Malaysia Hot Stocks-AMMB rises on Q2 earnings

KUALA LUMPUR, Nov 9 - Shares in Malaysia's AMMB <AMMB.KL> gained as much as 1.5 percent on Monday after the country's fifth-largest lender reported better-than-expected quarterly earnings.

By 0401 GMT, AMMB shares were up 1.05 percent at 4.80 ringgit a share, off a high of 4.82 ringgit on a volume of 1.5 million shares.

The main stock index <.KLSE> was up 0.13 percent.

On Friday, AMMB said second-quarter net profit grew to 240.16 million ringgit from 230.13 million a year earlier as revenue rose.

After the earnings, BNP Paribas raised its fiscal 2010-2012 earnings forecasts for AMMB by up to 20 percent and target price to 6.15 ringgit a share.

"We continue to like AMMB for its ongoing transformation that, in our view, has not been fully appreciated by the market," said BNP Paribas in a research note.

Australia's ANZ <ANZ.AX> owns about one-fifth of AMMB following a 2007 investment in the Malaysian bank.