KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
Bank of Tianjin Co., Ltd. (HKG:1578) delivered a 42% share price gain over the past year, significantly outperforming its earnings per share (EPS) growth of just 1.2%. The total shareholder return (TSR), which includes dividends, was even higher at 54%, suggesting strong investor sentiment despite modest underlying profit growth.
Market Sentiment Boost
The sharp rise in the stock compared to earnings growth indicates the market now places a higher value on the company than a year ago. Over three years, the share price is up 20%, showing steady but slower long-term performance.
Dividends Matter
TSR outpacing share price return highlights the role of dividends in boosting investor gains. Bank of Tianjin’s consistent payouts contributed significantly to the overall return.
CEO Pay and Fundamentals
The company’s CEO earns less than peers at similar-sized banks, which some investors view positively. However, the key question remains whether the bank can accelerate earnings growth to justify the strong share performance.
Investor Takeaway
1-Year Share Price Gain: 42%
1-Year TSR (with dividends): 54%
EPS Growth: 1.2%
The rally puts Bank of Tianjin broadly in line with the market’s average TSR for the year and hints at improving investor confidence. However, with earnings lagging behind share gains, future results will need to support the higher valuation.
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