@thesteward, I'm not too sure what you are expecting in a weak market, miracles generally only appear in religious writings.
Last week the KLCI closed at 1,467 and this week it has closed at 1,424, so a 43 point drop for the week. Add to that, RHB still hasn't given details of the Ex Date and DRP yet, so it's not really surprising that RHB has been lacklustre this week. It's down 1 cent from last week's close, week on week, hardly anything to get your knickers in a knot about.
With 1000 shares, you can only subscribe for 10 DRP shares. Suppose you can make 50 sen per share, the amount you can make from this DRP is only RM5. Stamp duty alone would cost you RM10, other charges = RM3.
I would consider RHB Bank's dividend yield as excellent instead of just decent. Assuming RHB pays 40 sen a share dividend this financial year, at RM5.42 a share, its dividend yield is 400/5520 or 7.25%. I don't think there are more than 5 companies listed on Bursa with such high dividend yields, including rock solid counter Maybank.
Add to that, @Prudentinvestor, a PE in the low 9's.....around 9.2. I was convinced that RHB would be solidly into the Rm6's this year but it is still proving me wrong, apart from a brief visit there earlier this year.
We can probably blame the overall market on its lower price, however I still believe this is an ideal investment stock to hold at current prices for its dividend and eventual capital growth.
TTV, the political situation in the country can't be more unstable post GE15. Even the Palace had issued a statement saying that the Agong had consented to the dissolution of Parliament in order for a new and stable government to be elected.
prudentinvestor, I assume that you have considered the various options/parties that the new government may consist of? I have envisaged at least three options.............and none of them fill me with any level of confidence in regards to stability.
“GE15 is drawing some funds (local and foreign) into the local market on expectations a big win for one of the parties could lead to a more stable leadership and better policy outcomes.
The fresh buying of local stocks by funds could be an early “window dressing” move triggered also by multi-year low valuations and underpinned by an improving domestic economic activity with Phua stating Phillip Research’s inhouse forecast is for the benchmark FBM KLCI to hit 1,571 points prior to Nov 19 (election day) as funds rotate money into sectors like banking and telecommunication companies from glove makers, oil and gas or even the technology counters.
stkoay, I'm more than a bit dubious about the prediction of the KLCI hitting 1,571 by Election day. A 120 point rise in around 4 weeks are things dreams are made of...lol.....but stranger things have happened :)
As for RHB, it still remains frustrating to watch it float around at current levels, particularly as I'd expected it to be over Rm6 this year. Once the dividend payout and DRP are over and done with by November 7 I'm expecting a bit more interest in this stock.
RHB Bank Bhd group managing director and CEO Mohd Rashid Mohamad said there is likely to be continued challenges of limited fiscal space, inflationary pressures and labour shortages in 2023.
However, he maintained the bank's fundamentals remain strong and it would continue to closely monitor asset quality moving forward.
"We are also mindful that some of our customers are still recovering from the impact of the Covid-19 pandemic and as such, will continue providing the necessary support and assistance especially to the most vulnerable groups within the community," he said in a statement.
RHB posted a net profit of RM700.48mil in 3Q22, up from RM635.59mil in the previous corresponding quarter, on higher net fund-based income, the absence of modification loss and lower expected credit losses (ECL).
Earnings per share was 16.63 sen compared with 15.64 sen in the previous same quarter.
Revenue was reported at RM3.48bil, up from RM3.03bil in the comparative quarter.
For the nine months period to Sept 30, 2022, RHB's net profit was RM1.94bil, slightly lower than RM1.99bil in the 2021 period while revenue was RM9.33bil, up from RM8.86bil in the year-ago period.
@Prudentinvestor, yep its got me scratching my head why the banks are lacklustre today. I was expecting a move from all of them on the back of very good results but they sit there like a stale bottles of piss.
Surely it's a matter of when and not if they eventually get moved up by the Funds.
RHB, CIMB, Maybank and Public Bank all down at close in spite of good QR. Only Ambank is doing some catch up. Looks like people prefer speculative stocks rather than profit making counters. Banks are making good profits and are boring stocks. Like what Warren Buffet said, making money is a boring business. There must be some truth to it.
I'm expecting some end of year window dressing in some sectors over the next few weeks. I'm already scratching my head as to why the banks have been lacklustre recently, particularly after reporting solid quarterlies, so I will be even more perplexed if they don't move upwards over the immediate short term.
Hope is not an investment strategy, although I'm hoping the banks start to make a move in the upcoming week :)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....