By Yantoultra Ngui

KUALA LUMPUR--Shares of Malaysia's Hong Leong Financial Group (1082.KU) dropped as much as 3.1% on Monday morning after the financial institution called off talks to sell a stake in its insurance and takaful businesses.

Shares of Hong Leong Financial fall as low as 14.96 ringgit ($3.56) per share in early trade. It was last traded at MYR15.04, down 2.6% and undeperformed the local benchmark stock index's 0.16% decline.

Hong Leong Financial told the local stock exchange on Friday evening that it and its unit HLA Holdings Sdn Bhd cancelled negotiations to sell HLA's stake in the group's insurance and takaful businesses as they "could not reach an acceptable commercial agreement with the Bank Negara Malaysia approved negotiating parties".

Write to Yantoultra Ngui at yantoultra.ngui@wsj.com

(END) Dow Jones Newswires

November 06, 2016 21:48 ET (02:48 GMT)

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