Posted by cwc1981 > 2023-06-01 16:55 | Report Abuse

Debts ceiling raised. So hope tomorrow will be better

Posted by unicornbird > 2023-06-01 17:16 | Report Abuse

prudent, what's the max EPF can own?

Posted by prudentinvestor > 2023-06-02 15:01 | Report Abuse

EPF holds about 66% of MBSB's paid up capital. The more RHB Bank shares EPF holds, the more illiquid it becomes. I really don't know the max number of RHB Bank shares EPF is allowed to hold. The government has the final say.

Posted by Beast > 2023-06-02 16:49 | Report Abuse

every 10 sen drop i buy 1000 unit. almost all in

Posted by troy88 > 2023-06-02 17:01 | Report Abuse

i would not be surprised will drop below 5.20 looking at PBB and CIMB. Foreign funds spooked by fear of Anwar's govt will tumbang with the romours about GPS betrayal

Posted by moven00 > 2023-06-02 21:55 | Report Abuse

You love RHB? Your RHB die hard fan? You hav confidence RHB will bounce back? You like their dividend? You believe in RHB management? Now…now is the time it will test you. 5.20? Nah….
It will tank even below 4.74 if the whole market crash. You dare to average down? It’s down to our emotion and mental strength to stick to our plan.

Posted by i3lurker > 2023-06-02 22:31 | Report Abuse

3 EPF subcontractors sold, [those in 100Ks]
EPF itself been doing massive buying, [those millions millions one], much more than EPF subcontractors sold.

its totally up to you whether you believe there will be a change in gobermen

believe SELL
dun believe BUY

market crash SELL
no market crash BUY

go ahead and VOTE with your money
every vote counts

Posted by prudentinvestor > 2023-06-03 17:00 | Report Abuse

@moven00, worried about a blue chip bank counter which has consistently made profits for the past 10 years, with an average eps of over 58 sen, a PE of less than 9 and a dividend yield of over 7% dropping to RM5.20 and may be to below RM4.74? Just name me 5 counters listed on Bursa which have comparable PEs and dividend yields to RHB Bank. Yet you were prepared to buy Bursa at RM6. Bursa has a PE of over 20 and a dividend yield of just above 4.

Posted by moven00 > 2023-06-04 11:03 | Report Abuse

@prudentinvestor, that is what I try to say, no need to worried. Only plan our entry. Not everyday you’ll be presented with an opportunity to buy good company at a bargain.

Posted by OnTime > 2023-06-04 12:13 | Report Abuse

sometimes one has to take advantage of market irrationality.

Posted by speakup > 2023-06-04 15:20 | Report Abuse

Problem is ppl wan to buy cheapest as if they got a crystal ball to show them the cheapest.
From my own experience, I bought cimb rm3.80 it went as low as rm3 then rebound as high as rm5.80

Posted by i3lurker > 2023-06-04 18:07 | Report Abuse

Like I said before FF will continue to sell down marginal markets globally to dump into AI engines.

With a small AI Engine costing minimum USD250 million, there is a lot of dumping going to happen globally.

FF are forming up AI consortiums to build their own engines even as we speak.

RHB is good
except that FF is reaching out for the miracle sparkling object.
Americans see this USD250 million AI engine as equivalent in significance and yet much more important than the birth of the IBM PC.

Posted by Up_down > 2023-06-04 20:24 | Report Abuse

Bank sector valuation has been shifted from P/B to PER. Market is rather consistent nowadays.

Singapore banks, UOB, OCBC & DBS, are traded at PER 8.8x.

Maybank - PER 12.2x
PBBank & RCECap - PER 11.4x & 11x
HLBank - PER 10x
CIMB - PER 9x
ABMB, BIMB & RHBank & (Affin forward PER) - PER 7.7x
AMBank, HLFG & AeonCr - PER 7x

Posted by i3lurker > 2023-06-04 20:34 | Report Abuse

banking valuation also varies by geographical location

Posted by unicornbird > 2023-06-05 07:42 | Report Abuse

Up_down, sg banks will likely to have negative net interest margin.
The Fixed deposit rate is about 3.8%, but the mortgage is 3.7%. the banks could be subsidizing the property market to prevent a sharp correction.

Posted by OnTime > 2023-06-05 08:51 | Report Abuse

banks are at the forefront for a.i. application and the banking sector should do very well when this technology is widely adopted (hence higher valuation is warranted?).

Posted by Up_down > 2023-06-05 16:49 | Report Abuse

Unicornbird. Non local Singapore banks offer higher FD rates. FD of local banks are slightly higher than Msia banks.
DBS - 3.2%
OCBC - 3.0%
UOB - 3.1%

Posted by Up_down > 2023-06-05 16:58 | Report Abuse

The valuation of banks are seen based on grouping by the fun manager. It is easy to do it with the help of technology and loaded funds. Different groups are fetched with different valuation in PER.

