https://www.nst.com.my/business/2022/10/840417/investors-likely-wait-and-see

Financial is sharply higher.....Bank of America up 4%.....Citi up 5% :)

Very interesting trading at US tonight

https://www.thestar.com.my/news/nation/2022/10/09/pm-has-audience-with-king-talk-of-parliament-dissolution-heats-up

The one woman man :p

We reckon it is an opportunity to buy undervalued stocks in cyclical sectors like banks, construction, oil and gas, plantations, property and transportation, and defensive plays in consumer, media, telco and utilities. Blue chips, especially, are mostly cheap despite their solid fundamentals and should bounce back strongly once the political uncertainties disappear.

Trading at a consensus calendar year 2023 (CY23) price-to-earnings ratio (PER) multiple of 12.3 times, the FBMKLCI is attractive versus comparable peers at 14 times. A possible rerating post 15th general election (GE15) should bring it closer to our year-end target of 1,590 based on CY23 PER of 14.4 times.

https://www.theedgemarkets.com/article/budget-2023-review-comprehensive-budget-resilient-future

KUALA LUMPUR (Oct 9): Hong Leong Investment Bank Bhd (HLIB) Research maintains its “overweight” stance on the banking sector due to the absence of a recurring prosperity tax and any form of loan moratorium in Budget 2023 as speculated by some factions of the investment fraternity.

“By virtue of this, Budget 2023 is a win for banks. Hence, we continue to view the banking sector positively and opine that the risk-reward profile is skewed to the upside,” it said in its Market Outlook report.

According to the research house, the combination of robust profit growth and undemanding valuations will be the impetus driving performance.

For large-sized banks, such as Malayan Banking Bhd (Maybank), the target price (TP) is RM9.70 for its strong dividend yield.

https://www.theedgemarkets.com/article/no-prosperity-tax-no-loan-moratorium-spell-win-banks-%E2%80%94-hlib-research

Additional few sen dividend will be very good....

https://www.freemalaysiatoday.com/category/highlight/2022/10/07/exclusion-of-prosperity-tax-good-for-capital-market-says-bursa-chairman/

PETALING JAYA: The decision by the government to exclude the prosperity tax under Budget 2023 is a positive move for the capital market, Bursa Malaysia Securities Bhd chairman Wahid Omar said.

“Otherwise it will potentially shave off the FBM KLCI’s 2023 EPS (earnings per share) forecast by 5% to 6%,” he said.

He added that without the tax, the consensus among analysts was that the EPS would grow at a rate of 11.5% in 2023, compared with a contraction of 1.1% this year.

No new prosperity tax for 2023.....VERY GOOD !

@choysun.....may be can la :p

Yes sifu ATK.......cheers :)

I think DJ will close up 1000+ :p

Elsewhere in Southeast Asia, Singapore has a “large representation” of companies — such as banks — that benefit from rising yields, said Raychaudhuri, adding that the country and India, Indonesia and Malaysia are “pockets of safety.”

Timothy Moe, chief Asia-Pacific equity strategist at Goldman Sachs, said there are three positive drivers for Southeast Asian markets.

Those include their delayed recovery from Covid, the emergence of a digital or “new” economy, and rising interest rates.

“Asean markets typically have a very high exposure to banks, and banks were not the place to be the last 10 years,” he told CNBC’s “Street Signs Asia” on Tuesday. “But they are now, with the interest rate cycle turning, and so that’s been a very significant tailwind for the Asean markets.”

Source : CNBC 4-10-22

https://www.theedgemarkets.com/article/foreign-shareholding-cimb-rose-269-august-highest-pandemic-onset

KUALA LUMPUR (Oct 4): Foreign shareholding in CIMB Group Holdings Bhd rose to 26.9% in August 2022, the highest on record since the Covid-19 pandemic's onset in April 2020, according to the banking group's latest update.

Elsewhere in Southeast Asia, Singapore has a “large representation” of companies — such as banks — that benefit from rising yields, said Raychaudhuri, adding that the country and India, Indonesia and Malaysia are “pockets of safety.”

Timothy Moe, chief Asia-Pacific equity strategist at Goldman Sachs, said there are three positive drivers for Southeast Asian markets.

Those include their delayed recovery from Covid, the emergence of a digital or “new” economy, and rising interest rates.

