KUALA LUMPUR (May 4): Globetronics Technology Bhd saw some buying interest and rebounded as much as 30 sen or 9.26% to RM3.54 this morning, after the stock fell 39% earlier this week, which was deemed to be “overdone” by some analysts.

The counter which erased its earlier losses and rebounded 20 sen or 6.71% to RM3.44 at noon, was the fifth top gainer on the bourse.  

It was one of the top ten actively-traded stocks this morning, with 12.63 million shares traded.

The group will have its annual general meeting in Penang tomorrow.

When contacted, MIDF Research’s analyst Martin Foo Chuan Loong said the stock is more attractive to investors now, following a selldown that seems to be overdone.

“Compared with its share prices before, it is more attractive now, especially the group’s fundamental remains intact,” he told theedgemarkets.com.

Globetronics fell RM2.05 or 38.75% to RM3.24 yesterday, from the closing price of RM5.37 on April 22. Year-to-date, Globetronics has fallen more than 46%.

This was after the group announced its lacklustre results for its first quarter ended March 31, 2016 (1QFY16). The group’s net profit for the period slumped 78.55% to RM3.68 million, from RM17.15 million a year ago.

This was in line with the group’s revenue that falling 33.77% to RM58.74 million, from RM88.7 million in 1QFY15.

However, Foo remains sceptical on the sustainability of the buying interest, as overall sentiment for technology segment remains unfavourable.

“The sentiment will only recover, the earliest by the end of this year,” Foo added.

MIDF Research had in its earlier report dated April 29, downgraded the stock to “neutral”, from “buy” previously. The target price was also revised downwards to RM4.07, from RM6.74 previously.