Technology stocks gain on bargain hunting

Technology stocks gain on bargain hunting
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KUALA LUMPUR (March 9): Technology-related stocks on Bursa Malaysia rose on bargain hunting on Wednesday (March 9) morning, after days of decline.

At noon break, Bursa Malaysia’s technology index was up 6.63% to 67.25 points.

Malaysian Pacific Industries Bhd (MPI) was the top gainer by value, surging RM2.80 or 10.33% to RM29.90, followed by ViTrox Corp Bhd which soared 81 sen or 13.73% to RM6.71.

Nearly all tech stocks made the top gainers list. D&O Green Technologies Bhd leapt 40 sen or 11.94% to RM3.75, Greatech Technology Bhd 38 sen or 13.1% to RM3.28, Kobay Technology Bhd 32 sen or 12.12% to RM2.96, and Frontken Corp Bhd 31 sen or 13.66% to RM2.58.

P.I.E. Industrial Bhd added 27 sen or 12.05% to RM2.51, Dufu Technology Corp Bhd 26 sen or 12.38% to RM2.36, UWC Bhd 26 sen or 8.58% to RM3.29, Unisem (M) Bhd 22 sen or 9.65% to RM2.50, Mi Technovation Bhd 14 sen or 8.81% to RM1.73, and Pentamaster Corp Bhd 13 sen or 4.64% to RM2.93.

The gains notwithstanding, tech stocks are still trading substantially below their highs of last year as reflected in the tech index for instance which is still lower by a third.

Rakuten Trade head of research Kenny Yee attributed the interest in technology stocks to bargain hunting activities.

“The uptrend may be only for a while as the broad market is still lethargic,” he told theedgemarkets.com.

He said the tech sector remains volatile as interest rate hikes are still very much in the forefront.

However, he maintained his “overweight” call on the sector as earnings growth is still decent.

He observed the continued aggressive expansions by semiconductor players.

Citing Inari Amertron Bhd as an example, he said the group has recently committed RMB463 million (RM299 million) cash to form a joint venture with China Fortune-Tech Capital (a venture capital firm incorporated by Semiconductor Manufacturing International Co) to set up a plant in China, offering outsourced semiconductor assembly and test related businesses.

Western Digital has set aside RM1 billion for a new plant in Sarawak while Intel has proposed a RM30 billion expansion in Penang, he added.

Pauline Ng