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.
Malaysia’s recent interest rate cut will likely hurt smaller banks the most , according to analysts, due to their heavier reliance on interest income from loans compared to larger, more diversified peers. Banks Most at Risk: Bank Islam Malaysia (BIMB) Alliance Bank Malaysia (ABMB) Both are highly exposed due to a large share of floating-rate loans . Alliance Bank, for example, has 84% of loans under variable rates, making it especially vulnerable to margin compression. Why Smaller Banks Are Feeling the Pinch: Lower Overnight Policy Rate (OPR) reduces net interest margins (NIMs) . Interest on floating-rate loans drops immediately , but deposit rates adjust more slowly . Fierce deposit competition keeps pressure on interest expenses. Reduced operating leverage and less income diversification make smaller banks more sensitive to rate cuts. Analyst Adjustments: Public Investment Bank slashe...