Technology stocks have had a rough start to the new year.
With Apple Inc announcing a soured outlook for the sale of its iPhones – the flagship product of the US tech giant – sentiment towards local tech companies, particularly those involved in the product’s supply chain, also took a huge beating.
So, continuing the rout that began about four months ago, semiconductor and tech stocks had once again been subject to a major sell-off over the week.
While the overall market has been weak since the start of 2019, tech stocks had a much tougher ride, with the Bursa Malaysia Technology Index declining 6.7% over the last three trading days. In comparison, the benchmark FBM KLCI, a measure of the overall market performance, had fallen by only 1.23% since Wednesday.
Apple CEO Tim Cook had blamed China’s economic slowdown, and the ongoing trade tensions between the world’s second largest economy and the US, for the weak sales of its iPhones that could see the group’s upcoming quarterly revenue down by 6%-10%.
Apple’s shares had plummeted to close about 10% since the start of the year, erasing almost US$74bil (RM306bil) in value.