KUALA LUMPUR, Dec 6 — Kenanga Research believe Alliance Bank Malaysia Bhd’s move to dispose of its stockbroking business will not dent its prospects amid the group’s insignificant market share in the sector.

It said in the financial year ended March 31, 2021, the stockbroking business under the group’s corporate advisory division contributed less than three per cent to its pre-tax profit.

"The proposed disposal will allow the group to reprioritise its businesses to accelerate the growth of consumer, small and medium enterprise (SME) and Islamic banking businesses going forward,” it said in a note today.

On Dec 2, 2021, Alliance Bank entered into a conditional agreement to dispose of its stockbroking business to Phillip Futures Sdn Bhd.

The total consideration of the proposed disposal has yet to be determined and the exercise is expected to be completed by the first half of 2022.

Kenanga Research maintained its "market perform” call with a target price of RM2.65.

At 11.46am, the bank’s share price rose four sen to RM2.88 with 908,500 units traded. — Bernama