Latest news with #MalayanBankingBhd
The Star
6 days ago
- Business
- The Star
Upside potential for ringgit
PETALING JAYA: The ringgit is likely to close at RM4.10 against the US dollar by the end of this year and RM4 by the end of 2026, amid a continuous softening of the US dollar and portfolio inflows. Malayan Banking Bhd (Maybank) head of foreign-exchange (forex) research Saktiandi Supaat said the ringgit's performance in 2025 so far has been supported by a broad decline in the greenback, which stemmed from fading US 'exceptionalism' and tariff-driven concerns on US growth. He noted that Federal Reserve rate cuts had also been priced in, which in turn made global investors shift away from the United States. 'The broad decline in the dollar will still be on track for the next six months and most of 2026. Generally, tariffs will be the key theme on top of others,' he said at Maybank Investment Bank's second half of 2025 (2H25) Market Outlook virtual media briefing yesterday. Currently, US$1 equals to around RM4.25. He reckoned that the ringgit was still fairly valued at this stage, with upside potential. Ongoing domestic initiatives such as government-linked companies forex conversions, resident investor programmes and promoting the ringgit in cross-border trade are steps in the right direction, he added. Saktiandi also noted that foreign currency deposits in Malaysia had grown, particularly among corporates. Meanwhile, Standard Chartered, which also held its second-half market outlook briefing yesterday, expects the ringgit to trade within a narrow range of 4.20 to 4.30 against the US dollar over the next 12 months, also supported by a broadly weak greenback. Senior investment strategist Yap Fook Hien said the US dollar's weakness had largely been priced in, and the currency is expected to stay soft – at least for the next 12 months. 'Most of the weakening has already happened and we do not expect a bounce back. At the moment, our view is that at least for the next 12 months, it will be weak,' he said at the bank's 2H25 Global Market Outlook briefing. 'But also important to note, we're not looking at a collapse of the US dollar.' He noted that the US Dollar Index (DXY), which has hovered between 100 and 110 since 2022, slipped below 100 in April amid 'Liberation Day' tariff concerns, and now trades around 98. Standard Chartered's 12-month target for the DXY is 96. On the local economy, Maybank group chief economist Suhaimi Ilias said he was maintaining Malaysia's 2025 real gross domestic product growth forecast at 4.1%. It has been revised downwards twice this year from the original 4.9% as a result of the reciprocal tariff announcement in April and lower-than-expected first-quarter growth. The prolonged uncertainties plus overhangs in US trade policy and tariff actions, as well as the outcome of Malaysia's negotiations with the United States will continue to be in focus, he said. 'There is still resilience in domestic demand, especially consumer spending and investment,' he said, adding that the country's investment upcycle appeared intact. Head of equity research Lim Sue Lin said Maybank's year-end FBM KLCI target remained at 1,660 points, 14.4 times the 2026 price earnings ratio. 'Three sector thematics to explore for the rest of 2025 are plantations, utilities/renewable energy and ports,' Lim said. Although 'neutral' on banks, Lim noted that they remained a 'crucial driver' in terms of the direction of the stock market benchmark index. Lim is also positive on the consumer, healthcare and real estate investment trust sectors. 'The (newly imposed) sales and service tax will only affect the consumer discretionary sector,' she said, adding that she remained positive on consumer staples. At its briefing, Standard Chartered Malaysia head of managed investments and advisory Ng Shin Seong added that the narrowing interest rate gap between the United States and Malaysia could support the ringgit, although 'there's just a couple more percent in our 12-month view'. 'There has been a pre-emptive cut in Malaysia's overnight policy rate, and the US Federal Reserve is expected to cut rates further,' he said. Despite market uncertainty from US trade tensions, Ng said the macroeconomic data for Malaysia remained resilient. 'Once uncertainties are alleviated, that could help the market. Based on the hard data, the country is doing okay.' Yap said a weak US dollar typically supports equities and favours non-US assets, prompting the bank to upgrade its view on emerging market local currency bonds and Asia ex-Japan equities. 'We expect a soft landing in the United States, which is positive for global equities, but the tilt is towards non-US assets,' he said. 'Asia ex-Japan valuations are attractive, and we prefer China and South Korea due to ongoing stimulus and artificial intelligence developments.' Within China, Yap said Standard Chartered adopted a barbell strategy, favouring high-dividend state-owned enterprises for stability and technology stocks for growth. In South Korea, he said improving corporate governance and fiscal stimulus are expected to attract more inflows. As for Asean, Yap said the region remained defensive and resilient, but may underperform in a strong global rally. 'Asean tends to outperform in weaker markets. At the moment, we prefer other markets for outperformance potential,' he said. He added that gold and alternative assets remained relevant in a diversified portfolio, especially amid global uncertainties, while reiterating that the US dollar remained the world's most liquid currency despite its weakness. On tariff developments, Yap said further delays are likely, given the complexity of reaching consensus across multiple countries. 'It's quite likely you'll see a bit more postponement further down the road because to get agreement from so many countries is actually very difficult. Each country has its own specific tariff, and how they calculate that number can be a mystery,' he said.
