The research house kept the banking stock an Add and its top pick for the sector as it regards the bank as the most defensive amid its expected industry-wide rise in gross impaired loan (GIL) ratio in 2021F as a result of the Covid-19 pandemic.
KUALA LUMPUR: Shares of Public Bank rose to a high of RM4.97 in early trade on Tuesday as the record four-for-one shares went ex.
At 11.18am, its share price was up 28 sen to RM4.54, after adjusting for the bonus issue.
The gains in Public Bank helped push the FBM KLCI higher as the market rebounded after the selloff the previous day on concerns about more stringent lockdowns under the MCO 2.0.
KUALA LUMPUR: Public Bank, Maybank, IHH Healthcare and Sime Plantations dragged the FBM KLCI into the red at the close on Friday on rising Covid-19 cases and weaker commodity prices.
At 5pm, the KLCI was down 8.7 points or 0.53% to 1,627.01. Turnover was 5.85 billion shares valued at RM4.06bil. The broader market was mixed with 512 gainers, 571 losers and 480 counters unchanged.
The ringgit dipped 0.01% against the US dollar to 4.0370.
The recent surge in Covid-19 infections saw the government imposing a second round of Movement Control Order to curb the spread of the pandemic.
CGS-CIMB Equities Research estimates the daily economic losses due to the second round of Malaysia’s Movement Control Order (MCO), which takes effect from Jan 13 to 26, at RM750mil.
KUALA LUMPUR: CGS-CIMB Equities Research estimates the daily economic losses due to the second round of Malaysia’s Movement Control Order (MCO), which takes effect from Jan 13 to 26, at RM750mil.
Positive signs: Crude palm oil continues to extend its rally trading above RM3,800 per tonne. Reuters
PLANTERS ushered in the new year in a euphoric mood as crude palm oil (CPO) continues to extend its rally trading above RM3,800 per tonne, which is almost a decade-high price.
However, despite the higher CPO prices, most planters are expecting mixed performance in their earnings outlook for this year with the industry currently facing severe workers shortage in the estates.
This situation has turned for the worst with the spread of the Covid-19 pandemic that restricts foreign workers recruitment which could lead to crop losses in the labour intensive oil palm sector.