KUALA LUMPUR: OSK Research is maintaining its Underweight on the TECHNOLOGY [] sector.
It said on Froday, May 6 prospective earnings disappointments in 1HCY11 on potential component shortages in the semiconductor supply chain, slowing industry growth and the continued uptrend of RM against USD reaffirmed its UNDERWEIGHT call.
'The triple whammy impact would likely unveil itself in the upcoming 1QCY11 quarterly earnings announcement and be dragged on into 2QCY11, plagued further by inventory normalization woes.
'We believe HDD component manufacturers and semiconductor packaging players would likely continue to suffer in 2QCY11, lacking any early indication of sustainable improvement thus far,' it said.
It said on Froday, May 6 prospective earnings disappointments in 1HCY11 on potential component shortages in the semiconductor supply chain, slowing industry growth and the continued uptrend of RM against USD reaffirmed its UNDERWEIGHT call.
'The triple whammy impact would likely unveil itself in the upcoming 1QCY11 quarterly earnings announcement and be dragged on into 2QCY11, plagued further by inventory normalization woes.
'We believe HDD component manufacturers and semiconductor packaging players would likely continue to suffer in 2QCY11, lacking any early indication of sustainable improvement thus far,' it said.
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