Tech stocks on a roll

KUALA LUMPUR: Technology stocks are trending higher on Bursa Malaysia despite having gained at least two-fold year-to-date.

The Bursa Malaysia Technology Index is up 0.45 points, or 1.2% to 37.37. Year-to-date, the technology index has gained more than 70%.

Pentamaster Corp, Malaysian Pacific Industries Bhd (MPI), Vitrox and Globetronics are among the top gainers dominating the gainers’ list on Bursa Malaysia. 

Pentamaster led the pack with the stock gained some 4.73%, or 33 sen to RM4.87. MPI added 20 sen to RM13.60, Vitrox climbed 19 sen to RM4.60 while Globetronics rose seven sen to RM6.24. 

According to the World Semiconductor Trade Statistics organisation, global economic recovery is set to drive semiconductor sales this year, with the Asia-Pacific region expected to record a 12.4% growth.

It says that the global semiconductor industry is on track for another record-breaking year in 2017, after recording all-time high sales worth US$339bil in 2016.

Tech stocks have benefited from the increased sales of mobile phones and also more electronics being introduced in cars.

StarBiz reported on Monday that Globetronics planned to invest more money to raise its capacity despite a downgrade call on the stock by some analysts after its core products did not feature in the new range of smart phones.

Globetronics CEO Datuk Heng Huck Lee, the company will raise its total investment for this year to RM103mil from RM85mil planned in the first quarter to meet the rising orders for its sensor products.

“Our order book is filled till the second quarter of next year, prompting the group to raise its investment for this year.

“Globetronics is on track to achieving a strong double-digit percentage growth for its revenue and bottom line in 2017 over 2016,” Heng told StarBiz.