KUALA LUMPUR: Bursa Malaysia’s technology index was only slightly lower despite the sharp sell-off in US tech stocks overnight as investors dumped growth counters in favour of value plays.
The Nasdaq was seen plunging over 2% as investors recalibrated their portfolios following the US Federal Reserve’s announcement it would end its bond-buying programme and raise interest rates next year.
However, the tech sector on Bursa Malaysia was down just 0.5% to 94.88, even as analysts said the sector will remain favourable given it continues to have growth prospects and is export-oriented.
“Although value stocks are expected to take the front seat, against the backdrop of persistently high inflation and a rising yield environment, export-oriented and apolitical sectors like technology will continue to be in favour going into 1Q22 – amid the domestic political uncertainties and strong US dollar trend.
“Sector valuation is likely to stay elevated, with the solid growth on offer
(albeit at slower pace) on top of structural technology growth,” said RHB Research in a report.
On Friday, there were some notable decliners on the tech index including Inari Amertron down eight sen to RM3.90, MI Technovation down three sen to RM3.34 and MPI dropping two sen to RM48.64.
Pentamaster however was seen rising four sen to RM5.49 while CTOS Digital climbed three sen to RM1.78.
Blue chips on the FBM KLCI were mostly positive despite a slow start following the negative performance on Wall Street overnight.
At 9.35am, the benchmark index remained flattish, rising 3.38 points to 1,488.47.
Some notable gainers included , IHH adding five sen to RM6.55 and Tenaga climbing 10 sen to RM9.34.
Exporters and commodity plays moved higher as they are poised to benefit from the higher US dollar trend.
Petronas Chemicals rose six sen to RM8.74, Top Glove gained three sen to RM2.07, Hartalega was up 11 sen to RM5.21 and Kuala Lumpur Kepong up six sen to RM21.06.
Over the broader market, there were 266 decliners to 217 gainers. Top actives were ATA IMS down 0.5 sen to 67.5 sen, Hwatai up 9.5 sen to 76.5 sen and MAG gaining one sen to 21 sen.