Malaysian banks back in favour with investors

Kuala Lumpur

A NOTICEABLE recovery in loans growth and expectations of improved earnings have put Malaysian banks back on the investment radar, and interest in the sector appears to be sustained despite hefty share price increases.

Investors started to nibble at banking counters around December when the stock market began to perk up, with the momentum picking up on better loans growth and the return of foreign funds.

Some banking stocks are already trading at their highest in a year, with the potential for additional gains as analysts remain overweight on the sector because the outlook fo…