The Star
15-07-2025
- Business
- The Star
Trading ideas: Maybank, CIMB, Capital A, Aeon Credit, Hengyuan, Ramssol, Flexidynamic, MRCB, Zetrix, Rex
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Malayan Banking Bhd is extending a US$150mn sustainability-linked loan to AT&S Malaysia, marking the first such loan by a Malaysian and Southeast Asian lender to AT&S and the first such loan by a local lender to a multinational company in Malaysia's semiconductor sector. CIMB Group Holdings Bhd has set a new sustainable finance target of RM300bn by 2030, more than tripling its previous goal. Capital A Bhd has inked a memorandum of understanding with Keretapi Tanah Melayu Bhd for a planned collaboration in travel services, food and beverage, loyalty programmes and logistics. Aeon Credit Service (M) Bhd has made its 10th issuance of sukuk wakalah under the Islamic Commercial Papers programme, with a total nominal amount of RM150mn and a 179-day tenure starting from 14 July 2025. Hengyuan Refining Company Bhd is planning to raise up to RM300mn through a renounceable rights issue that includes free detachable warrants to finance the purchase of crude oil. Ramssol Group Bhd has entered into a share sale agreement with Sagtec Global Ltd for the disposal of its 40% equity interest in Rider Gate Sdn Bhd for a disposal consideration of RM25mn. Flexidynamic Holdings Bhd , a rubber gloves manufacturer, plans to diversify into the gamma sterilisation business by acquiring a 51% stake in Gammatech Sdn Bhd for RM16.1mn. Malaysian Resources Corp Bhd's wholly-owned subsidiary, Country Annexe Sdn Bhd, and Ipoh Sentral Sdn Bhd will jointly develop Ipoh Sentral in Perak with an estimated gross development value of RM6.3bn. Zetrix AI Bhd, formerly MyEG Services Bhd , is ramping up expansion across Southeast Asia to reduce reliance on government contracts, said managing director TS Wong. Independent adviser cfSolutions has advised minority shareholders of Rex Industry Bhd to reject the conditional mandatory takeover offer by controlling shareholder ETA Industries, stating that the 10 sen per share and 0.5 sen per warrant offer is not fair and not reasonable.
The Sun
14-07-2025
- Business
- The Sun
Maybank grants US$150m green loan to Austria's AT&S
KUALA LUMPUR: Malayan Banking Bhd (Maybank) is granting a sustainability-linked loan (SLL) amounting to US$150 million (RM638 million) to Austria Technologie & Systemtechnik Malaysia Sdn Bhd (AT&S). In a statement yesterday, the bank said the landmark transaction marks the first SLL issued by a Malaysian and Southeast Asian commercial bank to AT&S, and the first such facility by a local lender to a multinational company in Malaysia's semiconductor sector. Maybank said the financing would support the development of AT&S's first high-end integrated circuit (IC) substrate plant at Kedah's Kulim Hi-Tech Park that will include state-of-the-art equipment and closed-loop recycling systems, adhering to AT&S's comprehensive sustainable energy framework. The facility will produce advanced IC substrates, essential components to meet surging demand for high-performance data processors, data centres, and artificial intelligence (AI) infrastructure. The targets attached to the SLL include reducing annual greenhouse gas emissions by 31% by March 31, 2028, using fiscal year 2022 as the baseline. Maybank Global Banking Group CEO Datuk John Chong said from 2021 to the end of the first quarter of 2025, Maybank mobilised RM125.46 billion in sustainable finance across Asean, surpassing its RM80 billion target by 2025. 'We are pleased to support AT&S in developing its first IC substrate facility in Kulim, a project that not only marks a significant milestone for the company but also further reinforces Malaysia's position in the global semiconductor value chain. 'The financing aligns with our strategic focus on the semiconductor ecosystem in Southeast Asia, where we have identified financing opportunities,' he said. AT&S president/CEO Michael Mertin said the company's sizable investment of over US$1 billion in Malaysia follows the demand from its global clients, and reflects its confidence in Malaysia's semiconductor ecosystem and its growth trajectory. 'It also aligns with the ambitions of Malaysia's National Semiconductor Strategy and the New Industrial Master Plan 2030 to position the country as a leading hub for advanced manufacturing,' he said. – Bernama
