KUALA LUMPUR: The stock of Malaysia's number two lender took a beating yesterday, closing 4.6 per cent down to a one-year low of RM7.25, on concerns of slower growth this year.
Analysts said as the stock has a lot of foreign owners, it was no surprise that there were more sellers than buyers since Wednesday, despite CIMB Group Holdings Bhd's record second quarter earnings on Tuesday.
"It is similar to Axiata's stock. Axiata also has high foreign shareholding and it suffered the same fate," said one analyst.
The analyst said since CIMB has always commanded a high valua-tion, a slight concern over its performance can easily affect the stock price.
Despite that, it was considered to be still 9.2 per cent below the consensus of most analysts.
They attributed the sell down of the stock to mostly concerns over slower loans and non-interest income growth.
MIDF Research for one has cut CIMB's earnings forecast for 2011 by 6 per cent due to the low loan growth.
OSK Investment Bank equity capital market head Gan Kim Khoon said CIMB's results were below the expectations of many.
"And there are concerns over its stake in Indonesia's Bank Niaga as CIMB has got more to lose with the new ruling compared to Maybank," he said