KUALA LUMPUR (Oct 11): CIMB Group Holdings Bhd’s share price hit the RM5 mark on Monday for the first time since February 2020 on buying interest amid expectations that banks would benefit from the pickup in economic activities.

The counter closed 10 sen or 2.04% higher at RM5, after climbing to a high of RM5.03, with the trading volume jumping to over 23 million units.

In comparison, the counter saw 7.72 million shares changing hands on Friday (Oct 8).

The latest rise in price boosted CIMB’s market capitalisation by about RM1 billion to RM50.07 billion.

Year-to-date, CIMB has gained 17% from RM4.28 on Jan 4. Compared to its low of RM2.90 in November last year, the stock has rallied by 72%.

Banking stocks, regarded as a proxy to the economy, have attracted renewed buying on the back of an anticipated economic recovery,  after more economic sectors were allowed to operate and the resumption of interstate travel in the country.

The Bursa Malaysia Financial Service index closed 140.90 points or 0.93% higher at 15,353.46.

CIMB’s larger rival Malayan Banking Bhd closed up 11 sen or 1.37% at RM8.16, while Public Bank Bhd gained three sen or 0.74% to RM4.11 and RHB Bank Bhd added eight sen or 1.5% to RM5.41.

Hong Leong Bank Bhd and Hong Leong Financial Group Bhd closed unchanged at RM18.60 and RM17.90 respectively.