0138 GMT - Malaysia's banking stocks could face modest and temporary selling pressure as the reduction in financials' weighting in the KLCI may prompt passive selling of existing constituents, says TA Securities analyst Li Hsia Wong in a note. The KLCI's expansion to 50 stocks from 30 in December would reduce financials' weighting to 36.6% from 42.7% once fully implemented. She expects net selling of about 180 million ringgit across affected banks. The two-stage implementation in December and June 2027 should further limit the immediate impact, she reckons. The banking sector's outlook could remain driven by earnings growth, interest margins, credit costs and dividends, rather than index-related flows, she adds. TA Securities keeps a neutral rating on Malaysia's banking sector, and pegs Alliance Bank Malaysia as its preferred exposure.