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In: Finance

Public bank ( KLSE: PBBANK (1295) ) is one of the largest public listed company in...

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. (500-600 words limit)

Solutions

Expert Solution

Every investor should analyze the financials of the company before investing in the stock. Here the Public Bank of Malaysia is the listed company for the public.

It offers the banking service to the Asia-pacific region specially covering Malaysia. It is one of the largest bank having the second largest capitalization of market and third largest base of assets.

The reasons why one could buy these shares are: -

· Available at discounted price: - Due to pandemic, the shares of these bank are available at the discounted price in the market. It had affect the economy at the global level. People who had invested huge amount are taking out their money from the investments because of the need of cash.

· Good Opportunity for the long term Investors: - These shares are listed from many years. It is advised to not study of sell these shares at the time of pandemic which at hit almost every sector of the economy.

The supporting reasons why one could sell its shares are: -

· Cut in Interest Rate: - There is heavy selling pressure on the shares from the funds procured from foreign which had resulted into the falling of rates of interest.

· Engaging in Suspicious Transactions: - As per reports published in September it can be interpreted that bank had been linked to various auspicious transactions which can result into the issues breaking the trust of investors.

Further, it is always better to invest in the shares at a lower cost. This is recognized strategy in the share of the market to invest at the time of crashing to gain the higher returns in the future.

Every investor should analyze the financials of the company before investing in the stock. Here the Public Bank of Malaysia is the listed company for the public.

It offers the banking service to the Asia-pacific region specially covering Malaysia. It is one of the largest bank having the second largest capitalization of market and third largest base of assets.

The reasons why one could buy these shares are: -

· Available at discounted price: - Due to pandemic, the shares of these bank are available at the discounted price in the market. It had affect the economy at the global level. People who had invested huge amount are taking out their money from the investments because of the need of cash.

· Good Opportunity for the long term Investors: - These shares are listed from many years. It is advised to not study of sell these shares at the time of pandemic which at hit almost every sector of the economy.

The supporting reasons why one could sell its shares are: -

· Cut in Interest Rate: - There is heavy selling pressure on the shares from the funds procured from foreign which had resulted into the falling of rates of interest.

· Engaging in Suspicious Transactions: - As per reports published in September it can be interpreted that bank had been linked to various auspicious transactions which can result into the issues breaking the trust of investors.

Further, it is always better to invest in the shares at a lower cost. This is recognized strategy in the share of the market to invest at the time of crashing to gain the higher returns in the future.


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