Technology-linked stocks slump in line with bear market on Nasdaq
KUALA LUMPUR (March 8): Technology-linked stocks on Bursa Malaysia slumped in early trade on Tuesday (March 8), tracking overnight losses on Wall Street.
At 9.03am, the Technology index had lost 2.32% or 1.56 points to 65.55.
Among the declining stocks were Dagang NeXchange Bhd (DNeX), MyEG Services Bhd, Datasonic Group Bhd, Greatech Technology Bhd, Inari Amertron Bhd, Frontken Corp Bhd and JHM Consolidation Bhd.
Reuters said the Nasdaq Composite index on Monday closed down more than 20% from its Nov 19 record closing high, confirming that the index is in a bear market.
It marks the Nasdaq’s first bear market since 2020, when the coronavirus outbreak crushed global financial markets.
Meanwhile, Inter-Pacific Securities Sdn Bhd said there is no change to the immediate market outlook following the sell-off of global equities overnight that is also set to prolong the malaise among Malaysian stocks.
In its daily bulletin on Tuesday, the research house said this could see wariness continuing to affect the direction of the economy amid fears that the increasing cost will eat into margins and delay the corporate earnings recovery.
It said the unsettled market condition could also prompt further profit-taking and selling of some of the stocks that had made significant headway since the start of the year as market players take a more defensive stance until stability is found.
“As such, downside risk remains with the immediate support of 1,570 points unlikely to hold.
“Thereafter, the supports are located at 1,565 and 1,555 points respectively.
“The hurdles, meanwhile, are at 1,580 and 1,590 points respectively,” it said.
Inter-Pacific said the lower liners and broader market shares took the brunt of the selling on Monday, registering steep falls as retail players continued to move out of the market. With market conditions still looking unsettled, the selling pressure is likely to stay and prolong the risk of further near-term downside.