Foreign holdings in local banks likely to drop further

PETALING JAYA: Foreign shareholdings of some Malaysian banks could slip further, impacting valuations amid the weaker ringgit spurred by the decline in crude oil prices and in anticipation of interest rate hikes in the United States, said analysts.

With global crude oil prices having plunged more than 50% over the last six months, and the value of the ringgit hitting a six-year low, analysts foresee foreign investors cutting their shareholdings in some banks if this scenario persists.