KUALA LUMPUR (July 17): Malaysian banks rose on Friday, helping the FBM KLCI rack up its biggest weekly gains in 15 months, as investors cheered stronger-than-expected economic growth data.
Malayan Banking Bhd (KL:MAYBANK), the country’s largest lender by assets, was up 1.4% to RM11.20. Overall, eight out of 10 banking stocks were positive while Bursa Malaysia Financial Services Index, which also tracks insurers and pawnbrokers, climbed to its highest in nearly four months.
Strong gross domestic product data is positive for the banking sector, said Ivy Ng, head of research at CIMB Securities.
Banks, especially large commercial banks such as Malayan Banking, are key proxies to economic growth, and their income from interest charged on loans and fees on transactions is closely tied to the health of the economy.
Data out earlier on Friday showed that the economy accelerated faster than expected in the second quarter. Malaysia has defied expectations for weaker economic activity in the second quarter from shortages of energy and industrial materials amid the raging Middle East war.
The FBM KLCI, meanwhile, is bucking the declines in Asian stock markets. Public Bank Bhd (KL:PBBANK), the third-biggest bank by assets, rose to a new all-time high and PETRONAS Chemicals Group Bhd (KL:PCHEM), which advanced over 3% to RM4.73, also helped to lift the 30-stock benchmark index.
The benchmark index is also on track for an over 2% gain this week that would mark its best weekly performance since April 2025.
