Hot Stocks Maybank leads banking stocks decline as broader market slumps

Hot Stocks
Maybank leads banking stocks decline as broader market slumps

KUALA LUMPUR (Sept 2): Malayan Banking Bhd (Maybank), AMMB Holdings Bhd and Public Bank Bhd were top decliners on Bursa Malaysia, amid broader market losses and anticipation of slower loan growth.
At 11:22am, top decliner Maybank shed 38 sen or 4% to RM8.39, with some 13 million shares done.
AMMB, the fifth-largest decliner, fell 19 sen or 4% at 11:23am to RM4.49, the stock's lowest so far today. The stock saw about four million shares traded.
Public Bank Bhd dropped 16 sen or 1% at 11:24am to RM17.84, with around two million shares having changed hands. The stock was the sixth-largest decliner.
Banking shares' decline came amid broader market losses. At 11:27am, the FBM KLCI fell 17.97 points or 1% to 1,591.24.
Reuters reported Asian shares fell for a third straight day on Wednesday, as weak manufacturing reports from China, the United States and Europe fueled worries about slowing global growth, while safe-haven Japanese yen firmed as investors unwound carry trades.
 
In Malaysia, MIDF Amanah Investment Bank Bhd said loan momentum was expected to slow further in the second half of 2015. This was in anticipation of slower business loan demand, due to decelerating economic growth and weak capital market activities.
MIDF said household loan growth was likely to remain soft, after the implementation of the goods and services tax.
"Banks such as Maybank, CIMB and RHB Cap have guided for slow down in pace of loan growth in 2HCY15.
“Should the low commodity prices, weaker ringgit continue, as well as slowdown in external economies be prolonged, we will not be surprised of any increase in banks’ impaired loans with upticks in gross impaired loan (GIL) ratios,” MIDF said.