Technology, manufacturing counters in focus as investors anticipate higher pandemic-driven demand amid lockdowns

Technology, manufacturing counters in focus as investors anticipate higher pandemic-driven demand amid lockdowns
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KUALA LUMPUR (Jan 18): Technology and manufacturing counters were among the top gainers on Bursa Malaysia today, as investors anticipate higher demand for computer-related products and technology amid global lockdown policies.

At 12.30pm, semiconductor group Malaysian Pacific Industries Bhd (MPI) topped the list of gainers by value, gaining 5.2% or RM1.50 to a multi-year high of RM30.22, followed by integrated circuit testing company JF Technology Bhd (up 73 sen or 12.1%), and precision engineering company Kobay Technology Bhd (up 72 sen or 16.6%).

Several other technology and manufacturing counters were also among top gainers, including UWC Bhd (up 64 sen or 6% at RM11.40), Genetec Technology Bhd (up 60 sen or 29.6% at RM2.63), PMB Technology Bhd (up 65 sen or 14.3% at RM5.20), Kumpulan H & L High Tech Bhd (up 42 sen or 29.6% at RM1.84), Sarawak Consolidated Industries Bhd (up 34 sen or 20% at RM2.04), and Unisem (M) Bhd (up 31 sen or 4.2% at RM7.70).

Both Genetec and Kumpulan H & L High-Tech were near the limit-up threshold at the time of writing, with Bursa Malaysia earlier issuing an unusual market activity (UMA) query to the former asking for an explanation for the sudden surge in its share price and trading volume.

The rise in technology stocks was reflected in the Bursa Malaysia Technology Index, which gained 2.15 points or 2.85% to 75.44, outperforming the benchmark FBM KLCI, which fell 17.32 points or 1.1% to 1,609.69 at noon.

The interest in these counters come amid global Covid-19 movement restriction policies which prompted bets on technology-based companies’ earnings growth, in anticipation of higher demand for computer-related products as world governments require people to stay at home to curb the spread of the virus.

Surin Murugiah