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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (62350)	3/26/2002 1:53:12 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Chipmakers seen gaining from improved sentiment e-insite.net -- Business Times (Malaysia), 3/26/2002 HIGHER spot orders for Malaysian-made computer chips, some exceeding clients' estimates, indicate that inventory levels have bottomed, analysts said. "Orders for chips have to be filled fast these days as spot orders have risen to an average of 15 per cent above customers' forecast. This appears to suggest that the worst is over for the local semiconductor sector," said an analyst with a foreign research house. The Kuala Lumpur Stock Exchange technology index (KLTEC) - led by the two largest Malaysian computer chipmakers Malaysian Pacific Industries Bhd and Unisem Bhd - has been rising consistently since October 2001, from 40 points to a six-month high of 65.2 on March 22 this year. MPI and Unisem are expected to benefit from this rising trend, which has been spurred by the increase in outsourcing by US-based companies, said the analyst. In line with its recovering economy, US manufacturing activities rose 54.7 per cent in February from 49.9 in January and this is likely to push demand for Malaysian computer chips higher. Analysts are already calling for a buy on the two semiconductor companies' shares as chip orders gather momentum. A foreign brokerage upgraded MPI to a "strong buy" and has revised upward its third- quarter earnings by 50 per cent. Yesterday, MPI lost 40 sen to RM20.20. Meanwhile, a foreign research house upgraded Unisem's fair value to RM13 from RM11 in anticipation of the company returning to the black in the second quarter given its net cash situation and low-cost operations.