KUALA LUMPUR (April 3): Local electronics manufacturing services (EMS) companies face selldown of their shares as investors are concerned about the possibility of a worsening US-China trade war.

Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that while the latest trade barriers were on steel and aluminium, he is worried that there will be more tariffs imposed by the world's two largest economies.

“A significant part of the US’ technology product supply chain involves China, and Malaysia’s EMS players are also part of this chain. If there is a full-blown trade war between US and China, orders to the local EMS companies will be affected,” he said over the phone.

Wong is cutting exposure to this segment.

Big losers in the EMS segment today include Inari Amertron Bhd, which fell 26 sen or 9.22% to RM2.56 as at 4:39pm. It was the sixth biggest loser on Bursa Malaysia.

V.S. Industry Bhd was ranked number eighth among the top 10 losers on Bursa at 4:39pm, falling 21 sen or 9.5% to RM2.