KUALA LUMPUR (Nov 11): Bursa Malaysia’s Technology Index rose as much as 6.25% to 61.15 points on Friday (Nov 11), fuelled by slower-than-projected US inflation data, which may prompt slower rate hikes by the US Federal Reserve (Fed).

The rally in local tech counters was also in line with the surge in the overnight US stocks, particularly the tech-heavy Nasdaq, which jumped 7.35%, followed by the S&P 500 (+5.54%) and the Dow Jones Industrial Average (+3.7%).

“The buying interest in tech stocks was due to the perception that the softening of the US consumer price index (CPI) may lead to a pivoting from hawkish to less hawkish stance, contributing to the rebound in Nasdaq. [As such] the buying interest [has] spilled over to our local fronts,” Malacca Securities head of research Loui Low Ley Yee told The Edge when contacted.  

At market close, the Technology Index increased 5.33%, outperforming the benchmark FBM KLCI's 1.27% gain.

Reuters reported that the S&P 500 and Nasdaq saw their biggest daily percentage gains in over two-and-a-half years as a sign of slowing inflation in October sparked speculation the Fed might become less aggressive with interest rate hikes.

The US CPI expanded 7.7% from a year earlier, the smallest annual advance since the start of the year and down from 8.2% in September, according to the US Labour Department report.

At home, tech counters dominated the top gainers list, including semiconductor manufacturer Malaysian Pacific Industries Bhd (MPI) and automated test equipment (ATE) manufacturers Greatech Technology Bhd and Pentamaster Corp Bhd.

By value, MPI ended the day as the top gainer as it increased RM2.30 (9.63%) to RM26.18, while Greatech was up 53 sen (16.21%) to RM3.80 and Pentamaster gained 31 sen (8.12%) to RM4.13.

Bloomberg data showed that the 42-stock Technology Index had 29 gainers, four decliners and nine unchanged counters.

Greatech was the largest index mover in percentage terms, which lifted the index by 18.88% or 0.56 points, followed by MPI at 13.35% or 0.4 points, and Inari Amertron Bhd at 11.87% or 0.36 points.

The top laggard was KESM Industries Bhd, which dragged the index by 0.21%, followed by Omesti Bhd (-0.15%) and Revenue Group Bhd (-0.01%).