Despite 'gloomy' forecast, bank stocks still up

-A +A

KUALA LUMPUR (Dec 26): Despite a "gloomy" 2015 forecast, most of the banking stocks are up on boxing day.

Out of six banking stocks on Bursa, most were up between 0.2% to around 2%.  

As at 4.30pm, the biggest jump was recorded by Hong Leong Financial Group Bhd. Its share price leaped 2.2% hitting an intra-day high of RM16.80 before it retreated to RM16.50.

Malayan Banking Bhd (Maybank) climbed 15 sen, or 1.7%, to RM9.16 after it touched its intra-day high of RM9.24.

Public Bank share price gained 44 sen, or 2.46%, to RM18.34 after it also touched its day high of RM18.40.

Also on the rise, albeit on a smaller margin, was Alliance Financial Group, up 0.2% to RM4.75.

Affin Holdings Bhd's shares rose 0.67% to RM2.97.

AMMB Holdings Bhd rose 0.9% to RM 6.67 before retreating to RM6.64.

Analysts have predicted a gloomy outlook for the banking sector in 2015.

They see the year ahead as not being very different from the lacklustre 2014, mainly due to slower global growth and lower domestic consumption foreseen.

These factors are expected to stifle loan growths and produce smaller net interest margins (NIM).

The Goods and Services Tax (GST) which is set to be implemented in April, 2015 will not only produce higher inflation rate but also impact banks' loan growth.

Speaking to The Edge Markets, remisier Goh Kay Chong from SJ Securities said the rise in banking shares might be due to "big players or institutional funds" buying the stocks.