KUALA LUMPUR (Nov 6): Bursa Malaysia’s 20 largest technology stocks shed over RM4.46 billion in market value on Friday as a global sell-off in artificial intelligence (AI)-related counters spread to the country’s chipmakers and equipment suppliers.

The Bursa Malaysia Technology Index, which tracks 54 counters, fell 3.26 points or 4.58% to 67.88, the steepest decline among Bursa’s sector indices. The country's benchmark FBM KLCI shed 19.28 points to close at 1,616.58 after touching an intraday low of 1,610.8.

The heavy selldown, which extended into a second day on Friday, followed growing concerns among investors over whether earnings from major AI and technology companies could justify the billions of dollars being spent on AI infrastructure. The Democrats’ strong showing in the US midterm elections also added to concerns that closer scrutiny of data centres could slow investment.

Affin Pheim Asset Management fund manager Khoo Zing Sheng said the Trump administration’s determination to preserve the US lead over China could leave room for compromise on AI policy. 

“In the short term, I see this as a necessary, volatile repricing rather than a quick ‘buy-the-dip’ moment,” he told The Edge.

ViTrox Corp Bhd (KL:VITROX), the largest stock in the local technology index, accounted for RM909.55 million of the loss on Friday. Shares in the automated test equipment maker fell 4.53% to RM10.12 — its biggest single-day fall since March 2026 — despite reporting its strongest quarterly earnings since its listing in 2005 just a day earlier.

Chip assembly and testing companies Inari Amertron Bhd (KL:INARI) and Malaysian Pacific Industries Bhd (KL:MPI) also came under selling pressure, losing a combined RM1.15 billion in market value. 

Inari extended Thursday's losses, falling 7.02% to RM2.12, while MPI shed 6.89% to RM36.20 — marking its biggest single-day loss since May 2025.

Among the 20 heavyweights, factory automation specialist Greatech Technology Bhd (KL:GREATEC) recorded the steepest percentage decline, falling 7.69% to RM2.40. The four companies together accounted for RM2.57 billion, or nearly 58%, of the total loss in market value.

Of the 20 stocks, 18 fell and two closed unchanged. Despite Friday’s losses, 14 of the 18 decliners remained in positive territory year-to-date, with ViTrox still up 154% for the year.

The Bursa Malaysia Technology Index ended Friday about 15.5% below its multi-year peak of 80.32, but 34.3% above its March 30 low of 50.56.

“We would view the current weakness as a potential valuation reset rather than a broad-based deterioration in industry fundamentals,” Berjaya Research Sdn Bhd head of research Kenneth Leong said. 

The selling over the past two sessions largely reflected a reassessment of valuations and growth expectations, he added.