Friday 29 Mar 2024
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KUALA LUMPUR (April 14): Technology stocks fell today amid weaker overall sentiment and declining US dollar.

At 12.09pm, the technology index was down 2.39%.

Inari Amertron Bhd fell 7 sen or 3.6% to RM1.90, with 5.22 million shares traded.

GHL Systems Bhd dropped 5 sen or 3.3% to RM1.47, with 8.44 million shares changing hands.

Malaysian Pacific Industries Bhd (MPI) was down 30 sen or 2.7% at RM10.92, with 104, 400 shares traded.

Elsoft Research Bhd declined 8 sen or 3.9% to RM1.97, with 484,600 shares traded.

A dealer told theedgemarkets.com that it could be a technical retracement for technology stocks.

"Some of the technology stocks have already gone up to their multi-year high or all-time high," he said when contacted.

Meanwhile, AmInvestment bank analyst Lavis Chong said this is most likely triggered by the strengthening of the ringgit against the US dollar and the US bombing of Afghanistan, further escalating geopolitical tensions.

"The geopolitical tensions have also triggered a broad-based selldown in the equity market," Chong said.

Besides, he said the global semiconductor industry had long needed a correction after a steep rally against the backdrop of the buzzword "Internet of Things" as well as the memory market transition.

"From the low of 2016, the Philadelphia semiconductor index (SOX) has soared more than 70%. That is also why I recently downgraded the sector and MPI," he said via email.

TA Securities analyst Paul Yap opined there could be some profit-taking activities for technology stocks as the overall stock market is down.

"But I think the outlook of the sector is still good, we still have an 'overweight' call for the sector," Yap told theedgemarkets.com.

Meanwhile, remisier Loo Boon How said export-oriented technology stocks may lose their competitiveness as the US dollar weakened.

At 12.30pm, FBM KLCI was down 5.04 points to 1,733.14.

 

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