Thursday, September 15, 2011

CIMB Research has technical sell on AMMB

KUALA LUMPUR: CIMB Equities Research has a technical sell on AMMB HOLDINGS BHD [] at RM6.25 at which it is trading at a FY12 price-to-earnings of 11.6 times and price to book value of 1.8 times.

It said on Thursday, Sept 15 AMMB continued to trade sideways between RM6 and RM6.70 for the past six months after falling from the high of RM7.18.

'This sideways trend could potentially linger for a little while longer,' it said.

CIMB Research said the technical landscape is deteriorating with prices below its moving averages. Both MACD and RSI remained below water, supporting the short term bearish view.

'There is a good chance that prices continue to work its way lower towards the lower end of the trading band mentioned above in the coming days and weeks.

'As long as prices remain below RM6.70, the short term odds favour the bears. A break below RM6.00 on volume would be detrimental to the stock, where it could potentially test RM5.50 and RM5.00 next,' it said.

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