Posted by Up_down > 2023-06-05 17:05 | Report Abuse

I hardly see such kind of consistency in valuation based on PER. It means the automatic trading is well preset by the fund managers nowadays.

Posted by prudentinvestor > 2023-06-05 17:36 | Report Abuse

Just look at Malaysia Airports Holdings, a company with erratic earnings and negligible dividends. Fund managers are willing to pay RM7 a share for it.

Posted by unicornbird > 2023-06-06 08:07 | Report Abuse

up_down, thanks for correcting my error. any idea why sgd will not fall, as it's offering so poor FD compared to USD rate of 5%

Posted by Up_down > 2023-06-06 09:20 | Report Abuse

Unicornbird. Singapore is a magnet of funds from Asean and especially China. A lot of money has quietly flocked into the small island in the last 12 months. The country is experiencing many loaded individuals snapping up properties at massive scale until the government had to come out skyhigh stamp duty to beat the overheated residential property prices. With such good situations, sgd is, of course, up and a way to curb inflation.

Posted by speakup > 2023-06-06 09:28 | Report Abuse

Singapore property market is booming while ours here is dead

Posted by prudentinvestor > 2023-06-06 10:10 | Report Abuse

A lot of rich people from all over the world flock to Singapore to buy properties. In Malaysia now, supply far outstrips demand.

Posted by unicornbird > 2023-06-06 11:41 | Report Abuse

do you guys invest there as well?

Posted by Phoebe > 2023-06-07 14:34 | Report Abuse

Not a technical person but I think it broken all the support even the SMA 200. Is it downtrend now? Maybe wait for a clearer water before jumping in. Don't know how deep this downtrend.

Posted by observatory > 2023-06-07 21:29 | Report Abuse

I wonder was your chart adjusted for dividend? RHB paid 40sen in the last year. An adjusted 1-year chart shows it's still trading within the range of ~5.2 to ~5.55, but an unadjusted chart shows the support at ~5.45 has been broken. But I'm not a technical person either. Let's hear from the experts.

Posted by unicornbird > 2023-06-08 09:17 | Report Abuse

obs, ignore the technical analysis. it's like predicting woman's emotion. there's no formula

Posted by prudentinvestor > 2023-06-08 15:54 | Report Abuse

I am a fundamentalist. RHB Bank's average eps over the past 10 years was over 58 sen and paid out about half as dividends. Just imagine how much cash reserves it has accumulated over the past 10 years.

Posted by Star111 > 2023-06-08 16:27 | Report Abuse

How much cash reserve also no use, foreigners wont invest in MY. So conservative and stagnant in innovation

Posted by Star111 > 2023-06-08 16:29 | Report Abuse

Prop is over supply. Soon will be like China with lots of abandoned buidlings

Posted by prudentinvestor > 2023-06-08 16:40 | Report Abuse

I have no complaint as long as RHB Bank continues to make over 65 sen a share every year and continues to pay me 40 sen a share in dividends yearly. If it drops further I would buy more.

Posted by prudentinvestor > 2023-06-08 16:56 | Report Abuse

Still got 10 big sellers queuing up to sell over 2.95 million RHB Bank shares at the final bell at RM5.33. Just wonder who they are.

Posted by unicornbird > 2023-06-08 17:34 | Report Abuse

prudent, at $5.30 it's the same price as 5 years ago. If factor into inflation & retained earnings, it's like super cheap?
the price is cheap until i a bit scared to buy more.

Posted by Phoebe > 2023-06-09 20:54 | Report Abuse

EPF n KWAP selling.

Posted by icst1975 > 2023-06-10 06:44 | Report Abuse

DRP is very damaging to the share price both short term and long term.
I think RHB should not have DRP as an option as the dilution effect over time due to multiple DRP's is substantial. and damaging to the share's market value. If Company needs to retain more money, it should just simply declare a lower dividend so that the number of issued shares does not keep increasing. In the most recent DRP, RHB issued shares increased by about 40 million or about 1 % of total shares .
In the short term Large/substatntial shareholders, like EPF & KWAP, who subscribed to DRP at a a discounted price of RM4.74 are already disposing their DRP shares to lock in profit. EPF alone would have subscribed to about 16+ million DRP shares. The impact of selling millions of DRP shares is very damaging to the share value.
In the long run, if growth in company profit is not significantly faster than the increase in total shares due to DRP, the long term share price will trend downwards. I think this may be what is happening to RHB share price.

Posted by speakup > 2023-06-10 14:53 | Report Abuse

Exactly! DRP is bad! Bimb did a few DRPs, see what it did to its share price? Koyak!

