Hot Stock AMMB rises 3.18% on technical rebound

by **Cals** Fri 10 Jul 2015, 00:43

Hot Stock
AMMB rises 3.18% on technical rebound

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By Gho Chee Yuan / theedgemarkets.com | July 9, 2015 : 1:26 PM MYT

KUALA LUMPUR (July 9): After falling to a three year low of RM5.33 yesterday (July 8), [size=14]AMMB Holdings Bhd ([You must be registered and logged in to see this image.]Financial Dashboard) staged a rebound today on broader market gains, hitting a high of RM5.52 on renewed bargain hunting activity.

At 12.30pm market break, the stock pared down part of its gains to trade at RM5.50, up 15 sen or 2.8%. Some 1.1 million shares were changed hands between RM5.25 and RM5.52 in the morning trading session.

With the current price, AMMB (fundamental: 1.7; valuation: 3) has a market capitalisation of RM16.126 billion.

AMMB's shares plunged as much as 6.5% or 37 sen to three years low of RM5.33 yesterday, on broader market losses and after news reports alleged 1Malaysia Development Bhd (1MDB) had channelled some US$700 million (RM2.67 billion) into Prime Minister Datuk Seri Najib Razak's bank accounts.

Commenting on the rebound today, a dealer told theedgemarkets.com it was a technical rebound, which saw its share price fall to RM5.33 yesterday, from a high of RM6.49 on April 30 this year.

"The stock has been on the decline trend since end of April. The fall in share price was not due to 1MDB, in fact was to mirror the broad market's weak sentiment," he explained.

On whether the rebound could be sustained in the near term, he said it will still depend on the overall market performance and sentiments.

"I believed ringgit and the whole market will recover, once the current political turmoil in the country is resolved," he added.

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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