Banking stocks advance after OPR hike

Banking stocks advance after OPR hike
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KUALA LUMPUR (Nov 4): Banking stocks were among the top gainers in morning trade on Bursa Malaysia, after the overnight policy rate (OPR) was raised by another 25 basis points to 2.75%.

On Friday (Nov 4), Hong Leong Bank Bhd topped the list of gainers, rising 12 sen or 0.59% to RM20.56. Malayan Banking Bhd (Maybank) was fifth on the list, up by six sen or 0.71% to RM8.47.

Other banking stocks also rose in morning trade — RHB Bank Bhd (up three sen or 0.55% to RM5.51), Alliance Bank Malaysia Bhd (up one sen or 0.27% to RM3.69), Public Bank Bhd (up one sen or 0.23% to RM4.37).

Meanwhile, banks that were unchanged were Allianz Malaysia Bhd (RM13.30), AMMB Holdings Bhd (RM3.95), Bank Islam Malaysia Bhd (RM2.47), and CIMB Group Holdings Bhd (RM5.35).

“Against the backdrop of continued positive growth prospects for the Malaysian economy, the MPC (Monetary Policy Committee) decided to further adjust the degree of monetary accommodation.

“The adjustment would also pre-emptively manage the risk of excessive demand on price pressures consistent with the recalibration of monetary policy settings that balances the risks to domestic inflation and sustainable growth,” BNM said in a statement on Thursday.