Most tech stocks rebound after Nasdaq rally

KUALA LUMPUR: Most chip makers and tech-related stocks staged a rebound early Wednesday, as investor sentiment was boosted by the overnight rally of Nasdaq.

At 9.15am, the FBM KLCI was up 10.36 points or 0.64% to 1,635.14. Turnover was 832.30 million shares valued at RM535.08mil. Advancers beat decliners 485 to 178 while 346 counters unchanged.

Overnight on Wall Street, US stocks rallied, with the Nasdaq gaining about 4% to recoup heavy losses from the previous session as US bond yields retreated and investors scooped up battered technology stocks.

The Dow Jones Industrial Average rose 30.3 points, or 0.10%, to 31,832.74, the S&P 500 gained 54.09 points, or 1.42%, to 3,875.44 and the Nasdaq Composite added 464.66 points, or 3.69%, to 13,073.83.

At Bursa on Tuesday, foreign funds were net buyers at RM120.7mil but local funds were net sellers at RM110.9mil and local retail investors RM9.7mil.

TA Securities Research said the local market should extend gains given increased economic recovery optimism on the back of the US$1.9 trillion stimulus bill, which should see recovery plays gain strength, and rebound in technology stocks given the strong overnight recoveryon the US technology sector.

On the KLCI, the research house said subsequent profit-taking hurdles are from 1,640 and 1,660, with significant resistance seen from last December peak of 1,695.

Key chart supports will be at 1,600, followed by the 100-day and 200-day moving averages at 1,586 and 1,559, respectively

In early Wednesday trade, MPI was the top gainer, up RM1.10 to RM36, Vitrox 36 sen to RM14.86, Unisem 37c to RM7.82, Genetec 35c to RM5.81, Dataprep 33 sen to RM2.98 and UWC 30 sen to RM5.50.

Also on the upward trend were Pentamaster, up 25 sen to RM5.75, Greatec 24 sen to RM5.50 and Frontken 23 sen to RM4.83.

However, KESM lost 16 sen to RM13.18 and Hightec 10 sen to RM1.60.

Hong Leong Bank fell 20 sen to RM18.90, Hengyuan eight sen to RM5.83, Petron seven sen to RM4.70 and Bursa six sen to RM9.

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