Uptrend seen in foreign shareholding of local banks

After the doldrums, the sector is expected to pick up momentum in the second half of next year with a recovery in, among others, oil prices as well as a clear direction on US policies especially on its interest rates

PETALING JAYA: Foreign investors are warming up to Malaysian banks again as the proportion of shareholding from overseas funds has picked up since the turn of the year due to expectations of an earnings recovery for the sector, according to analysts.

Since the beginning of this year, four out of the five biggest public-listed banking groups have shown an increase in shareholding by foreign investors as of the end of February. The figures may have risen higher this month as banking stocks rallied over the past three weeks.