PETALING JAYA: Rubber glove and technology stocks came under some selling on Bursa Malaysia yesterday, with glove counters seeing profit-taking following their recent rally while semiconductor-related stocks also fell.
Major big names in local tech such as Inari Amertron Bhd
fell some 4% to RM2.55, being among the most actively traded stocks; while Top Glove Corp Bhd was also among the actives on the local bourse, falling some 3% to 73 sen.
Other counters such as Malaysian Pacific Industries Bhd lost 4.5% to RM42.20 while Hartalega Holdings Bhd fell 4.55% to RM1.05.
Broader market sentiment remained cautious in yesterday’s trade amid elevated United States Treasury yields and lingering geopolitical uncertainties, which continued to weigh on investor risk appetite.
Nevertheless, recent analyst coverage has remained positive on the underlying earnings prospects of selected technology companies.
For example, CGS International (CGSI) Research said in a recent report that UWC Bhd should register stronger fourth-quarter financial year 2026 (4Q26) earnings, supported by accelerated production ramp-ups from key front-end and back-end semiconductor customers amid robust global memory capital expenditure spending.
“We expect an even stronger first half of the financial year 2027, supported by improved availability of engineers and foreign workers, which should enable a steeper production ramp-up for key customers,” it said.
CGSI Research also remained positive on the semiconductor industry’s medium to long-term prospects, underpinned by sustained artificial intelligence (AI) demand and elevated capital expenditure commitments from hyperscalers, logic foundries and memory manufacturers.
“Nevertheless, we note that market sentiment remained constructive the next day following the Fed’s 25 basis points rate hike,” it said, while noting that near-term sentiment could remain susceptible to macroeconomic volatility.
Separately, BIMB Research said in its report on Sept 25 that Vitrox Corp Bhd’s earnings remained on an upward trajectory, supported by demand stemming from AI and data-centre investments, with the present semiconductor upcycle appearing more sustainable than the Covid-era boom.
“Given the healthy order backlog, favourable demand environment and sustainable capital expenditure deployment across the AI ecosystem, we believe the current earnings cycle still has room to run,” BIMB Research said.
Meanwhile, glove counters also came under selling pressure as investors took profit following the sector’s strong rebound earlier this month.
The major glove makers had rallied sharply earlier this month, with improving average selling prices (ASPs) and easing competition from Chinese manufacturers supporting sentiment towards the sector.
Phillip Capital Research said in a Sept 23 report that Top Glove Corp Bhd’s underlying demand remained stable, with selling-price volatility rather than demand weakness representing the key industry concern.
“Orders have remained largely stable since July, with a modest pick-up in recent weeks amid higher raw material and crude oil prices, potentially reflecting restocking activities ahead of anticipated price hikes,” it said.
Phillip Capital expects Top Glove to raise nitrile ASPs by US$2 to US$2.50 per 1,000 pieces in October and another US$1.50 to US$2 in November to recover higher raw-material and natural-gas costs.
“Our channel checks point to more disciplined pricing among Chinese glovemakers, with less emphasis on aggressive price cuts to gain volume.
“This has narrowed Top Glove’s ASP premium to about 50 US cents per 1,000 pieces, versus US$1 to US$1.50 per 1,000 pieces in FY25,” it said.
Phillip Capital Research upgraded Top Glove to a “hold” from “sell” and raised its target price to 75 sen from 60 sen.
