KUALA LUMPUR (July 29): Malaysia’s technology-related counters continued to rally on Friday (July 29), benefiting from foreign buying and gains in the tech-heavy Nasdaq.
Dagang NeXchange Bhd (DNeX) recorded a trading volume of 217.1 million at press time, making it the fourth most active stock on Bursa Malaysia. The counter rose 2.5 sen or 3.21% to 80.5 sen, with a market capitalisation of RM2.56 billion.
MyEG Services Bhd's trading volume was 21.8 million, as the stock rose 2.5 sen or 3.27% to 79 sen, translating into a market capitalisation of RM5.81 billion.
Other technology stocks among the top actives were SFP Tech Holdings Bhd, up 5.16% or four sen to 81.5 sen, Infoline Tec Group Bhd, up one sen or 3.39% to 30.5 sen, and Dataprep Holdings Bhd, which climbed 5.41% or one sen to 19.5 sen.
Top gainers included Malaysian Pacific Industries Bhd (MPI), Unisem (M) Bhd, Greatech Technology Bhd, Frontken Corp Bhd and LGMS Bhd.
MPI traded 1.86% higher at RM32.86, giving it a market capitalisation of RM6.9 billion. Unisem rose 6.52% to RM2.94, with a market value of RM4.74 billion. Frontken was up 5.15% to RM2.86, while LGMS was up 16.25% to 93 sen.
“Overall market sentiment is improving. The technology sector still has room for growth. Besides, foreign investors are taking [the] opportunity to buy [technology] stocks.
"The Nasdaq has risen as technology stocks have done well in the US,” said Thong Pak Leng, the vice-president of equity research at Rakuten Trade Sdn Bhd, when contacted by theedgemarkets.com on Friday.
According to him, the local technology sector has fallen by about 50%, from 40 times the price-earnings ratio (PER) last year to the current 22 times PER.
The Nasdaq rose more than 4%, posting its biggest daily percentage gain since April 2020, after the US Federal Reserve (Fed) raised interest rates by three-quarters of a percentage point on Wednesday.
Reuters reported earlier that the move followed a 75-basis-point hike last month, and smaller moves in May and March by the Fed to cool inflation.