Tech stocks on Bursa hit after US Nasdaq tumbled nearly 5% overnight

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KUALA LUMPUR (Sept 4): The Bursa Malaysia Technology Index fell as much as 3.41%, led by Inari Amertron Bhd, following a sharp decline in US technology stocks overnight.

Across Bursa indices today, the technology index was the top percentage decliner after the gauge traded down 1.35% or 0.79 points at 57.52 at 11.20am, compared with 58.31 posted yesterday. The 39-stock technology index had 22 decliners, seven gainers and 10 unchanged counters, according to Bloomberg.

Inari was the largest index mover in percentage terms, which dragged the index by 32.24% or 0.25 points, followed by ViTrox Corp Bhd at 14.64% or 0.11 points, and Malaysian Pacific Industries Bhd (MPI) at 13.61% or 0.11 points. 

Other major index movers included Frontken Corp Bhd (-10.4% or 0.08 points), Unisem (M) Bhd (-10.35% or 0.08 points), Mi Technovation Bhd (-8.46% or 0.07 points) and Pentamaster Corp Bhd (-5.02% or 0.04 points). 

In terms of share price performance, Inari fell 2.61% or six sen to RM2.24, while ViTrox sank 2.34% or 30 sen to RM12.52.

MPI was the fourth-biggest decliner on Bursa this morning with its share price down by 2.6% or 48 sen to RM18. 

Meanwhile, Frontken's share price dipped 1.61% or six sen to RM3.67, Unisem eased 2.97% or 11 sen to RM3.59, Mi Technovation dropped 2.29% or 10 sen to RM4.26, and Pentamaster declined 1.08% or five sen to RM4.58. 

In comparison, the FBM KLCI reversed its losses this morning and inched up 0.09% or 1.32 points to 1,516.72 as at 12pm. However, market breadth was negative, with 631 losers versus 326 gainers.

The tech-heavy Nasdaq Composite dropped nearly 5% to 11,458, its biggest one-day percentage decline since June 11, in a reversal of a rally that had taken it and the S&P 500 to new highs.

The S&P 500 lost 3.5% to 3,455, with all 11 sectors showing losses.

Meanwhile, the Dow Jones Industrial Average fell 808 points, or 2.8%, to 28,293, interrupting a rally that sent the Dow industrials above 29,000 for the first time since February a day earlier.

Reuters reported that Wall Street posted sharp declines yesterday, with the tech-heavy Nasdaq sliding more than 5% as investors dumped high-flying technology-focused stocks, while economic data raised fears of a difficult and long recovery.

Yesterday’s tumble was the biggest one-day percentage drop in the tech-focused Nasdaq 100 since March and the darling stocks in recent months were hit hardest. 

Apple fell 8%, Tesla 9% and Microsoft 6%. Still, the plunge only wound the Nasdaq back as far as where it sat last Tuesday. It was still up 28% for the year so far and 73% higher than its March trough, Reuters reported.

Lam Jian Wyn