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Malay Mail
3 days ago
- Business
- Malay Mail
Bursa opens higher as Wall Street rally, US earnings lift sentiment
KUALA LUMPUR, July 28 — Bursa Malaysia rebounded from last week's losses to open higher on Monday, tracking overnight gains on Wall Street. At 9.10am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.03 points, or 0.26 per cent, to 1,537.79 from Friday's close of 1,533.76. The benchmark index had opened 4.29 points firmer at 1,538.05. Market breadth was positive, with gainers outpacing losers 224 to 133. A total of 293 counters were unchanged, 1,904 untraded, and 43 suspended. Turnover stood at 182.48 million shares worth RM110.09 million. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said Wall Street closed broadly higher, supported by strong United States (US) corporate earnings and positive trade signals, as President Donald Trump indicated more deals could be finalised before the Aug 1 deadline. Regionally, he noted that Hong Kong's Hang Seng Index slipped on profit-taking after a five-day rally. 'Back home, we believe the market is taking a breather and is poised to resume its climb. As such, we expect the index to hover within the 1,530–1,540 range today,' he told Bernama. Among the heavyweights, Maybank rose four sen to RM9.58, Public Bank added one sen to RM4.30, CIMB and IHH Healthcare gained two sen each to RM6.77 and RM6.68 respectively, while Tenaga Nasional slipped four sen to RM13.56. On the actively traded list, YTL Corporation advanced eight sen to RM2.56, Sapura Energy edged up half-a-sen to four sen, Ekovest improved one sen to 41 sen, while NexG and TWL Holdings were flat at 52.5 sen and 2.5 sen respectively. On the broader index board, the FBM Emas Index rose 30.82 points to 11,537.64, the FBMT 100 Index gained 29.54 points to 11,299.26, and the FBM Emas Shariah Index added 21.54 points to 11,550.49. The FBM 70 Index was 43.30 points higher at 16,650.87, while the FBM ACE Index inched up 4.64 points to 4,643.66. Sector-wise, the Financial Services Index climbed 44.89 points to 17,499.12, the Industrial Products and Services Index added 0.28 of a point to 157.42, and the Energy Index rose 0.13 of a point to 739.98. The Plantation Index, however, slipped 4.36 points to 7,430.43. — Bernama
New Straits Times
4 days ago
- Business
- New Straits Times
Banks' RM4.36bil buffer to cushion US tariff impairment risks
KUALA LUMPUR: Malaysian banks are expected to remain resilient even if credit risks rise due to new United States tariffs, thanks to a sizeable RM4.36 billion management overlay (MO) buffer that could cushion potential loan impairments, according to CGS International. The firm estimated that if banks need to provide for 50 per cent of the new gross impaired loans (GIL), the management overlay will be able to cover up to 37.9 per cent of the increase in banks' total GIL in financial year 2026. CGS said Public Bank holds the highest management overlay coverage at 91.8 per cent, while Bank Islam trails with only 10.6 per cent. It added the higher tariffs imposed by the US on Malaysian exports could reduce the business volumes and revenue of Malaysian companies that are reliant on the US market. This, in turn, may weaken their debt servicing capabilities, sparking concerns of increased credit risks for Malaysian banks. "As a consequence, we project GIL of the banks under our coverage to rise by 5.6 per cent in FY25 and 7.0 per cent in FY26," it added. Based on a stress test conducted to assess the impact of rising GIL on banks, CGS estimated that a 10 per cent increase in FY26 gross impaired loans would reduce the combined FY26 net profits of banks under its coverage by 3.2 per cent. "In our test, the least impacted banks were Hong Leong Bank (-1.0 per cent) and Public Bank (-1.3 per cent) while the most impacted was Affin Bank (-10.9 per cent). "If the sector's GIL rises 30 per cent, the negative impact on banks' total FY26 net profits is 9.6 per cent, ranging from 3-4 per cent for Public Bank and Hong Leong Bank to 32.8 per cent for Affin, based on our estimates," the firm added. CGS maintained its "Overweight" stance on banks, premised on potential re-rating catalysts of ongoing write-backs in management overlay and expected increases in the dividend payout ratios for most banks.
Free Malaysia Today
6 days ago
- Politics
- Free Malaysia Today
KL roads to be diverted for ‘Turun Anwar' rally
Participants at tomorrow's 'Turun Anwar' rally will gather at five locations before marching to Dataran Merdeka. (Bernama pic) PETALING JAYA : Several roads in the Kuala Lumpur city centre are set to be diverted tomorrow because of the 'Turun Anwar' rally. Acting Kuala Lumpur police chief Usuf Jan Mohamad said the diversions, which will occur from time to time 'depending on the situation', are to ensure smooth traffic flow and the safety of all road users. In a statement, Usuf said the rally's participants will gather at five locations – Masjid Negara, Pasar Seni, Masjid Jamek Sultan Abdul Samad, Masjid Jamek Kampung Baru and Sogo shopping mall – before marching to Dataran Merdeka. Among the roads expected to be diverted are: Jalan Maharajalela/slip road to Jalan Syed Putra; Jalan Kinabalu/U-Turn to Public Bank; Sultan Mohamad roundabout; Jalan Kinabalu/slip road to Bukit Aman Tunnel; Jalan Kinabalu/slip road to Dato Onn roundabout; Dato Onn roundabout (left and right lanes); Dato Onn roundabout from the direction of Jalan Parlimen; Jalan Sultan Salahuddin/Dato Onn roundabout; Jalan Kuching/slip road to Jalan Sultan Ismail; Jalan Kinabalu (from Segambut roundabout towards Dato Onn roundabout); Jalan Kinabalu (from Masjid Negara to Dato Onn roundabout); Jalan Lebuh Pasar Besar/Jalan Hang Kasturi; Jalan Hishamuddin/Jalan Raja; Jalan Parlimen/Jalan Raja Laut; Jalan Tuanku Abdul Rahman/ Jalan Tun Perak; and Lebuh Ampang/Jalan Tun Perak. Usuf advised the public to plan their journeys to avoid being stuck in traffic. He also suggested that those who plan to join the rally use public transport. Yesterday, Usuf said no roads would be closed in the capital city ahead of the rally, which is expected to be attended by between 10,000 and 15,000 participants. Perikatan Nasional, which is organising the event to push for Prime Minister Anwar Ibrahim's resignation, expects up to 300,000 participants. The police are deploying more than 2,000 personnel to provide security for the gathering.
