Hot Stock CMSB falls 4.4% after HSBC winds down banking business in Sarawak

by **Cals** Thu 01 May 2014, 01:46

Hot Stock CMSB falls 4.4% after HSBC winds down banking business in Sarawak

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Wednesday, 30 April 2014 13:11

KUALA LUMPUR (Apr 30): Cahya Mata Sarawak Bhd (CMSB) fell as much as 4.4% after news reports that HSBC has withdrawn banking support for firms in Sarawak due to “commercial reasons”.

Sarawak-based online portals said firms linked to Sarawak’s former Chief Minister, Tan Sri Abdul Taib Mahmud, are affected.

At 12.30 pm, CMSB fell 33 sen or 3.3% to RM9.55 with some 695,200 shares traded. The counter was the second top loser across the board, after falling as much as 42 sen or 4.4% to a low of RM9.46.

CMSB is the flagship company of Tan Sri Abdul Taib Mahmud. The group is involved in most key businesses in Sarawak.

On Monday, HSBC Malaysia told theedgemalaysia.com, it has decided to “wind down” commercial banking business in the state due to “commercial reasons”.

But HSBC Malaysia declined to confirm whether it has withdrawn banking support for firms linked to the former powerful chief minister of Sarawak, Tan Sri Abdul Taib Mahmud, and his family.

In an email statement in response to questions from theedgemalaysia.com, HSBC Malaysia said since May 2011 the group has been systematically putting all its businesses through strategic assessment.

“All impacted customers were informed in scheduled face-to-face meetings and by letter starting 9 October 2013,” it said in reply to theedgemalaysia’s query.

According to a report on FMT Borneo’s website, HSBC is “no longer doing business” with the former powerful Taib Mahmud and his family.

“HSBC’s decision here is closely linked to its desire to withdraw from tainted active business,” said the FMT report.