As Malaysia’s benchmark stock index inches closer to erasing its loss for the year, one corner of the market has raced ahead: technology shares.
The Bursa Malaysia Technology Index of 38 stocks has soared 95% from a March low to reach the highest level since 2004, led by manufacturers ViTrox Corp. and UWC Bhd. The main FTSE Bursa Malaysia KLCI Index is close to recouping its 2020 losses, with the gauge trading within 0.5% of the mark.
Gains in the tech stocks have sent their valuations to the highest in at least 10 years. AmInvestment Bank Bhd. still expects the sector’s outlook to remain resilient despite the global pandemic, upgrading its rating to overweight from neutral earlier this month. Its top pick is chipmaker Inari Amertron Bhd.