Public Bank shares end near all-time high

by **Cals** Mon 07 Oct 2013, 00:47

Published: Saturday October 5, 2013 MYT 12:00:00 AM
Updated: Saturday October 5, 2013 MYT 11:33:44 AM
Public Bank shares end near all-time high
BY DANIEL KHOO

PETALING JAYA: Public Bank Bhd shares hit an all-time high of RM18.10 in intraday trading despite stretched market valuations against the wider banking sector peers.
The bank’s shares ended yesterday up 12 sen to RM17.90, last trading at a price-to-earnings ratio (PER) of 16 times compared with the wider sector’s PER of 12.67 times and the FTSE Bursa Malaysia KLCI’s 16.67 times, according to Bloombergdata. At current prices it is trading at a price-to-book ratio of 3.34 times.
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Market dealers noted that while the share price had been performing in line with the market tide, its recent price gains were linked to rumours that may include the prospect of allowing Chinese banks to acquire stakes in Malaysian banks.
“If this is true, then Public Bank would be one of the most likely Malaysian banking candidates to be targeted by China. With an ageing owner whose heirs are not involved in the running of the bank, it has been said that Public Bank could be up for sale,” a dealer told StarBizWeek.
Data showed that the bank’s founder Tan Sri Teh Hong Piow owned a 24% stake. Aged 83 this year, he founded the bank at the age of 35 and is still involved in major corporate decisions.
Banking sources, however, said that most day-to-day operations were now handled by Datuk Seri Lee Kong Lam, while Quah Poh Keat, who was previously its non-executive director, had recently been also appointed the bank’s deputy chief executive officer II.