Friday, January 7, 2011

Notion VTec rallies, JCY ekes out marginal gains

KUALA LUMPUR: Shares of Notion VTec and JCY International, whose shares had come under heavy selling last year over the weaker outlook for the hard disk drive market, managed to post some gains in late afternoon on Friday, Jan 7.

At 4.37pm, Notion was up 22 sen to RM1.92 while JCY added 1.5 sen to 85 sen.

The 30-stock FBM KLCI rose 1.98 points to 1,570.35. Turnover was 2.36 billion shares valued at RM3.07 billion. Gainers beat decliners 491 to 360 while 294 stocks were unchanged.

In a recent report, RHB Research said it was maintaining its underweight call on the semiconductior sector. It also kept its fair value for Notion at RM1.68 and JCY at 64 sen.

It said although November chip sales continued to rise 14.4% on-year to US$26 billion, the pace of growth continued to fall after registering 19.8% on-year in October and peaking 58.4% on-year in March.

"Nevertheless, we believe this is tandem as chip players look to cut back production to optimise stock levels as inventory levels have been rising due to combination of weaker-than-expected demand as well as post-festive seasons," RHB Research said.

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