AmBank, RHB Bank retreat after initial jump, ringgit firmer

KUALA LUMPUR: Blue chips climbed early Friday, underpinned by gains in MAHB, Hong Leong Bank and Bursa while RHB Bank and AmBank retreated after the initial surge following the merger plan for both banks.

At 9.47am, the KLCI was up 8.04 points or 0.46% to 1,771.15. Turnover was 486.07 million shares valued at RM264.22mil. There were 401 gainers, 147 losers and 257 counters unchanged.

The ringgit was firmer against the US dollar, up 0.02% to 4.285 from 4.286.

Reuters reported oil prices dropped nearly 1% in early Asian trade on Friday, dragged down by ongoing concerns over a global glut in crude supply despite a bigger-than-expected draw in U.S. crude inventories.

Brent crude futures were down 39 cents at US$50.25 a barrel at 0039 GMT. US West Texas Intermediate crude futures dropped 45 cents to US$47.91.

MAHB rose 36 sen to RM9.16, Hong Leong Bank added 20 sen to RM14.40, Bursa Malaysia and Petronas Dagangan gained 18 sen each to RM11.08 and RM24.40.

However, AmBank fell one sen to RM5.20 and RHB Bank lost six sen to RM5.3.

Nomura Research said RHB and AMMB stock prices are likely to remain supported at indicative one time price-to-book (P/B) value. “Share-swap deal close to current valuations of one time P/B,” it said.

MAHB rose 36 sen to RM9.16, MPI added 34 sen to RM12.76, PPB Group gained 30 sen to  RM17.02.

As for consumer stocks, BAT fell 22 sen to RM44.38, Ajinomoto 20 sen to RM21.40, F&N lost 12 sen to RM24.24 and Heineken shed 10 sen to RM18.90.

As for plantations, KL Kepong lost six sen to RM24.68.