Malaysia's technology sector fell 1.8% today, impacted by a global tech sell-off as investors shifted towards more defensive stocks. This decline reflects broader concerns over valuation and rising interest rates, dampening enthusiasm for growth-oriented companies.
Malaysia's technology sector experienced a significant sell-off today, leading to a 1.8% decline in the sector index, making it one of the worst performers. This downturn was primarily influenced by a broader global correction in technology stocks, particularly following recent pressures on the US Nasdaq index. Investors expressed concerns over potentially overvalued tech stocks and the prospective impact of rising interest rates, prompting a shift of funds towards more defensive sectors such as utilities and consumer staples. Local tech giants like Inari Amertron fell 2.5% to RM3.45, while Frontken Corp declined 2.0% to RM3.90. Analysts warn that if global negative sentiment towards tech stocks persists, the Malaysian technology sector could face further downward pressure, despite optimistic long-term growth prospects.
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