KUALA LUMPUR (Sept 9): Shares in Affin Holdings Bhd inched up three sen or 1.32% in the morning trading session, despite speculation that its investment arm may cut jobs within the company.

At 12.30pm midday break, the banking group's shares were settled at RM2.31, after hitting a high of RM2.32 earlier, albeit thin trading margin of 91,300.

The current price gives Affin some RM4.45 billion in market capitalisation.

Affin has been on the declined over the past one year. Year-to-date, its shares had shed 20.34%, underperforming FBM KLCI's 9.21% fall.

digitaledge Daily (deD) quoted industry sources that Affin Hwang Capital had sent out an email to its staff recently, informing them of an impending rationalisation and consolidation exercise,.

This has sparked speculation that the investment banking arm of Affin could be the next financial group to announce job cuts, as the operating environment in the investment banking industry is getting harsh.

The sources told deD that the email notes that the heads of departments will be talking to staff this week on the repositioning of the group’s business model, through a rationalisation and consolidation exercise.

However, the source did not elaborate on what the rationalisation and consolidation exercise will entail.