Two big capitalised companies are due to announce their second quarter results on July 20 – Public Bank and Bursa Malaysia – which could see investors’ attention focused on the companies.
Strong earnings from the companies would underpin market sentiment, especially from Public Bank which analysts expect it to outperform its peers despite the weaker economic climate
RHB Research has maintained its outperform call and fair value of RM11.50 on Public Bank as it believes investors would switch their focus to the bank’s earnings prospects.
“With investors’ focus switching to 2010 earnings prospects, we believe its (Public Bank) 1H09 share price underperformance should reverse with upward bias in 2H09.
“Concerns (capital, dividend payout and maintaining high return on equity) that have weighed down on its 1H09 share price performance have been overplayed and are likely to be the catalyst for share price performance in 2H09,” it said in a recent report.
The strong trading volume in the second quarter and the rally should also underpin Bursa Malaysia’s earnings.
For sure, these 2 big guns will go bang bang loud. So, please watch out.
Bursa: fundamentally strong, monopoly business, record-breaking trading volume.
Public bank: one of the finest bank in Asia and Malaysia, sound management, fundamentally strong. Mr Teh, Public bank founder, is one of Malaysia best entrepreneur.
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