The Malaysian Technology Index dropped 1.5%, largely due to the Nasdaq correction. A stronger Ringgit against the US Dollar also eroded profit margins for export-oriented semiconductor firms, leading to cautious investor sentiment.
The Malaysian technology sector exhibited weakness last week, with the Technology Index falling 1.5%. Key drags included the recent correction in US technology stocks, particularly the semiconductor index. Local heavyweights like Inari Amertron dropped 1.8%, and Frontken Corporation Bhd fell 1.2%. Analysts point out that the recent appreciation of the Ringgit below RM4.60 against the US Dollar presents an added currency risk for exporters heavily reliant on USD revenue. While the long-term demand outlook remains positive, investors are likely to continue profit-taking in the short term until stability returns to the US tech market, impacting order visibility for Malaysian outsourced semiconductor assembly and test (OSAT) players.
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