Friday 29 Mar 2024
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KUALA LUMPUR (Jan 15): Public Bank Bhd and Malayan Banking Bhd (Maybank) are among the top losers on Bursa Malaysia now, following the discussions on a possible overnight policy rate (OPR) cut.

“The weakness in banks' share price today could be due to profit-taking activities and the discussion surrounding the possibility of another OPR cut by Bank Negara following MCO 2.0 (movement control order),” MIDF Amanah Investment Bank Bhd research head Imran Yassin Yusof told theedgemarkets.com.

Talks on the possible OPR cut are due to the anticipated economic impact from the reimplementation of a 14-day MCO in the capital and five states, of which some quarters are doubting that the lockdown will only be for two weeks. 

At the time of writing, shares in the second top loser Public Bank were 22 sen or 1.01% lower at RM21.48, valuing the bank at RM83.39 billion.

Over the past one year, Public Bank has risen 9.8% from RM19.56, and even more impressive is its 70% surge from RM12.66 in March last year.

Meanwhile, Maybank’s share price was down eight sen or 0.96% at RM8.27, giving it a market capitalisation of RM92.97 billion. While this counter has slipped 3.84% from RM8.60 a year ago, it gained 18.1%, from last year’s low of RM7 in November.

At the moment, Imran said MIDF is maintaining its stance on an unchanged OPR at least in the upcoming monetary policy committee (MPC) meeting given the less restrictive nature of MCO 2.0.

The upcoming MPC meeting is scheduled to be held next week on Jan 20.

Last year, the local central bank made four OPR cuts and slashed a total of 125 basis points to its lowest-ever level of 1.75%.

Edited BySurin Murugiah
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