New Straits Times
6 days ago
- New Straits Times
15 KL roads to close for Turun Anwar rally tomorrow
KUALA LUMPUR: Several major roads in the city centre are expected to be affected by traffic diversions in conjunction with the 'Turun Anwar' rally scheduled to take place tomorrow. Acting Kuala Lumpur police chief Datuk Mohamed Usuf Jan Mohamad said the rally is set to begin simultaneously at five key locations — Masjid Negara, Pasar Seni, Masjid Jamek Sultan Abdul Samad, Masjid Jamek Kampung Baru, and Kompleks Sogo — before participants converge at Dataran Merdeka. "Traffic diversions will be activated based on real-time conditions to ensure smooth traffic flow and the safety of all road users," he said in a statement today, adding that 15 major roads would be affected. The roads expected to be involved include: 1. Jalan Maharajalela / Exit to Jalan Syed Putra 2. Jalan Kinabalu / U-turn near Public Bank 4. Jalan Kinabalu / Exit to Bukit Aman Tunnel 5. Jalan Kinabalu / Exit to Bulatan Dato' Onn 6. Upper Dato' Onn Roundabout – both directions 7. Dato' Onn Roundabout – from Jalan Parlimen 8. Jalan Sultan Salahuddin / Dato' Onn Roundabout 9. Jalan Kuching / Exit to Jalan Sultan Ismail 10. Jalan Kinabalu (from Segambut Roundabout to Dato' Onn Roundabout) 11. Jalan Kinabalu (from Masjid Negara to Dato' Onn Roundabout) 12. Jalan Lebuh Pasar Besar / Jalan Hang Kasturi 13. Jalan Hishamuddin / Jalan Raja 14. Jalan Parlimen / Jalan Raja Laut 15. Jalan Tuanku Abdul Rahman / Jalan Tun Perak 16. Jalan Lebuh Ampang / Jalan Tun Perak "We urge the public to plan their journeys in advance and use public transport where possible to avoid congestion in the city centre. "Motorists are also advised to obey all instructions from traffic police officers stationed at the affected locations," he said, adding that the cooperation and awareness of all parties are greatly appreciated in maintaining public order and safety. He advised those with queries to contact the Kuala Lumpur police hotline at 03-2115 9999, the Jalan Tun H.S Lee Traffic Police Station at 03-2071 9999, the KL police Traffic Investigation and Enforcement Department at 03-2026 0267/0269, or the nearest police station.
New Straits Times
24-07-2025
- Business
- New Straits Times
Banks' impaired loans seen rising in 2025 on US tariff risk
KUALA LUMPUR: Local banks could see gross impaired loans (GIL) rise by 5.6 per cent by year-end and seven per cent in 2026, reversing an eight per cent decline in 2024, due to risks stemming from higher United States tariffs on Malaysian exports. CGS said the tariff hikes may reduce business volumes and revenue for companies that rely heavily on the US market, ultimately weakening their debt-servicing ability and increasing credit risks for banks. Despite this, the research house has maintained its "Overweight" stance on the banking sector, citing manageable credit risks and potential upsides from write-backs in management overlays. "We believe the higher tariffs imposed by the US on Malaysian exports could reduce business volumes and revenue of local companies that are reliant on the US market" it said in a research note. CGS said a stress test showed that a 10 per cent rise in GIL could reduce sector-wide net profits by 3.2 per cent in financial year 2026 (FY26). Public Bank Bhd and Hong Leong Bank Bhd were found to be the least affected, with estimated earnings drops of only 1.3 per cent and one per cent respectively. Affin Bank Bhd, meanwhile, could see profits fall by as much as 10.9 per cent. Even in a worst-case stress scenario, where GIL jumps 30 per cent in FY26, the sector's total net profit would likely decline by just 9.6 per cent, it said. CGS said banks were well-positioned to absorb credit shocks, with RM4.36 billion in management overlays as at end-March 2025. These overlays could cover up to 37.9 per cent of any new impaired loans, assuming a 50 per cent provisioning need. The highest coverage was at Public Bank at 91.8 per cent, while the lowest was at Bank Islam Malaysia Bhd at 10.6 per cent. "We do not expect significant increases of more than 10 per cent annually in banks' GILs in FY25 to FY26 due to healthy financial ratios, tight regulatory oversight by Bank Negara Malaysia and proactive borrower assistance initiatives," the firm said. CGS named Public Bank and Hong Leong as defensive picks in a high-risk environment. It also maintained "Add" ratings on CIMB Group Holdings Bhd, Hong Leong and Public Bank, with target prices of RM9.10, RM30.70 and RM5.77 respectively. Potential downside risks include weaker-than-expected economic growth, persistent inflationary pressure and stiff deposit competition.
