Tech counters dominate Bursa Malaysia as sector leads market gains

New Straits Times

24-07-2025

KUALA LUMPUR: Tech stocks dominated Bursa Malaysia's most active list in morning trade, lifting the Technology Index to outperform other sectoral indices.
At 9.45am, seven of the 10 most actively traded counters were technology-related, including Dagang NeXchange Bhd (DNex), SFP Tech Holdings Bhd, TT Vision Holdings Bhd and Oppstar Bhd.
DNex led the gainers, rising 7.02 per cent or two sen to 30.5 sen, with 13.4 million shares traded. SFP Tech added 5.13 per cent or one sen to 20.5 sen, while TT Vision advanced 7.08 per cent or four sen to 60.5 sen.
Oppstar climbed 7.22 per cent or 3.5 sen to 52 sen, up from 48.5 sen previously. Other notable gainers included Notion Vtec Bhd, up 1.68 per cent or one sen to 60.5 sen, Greatech Technology Bhd, which gained 3.25 per cent or 2.5 sen to 79.5 sen and Inari Amertron Bhd, up 1.48 per cent or three sen to RM2.06.
The Bursa Malaysia Technology Index rose 0.99 per cent or 0.52 points to 52.86, outperforming other sectors including transportation and logistics, plantations, consumer products and services, financial services, and telecommunications and media.
On the broader market, the FTSE Bursa Malaysia KLCI edged up 0.11 per cent or 1.62 points to 1,531.41.
At the time of writing, four sectoral indices were in negative territory, namely energy, construction, utilities, healthcare, and industrial products and services.
In a research note, RHB Investment Bank Bhd said the technology sector may be poised for a re-rating, supported by improving earnings momentum and easing global uncertainties.
Citing recent site visits, it said the earnings recovery is underpinned by higher revenue and encouraging guidance from key players across the supply chain, indicating that the sector's recovery remains on track.
It noted that valuations remain attractive, with the sector trading at below 20 times forward price-to-earnings, under its five-year historical average and about one standard deviation below the mean.
"The Bursa Malaysia Technology Index remains negative, weighed by softer-than-expected results, US tariff and sanction concerns, and risk-off market sentiment.
"However, current valuations are compelling, and improved guidance across the sector suggests investors should position for the recovery, despite all external noise," RHB said.
The research house also highlighted that revenue trends have strengthened since end-2024, although near-term earnings may be affected by unrealised foreign exchange losses.
RHB Investment forecasts six per cent earnings growth for the technology sector in financial year 2025 and a stronger 39 per cent growth in 2026.
It added that Malaysia stands to benefit from both near-term order shifts and longer-term manufacturing relocation, thanks to its well-established ecosystem, skilled labour force, and robust infrastructure.
"While tariffs could induce demand volatility, the sector remains in an upcycle with no major disruptions anticipated.
"Notably, most semiconductor supply chains are exempted and Malaysia's parts and components suppliers have minimal direct exports to the US, estimated at below 15 per cent for most," it said.