KUALA LUMPUR: Banking stocks are among Bursa Malaysia's top losers at midday break today, following Fitch Ratings' report that the ratings outlook for global banks have turned negative for 2021.
Hong Leong Financial Group Bhd is the worst among the banking stocks, losing 2.3 per cent or 42 sen to close at RM17.82 as Bursa's fourth most loser.
Hong Leong Bank Bhd fell 22 sen or 1.22 per cent to RM17.88.
This was followed by Public Bank Bhd, BIMB Holdings Bhd, CIMB Group Holdings Bhd and Malayan Banking Bhd.
Public Bank shed 18 sen or 0.87 per cent to RM20.44, BIMB shrank nine sen or 2.09 per cent to RM4.21, CIMB dropped nine sen or 2.09 per cent to RM4.21 and Maybank rased eight sen or 0.96 per cent to RM8.23.
Fitch Ratings, in a report today, said rating outlooks had turned negative for banks in most jurisdictions this year compared to 2020.
This reflected downside risks to its baseline scenario from a potentially sluggish economic recovery following sharp deterioration in 2020 owing to the pandemic.
Fitch said the rating outlook for Malaysian banks was "negative", while the sector outlook was "stable".
The key issues for Malaysian banks were slow non-performing loan recognition, lower profitability and property market risks, it added.