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RHB cuts semiconductor sector to neutral
by hlk Mon 30 Jul 2012, 13:19
KUALA LUMPUR: RHB Research downgraded the semiconductor sector to 'neutral' from 'overweight' as it expects the economic slowdown to weigh on demand for chips in the near term and hamper the sector's recovery.
"We are turning cautious on the sector as the weak economic data suggest that the sector's recovery is losing momentum," the research house said in a note today.
Among the Malaysian semiconductor stocks, RHB downgraded Unisem (M) Bhd and Malaysian Pacific Industries Bhd to 'market perform' from 'outperform,' and cut its fair value to RM1.35 from RM1.90, and RM2.77 from RM4.12, respectively.
"Nonetheless, we remain positive on the longer-term prospects of the semiconductor sector on the back of the proliferation of electronic devices and may look to review our stance again once we see better indications of a more sustainable recovery," it added.
By 0320 GMT, Unisem dropped 0.77 per cent to RM1.29, while Malaysian Pacific shares remain unchanged at RM2.84 per share. -- Reuters
"We are turning cautious on the sector as the weak economic data suggest that the sector's recovery is losing momentum," the research house said in a note today.
Among the Malaysian semiconductor stocks, RHB downgraded Unisem (M) Bhd and Malaysian Pacific Industries Bhd to 'market perform' from 'outperform,' and cut its fair value to RM1.35 from RM1.90, and RM2.77 from RM4.12, respectively.
"Nonetheless, we remain positive on the longer-term prospects of the semiconductor sector on the back of the proliferation of electronic devices and may look to review our stance again once we see better indications of a more sustainable recovery," it added.
By 0320 GMT, Unisem dropped 0.77 per cent to RM1.29, while Malaysian Pacific shares remain unchanged at RM2.84 per share. -- Reuters
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