Posted by Fabien Extraordinaire > 2018-01-21 10:39 | Report Abuse

Current OPR is at 3%. With major central banks around the world embarking on synchronized normalisation of interest rates given the synchronized growth in global economy, our local bank has to hike to maintain the interest differential.

MFRS 9 is not the main factor why banks are competing so aggresively for deposits. It is the LCR and NSFR that they need to comply with, to maintain the regulatory expectations in regards to liquidity and funding structure. Moreover, there will be added capital buffer requirements in the form of capital conservation and countercylical capital buffer that the banks need to provide in their capital ratios.

Posted by Fabien Extraordinaire > 2018-01-21 10:45 | Report Abuse

btw, Jon, which accounting firm r u working with?

Posted by teoct > 2018-01-21 11:40 | Report Abuse

Fabien Extr. That was what I thought that the OPR is 3% and not 6%. BTW, do you see Malaysia OPR going up this year and if so to what level. Thank you in advance.

Posted by Fabien Extraordinaire > 2018-01-21 12:18 | Report Abuse

Market is pricing in 25bps hike, prob in Jan or March. At most, consensus view is 2 rate hikes max this year to 3.5%.

Posted by Jon Choivo > 2018-01-21 13:45 | Report Abuse

@Fabien

You are probably right. I have not audited banks before. So my understanding is mostly from some brief reading.

Thanks for the comments!

Posted by VenFx > 2018-01-21 16:30 | Report Abuse

Jon Choivo 兄，
Always mind blogging to read your articles .
Keep up

Posted by i3gambler > 2018-01-21 16:35 | Report Abuse

https://omightycap.wordpress.com/market-data/

Malaysia, PE:18.60 Price/Book:1.70 DY:3.00
Singapore, PE:11.00 Price/Book:1.20 DY:3.10

And yet the interest rate in Singapore is much lower than Malaysia.

Posted by Jarklp > 2018-01-21 17:29 | Report Abuse

I doubt Singapore has a PE of 11. I thought it is around 15.

Posted by value88 > 2018-01-21 20:08 | Report Abuse

How about comparing with other ASEAN countries like Philipines, Vietnam etc? Their interest rates are not low like US or Japan, but their stock performance in 2017 were much better than Bursa.
Thus, I think the relatively lower stock performance in Bursa is not solely due to our interest rate.

Posted by Jon Choivo > 2018-01-21 22:11 | Report Abuse

Value88, true. It's one of the factors, but I consider it the main one.

For asean countries, if I have to venture a guess, it's because their countries are far less developed and so double digit growth on companies is more common.

Also their stock markets are alot newer than ours. When the Malaysian stock market first started, people were truly gambling in the market and frying everything up to the sky. MUIIND was worth more than RM20. While it's only 20 sen now.

Cambodia's stock market got less than 20 companies. I imagine Vietnam's is not that much bigger.

Posted by Fabien Extraordinaire > 2018-01-21 23:04 | Report Abuse

No worries, Jon. Just sharing for the benefit of everyone in i3.

I'm ex auditor too but have been working in the banking industry for close to 10 years now.

Posted by value88 > 2018-01-22 17:46 | Report Abuse

Thanks Jon.
Another factor causing Bursa's under-performance in 2H 2017 was probably due to coming election which raises the uncertainty level.
Market does not like uncertainty.

Posted by 3iii > 2018-08-23 21:26 |

Post removed.Why?

Posted by 3iii > 2018-08-23 21:40 | Report Abuse

The GREECE stock market index
(1) 1999 Index peaked at 6500
(2) 2003 Index bottomed at 1500
(3) 2008 Index peaked at 5400
(4) Today, 2018, the Index is at 727 (a drop of 86% from its peak)!!!