AMMB among Top Losers as investors weigh on RM2.83 Billion 1MDB Settlement

AMMB Holdings Berhad is listed as one of the top losers after the Ministry of Finance’s (MOF) announcement on the 1Malaysia Development Bhd (1MDB) RM2.83 billion global settlement last Friday.

The MOF announced that AMMB Holdings has agreed to pay RM2.83 billion global settlement in relation to the group’s involvement with the 1MDB scandal last Friday.

AMMB Holdings’ shares were suspended for two days during the event and the company share price plummets to the second spot of the top loser chart after their suspension was over on March 3.

Their shares plunged 11% or RM0.36 from RM3.16 to RM2.80 after missing two days of trading.

Other than Magpie Berhad and Advance Packaging Technology (M) Bhd, the companies within the top losers chart are associated with each other based on the network above.

Despite the involvement with the 1MDB scandal, the company has a good record of profit since the past 5 years alongside with Hap Seng Consolidated Bhd.

The other companies within the network had a history of losses in the past 5 years.

Although their prices dropped, Hong Leong Investment Bank Bhd analyst Ng Jun Sheng stated that he believes the company can weather the storm and be successful again.

He also added that it is a great opportunity for bargain hunting for the stock as the company possess an attractive risk/reward ratio.