KUALA LUMPUR (Jan 28): AI proxy stocks on Bursa Malaysia continued to decline after Chinese artificial intelligence startup DeepSeek set off a selling spree in US tech shares.
The S&P 500 fell 1.5% while the Nasdaq 100 dropped 3% the night prior, as Nvidia Corp plunged 17%, marking the largest market-cap loss for a single stock in history.
At home, data centre developer YTL Power International Bhd (KL:YTLPWR) and parent company YTL Corp (KL:YTL) continued their descent after hitting two-month lows on Monday.
YTL Power fell over 7% to RM3.03, while YTL Corp (KL:YTL) declined 4% to RM1.87 within the first 10 minutes of trading.
NationGate Holdings Bhd (KL:NATGATE), one of few Asean assemblers of graphic processing units (GPU) produced by Nvidia Corp, sank nearly 7% to RM1.75.
Other AI proxies such as property developer Sime Darby Property Bhd (KL:SIMEPROP) and construction firms Gamuda Bhd (KL:GAMUDA) and IJM Corp Bhd (KL:IJM) also slipped in early trade.
YTL Power, YTL Corp further impacted by non-tradable warrants
Besides the DeepSeek-led selloff and US' restrictions on advanced chips, YTL Corp and YTL Power’s proposed bonus issue of warrants to raise fresh capital for future capital expenditures also weighed on the stocks.
The proposed bonus issue of warrants involves the issuance of up to 1.67 billion free warrants on a one-for-five basis, with the exercise price set at RM2.45.
Consequently, YTL Corp, which holds a 54.84% stake in YTL Power, also proposed a similar exercise to raise money for the exercise of YTL Power warrants.
Uploaded by Magessan Varatharaja