Malaysia's Banks Performing and Unaffected by Eurozone Crisis

The recent heavy sell down on the Malaysia stock market and causing the FBM KLCI to tumbles in the past 2 weeks are already picking up. 

Firstly, the main cause is the Eurozone debt crisis which involve Greece, Spain and Portugal, but up to date the International Monetary Fund (IMF) and the European Union (EU) had already bailout them by providing loans. 

Secondly, it was the huge quarter losses of plantation conglomerate Sime Darby. Up to now, Sime Darby share price had already slump down 12% in 2 weeks. The CEO of Sime Darby had also been removed. 

Thirdly,  as we know if the manufacturing sector is suffering a meltdown in demand from Europe, then this will indirectly affect the banks lending prospects, and this was not the problem, as the manufacturing sector in Malaysia is on a pick up trend. Furthermore, Malaysian banks also have no exposure to any of Europe’s papers or business interest.

Although interest rate hikes totalling 75 basis points in 2010, but those bankers are still confident on the loan growth and will be stronger than previous year. If not the Bank Negara will not raise the interest rates. And the inflation are not in pressure.

Thus, Malaysia Banks are fundamentally good and performing and are not in a worrying trend.

Maxis Topic Again - hot hot topic - What Say u On the Pre - IPO period ??

Maxis relisting still the hottest topic for this week since the announcement of the plan to relist. Everyday, every blog, every forum discussing non stop. Some say.. the offer to the public is to little, some say is not worth if the price above RM5.

But Im doubting whether Malaysians or the investors are really try to snatch a piece of Maxis shares ?? whether does investors in the telecommunications industry will cash out their $$ in Axiata and Digi ?? will they ?? and will other investors cashing out from other shares ??  n grab a piece of Maxis...haha... if is really...then could it affect the Composite Index (KLCI) during the subscription period ? or even if they could not get will they ready the money and grab on the 1st day of listing ??