Tech stocks log record highs amid upbeat chip equipment prospects

The top gainers were led by semiconductor equipment provider, Greatech Technology Bhd, which rose 25 sen or 4.65% to RM5.63, followed by Pentamaster Corp Bhd, up 24 sen or 3.72% to RM6.69 and JF Technology Bhd, up 21 sen or 6.12% to RM3.64.

The bullish sentiment has spilled over to ICT products distributor, Vstecs Bhd, which rose 15 sen or 8.11% to RM2, as well as hard disk drive manufacturer, Dufu Technology Corp Bhd, up nine sen or 1.25% to RM7.29.

All five tech stocks are currently trading at their all-time highs.

Consequently, the Bursa Malaysia technology index is up 1% or 0.47 points to 49.15, logging a 16-year high.

In releasing the mid-year total semiconductor equipment forecast yesterday, SEMI said chip manufacturing equipment sales were expected to increase by 6% to US$63.2 billion this year from US$59.6 billion in 2019, before logging a record high of US$70 billion in 2021.

The global tech industry association expects growth across a number of semiconductor segments to power the expansion, spanning from wafer fab equipment, assembly and packaging equipment and semiconductor test equipment.

It also said it expects countries like China, Taiwan and South Korea to lead the pack in spending in 2020.