0117 GMT - The sharp repricing of Malaysian Government Securities might add another headwind to banks' 2H noninterest income, but the earnings and book-value impact could remain manageable, Hong Leong IB analyst Raymond Ng says in a note. The 10-year MGS yield has risen to 3.94% from 3.60% at end-June, with further volatility possible if U.S. rates remain elevated, he notes. Higher yields should eventually support investment income as banks reinvest maturing securities, but this benefit will take time to materialize, he says. AMMB and Bank Islam Malaysia are relatively more exposed to potential earnings pressure, while Bank Islam, AMMB and Public Bank have higher sensitivity to book value, he adds. Hong Leong keeps a neutral rating on Malaysia's banking sector, pegging Public Bank as 4Q's top pick.