Dagang NeXchange Berhad Annual Report 2019

FINANCIAL STATEMENTS annual report 2019 179 30. FINANCIAL INSTRUMENTS (CONTINUED) 30.6 Market risk (continued) 30.6.2 Interest rate risk (continued) Exposure to interest rate risk (continued) Effective interest rate per Within 2 – 5 > 5 annum Total 1 year years years % RM’000 RM’000 RM’000 RM’000 Company 2018 Floating rate instruments Loans and borrowings 5.85 - 6.10 (18,000) (18,000) - - Interest rate risk sensitivity analysis A change of 100 basis points (“bp”) in interest rates at the end of the reporting period would have increased/(decreased) post-tax profit or loss by the amounts shown below. This analysis assumes that all other variables remained constant: Group Company Profit or loss Profit or loss 100 bp 100 bp 100 bp 100 bp increase decrease increase decrease RM’000 RM’000 RM’000 RM’000 2019 Floating rate instruments (504) 504 (213) 213 2018 Floating rate instruments (358) 358 (137) 137 30.6.3 Other price risk Equity price risk arises from the Group’s investments in quoted equity securities. Risk management objectives, policies and processes for managing the risk Management of the Group monitors the quoted equity investments on a portfolio basis. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the Board of Directors. Equity price risk sensitivity analysis The Group does not have investments in quoted equity securities at the end of the reporting date.