KUALA LUMPUR (Oct 6): Despite a 3% year-on-year drop in global sales of semiconductors in August this year, technology stocks shrugged the latest data to advance this morning on the back of the strong US dollar.

The US-based Semiconductor Industry Association said that worldwide sales of semiconductors reached US$27.7 billion for the month of August 2015, a decrease of 0.5% from US$27.9 billion in the previous month.

It said global sales from August 2015 were 3% lower than the August 2014 total of US$28.6 billion.

At 12.30pm today, local semiconductor players such as Cuscapi Bhd rose 6.9% to 15.5 sen. It saw some 275,400 shares changed hands, for a market capitalisation of RM63.2 million. Its peer Industronics Bhd advanced 8.7% to 12.5 sen with a low volume of 10,000 shares, for a market capitalisation of RM11.8 million.

Meanwhile, Unisem (M) Bhd increased 6 sen to RM2.20, with 1.78 million shares done.

However, a market observer believed that this positive trend may not be sustained due to the mixed outlook of the industry.

Interpac Securities Sdn Bhd head of research Pong Teng Siew told the theedgemarkets.com that he adopts a cautious stance on the technology sector as global growth may eventually slow down.

"This is due to the fact that Chinese market is weak, and the US also relies heavily on Chinese market," he said.

Pong expects Malaysian semiconductor's sales to grow at a low double-digit range of 11% this year.

"Local players are currently benefiting from the strong (US) dollar, but once the ringgit stabilises, this situation will change," he said.

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