Stable OPRa catalyst for banking stocks

PETALING JAYA: Over the past two weeks, the share prices of major banks in Malaysia have appreciated in tandem with the rise of FBM KLCI, leaving some observers wondering if the stabilisation in the overnight policy rate (OPR) has been a factor.

For example, the share price of RHB Bank Bhd had increased by 6 sen, or 1.08%, from Nov 1 close of RM5.58 to settle at RM5.64 last Friday; with AMMB Holdings Bhd also closing 1.3%, or 5 sen, higher at RM3.87 from RM3.82 on Nov 1.