Monday, September 26, 2011

Maybank falls to 52-week low in early trade

KUALA LUMPUR: Maybank fell to 52-week low in early trade on Monday, Sept 26 and saw some RM1.34 billion cut from its market capitalisation within 25 minutes of trading, as the stock continued to remain under selling pressure.

At 9.25am, Maybank fell 18 sen to RM7.81 with 484,700 shares done on concerns that it could face a derating risk. The stock had earlier fallen to RM7.80, its 52-week low.

Analysts however have said the banking group's fundamentals were intact and the banking sector remained sound.

Affin Investment Research last week said the reality that the selldown in equities have more do to with fear and jitters, and in fact, could be uncontrollable when irrationality sets in.

It said the Malaysian banking sector remains sound, as reflected by sufficient capital adequacy ratios and healthy loan growth even through 2008-2009, aided by accommodative monetary policy.

'In terms of asset quality, there was no significant build-up of non-performing loans during the last financial crisis in 2008 despite the financial market turbulence. No banks in Malaysia suffered from serious collateral damage as there was little portfolio exposure to western derivative instruments or the developed economies,' it said.

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