Question

Public bank ( KLSE: PBBANK (1295) ) is one of the largest public listed company in Malaysia. Please analyze the Point/Counterpoints of this company from a investor point of view. More specifcally, please discuss at least two reasons recommend to buy and two reasons recommend to to sell its stocks.

Answer 1

Every investor should analyze well before buying and selling shares. Here we are analysing details of Public Bank ( KLSE: PBBANK (1295) of Malaysia which is a public listed company.

Public Bank is also known as Public Bank Berhad is Kuala Lumpur, Malasia based bank. It is offering banking services in Malaysia as well as covering regions of Asia-pacific. It is one of the largest bank of Asia, having second largest market cap and third largest asset base, having more than 9 million customers around the world.   

Reasons to buy the shares:

1. Best time to invest as share is available at discounted prices during corona pandemic.

As the global economy is suffering because of corona pandemic. People in requirement of cash are taking out their funds from stock market. Hence, good stocks are available at discounted rates. This share is Solid like a rock but now breaking like a rock because of this corona pandemic. It is better time to invest in shares when it is available at lower cost. It is one of the strategies of share market to invest in crashing market to gain highest return.

2. Good option for long term investor:

This share is performing since years. A person who invested RM 30000 in 1992 and reinvested entire dividend become holder of RM 2 million. It is not advised to judge this long term performing share based on corona pandemic slowdown which is hitting hard every counter. after analysing 23 years record we perceived that It is very good investment for long term.

Reasons to sell the shares:

1. Share prices are 23% in last one year.

Share is facing continuous fall in share price and has lowered by 23% in last one year. This is hampering investors sentiments related with this bank.

2. Interest Rate cut is causing Foreign Fund dumping Public Bank Berhad.

This share is suffering from heavy selling pressure from foreign funds due to falling interest rates.

3. Bank is engaged in suspicious transactions.

As reported on 22^nd Sep, 2020, Public bank is linked to various suspicious transaction and these issues break the trust of investors in bank.