KUALA LUMPUR (May 11): Bursa Malaysia’s Technology Index fell 1.58% to 78 as selling pressure on big tech shares sent the US Nasdaq Composite down 2.55% overnight to 13,401.86 points.

Malaysian Pacific Industries Bhd (MPI), Greatech Technology Bhd and Unisem (M) Bhd were among the top 30 losers this morning.

At the time of writing, MPI, the top loser, had fallen RM1.40 or 3.65% to RM37.

Meanwhile, Unisem slid 27 sen or 3.61% to RM7.20, while Greatech was down by 23 sen or 4.12% at RM5.35.

Phillip Capital Management Sdn Bhd chief strategist Phua Lee Kerk is neutral on the outlook for technology stocks.

He opined that there are still some upsides for technology stocks as recovery plays are dragged by the movement control order (MCO 3.0).

“However, the upside is limited as the positive news (strong demand) has already been factored in,” he told theedgemarkets.com.

He also believes that there is not much earnings surprise from technology firms due to supply constraints.

Rakuten Trade head of research Kenny Yee also believes there are still upsides for technology stocks but that, he said, depends on the valuations.

“This is because retail participation remains strong and technology stocks are usually their favourites,” he told theedgemarkets.com.