But analysts are maintaining their "buy" recommendations on Malaysian Pacific Industries Bhd (MPI), Unisem (M) Bhd, Globetronics Technology Bhd and AIC Corp amid the weakness.

"We see any share price weakness as a buying opportunity especially integrated circuit packaging companies such as Unisem, MPI, AIC and Globetronics," said Syed Al-Idid, an analyst at Smith Zain Securities, a Merrill Lynch affiliate.

"We maintain our overweight in the semiconductor sector." Shares of MPI, Unisem and Globetronics rebounded late lastweek to end at 43.00 ringgit, 36.50 ringgit and 15.00 ringgit respectively last Friday. AIC was down 20 cents at 22.60.

Rising global demand
Surging demand for semiconductor products and rising outsourcing by multinational corporations are expected to boost earnings of the country's integrated circuit (IC) packaging companies, prompting buy recommendations by analysts. "The brisk demand for semiconductor products, increasing outsourcing by MNCs and revolutionary new products will continue to endow the IC packaging industry with superior earnings growth," Vincent Khoo, senior analyst at SG Securities said in a recent research report.

"Our top picks are Bellwether MPI and Globetronics." MPI posted net profit of 149.56 million ringgit in the six months to December 31, 1999, surpassing 132.9 million ringgit recorded for all of 1998/99 (July-June). Unisem recorded net profit of 157 million ringgit in the year to end December 1999, while Globetronic and AIC posted net profits of 28.24 million ringgit and 25.66 million ringgit, respectively.

Unisem managing director John Chia said last week that his firm expects turnover and operating profits to rise by 50 per cent in 2000, underpinned by robust demand for semiconductors.

-- (Reuters)