Weakness in the Indonesian rupiah is expected to weigh on Indonesian operations of Maybank and CIMB despite MSCI deferring its decision regarding Indonesia's emerging markets status, says Raymond Ng at Hong Leong IB. He trims 2026-2028 earnings forecasts for Maybank by about 0.3% and by 2.5% for CIMB, to factor in the weaker rupiah. Still, the impact is likely to be cushioned by stronger net interest margins and capital optimization measures, the analyst says. Given the near-term macroeconomic uncertainty and volatile investor sentiment, Ng favors CIMB and AMMB for their attractive valuations and dividend outlook. Hong Leong maintains an overweight rating on the Malaysian banking sector.(yingxian.wong@wsj.com)
Dow Jones Newswires
Malaysian Banks With Indonesia Operations Seen Weighed by Rupiah Weakness — Market Talk
Weakness in the Indonesian rupiah is expected to weigh on Indonesian operations of Maybank and CIMB despite MSCI deferring its decision regarding Indonesia's emerging markets status, says Raymond Ng at Hong Leong IB. He trims 2026-2028 earnings forecasts for Maybank by about 0.3% and by 2.5% for CI…