Posted by speakup > 2023-06-10 14:54 | Report Abuse

Problem with DRP is big funds will sell first, cos they will "buyback" thru DRP at a lower price

Posted by observatory > 2023-06-10 16:07 | Report Abuse

First, the recent weakness of RHB share price is not related to DRP. The charts of non-DRP banks like AMMB, Hong Leong Bank, Public Bank also show similar downward trend.

I agree DRP is dilutive (so it bonus issue). But DRP is worse for small investors. It's often a dilemma. Subscribing DRP with RM10 stamp duty and ending up with odd lots in order to "take advantage" of the up to 10% discount; or forgoing DRP and get diluted with funds such as EPF taking advantage of the discount.

Given that existing shareholders have to subscribe to DRP if they want to avoid dilution, it's more appropriate to measure the dividend yield after correcting for the DRP effects.

This means RHB's FY2022 dividend is only (25 sen - 5 sen) + (15sen - 5 sen) = 30sen.
The effective dividend yield at current share price is 0.30/5.29 = 5.7%. Still good, but not exceptional.

Maybank, after correcting for DRP effect, has a dividend yield of (0.30 + 0.28 - 0.07)/8.62 = 5.9%, which is even higher.

Of course, dividend yield is not the only consideration. Payout ratio, ROE, growth are also important.

Posted by observatory > 2023-06-10 16:10 | Report Abuse

As for long term share price consideration, it's only fair to look at total return. Need to correct for the effects of dividend, DRP, bonus etc.

To illustrate the point, it's like we wouldn't say QL share price is "only" RM5 after more than 20 years of listing while ignoring the bonus issues along the way.

Posted by icst1975 > 2023-06-10 16:41 | Report Abuse

Take EPF as example. It could quite likely disposed its 16+ million DRP shares acquired at 4.74/share at say average an average of 5.31/share. This is an immediate gain of 16m*(5.31-4.74)= 16m*0.57 =RM9.12 m. This is an additional gain of RM9.12m "dividend payment" to EPF from the open market.
If all the 40m DRP shares were disposed to lock in gain from "open market funded additional dividend payment" , it is without doubt very detrimental to the RHB share price.
BIMB is a much more severe case example of DRP's on its share price. Share holders must vote against DRP's to protect their interests!

Posted by speakup > 2023-06-10 17:21 | Report Abuse

🚫 Say NO to DRP! 🚫

Posted by lummy711 > 2023-06-11 08:28 | Report Abuse

I'm new investor. Bought some rhb and average 5.51 but now looks like make loss. I'm looking at getting dividends only. I'll still get dividends if i hold? Or should i just sell and hope to buy back at lower price? Now panic already. Also got cimb at average 5.1. Need some advice

Posted by speakup > 2023-06-11 08:35 | Report Abuse

Shares like Rhb Cimb Maybank is for medium to long term, not short term.
For short term, buy casino shares like knm, dnex, redtone, myeg, vsolar, etc

Posted by speakup > 2023-06-11 08:37 | Report Abuse

If u cannot handle a 30¢ paper loss, medium to long term shares like Maybank, Cimb, Rhb is not suitable for u

Posted by speakup > 2023-06-11 08:58 | Report Abuse

Just to share with u, I bought cimb last time 3.80 then it drop to rm3! That's a 80¢ paper loss but I still held on. After that it rebounded all the way to 5.80!

Posted by speakup > 2023-06-11 08:59 | Report Abuse

@lummy711, thats my advice to u

Posted by moven00 > 2023-06-11 09:58 | Report Abuse

@speakup good Sharing on the CIMB case. I notice that too.
More such similar case although no DRIP are like Tenaga that drop to around 7.9 then rebounded to 9+.
Then another one is YTL and YTLPower. Drop and sleep for many years and share price depressed for so long. Lately all rebounded.
Bear in mind the company selected must be strong and investment grade. Fundamental didn’t deteriorate etc.
above are my humble sharing.

Posted by lummy711 > 2023-06-12 07:59 | Report Abuse

Yeah I'm doing long term so i can hold on. How will share price affect dividends? It should not right? Unless company close shop or just don't want to pay dividends.

Posted by icst1975 > 2023-06-12 10:52 | Report Abuse

For long term investors, I observed that for Banks which are giving DRP's which resulted in their total shares that increased at rates fater than the company's profit growth rate, their long term share prices were all trending downwards. This happen to BIMB ( the worst case out of the four banks), CIMB, RHB and Maybank (the best out of the above four banks, but Maybank long term share price has also been drifting downwards over the years). The impact of DRP is equivalent to making the open market pay the big shareholders additional dividends. The large share holders like EPF who subsribed tens of millions of DRP shares at a substantial below market share price would lock in profit. They can then buy back if they wish to at lower price as the share price drops lower in the short term which they can sell off in the next cycle of dividends and DRP.