“Asean markets typically have a very high exposure to banks, and banks were not the place to be the last 10 years,” he told CNBC’s “Street Signs Asia” on Tuesday. “But they are now, with the interest rate cycle turning, and so that’s been a very significant tailwind for the Asean markets.”

https://www.cnbc.com/2022/10/04/asia-pacific-markets-indonesia-is-the-best-performer.html

https://www.cnbc.com/2022/10/04/asia-pacific-markets-indonesia-is-the-best-performer.html


Elsewhere in Southeast Asia, Singapore has a “large representation” of companies — such as banks — that benefit from rising yields, said Raychaudhuri, adding that the country and India, Indonesia and Malaysia are “pockets of safety.”

Timothy Moe, chief Asia-Pacific equity strategist at Goldman Sachs, said there are three positive drivers for Southeast Asian markets.

Those include their delayed recovery from Covid, the emergence of a digital or “new” economy, and rising interest rates.

“Asean markets typically have a very high exposure to banks, and banks were not the place to be the last 10 years,” he told CNBC’s “Street Signs Asia” on Tuesday. “But they are now, with the interest rate cycle turning, and so that’s been a very significant tailwind for the Asean markets.”

Sure will.......treasury drop kaw kaw

What recession....DJ is now up 600+ :p

Don't miss the boat ya :p

Most Banks are green :)

Wow......"feel good" gaining momentum :)

Wow.....KLCI turns green.....why ah?
....bcos of impending GE ah?
....."feel good" warming up ah? :p

Banking - Good Numbers All Around


Loans and deposits growth gained traction to 6.8% and 7.5% YoY respectively. Also, leading indicators remained robust and asset quality held steady. As for NIM, we expect it to broaden from OPR hikes but the magnitude may be capped by the downward normalization of CASA mix. Nonetheless, banks are still net beneficiaries of interest rate upcycle. Overall, we continue to view positively the banking sector and also, opine the risk-reward profile is skewed to the upside; the cocktail of robust profit growth and undemanding valuations will be impetus to drive performance. Retain OVERWEIGHT; BUY calls include: Maybank, RHB, BIMB, Affin, Alliance.

Source: Hong Leong Investment Bank Research - 3 Oct 2022

https://klse.i3investor.com/web/pricetarget/research/64880

August 2022 system loans grew by 6.8% YoY (+0.7% MoM), beating our expectations. Hence, we raise our CY22 industry growth target to 6.0-6.5%. While better business loans were expected, the continued support from household loans was unanticipated in a rising rate environment.

Maintain OVERWEIGHT on the banking sector. We are further encouraged by the strong loans growth performance, emboldening sector prospects. We continue to anticipate two more 25 bps OPR hikes in the subsequent BNM MPC meetings which could lift banking margins while allaying competitive pricing pressures. This would translate favourably on CY23 earnings, notwithstanding the lapse of CY22’s prosperity tax in addition to higher possibilities of writebacks. For the 4QCY22 season, we feature the following as our top picks :- (i) CIMB (OP; TP: RM6.35) for defensive NOII reporting as trading performances are supported by its regional entities. It also commands on of the highest CASA books amongst the large cap banks. Notably, we have awarded CIMB with a 4-star ESG rating for its sustainable financing efforts; (ii) MAYBANK (OP; TP: RM11.05) which remains our dividend favourite (7-8% yield) and provide shelter for investors preferring more secured returns. As the market share leader in loans and deposits, MAYBANK would also be widely exposed to the benefits of economic reopening.

https://www.cnbc.com/2022/10/01/the-fed-is-breaking-things-heres-what-has-wall-street-on-edge-as-risks-rise-around-the-world.html

Ironically, it is the reforms that came out of the last global crisis that have made markets more fragile. Trading across asset classes is thinner and easier to disrupt after U.S. regulators forced banks to pull back from proprietary trading activities, a dynamic that JPMorgan Chase
CEO Jamie Dimon has repeatedly warned about.

Regulators did that because banks took on excessive risk before the 2008 crisis, assuming that ultimately they’d be bailed out. While the reforms pushed risk out of banks, which are far safer today, it has made central banks take on much more of the burden of keeping markets afloat.

With the possible exception of troubled European firms like Credit Suisse
, investors and analysts said there is confidence that most banks will be able to withstand market turmoil ahead.

https://www.nst.com.my/news/politics/2022/09/836117/umno-agrees-continue-working-pas

https://www.thestar.com.my/news/nation/2022/09/30/pm-to-seek-audience-with-king-to-present-potential-parliament-dissolution-dates

https://beta.freemalaysiatoday.com/business/2022/09/28/yellen-says-monitoring-uk-developments-after-pound-plummets/

The financial turmoil of recent days appeared to be confined to Britain and was not spreading to the global economy, Yellen told reporters at the end of her visit in North Carolina. She declined to comment on Britain’s new budget, the newspaper said.

