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
| PBBANK 1295 | Stock Price | Remarks |
|---|---|---|
| Recent High | 4.84 | 29 Aug, 2024 |
| 10% | 4.35 | 1/3 of capital, set TP: 4.75 |
| 20% | 3.87 | 1/3 of capital, set TP: 4.35 |
| 30% | 3.39 | 1/3 of capital, set TP: 3.87 |
| Target Price | 4.75 | sell remaining stocks |
| Support 1 | 4.04 | |
| Support 2 | 3.57 | strong |
Why Buy PBBANK Stock
Investing in Public Bank Berhad (PBBANK) can be a strong choice for long-term growth. Here are five main reasons why it could be a good addition to your portfolio:
1. Strong Market Position and Reputation
Public Bank is one of the largest and most established banks in Malaysia, with a solid reputation for stability and conservative banking practices. It consistently ranks high in terms of market capitalization and asset quality in the Malaysian banking sector.
2. Consistent Profitability and Strong Financials
PBBANK has a strong track record of profitability, with steady growth in revenue and earnings. The bank has maintained healthy capital adequacy ratios and good asset quality over the years, demonstrating sound management and risk controls. This makes it a relatively safe bet in terms of long-term financial stability.
3. Dividends and Shareholder Returns
Public Bank has a history of paying attractive and consistent dividends, which makes it an appealing choice for income-focused investors. This is particularly attractive for long-term investors looking for a reliable source of passive income. The bank’s dividend policy has been stable, and they have a solid payout ratio.
4. Diversified Business Segments
While PBBANK is primarily a retail and commercial bank, it also has diversified interests in insurance, unit trust management, and Islamic banking. This diversification helps mitigate risks from any single business segment, allowing the bank to capture opportunities across various sectors.
5. Strong Management and Conservative Strategy
The leadership of Public Bank has a reputation for being conservative in its lending practices, which has helped the bank avoid the significant risks that some other banks faced during economic downturns. The management’s strategy focuses on prudent growth, cost control, and maintaining high asset quality, which has contributed to its consistent performance.
Bonus: Exposure to Malaysia’s Growth
Malaysia’s economy, while facing challenges, has strong long-term potential, and PBBANK, as one of the country’s leading financial institutions, stands to benefit from any recovery or growth in domestic and regional markets. Being a well-established player in the market positions PBBANK to benefit from the overall growth of the Malaysian economy.
With all these factors combined, PBBANK presents itself as a solid, long-term investment opportunity with a history of resilience and profitability.