Dotcom ghosts haunt EM stocks

Most vulnerable: A file picture showing Alibaba’s signage on the floor of the New York Stock Exchange. Alibaba and Chinese semiconductors are among the most vulnerable amid the global tech sell-off. — Bloomberg

LONDON: The deepest bear market since the financial crisis in developing-nation technology stocks probably has further to run as earnings disappoint and analysts slash their profit estimates.

Companies in the MSCI emerging-market (EM) tech gauge are missing earnings forecasts for the first time in almost 18 months, based on 12-month rolling data. Combined with deepening trade tensions, that’s leading analysts to cut their profit forecasts for an industry dominated by Taiwanese semiconductor makers and Chinese Internet firms.