Manufacturing stocks rally 2% to 9% despite STI fall

SINGAPORE'S Straits Times Index (STI) might be correcting from technically overbought levels, but in the broader market, electronics and semiconductor-related manufacturing stocks are rallying hard.

Companies like Frencken Group (+1.7 per cent to S$0.585), Hi-P International (+5.3 per cent to S$1.785), Micro-Mechanics (+9.4 per cent to S$2.03), Valuetronics (+8.5 per cent to S$1.025), Venture Corp (+2 per cent to S$18.90), and UMS (+3.9 per cent to S$1.065) continued to rally to or near their recent highs.

This is despite the STI's fall of 10.47 points or 0.31 per cent to 3,375.97 points.

With many of these companies reporting earnings in the coming weeks, stock prices are rallying on high expectations. On Monday, small-cap Micro-Mechanics rose after reporting net profit of S$5.2 million for its first quar…