LAST week, scores of technology-related companies saw their share prices climbing ahead of Prime Minister Tan Sri Muhyiddin Yassin’s announcement of the MyDIGITAL blueprint on Friday.
Digital services and solution providers such as Revenue Group Bhd, Dataprep Holdings Bhd, GHL Systems Bhd, Dagang NeXchange Bhd, Censof Holdings Bhd and ManagePay Systems Bhd were among the top gainers, along with two obvious winners Telekom Malaysia Bhd (TM) and AwanBiru Technology Bhd.
Prestariang Systems Sdn Bhd, a unit of AwanBiru formerly known as Prestariang Bhd has been appointed a managed service provider (MSP) to manage cloud services for the government.
TM, on the other hand, has received conditional approval to provide services to the government for the migration of 80% of public data into the hybrid cloud system by end-2022. This is expected to translate into lower government cost in information technology management and better efficiency in the collection and management of data.
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“The upcoming results season is expected to usher in re-rating catalysts in the form of strong quarter on quarter earnings growth or fat dividends for all of these stocks except Sunway, ” UOB added. has been a significant laggard and should appeal to longer-term investors.
Meanwhile, in its report to clients yesterday, Hong Leong Investment Bank Research (HLIB Research) said on the whole, the Permai stimulus which was announced on Monday, “seems to be largely targeted at both the rakyat and SMEs that have been hit by the negative ramifications of Covid-19.”
“From a market perspective, our sense is that the stimulus initiatives were largely reiterations of previously announced ones, ” it said.
KUALA LUMPUR (Jan 19): The main index at Bursa Malaysia pared some of its gains at the midday break Tuesday as broader market sentiment appeared lukewarm to the government’s RM15 billion Perlindungan Ekonomi dan Rakyat Malaysia (Permai) assistance package.
At 12.30pm, the FBM KLCI was up 2.78 points to 1,612.30. The index had earlier climbed to a high of 1,618.41.
Declining issuers led advancers by 370 to 365, while 728 counters traded unchanged. Trading volume was 4.16 billion shares valued at RM2.50 billion.
The gainers included Nestle (M) Bhd, Toyo Ventures Holdings Bhd, Milux Corp Bhd, PMB Technology Bhd, Khind Bhd, Samaiden Group Bhd and Carlsberg Brewery Malaysia Bhd.
TECHNOLOGY and semiconductor-related stocks on Bursa Malaysia have performed quite well this year, in tandem with the rise of tech stocks around the world, driven by robust demand amid the Covid-19 pandemic.
The virus outbreak and accompanying lockdowns have accelerated digital adoption worldwide. It has changed the way we live, work, study, communicate, shop and consume, among others.
On the corporate front, tech-related companies including those in the semiconductor, digital, e-payment, e-commerce and online learning space have been greatly impacted. For many of these players, fortunately, the impact has been mostly positive due to an unexpected surge in demand as well as a sharp increase in investments in computing and mobile and IT infrastructure.