PETALING JAYA: With bond yields rising, Malaysian banks face potential short-term risks, says MBSB Research.
Investors are already pricing in the risk. The largest listed bank in Malaysia, Malayan Banking Bhd
, has slumped by over 20% from its year-to-date peak, losing RM31bil in market capitalisation.
The stock closed at RM9.80 yesterday, the lowest in more than nine months.
“Much of the discussion surrounding higher interest rates tends to focus on net interest margins and reinvestment yields,” MBSB Research said in a note.
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