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enricHing national Progress ENRICHING SUSTAINABLE RETURNS

notes to tHe financial statements

for the year ended 31 december 2023

34. FiNANCiAL RiSK (CONTiNUED)
(b) Equity price risk

the group’s and KWap’s quoted equity instruments are susceptible to market price risk arising from uncertainties
in relation to the future values of investment securities. the group and KWap manage the equity price risk through
diversification as well as placements of limits on the individual and total equity instruments. reports on the equity
portfolio are regularly submitted to the group’s and KWap’s senior management. equity investment decisions are
reviewed and approved by the investment panel of the group and of KWap.

Equity price sensitivity
the following table demonstrates the sensitivity to the reasonable possible change in equity price of the group’s
and KWap’s equity investments, due to the changes in fair value of quoted equity shares, with all other variables
held constant.

Group KWAP Group KWAP
Effect On Effect On
Effect On Effect On Profit Before Profit Before
Equity Equity Tax Tax
RM’000 RM’000 RM’000 RM’000

2023

Domestic Equity
increase of 5% in equity price 2,804,993 2,804,993 1,365,722 1,365,722
decrease of 5% in equity price (2,804,993) (2,804,993) (1,365,722) (1,365,722)
international Equity
increase of 10% in equity price 2,451,175 2,451,175 1,900,202 1,900,202
decrease of 10% in equity price (2,451,175) (2,451,175) (1,900,202) (1,900,202)
2022
Domestic Equity
increase of 5% in equity price 2,735,372 2,735,372 1,312,521 1,312,521
decrease of 5% in equity price (2,735,372) (2,735,372) (1,312,521) (1,312,521)
international Equity
increase of 10% in equity price 1,697,185 1,697,185 1,651,616 1,651,616
decrease of 10% in equity price (1,697,185) (1,697,185) (1,651,616) (1,651,616)
(c) Foreign exchange risk

the foreign exchange risk is the risk that the fair value or future cash flows of financial instruments will fluctuate
due to the changes in the foreign exchange rates.

the group’s and KWap’s exposure to foreign exchange risk includes international equity, fixed income and
alternative investments such as private equity funds and properties.

218 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INTEGRATED REPORT 2023