lawmakers Call for Tougher Rules After Credit Suisse Collapse Sparks Criticism of Finma

A landmark inquiry into  Credit Suisse's collapse  has criticized  Switzerland's financial regulator Finma  for granting inappropriate capital relief in 2017, which masked the bank's deteriorating condition and delayed corrective measures. The inquiry has prompted calls for stronger regulatory powers and reforms in Switzerland's financial system. Key Findings from the Parliamentary Report 1. Finma's Role and Failures Regulatory Filter Misstep : Finma allowed  Credit Suisse  to report stronger capital levels through a regulatory filter, which obscured the bank's precarious financial state. This concession was deemed legally sound but inappropriate and contributed to the bank's ultimate collapse. Ineffective Oversight : Finma failed to enforce corrective measures despite identifying multiple deficiencies at Credit Suisse over the years. 2. Broader Systemic Issues Government Delays : The Swiss government took too long to implement reforms from the 2008 financi...