Tuesday, January 19, 2010

Public Bank shares up on robust earnings outlook

Saw this in the Star.

PETALING JAYA: Public Bank Bhd, the country’s third-largest bank by assets, saw its share price rise to the highest in 10 months after a report showed earnings for the financial year ended Dec 31, 2009 (FY09) may come in above market expectations.

The interesting part of it was

HwangDBS Vickers Research Sdn Bhd analyst Lim Sue Lin said in a report that FY09 net profit, to be announced this week, could come in at 2% to 3% above market projections of RM2.41bil.

How would expectation of 2-3% sent the share price past RM 12?

In my opinion, not much has changed in the fundamentals but sentiments have changed. It's because the momentum players are piling in money after it broke the previous high.

What's next? Don't fight the trend.

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