Stock With Momentum: AMMB Holdings

This article first appeared in The Edge Financial Daily, on August 24, 2018.
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AMMB Holdings Bhd (+ve)
TRADING of shares in AMMB Holdings Bhd (fundamental: 1/3, valuation: 2.25/3), triggered our proprietary momentum algorithm yesterday for the first time this year. The stock closed 15 sen or 3.8% higher at RM4.15, with a market capitalisation of RM12.51 billion.

It saw 6.73 million shares traded, versus its 200-day average trading volume of 2.66 million shares.

On Tuesday, the banking group reported a 5.9% rise in net profit to RM347.59 million in the first financial quarter ended June 30, 2018 (1QFY19) from RM328.27 million a year ago, supported by higher net interest income (NII).

Quarterly NII increased 3.6% to RM431.37 million in 1QFY19 compared with RM416.24 million a year ago. However, net interest margin for 1QFY19 remained flat at 2.02% compared with 1QFY18.

Quarterly operating revenue also came in 4.4% higher to RM2.17 billion from RM2.08 billion in 1QFY18.