PETALING JAYA: Banking stocks, which have seen sharp falls in their values, will continue to see volatility in trading on expectations of further policy easing by Bank Negara to address the impact of the Covid-19 pandemic.
With another 50 basis points cut in the overnight policy rate likely in May or possibly earlier if economic conditions worsen, this will add pressure on the margins of banks, which are already squeezed by lower demand and the moratorium period on repayments for loans affected by Covid-19.
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