Bursa know-how shares tumble once more as US tech shares crash on US tapering concern





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KUALA LUMPUR (Jan 14): Expertise shares on Bursa Malaysia tumble once more as US huge tech shares crashed on US tapering considerations.

It was once more a sea of pink for the sector with Bursa Malaysia Expertise Index slipping 5.52 factors or 6.2% to 83.45 on Friday’s (Jan 14) midday break.

The autumn was led by Malaysian Pacific Industries Bhd, which was the highest loser by way of worth, plunging RM3.80 or 8.12% to RM43.

This was adopted by ViTrox Corp Bhd, which slumped RM1.52 or 8.25% to RM16.90; SAM Engineering & Tools (M) Bhd, which fell RM1.08 or 4.94% to RM20.80.

Panasonic Manufacturing Malaysia Bhd, Kobay Expertise Bhd, D&O Inexperienced Applied sciences Bhd, Greatech Expertise Bhd, Unisem (M) Bhd, KESM Industries Bhd have been additionally among the many prime 10 losers by way of worth.

Panasonic slipped 66 sen or 2.22% to RM29.12; Kobay slid 61 sen or 11.11% to RM4.88; D&O declined by 58 sen or 11.11% to RM4.64; Greatech tumbled 52 sen or 9.39% to RM5.02; Unisem misplaced 51 sen or 14.25% to RM3.07; KESM went down 46 sen or 3.72% to RM11.90.

“There was a rout on Nasdaq [on Thursday] night time, Malaysian know-how shares have been simply following go well with,” Inter-Pacific Securities head of analysis Victor Wan informed theedgemarkets.com.

He expects know-how shares, which had an excellent run final 12 months, to stay unstable within the brief time period due to the US tapering concern.

“The sector wants to drag again somewhat bit earlier than making one other push in a while. If the share costs are low sufficient, it should change into a horny proposition,” he added.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong concurred with Wan and mentioned the downtrend of Bursa know-how shares was as a result of weak spot in Nasdaq.

“Based mostly on the present state of affairs, the downtrend is anticipated to proceed. Expertise sector had an excellent run in 2021, I believe traders are utilizing this as an excuse to take revenue,” he mentioned.

Nonetheless, in the long run, he opined that know-how shares’ fundamentals stay intact, supported by their earnings development.

“Now the know-how [sector] remains to be beneath downward stress. Traders might look ahead to the market sentiment to stabilise then to start out discount searching,” he mentioned.

Reuters reported that US shares ended decrease on Thursday, led by declines in Nasdaq and know-how shares, as a number of Federal Reserve officers spoke about battling excessive inflation.  

The Nasdaq dropped 2.5%; the S&P 500 know-how index, which advantages from a low rate of interest atmosphere, fell 2.7% and led declines within the benchmark index, in response to the newswire.

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