Following the recent spade of aggressive stakes acquisition of U.S. heavyweight financial institutions by Asian sovereign funds, right after the general election, MAYBANK too is adding MCB Bank of Pakistan into its shopping cart. Generously paying 6 times its book value.. I am sure they have sane rationales behind this shocking purchase when explanations are needed to quell the bewildered shareholders. They "always do"! Hak.. !
How would the market react to this announcement come Monday? The counter closed at RM8.00 on Friday before the trading halt. Spotting a clear bearish divergence with MACD in the monthly chart and closing at the week low, the law of gravity is still very much in forced. Looking down from this precarious perch, this Humpty-Dumpty will be attracted towards the nearest reliable cluster of support area at RM6.80-RM6.30 before obtaining meaningful temporary respite. Wowh ! Just imagine what this can do to the KL Composite Index come Monday!
Presentation at Merrill Lynch’s 2nd Emerging Markets Investor Forum, Singapore (12th-14th Feb’07) http://www.mcb.com.pk/ir/pdf/Singapore-notes%202.pdf
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