The Malaysian Technology Index dropped 1.8% last week due to the Nasdaq correction and the Ringgit strengthening to RM4.65 against the USD. Investors are concerned about margin compression for exporters. Vitrox and KESM Tech were major losers.
Malaysian technology stocks performed poorly last week, tracking the downward trend of the Nasdaq Index. The local Technology Index fell 1.8%, leading to declines in key players such as Vitrox (-2.5%) and KESM Tech (-3.1%). In addition to global semiconductor cycle uncertainties, the unexpected strengthening of the Ringgit against the USD (breaking the RM4.65 barrier) placed additional pressure on local tech exporters who primarily earn in USD. Analysts suggest that while the long-term demand outlook remains positive, valuations may require further short-term adjustments. Investors should monitor upcoming US semiconductor industry data for directional cues.
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