KUALA LUMPUR (March 20): Banking stocks advanced this morning after Bank Negara Malaysia announced a 100-basis-point cut in the statutory reserve requirement (SRR) ratio from 3% to 2%, effective March 20, in a move to release RM30 billion into the banking system.
Bursa’s financial services index, which counts banks as members, saw a gain of 2.85% or 309.96 points to 11,195.41 points.
As of 9:41am, Public Bank Bhd was the second top gainer on the local bourse, rising 98 sen or 7.74% to RM13.64, on a trading volume of 2.04 million shares
Hong Leong Financial Group Bhd (HLFG) was up 2.28% or 26 sen at RM11.64 per share, while Hong Leong Bank Bhd (HLBB) was up 1.84% or 22 sen higher at RM12.2.
Other banks that saw gains included Malayan Banking Bhd (Maybank), which rose 1.55% or 11 sen to RM7.19.
CIMB Group Holdings Bhd grew 2.87% or nine sen to RM3.23 on a trading volume of 7.86 million shares.
RHB Bank Bhd also posted gains, with the bank’s counter on Bursa Malaysia appreciating 1.64% or seven sen to RM4.35 per share.