Monday, September 26, 2011

AMMB dips in early trade

KUALA LUMPUR: AMMB HOLDINGS BHD [] shares dipped in early trade on Monday, Sept 26 after Maybank IB Research downgraded the stock to a Hold and lowered its target price to RM6.30 from RM7.60, and the banking group was not spared compression in valuations.

At 9.20am, AMMB fell six sen to RM5.71 with 3,000 shares traded.

'While we expect AMMB's valuations to compress in line with its peers', providing some shelter to the downside is the fact that foreign shareholding today is lower than the 2008 global financial crisis trough.

'Amid volatility in the capital markets, our FY12-13 earnings are lowered by 4% and 6% respectively,' Maybank IB Research said in a note Sept 26.


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