KUALA LUMPUR (July 3): The FBM KLCI settled up 7.08 points or 0.46% at 1,543.36 at Bursa Malaysia's afternoon break today while the technology index rose by a larger quantum in an apparent response to a sector upgrade by analysts.

Across Bursa, 3.91 billion shares worth RM1.81 billion were traded at 12:30pm.

The technology index, which tracks shares of companies such as semiconductor manufacturers, rose 0.66 point or 1.53% to 43.68 in an apparent reaction to a sector upgrade by AmInvestment Bank Bhd today.

"We upgrade our outlook on the technology sector to 'overweight' from 'neutral' for the 2H20 as the sector’s outlook remains resilient despite the Covid-19 pandemic impact on operations from the implementation of partial and/or complete lockdowns and travel restrictions worldwide to curb the spread of the virus.

"Attractive valuations with recovery aimed for 2H20," AmInvestment analysts wrote in a note today.

Technology index constituents KESM Industries Bhd and Pentamaster Corp Bhd rose among Bursa top gainers.

KESM's share price rose 37 sen or 4.95% to RM7.85 while Pentamaster climbed 32 sen or 6% to RM5.65.

Globally, it was reported that Asian shares rallied to a four-month high on Friday on robust US payrolls data and a brisk pickup in Chinese service sector activity but a surge in coronavirus cases in the United States kept a lid on further risk-taking.

It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%, reaching their highest level since late February, while Japan's Nikkei rose 0.4%.

"The US economy added 4.8 million jobs in June, according to the Labor Department, 1.8 million more than analysts expected, setting a second consecutive record. Massive rehiring sent the unemployment rate down to 11.1%," Reuters reported.