The Star
11-07-2025
- Business
- The Star
Interest rate cut no dampener on banks
RHB Research said the impact from the cut would not be too significant. PETALING JAYA: The 25-basis-point (bps) benchmark interest rate cut by Bank Negara on Wednesday is seen as having limited impact on banks' bottom lines for now, given the injection of liquidity into the financial system from the cut in the statutory reserve requirement (SRR) announced in May. Bank Negara cut the overnight policy rate (OPR) by 25 bps to 2.75% as a pre-emptive move to cushion a slowdown in the economy, given the volatility brought on by uncertain US tariff policy. The central bank had also cut the SRR, which manages liquidity in the banking system by 1% from 2% in May to ensure liquidity in the system. RHB Research, which has a 'neutral' call on bank stocks, said the impact from the cut would not be too significant. 'We believe that the banks' earnings sensitivity to a 25-bps rate cut is manageable, with sector profit after tax and minority interests affected by about minus 1% to minus 2% on a full-year basis,' it said. The research house's top bank stock picks remained Malayan Banking Bhd (target price or TP of RM10.90), Hong Leong Bank Bhd (TP of RM24.30) and CIMB Group Holdings Bhd (TP of RM8.40). 'We maintain our forecasts pending the second quarter ended June 30 (2Q) reporting season, and as the impact of the OPR cut should be broadly cushioned by the SRR reduction,' it said. Hong Leong Investment Bank Research, which has an unchanged 'overweight' call on banks, said the anticipation of an OPR cut had led banks to adopt a cushioning strategy by reducing promotional and conventional fixed deposit rates by five to 20 bps since April, as typically an OPR cut would put pressure on their net interest margins (NIMs). It has recommended a strategy of leaning into cyclical bank stocks during sell-offs to position for the rebound, with CIMB (TP of RM8.80) and AMMB Holdings Bhd (TP of RM6.20) serving as the primary high-beta (that is, more volatile) vehicles to capture the upswing and RHB Bank (TP of RM7.70) offering a balancing, high-quality exposure with defensible growth prospect. 'We also have 'buy' calls on Affin Bank Bhd (TP of RM3), Alliance Bank Malaysia Bhd (TP of RM5), Public Bank Bhd (TP of RM5.10). Key risk to our 'overweight' call includes a sharper-than expected economic slowdown, prolonged deposit pricing pressure and escalation in global trade tensions,' it said. Kenanga Research, which has an unchanged 'overweight' call, said earnings in 3Q could decrease by 1% to 4% purely from lower adjusted NIMs. Its top pick for 3Q, AMMB (TP of RM6.90), has more solid return-on-equity backbone as the bank focuses on stronger earnings drivers as opposed to gaining market share in less profitable segments.
The Star
09-07-2025
- Business
- The Star
Maybank cuts base rate and BLR by 25 basis points
KUALA LUMPUR: Malayan Banking Bhd (Maybank) will will reduce its base rate (BR) and base lending rate (BLR) by 25 basis points effective July 11, in line with the reduction in the Overnight Policy Rate today. Maybank's BR will be lowered from 3.00% per annum to 2.75% per annum while its BLR will be revised from 6.65% per annum to 6.40% per annum. Similarly, the Islamic Base Financing Rate will be reduced by 25 basis points from 6.65% per annum to 6.40% per annum. In line with the revision, Maybank and Maybank Islamic's fixed deposit rates will also be adjusted downwards by 25 basis points on July 11. The last revision in Maybank's BR was on May 8, 2023 when it was revised to 3.00% per annum from 2.75% per annum.