Yellen said financial markets were “still functioning well”, adding that they “haven’t seen liquidity problems develop in markets”, the report added.

Yellen said that both the US and Britain had “significant inflation problems and central banks are focused on wanting to bring inflation down”.

Government will probably in the coming budget encourage GLC and local institution to bring back oversea investment to support the ringgit and also the local market as oversea are facing headwind.

4QCY22 Investment Strategy - There’s No Place Like Home

We advocate investors to seek refuge in domestically-driven sectors amidst rising external headwinds.
Banks are the best proxy to Malaysia’s resilient economy, in particular, domestic consumption.

Our Overall Top Picks are MAYBANK, PCHEM, CIMB, DIGI, KLK, INARI, GAMUDA, ABMB, BAUTO and AEON.

Source: Kenanga Research - 28 Sept 2022

https://klse.i3investor.com/web/blog/detail/kenangaresearch/2022-09-28-story-h1649314038-4QCY22_Investment_Strategy_There_rsquo_s_No_Place_Like_Home

....that means bank with high fixed rate loan is not so good in an increasing rate scenario
....no wonder, the one with high car loan is being sold down lately.....

https://klse.i3investor.com/web/pricetarget/research/64806

Meanwhile, in a rising rate environment, it is more like that the banks with the greatest re-pricing power could capitalise on the introduction of higher rates. This would constitute having: (i) a low fixed rate financing mix, and/or (ii) a higher CASA-to-deposit ratio. Notably, BIMB and RHBBANK appear to have the highest variable loans rate profile while ABMB, CIMB and MAYBANK stand tall with CASA.

https://klse.i3investor.com/web/pricetarget/research/64806

Maintain OVERWEIGHT on the banking sector. The investment thesis for the banking sector’s resiliency remains affirmed and we believe additional attention could be given to names which demonstrate stronger performance thanks to the factors mentioned above.

( we believe additional attention could be given to names which demonstrate stronger performance thanks to the factors mentioned above. )

MAYBANK (OP; TP: RM11.05) continues to be a favourite for dividends (7-8% yield) for those concerned with capital safety amidst ongoing uncertainties.

https://www.thestar.com.my/business/business-news/2022/09/26/maybank-wins-multiple-asiamoney-awards-in-2022

In a statement, Maybank said it was named the ‘Most Outstanding Company in Malaysia – Banking Sector’ for the second consecutive year under Asiamoney’s annual Asia’s outstanding companies poll.

Close to 1,000 fund managers, buy-side analysts, bankers and research analysts were polled for companies listed across 12 markets in Asia, with 175 companies recognised for their outstanding performance in their respective sectors and markets.

Maybank also received three awards under Asiamoney’s Best Bank Awards in 2022 namely Best Bank for Diversity & Inclusion in Malaysia, Best Investment Bank in Malaysia (Maybank Investment Bank) and Best International Bank in Cambodia.

Some poor people considers own failure as other's people fault.

https://www.thestar.com.my/aseanplus/aseanplus-news/2022/09/23/singapore-overtakes-hk-in-world-financial-centres-ranking

https://klse.i3investor.com/web/insider/detail/SBSH_549681_3278814714

EPF also started....

https://klse.i3investor.com/web/insider/detail/SBSH_549680_3278814716

Wow.....ASB started buying after ex dividend........very good.....add oil

Welcome. Happy investing.

@nhbeen.....in already

It's today, but just checked Boardroom, not in yet....based on previous, should be this afternoon or evening......the dateline is 6th Oct, plenty of time to respond.

Wow....4.6m shares done at pre close 4.40

PNB's fixed income fund, ASB, ASM n ASW, should realign their portfolio by selling the low dividend paying bank stock and buy more Maybank then they will be more able to pay better dividend.

@AqsadMohamad welcome....wise decision, keep for long term, it gives consistent attractive dividend and potential for very good appreciation esp if management can achieve their M25 earning target of above 100 sen per shares in the next few years.

Haha :p

EPF has collected lots and lots of bullets lately......will there be "feel good" when parliament is dissolved ??

This tread has been very quiet lately....now, with sifu ATK back, i think it's going to be lively again.....may be WinSSP will also be back soon ...haha :p

Haha.... :p