PBBANK Technical Analysis Chart:

Technical Analysis:

• Support Level: RM4.220

• Resistance Level: RM4.800

• Historical stock price trends indicate that the increase in PBBANK's share price has been accompanied by a rise in trading volume. The uptrend in the stock price has been established and is continuously reinforcing itself, as investors tend to follow the trend in their trading activities. On August 16th, PBBANK broke through a key resistance level of RM4.20, leading to further price appreciation.

• Most investors' holding basis is concentrated below RM4.20, indicating significant buying activity around this level, which could form a strong support.

Market News:

In light of upcoming events such as the U.S. presidential election and the potential reduction in the Federal Funds Rate (FFR), Malaysian banks can offer a stable haven during market volatility. The stability of this sector is supported by the liquidity of large-cap stocks, ample loan loss provisioning buffers, and attractive dividend yields, which will help mitigate short-term fluctuations. PBBANK leads in the overall gross impaired loans (GIL) ratio, particularly in mortgage loans.

On September 9th, Public Bank Berhad (KL: PBBANK) announced its commitment to collaborate with the Credit Guarantee Corporation Malaysia Berhad (CGC) to provide financing amounting to RM1 billion to Small and Medium Enterprises (SMEs). CGC President and CEO Datuk Mohd Zamree Mohd Ishak stated that RM280 million of the RM1 billion has been launched, with an additional RM150 million rolled out on September 9th. The plan is to partner with Public Bank to introduce the remaining RM570 million to meet the additional financing needs of SMEs, aligning with the anticipated further improvement of the Malaysian economy.

Combined Analysis:

The technical analysis of PBBANK's stock indicates a strong uptrend, supported by increased trading volume and a breakthrough of key resistance levels. However, recent trading activity suggests a potential downward pressure that requires vigilance. Market news highlights the bank's role as a stable investment during uncertain times, with a strong foundation in liquidity, risk management, and attractive returns. The collaboration with CGC to provide substantial financing to SMEs not only showcases PBBANK's commitment to economic development but also signals a positive outlook for the bank's future growth and stability. Investors should consider these factors while monitoring the stock's performance, particularly around the identified support and resistance levels, and in relation to broader market dynamics.