AMMB dips on news of management shake-up

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KUALA LUMPUR (Jan 29): AMMB Holdings Bhd was down 3.04% on the news that there will be a major shake-up at the top level of AmBank Group.

At 11.47am, the counter was down 2.89% or 19 sen to RM6.38, with 3.76 million shares changing hands. 

Alliance Investment Bank remisier Raymond Foo said the fall in share price was most probably due to the uncertainties caused by the news as there is no other “bad news” about the bank recently.  

“These are the people from the top management and they play prominent roles in the bank. Investors sentiment would be affected negatively by such changes at the top level,” he said, citing example of SP Setia Bhd’s share price movement when there was news saying that Tan Sri Liew Kee Sin was expected to leave.

However, he expects the share price movement will ease as this is a sizeable bank and the strategies and systems are in place.

The Edge Financial Daily reported today, quoted sources, that the banking arm of AMMB Holdings Bhd (fundamental;1.7;valuation:3.0) will soon see the departure of its group managing director Ashok Ramamurthy, managing director for Wholesale Banking Coverage Pushpa Rajadurai and AmInvestment Bank’s managing director/chief executive officer for Wholesale Banking Products Kok Tuck Cheong.

A source said some of the changes will likely be announced as early as end of this week.

(Note: 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.)