Bursa’s top technology stocks fall amid global AI sell-off

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Highlights

The Bursa Malaysia Technology Index fell 4.58% to 67.88, while the FBM KLCI dropped 19.28 points to 1,616.58, driven by negative global AI sentiment.
ViTrox Corp Bhd lost RM909.55 million in market value as its shares fell 4.53% to RM10.12, their biggest one-day decline since March 2026, despite the company posting record quarterly earnings.
Inari Amertron Bhd, MPI and Greatech saw their share prices fall, with combined losses of RM2.57 billion, but 14 of the sector’s 18 major stocks remain up year to date.

This article was translated from the original. Read the original version by our correspondent here.

Two-day sell-off pressures chipmakers and equipment suppliers

The Edge Malaysia reported that the Bursa Malaysia Technology Index, which tracks 54 stocks, fell 3.26 points, or 4.58%, to 67.88, while the FBM KLCI dropped 19.28 points to close at 1,616.58 after touching an intraday low of 1,610.8.

The sharp sell-off came as investors grew increasingly concerned about whether earnings from leading AI and technology companies could support billions of dollars in spending on AI infrastructure. Strong performance by the Democratic Party in the U.S. midterm elections also added to concerns that closer scrutiny of data centres could slow investment.

Affin Pheim Asset Management fund manager Khoo Zing Sheng said the Trump administration’s stance on maintaining the U.S.’s advantage over China could still leave room for compromise on AI policy. He described the short-term weakness as a necessary and volatile repricing, rather than an immediate opportunity to buy the dip.

Impact on major stocks and sector valuations

ViTrox Corp Bhd, the largest stock in the local technology index, accounted for RM909.55 million in losses on Friday as its shares fell 4.53% to RM10.12, their biggest one-day decline since March 2026, despite the company reporting its strongest quarterly earnings since its 2005 listing the previous day.

Inari Amertron Bhd and Malaysian Pacific Industries Bhd also came under selling pressure, with their combined market value falling RM1.15 billion. Inari extended Thursday’s losses, dropping 7.02% to RM2.12, while MPI fell 6.89% to RM36.20, its biggest one-day decline since May 2025.

Greatech Technology Bhd recorded the largest percentage drop among the 20 heavyweight stocks, falling 7.69% to RM2.40. Together, the four companies accounted for RM2.57 billion, or nearly 58%, of the total market value decline.

Of the 20 largest stocks, 18 closed lower and two were unchanged. Despite Friday’s losses, 14 of the 18 decliners remained positive year to date, with ViTrox still up 154% for the year.

The Bursa Malaysia Technology Index ended Friday trading around 15.5% below its multi-year peak of 80.32, but 34.3% above its low of 50.56 on 30 March. Berjaya Research Sdn Bhd head of research Kenneth Leong said the current weakness was better viewed as a valuation adjustment than a broad-based deterioration in industry fundamentals.

In our earlier coverage of Budget 2027 for the industry semiconductor, we explained how the government allocated funds to help local companies move from assembly and testing into higher-value segments such as integrated circuit design. The article also highlighted targets to strengthen the local supply chain, accelerate the realisation of investment projects and translate productivity gains into higher wages for workers.

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