Published:
Monday May 12, 2014 MYT 12:00:00 AM
Updated: Monday May 12, 2014 MYT 3:08:14 PM
Updated: Monday May 12, 2014 MYT 3:08:14 PM
Meanwhile,
observers said the pending Alibaba Group Holding Ltd’s listing in the
United States could also help re-invigorate interest in the sector – at
least until the second quarter of the year. One of Alibaba's main
assets, the sprawling e-commerce site Taobao -- or "search for treasure"
-- enables this bag making company to offer locally made bags to
millions of potential Chinese and other customers. - AFP
PETALING
JAYA: Technology stocks could regain favour among some fundamental
investors after recent statistics showed that sales in the industry was
at its all-time high, a possible indication that the industry was doing
better than earlier thought.
The Semiconductor Industry Association (SIA) said in a recent press release that worldwide semiconductors reached its highest-ever first quarter sales of US$78.47bil (RM255.15bil) in the first quarter of 2014.
SIA, which sourced the statistics from the World Semiconductor Trade Statistics (WSTS) organisation, reported global sales rose 11.4% year-on-year to US$26.16bil (RM85.06bil) in March 2014, which was also a quarter-on-quarter rise of 0.4% compared with last month’s total of US$26.04bil (RM84.67bil).
Companies with exposure to the technology industry include Unisem (M) Bhd, Malaysian Pacific Industries Bhd, Inari Amertron Bhd, Uchi Technologies Bhd, EITA Resources Bhd and Digistar Corp Bhd.
Meanwhile, reaction to the latest SIA statistics were generally mixed
with some analysts saying that it might be pointing towards a healthy
demand growth in the sector while others thought it was all part and
parcel of cyclical trends in the industry.
CIMB Research’s technology analyst Mohd Shanaz Noor Azam told StarBiz
that the global semiconductor industry was expected to grow by
mid-to-high single digits, driven by higher demand from wireless mobile
devices on the back of a stronger global economy.
“We are seeing better supply-demand dynamics within the industry as the Semiconductor Equipment and Materials International’s book-to-bill ratio continues to hover above 1 over the past 12-15 months,” Shanaz said.
“Further growth catalysts could come from higher demand from mid-to-low end smartphone and tablet sector, stabilisation in the PC market and potential demand from wearable tech devices,” he added.
However, Interpacific’s head of research Pong Teng Siew told StarBiz that the semiconductor sector was very cyclical in nature and was dependent on the global growth of economies.
“The semiconductor industry goes through minor cycles of booms and busts as well,” Pong said.
He said the recent correction in the sector, including on the Nasdaq stock market, “was a correction in prices to more reasonable levels as the contention was that they had gone up faster than the fundamentals.”
Meanwhile, observers said the pending Alibaba Group Holding Ltd’s listing in the United States could also help re-invigorate interest in the sector – at least until the second quarter of the year.
The Semiconductor Industry Association (SIA) said in a recent press release that worldwide semiconductors reached its highest-ever first quarter sales of US$78.47bil (RM255.15bil) in the first quarter of 2014.
SIA, which sourced the statistics from the World Semiconductor Trade Statistics (WSTS) organisation, reported global sales rose 11.4% year-on-year to US$26.16bil (RM85.06bil) in March 2014, which was also a quarter-on-quarter rise of 0.4% compared with last month’s total of US$26.04bil (RM84.67bil).
Companies with exposure to the technology industry include Unisem (M) Bhd, Malaysian Pacific Industries Bhd, Inari Amertron Bhd, Uchi Technologies Bhd, EITA Resources Bhd and Digistar Corp Bhd.
“We are seeing better supply-demand dynamics within the industry as the Semiconductor Equipment and Materials International’s book-to-bill ratio continues to hover above 1 over the past 12-15 months,” Shanaz said.
“Further growth catalysts could come from higher demand from mid-to-low end smartphone and tablet sector, stabilisation in the PC market and potential demand from wearable tech devices,” he added.
However, Interpacific’s head of research Pong Teng Siew told StarBiz that the semiconductor sector was very cyclical in nature and was dependent on the global growth of economies.
“The semiconductor industry goes through minor cycles of booms and busts as well,” Pong said.
He said the recent correction in the sector, including on the Nasdaq stock market, “was a correction in prices to more reasonable levels as the contention was that they had gone up faster than the fundamentals.”
Meanwhile, observers said the pending Alibaba Group Holding Ltd’s listing in the United States could also help re-invigorate interest in the sector – at least until the second quarter of the year.
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