Amtek Engineering (AMEL.SI) rose as much as 6% on Friday, on bargain hunting after falling to fresh lows, making its dividend yield more attractive and as investors expect its longer-term outlook to improve.
At 11:10 a.m., Amtek shares were 4% higher at $0.52 with nearly 3.2 million shares changing hands. This was 3.7 times its average daily volume over the last five sessions.
At 11:10 a.m., Amtek shares were 4% higher at $0.52 with nearly 3.2 million shares changing hands. This was 3.7 times its average daily volume over the last five sessions.
“Its shares have been sold down quite a lot so there’s some bargain hunting coming in,” said Jonathan Ng, an analyst at CIMB Research.
He added that the company’s fundamentals remain firm, as it has strong cashflows and its dividend yield is attractive given the drop in its share price.
Amtek shares have plunged nearly 52% since the start of the year and hit its all-time low of $0.485 on Nov. 22.
“Although the near term outlook is challenging, we may start to see some recovery in its profitability in the second half of next year,” Ng said.
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