Here, we focus on identifying stocks that have experienced (and perhaps will soon) a 10% price pullback from recent highs, presenting potential buying opportunities. This 10% pullback strategy is based purely on technical analysis, especially price action, without delving into the underlying fundamentals of the companies. We aim to uncover stocks that are showing signs of recovery or consolidation, offering traders a chance to enter at a potentially discounted price. Please refer How to Choose Stocks for the 10% Pullback Strategy to choose stocks that are safer for using the 10% pullback strategy, ensuring that you’re buying into companies with solid fundamentals and long-term growth prospects.
Weekly Analysis
*Updated: 15 Mar, 2025
Buy Stock During Market Correction
| MAYBANK 1155 | Stock Price | Remarks |
|---|---|---|
| Recent High | 11.04 | 10 Sep, 2024 |
| 10% | 9.93 | 1/3 of capital, set TP: 10.66 |
| 20% | 8.83 | 1/3 of capital, set TP: 9.93 |
| 30% | 7.72 | 1/3 of capital, set TP: 8.83 |
| Target Price | 10.66 | sell remaining stocks |
| Support 1 | 8.60 | |
| Support 2 | 7.98 | strong |
Why Buy Maybank Stock
Maybank (Malayan Banking Berhad) is one of the largest and most established banks in Malaysia, with a strong regional presence in Southeast Asia. If you’re considering using the pullback strategy to invest in Maybank stocks, here are five main reasons why it could be a solid choice for your portfolio:
1. Strong Market Leadership
Maybank is the largest financial services group in Malaysia by assets and market capitalization. It holds a dominant position in the country’s banking sector, providing a broad range of services from retail banking to investment banking and Islamic banking. This leadership offers stability and a reliable income stream through dividends.
- Key Metrics: As of recent data, Maybank has a large market share of deposits and loans in Malaysia, which gives it a solid foundation for consistent growth.
2. Solid Financial Performance
Maybank has consistently delivered solid financial results, with healthy profit margins, a strong return on equity (ROE), and low non-performing loan (NPL) ratios. These metrics reflect strong management, risk control, and operational efficiency. With its stable earnings, Maybank provides investors with confidence in its ability to weather economic downturns.
- Dividend Yield: Maybank has a history of paying attractive dividends, making it a good choice for income-focused investors, especially if you’re utilizing DCA to build a long-term position.
3. Regional Diversification
Maybank isn’t just a Malaysian bank; it has a significant presence across Southeast Asia, particularly in Indonesia, Singapore, and the Philippines. This regional diversification can help mitigate risks related to domestic economic fluctuations. The bank also has a presence in several other international markets, which can provide exposure to a wide range of economies.
- Growth Potential: With Southeast Asia being a high-growth region, Maybank stands to benefit from expanding middle-class populations, increasing financial inclusion, and infrastructure development.
4. Strong Governance and Institutional Support
Maybank is part of the Permodalan Nasional Berhad (PNB) group, one of the largest investment entities in Malaysia. It has solid governance practices and transparency, which can offer confidence to long-term investors. Its strong institutional backing, including from government-linked entities, also helps secure the bank’s stability.
- Regulatory Environment: The Malaysian banking sector is well-regulated by Bank Negara Malaysia (BNM), providing an additional layer of security for investors.
5. Resilient in Economic Cycles
Banks, especially the largest and most well-capitalized ones like Maybank, tend to be more resilient during economic cycles. During times of economic downturns, Maybank has been able to maintain a solid financial position due to its diversified revenue streams and prudent risk management. During periods of economic expansion, it stands to benefit from increased lending and investment activities.
- DCA Advantage: Using the DCA method helps to smooth out the effects of short-term market volatility, making Maybank a good candidate for a consistent investment strategy over time.
Bonus Consideration: Digital Transformation & Innovation
Maybank has been investing heavily in digital banking and innovation, keeping pace with global trends in fintech and digital services. This positions the bank to better serve younger, tech-savvy consumers and improve operational efficiency, offering long-term growth opportunities.
By dollar-cost averaging into Maybank over time, you can take advantage of its stability, growth prospects, and solid financial foundation, reducing the risk of making poor investment decisions due to market timing.