The Employees Provident Fund (EPF) has marginally reduced its stake in Hong Leong Bank Bhd, according to a Bursa Malaysia filing, as the lender’s share price has fallen by more than 10% over the past six months.
The retirement fund disposed of 1.96 million ordinary shares in Hong Leong Bank on July 21, lowering its direct shareholding to 202.77 million shares, equivalent to 9.718% of the bank’s issued share capital.
The filing showed the transaction reduced EPF’s holdings only marginally, with the pension fund remaining one of Hong Leong Bank’s largest institutional shareholders.
The disposal comes amid a period of weaker share price performance for Hong Leong Bank. The banking group’s shares have retreated by more than 10% over the past six months, reflecting broader market volatility and investor caution towards the banking sector despite resilient earnings.
Analysts have attributed recent weakness in banking stocks to concerns over moderating loan growth, pressure on net interest margins and uncertainty surrounding the domestic interest rate outlook, even as asset quality across the sector remains relatively stable.
Despite the recent pullback, Hong Leong Bank continues to maintain solid capital buffers and a strong balance sheet, with investors closely watching its upcoming quarterly earnings for indications on loan growth, margins and management’s outlook for the remainder of the financial year.
