Bursa Tech Index Slides Over 6% as AI Trade Fears Deepen

Quick Answer: Bursa tech stocks fell sharply on Friday (Nov 6), with the Bursa Malaysia Technology Index down more than 6% shortly after the opening bell, the worst-performing sectoral index. Investors weighed the Democrats’ strong showing in the US midterm elections for the artificial intelligence (AI) trade. Heavyweights Malaysian Pacific Industries Bhd (KL:MPI) and ViTrox Corp Bhd (KL:VITROX) were among the steepest fallers, which matters for shareholders because their share prices dropped by 6% or more in the early session.

Why Are Bursa Tech Stocks Falling on Nov 6?

Bursa tech stocks trading screen showing AI trade selloff — Tech counters led the decline on Bursa Malaysia on Friday (Nov 6)

The FBM KLCI was also lower, down 16.5 points or over 1% to 1,619.36 at 9.10am. The tech selloff therefore sat inside a weaker broad market, not against it.

The Bursa Malaysia Technology Index fell more than 6%, the steepest drop among all sectoral indices in the session.

Bursa Tech Index Slides Over 6% as AI Trade Fears Deepen — Photo: TheEdge

Which Tech Heavyweights Fell Hardest?

Malaysian Pacific Industries Bhd (KL:MPI): shed RM2.78, or more than 7%, to RM36.10
ViTrox Corp Bhd (KL:VITROX): fell 64 sen, or 6%, to RM9.96
Frontken Corp Bhd (KL:FRONTKN): plunged 30 sen, or more than 6%, to RM4.56

MPI posted the largest percentage fall of the three. Its RM2.78 drop implies a previous close of about RM38.88.

Working backwards from the same moves, ViTrox closed near RM10.60 and Frontken near RM4.86 before the selloff.

Which Numbers Matter for MPI, ViTrox and Frontken Shareholders?

The figures above are opening-session prices from 9.10am, so the close could look different. Investors may want to watch the full-day closing prices against each stock’s previous close before drawing conclusions.

Investors tracking AI-linked names can compare this selloff with our AI Stock Analysis for Malaysians guide. Worth monitoring is whether the AI trade concern persists beyond the first session.

This article is for information only and is not financial advice. Figures are opening-session data reported by The Edge and may have changed. Always do your own research before making any investment decision.

Key Takeaways

The Bursa Malaysia Technology Index fell more than 6% shortly after the opening bell, the worst among sectoral indices.
The FBM KLCI was down 16.5 points, or over 1%, to 1,619.36 at 9.10am.
Malaysian Pacific Industries Bhd (KL:MPI) shed more than 7% to RM36.10, the largest percentage fall of the three heavyweights.
ViTrox Corp Bhd (KL:VITROX) fell 6% to RM9.96, and Frontken Corp Bhd (KL:FRONTKN) fell more than 6% to RM4.56.
Investors are weighing the Democrats’ strong showing in the US midterm elections for the AI trade.

Frequently Asked Questions

Why did Bursa Malaysia tech stocks fall on Nov 6?

The Bursa Malaysia Technology Index fell more than 6% shortly after the opening bell as investors weighed the Democrats’ strong showing in the US midterm elections for the AI trade.

How much did Malaysian Pacific Industries shares fall?

Malaysian Pacific Industries Bhd (KL:MPI) shed RM2.78, or more than 7%, to RM36.10 in the early session.

Did the FBM KLCI fall on the same day?

Yes. The FBM KLCI was down 16.5 points, or over 1%, to 1,619.36 at 9.10am.

Which other tech stocks dropped the most?

ViTrox Corp Bhd (KL:VITROX) fell 64 sen, or 6%, to RM9.96, while Frontken Corp Bhd (KL:FRONTKN) plunged 30 sen, or more than 6%, to RM4.56.

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