KUALA LUMPUR (March 17): Malaysia’s technology stocks climbed on Thursday (March 17) in tandem with tech-heavy Nasdaq, which closed 3.8% higher on Wednesday, against the backdrop of global semiconductor materials market revenue topping US$64 billion (RM268.1 billion) in 2021 to set a new record.
Bursa Malaysia technology index, which rose as much as 3.89 points to 75.19, ended the day at 74.69, 3.39 points or 4.75% higher than Wednesday's close.
Malaysian Pacific Industries Bhd was the top gainer by value, surging RM3.64 or 11.5% to RM35.20.
Most tech stocks made it to the top gainers' list. ViTrox Corp Bhd gained 75 sen or 11.6% to RM7.22; Pentamaster Corp Bhd rose 26 sen or 7.54% to RM3.71; UWC Bhd increased 26 sen or 7.56% to RM3.70; Frontken Corp Bhd was up 25.5 sen or 9.32% to RM2.99; SAM Engineering & Equipment (M) Bhd rose 28 sen or 6.6% to RM4.52; and PIE Industrial Bhd gained 19 sen or 7.04% to RM2.89.
Panasonic Manufacturing Malaysia Bhd added 12 sen or 0.43% to RM27.72, while Unisem (M) Bhd rose 34 sen or 12.8% to RM3; Formosa Prosonic Industries Bhd gained 14 sen or 4.07% to RM3.58; D&O Green Technologies Bhd jumped five sen or 1.22% to RM4.16; Kobay Technology Bhd rose 33 sen or 10.1% to RM3.59; and Inari Amertron Bhd advanced 20.8 sen or 7.14% to RM3.12.
“The rise of tech stocks on Bursa Malaysia was mainly due to the sharp increase on Nasdaq, coupled with bargain-hunting activities,” Rakuten Trade head of research Kenny Yee told theedgemarkets.com.
However, he opined that the tech stocks will remain volatile due to the Russia-Ukraine war and possible, more rate hikes this year by the US Federal Reserve.
“The technology index rebounded strongly today, in tandem with the rebound in Nasdaq and Chinese market after China authorities said they would support the market,” Hong Leong Investment Bank (HLIB) Research analyst Ng Jun Sheng said when contacted.
According to him, news that authorities from China and the United States are progressing towards a cooperation plan on US-listed Chinese stocks have also boosted Hong Kong and China tech stocks, and spilt over to regional tech markets including Malaysia.
Fundamentally, he said the 2022 and 2023 outlook for tech stocks in Malaysia remains promising, underpinned by strong demand.
He expects more upside for local tech stocks but noted that the upcoming results will be key.
Meanwhile, the global semiconductor materials market rose 15.9% year-on-year to US$64.3 billion in revenue in 2021, eclipsing the previous market high of US$55.5 billion set in 2020.
In a statement Wednesday, US-based Semiconductor Equipment & Materials International (SEMI) said wafer fabrication materials and packaging materials revenues in 2021 totalled US$40.4 billion and US$23.9 billion respectively, for year-on-year increases of 15.5% and 16.5%.