MIDF raises semiconductor to 'positive'

MIDF Research upgraded Malaysia’s semiconductor and technology sector to 'positive' from 'neutral', citing robust demand from smartphone makers, which will be the key driver for growth in 2013.

"There will also be other sectors of growth such as optoelectronics," the research house said in a note today.

"Malaysia’s recent export numbers for the electrical and electronic sector suggests that the semiconductor sector is on the mend," MIDF added.

The research house has 'buy' calls on Unisem (M) Bhd with a target price of RM1.25 per share and Globetronics Technology Bhd with a target price of RM1.96 per share.

"We continue to like Globetronics for its resilience and the fact that it has exposure in high growth subsectors such as optoelectronics and sensors," it said.

For semiconductor company Unisem, MIDF said it was expecting an earnings recovery in 2013.

As of 10.03am, shares of Globetronics were down 4.95 per cent at RM1.73 per share and Unisem shares were 0.55 per cent lower at 90 sen a share.

The technology index declined 0.84 per cent.-- Reuters