Wow, just look at the index for this week, it hiked like nobody else! Many blue chips are triggered to a new high with good new,s including good earning for year 2009 and the raise of OPR by BNM. Some blue chips doing really well are Axiata and CIMB.
It seems obvious that CIMB is surpassing Public Bank as a finance leader in Malaysia. Public Bank really need to do something to secure it's position and stimulate it's lagging share price, I don't see much benefits with the raise of OPR for Public Bank, compare to CIMB.
For oversea business, it seems CIMB is growing more rapidly and aggressive, perhaps more to come in the near future. Apart from that, CIMB CEO also has political advantage, being a brother to our Prime Minister. It is not surprise CIMB can jump from retraced price of RM12 to the peak of RM13.70 within 2 weeks.
So, is RM13.70 is still a good buying price for CIMB? I don't know whether it will continue to grow up to where, but definitely not really a good buying point for now. For me, I'll look for another potential finance company with better growth and lower price. I re-absorbed little units of PBBANK at it's low peak earlier, I'm expecting it can give me some surprise after 1Q10. I still trust Tan Sri Teh, after so many years. Public Bank really has to think out of the box for it's business in 2010.
Note: Above are just my personal opinion, I'm not responsible for any of your trading decision.
Posts
