Due to limited expansion of return on equity (roe), coupled with possible interest rate cuts next year, local banks may face pressure on net interest margin. Analysts believe that the prospects of bank stocks are mediocre, especially for the leading Maybank. $MAYBANK (1155.MY)$ Cautioning investors, suggesting reducing holdings!
The latest analysis report from Malaysian investment banks suggests that the banking industry may cool down next year, with a sector rating of only 'neutral'. Maybank, with a high valuation, is likely to be the first to feel the impact, with the target price plummeting from the original 10.80 ringgit to 8.85 ringgit; the rating has also been downgraded to 'shareholding'.
The analyst stated that the reason for slashing the target price of the bank was not only due to the pressure on the return on equity, but also because the stock price of the bank was at a relatively high level compared to its book value.
In addition, the bank's operating income, compared to 6.9% in the 2024 fiscal year, is expected to drop significantly to 3% in the 2025 fiscal year, mainly due to a slowdown in funding and market income.
Therefore, in view of the various downside risks, analysts have lowered the target price and rating of Ma Bank.
Investing in banks with high roe is the strategy.
Overall, in the banking sector, analysts believe that banks with high return on equity and high liquidity will be one of the key investment focuses given the current situation.
Analysts pointed out that by the 2025 fiscal year, the return on equity (ROE) had only increased from 9.4% to 9.7%, mainly due to the core net profit of banks, expected to decrease from this year's 7% to 6....

With just one day left until the US presidential election, the situation is affecting regional stock markets. Today, Japan is closed for a holiday, and regional stock markets are flourishing, showing strong growth.
Looking back at the Malaysian stock market, the KLSE Composite Index... $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ After opening slightly higher at 1607.75, it once climbed to 1615.95, trading in a narrow range.
Most blue chip stocks are on the rise, but there is indeed a polarizing trend in bank stocks. Public Bank, a leading bank in the Malaysian market, leads the sse conglomerates index. $MAYBANK (1155.MY)$ Public Bank, the second largest in the market, led the sse conglomerates index, while Maybank, the top player in the Malaysian market. $PBBANK (1295.MY)$ Dropped 1.35% today, limiting the gain of the sse conglomerates index.
The FTSE Bursa Malaysia KLCI closed at 1611.65 points at midday, up 7.67 points or 0.48%.
The volume for the morning session was 1.450 million shares, with a value of 1.572 billion ringgit.
The FTSE Bursa Malaysia All-Share Index closed at 12186.10 points at the break, up 57.76 points.
There were 464 gainers, 441 losers, 446 unchanged, and 1020 unchanged counters.
As of 12:30 PM, the exchange rate of 1 US dollar to Malaysian ringgit is reported at 4.3620 level.
Focus on the US election.
Wall Street's attention is on the US election.
But actual bets are not aggressive.
With one trading day left until the US election day, voters will cast their ballots on Tuesday to elect the next US president, which will have an impact...

After winning the second 5G, the dark horse U Mobile has indicated a reduction in foreign shareholding percentage, potentially creating a listing opportunity for this telecommunications network operator!
To ensure greater control in Malaysia, U Mobile's major shareholder Straits Mobile Investments from Singapore needs to sell 28.3% of its equity, reducing foreign shareholding to 20%; research by Lianchang International Investment Bank predicts that this could be part of U Mobile's initial public offering (IPO) listing.
Before winning the second 5G, U Mobile had already become a focus in the local capital markets. In July this year, it was rumored that Mingxun $MAXIS (6012.MY)$ Intending to acquire U Mobile's equity; but the latter offered a sky-high price of 10 billion ringgit, with the second largest shareholder Tan Sri Tan Sri Chen Zhiyuan indicating rejection of the acquisition invitation and preparing for an IPO!
Winning the second 5G network unexpectedly undoubtedly boosted the momentum for U Mobile's potential listing plan.
Of course, analysts do not rule out the possibility that overseas major shareholders may sell their U Mobile shares to another telecommunications company, stating that this still depends on the specific shareholding and participation of the telecommunications company in the second 5G network.
Dahua Jixian Research predicts that under the 5G dual-network framework, the future foreign shareholding ratios of the two entities will be more balanced.
"Assuming that U Mobile's shareholding ratio in the second 5G network entity B is 5...

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