KUALA LUMPUR (Aug 11): Malayan Banking Bhd (Maybank) saw its share price fall as much as 32 sen or 3.64% to RM8.48 in the morning trade, just as most other banking stocks decline, as the industry braces for more challenging times ahead.

CIMB Group Holdings Bhd was down 0.59%, Public Bank Bhd slipped 0.74%, and RHB Capital Bhd fell 1.82% in the morning trade.

According to research firm Asia Analytica, softness in the property market and weak consumer spending is weighing down loan growth.

Non-performing loans could also rise as economic growth weakens and consumers feel the brunt of high household debts, it said.

“However, in this challenging environment, we favour Maybank (fundamental: 1.5; valuation: 1.45) among the banks for its resilient earnings, sustainable dividends, and strong market position, which we believe will help it weather the macro headwinds,” said Asia Analytica.

An analyst with MIDF Research said Maybank’s share price dip today was not due to its fundamentals, but more due to the bearish sentiment in the market.

“All other banking stocks are down as well. It is more of a macro situation rather than to pinpoint one bank in particular. Maybank’s downward share price movement today is more in line with the tone of the market, which is bearish,” said the analyst.

At 2.32pm today, Maybank shares were still trading at its morning low of RM8.48, with 16.1 million shares traded. The current price gives it a market capitalisation of RM81 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)