Thursday, June 30, 2011

CIMB Research has technical Buy on AMMB at RM6.51

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on AMMB HOLDINGS BHD [] at RM6.51 at which it is trading at a price-to-earnings of FY12 of 12.1 times and price-to-book value of 1.9 times.

It said on Thursday, June 30 prices broke out of its consolidation triangle recently and prices continue to stay above the resistance turned support levels at RM6.40.

'We expect this breakout run to resume after this short break. Its MACD has stayed above the zero line while its RSI has been swinging within the 40-60pts band,' it said.

CIMB Research said with the breakout, it expects prices to climb higher towards RM6.70 next.

'Anything above RM6.70 would mean that prices are headed to retest the old RM7.18 high set in January this year. The following resistance is at RM7.25-RM7.30. Only a break below RM6.29 would derail this breakout run,' it said.

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