Share prices jumped 9.8% to monthly high at RM4.59 from a low of RM4.18 before ending lower at RM4.37 on market’s profit taking. From YTD high of RM4.76 (18 Mar), AMBANK’s share prices tumbled 12.2% to a YTD low of RM4.18 (26 May) in tandem with the KLCI’s market correction and in anticipation of a weak 4Q16 results. However, share prices staged a technical rebound to a high of RM4.59 (8 June) amid news that Tan Sri Azman Hashim was considering buying over Aus tralia and New Zealand Banking Group Ltd (ANZ)’s 23.8% s take in AMBANK. Meanwhile, it was also rumoured that US private equity giant TPG Capital, Chinese and Taiwanese buyers are likely to be interested in buying the ANZ stake in the Malaysian bank.

To recap, ANZ’s new CEO Shayne Elliott is turning his focus back on the bank's core home market, reversing past efforts to build a pan-Asian footprint. According to newsflows, ANZ is weighing the sale of its stake in AMBANK and is also seeking to reduce its 20% stake in China's Shanghai Rural Commercial Bank as the Australian bank steps up efforts to exit minority stakes in Asia.

Technically speaking. Near term outlook for AMANK remains negative following the formation of bearish Marubozu candlestick on 9 June as well as the breakdown of multiple key SMAs supports (i.e 30-d/50-d/100-d SMAs and daily lower Bollinger band). Key supports are RM4.32 (50% FR), RM4.25 (1 June low) and RM4.18.

Outlook will turn positive if share prices swiftly reclaim RM4.47. AMBANK’s near term technical outlook will only turn positive if share prices can quickly reclaim above RM4.47 (FR and 50-d SMA), which will lift prices higher towards RM4.59 and RM4.76 territory

Source: Hong Leong Investment Bank Research - 13 Jun 2016