KUALA LUMPUR (Nov 6): Technology and semiconductor-related stocks on Bursa Malaysia surged on Wednesday ahead of Republican candidate Donald Trump's victory in the US presidential election.

Most analysts contacted by The Edge said Trump’s expected policies as the 47th US president may have a mixed spillover effect on Malaysia, the US’s 17th-largest trading partner, particularly in the semiconductor sector.

The FBM Technology Index, which tracks 48 tech-related stocks, climbed as much as 6.18% or 6.18 points to 66.67. The benchmark FBM KLCI, meanwhile, gained 0.83%, or 13.47 points to 1,634.17.

The top gainer by value among tech stocks was semiconductor packaging and testing services player Malaysian Pacific Industries Bhd (KL:MPI), which closed up 80 sen or 3.13% to RM26.36, with 715,900 shares traded, giving the company a market capitalisation of RM5.53 billion. Year-to-date, however, the stock is down 5.92%.

Its peer Frontken Corp Bhd (KL:FRONTKN) was another major gainer, surging 44 sen or 11.76% to close at a three-month high of RM4.18, on a volume of 3.87 million shares. This boosted the counter's gain so far this year to 31.03% and values the company at RM6.64 billion.

Pentamaster Corp Bhd (KL:PENTA) jumped 32 sen or 8.70% to RM4.00, giving the company a market capitalisation of RM2.85 billion.

3REN Bhd (KL:3REN), which was listed on the ACE Market on Wednesday, was the most actively traded tech stock. It closed its maiden day of trading with a premium of 41% or 11.5 sen over its initial public offering price of 28 sen. This values the company at RM256.8 million.

This was followed by automated industrial system manufacturer Genetec Technology Bhd (KL:GENETEC), which jumped 26 sen or 37.68% to hit a three-month high of 88.5 sen, with 105.75 million shares changing hands.

Another top active tech stock was MyEG Services Bhd (KL:MYEG), which rose four sen or 4.73% to close at 88.5 sen, valuing the company at RM6.75 billion.

In a flash note on Wednesday, UOB Kay Hian cautioned that while Trump’s win could benefit Malaysian tech and glove industries through potential trade diversion, his proposed tariff hikes, including a potential 20% blanket import tax and 60% on Chinese goods, might also have mixed impact.

Echoing the sentiment, Malacca Securities head of research Loui Low Ley Yee said the stronger US dollar currently could also attract buying interest in Malaysian tech sectors, with potential gains from the US-China tech rivalry.

UOB Kay Hian Malaysia director Vincent Khoo, meanwhile, cautioned that it may be premature to fully link the tech rally to Trump's victory, saying his recent rhetoric could be just "empty threats".