Semiconductor counters lead gainers in morning session

Semiconductor counters lead gainers in morning session
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KUALA LUMPUR (March 29): Technology stocks such as Malaysian Pacific Industries Bhd (MPI), ViTrox Corp Bhd and Frontken Corp Bhd topped the gainers by value on Bursa Malaysia during the morning session today.

At 11.55am, MPI was up 62 sen or 1.62% at RM39, while ViTrox was up 26 sen or 1.79% at RM14.76.

Frontken, which proposed a bonus issue of shares and warrants recently, rose 19 sen or 3.9% to RM5.04, with 1.96 million shares done.

For comparison, the Bursa Malaysia Technology Index was up 0.84% at 83.89, while the FBM KLCI was down 0.02% at 1,601.07 points.

Technology counters have been on an uptrend since the start of the year due to a global chip shortage.

In a note last Friday, Hong Leong Investment Bank (HLIB) Research upgraded its call on ViTrox to “buy" from “hold” as it expects the company to benefit from the shortage. It maintained its target price (TP) at RM16.88.

HLIB analyst Tan J Young said the company’s expansion plans augur well with the current semiconductor supply constraint.

“We opine that global contract manufacturers and electronic manufacturing services (EMS) players’ large-scale relocation, expansion and order diversion activities will create insatiable demand for its products,” he added.

Lee Weng Khuen