Quick take: Dufu shares surge on bonus shares update, upgrade

  • Markets
  • Friday, 03 Jul 2020

KUALA LUMPUR: Shares of Dufu Technology Corp Bhd surged to its highest in several months of RM5.96 following the update on its one-for-one bonus issue and analysts' upbeat outlook for the tech sector.

At midday, Dufu was up to 47 sen to RM5.46.

The FBM KLCI was up 7.08 points or 0.46% to 1,543.36. Turnover was 3.9 billion shares valued at RM1.80bil. Advancers beat decliners two to one or 605 to 308 and 400 counters unchanged.

In an announcment on Friday, it said its bonus issue of up to 267.61 million new shares on a one-for-one basis would go ex on Aug 3.

AmInvestment Research also upgraded its outlook on the technology sector to Overweight from Neutral for the 2H20 as the sector’s outlook remains resilient with Inari Amertron as its top pick.

The research house said on Friday its positive stance was despite the Covid-19 pandemic impact on operations from the implementation of partial and/or complete lockdowns and travel restrictions worldwide to curb the spread of the virus.

“As the automotive and industrial segments have been hit harder by Covid-19, we expect the focus to be on: (i) the telecommunications segment with the 5G growth upswing; (ii) growth in smart sensors with applications in telecommunications and automotive segments; and (iii) the adoption of Industry 4.0 technologies such as artificial intelligence, internet of things (IoT) and automation to rapidly increase production when economies recover, ” it said.

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