AMMB's uptrend may accelerate

CLSA in its daily report yesterday has highlighted an interesting angle to the story of ANZ’s hiring of Michael Smith (formerly with HSBC) to spearhead its Asian operation. According to the report, this move by ANZ could bode well for AMMB, which is ANZ’s biggest investment in Asia todate. Incidentally, Smith was HSBC Malaysia’s deputy CEO from 1995-97.

From the monthly chart (Chart 1), it appears that AMMB (closed RM4.10 as at June 13) has broken out of its big consolidation pattern at RM3.70/80 level. Its next resistance will be at RM5.00, 5.50 & 7.00. From the daily chart (Chart 2), we can see that its immediate support is at the medium-term uptrend line at RM4.00, while resistance is at RM4.20.

As at 12.00 noon, AMMB share price has jumped 20 sen to RM4.32. The volume accompanying the breakout of the RM4.20 horizontal resistance is huge & convincing. I believe AMMB's uptrend should accelerate & it may test the RM5.00 target next.

Chart 1: AMMB's monthly chart as at June 13 (courtesy of Quickcharts)


Chart 2: AMMB's daily chart as at June 13 (courtesy of Quickcharts)

This is strictly a technical call without any consideration of the company's financial performance & position.