Tech rout pulls Bursa tech index down 3.96% as regional selloff gathers pace
The Bursa Malaysia Technology Index lost 3.96% to a two-week low of 71.39 points as a regional selloff in technology stocks deepened.
Source: The Edge Malaysia · July 21, 2026 at 8:31 AM · AI-assisted report
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KUALA LUMPUR, 21 JULY 2026 —
The Bursa Malaysia Technology Index lost 3.96% to a two-week low of 71.39 points as a regional selloff in technology stocks deepened.
Market Impact
The drop came after South Korea’s Kospi plunged nearly 10% when regulators flagged risks in leveraged ETFs linked to chip stocks, triggering a sharp correction in semiconductor counters. Samsung Electronics and SK Hynix each fell more than 12%, dragging broader Asian technology sentiment lower.
Malaysian technology counters were broadly weaker. Chip designer SkyeChip Bhd sank 10% or 34 sen to RM3.02. Automated test equipment provider THMY Holdings Bhd slid 11.05% to RM1.69, while Greatech Technology Bhd dropped 7.5% to RM2.47.
Blue-chip tech names also retreated. Malaysian Pacific Industries Bhd fell 4.79% to RM46.50, UWC Bhd lost 5.43% to RM6.10, and Mi Technovation Bhd slipped 6.22% to RM4.52. ViTrox Corp Bhd and KESM Industries Bhd each shed about 3-5% to close at RM7.20 and RM3.90 respectively.
The FBM KLCI followed, sliding 1.23% or 20.92 points to 1,679.92, with 879 stocks lower and 325 higher in the final 30 minutes of trade.
PMB Investment Bhd CEO Hang Tuah Amin Tajudin said the decline reflected weaker regional sentiment rather than a shift in Malaysian fundamentals. “Today's decline was mainly due to weaker sentiment across regional markets following the global sell-off in technology and AI-related stocks,” he said. “Malaysia was not alone, as most Asean markets also ended lower.”
Hang Tuah said the lack of local catalysts and cautious sentiment added pressure, and urged investors to watch for signs of regional stabilisation. “At this stage, we see today’s move as a reaction to weaker global and regional sentiment rather than a change in Malaysia’s fundamentals,” he said. “If sentiment improves, bargain hunting may return to quality blue-chip stocks.”
The Bursa Technology Index had surged 28.7% year-to-date before Tuesday’s retreat. Kenanga Research had cautioned as early as June 8 that near-term optimism may have been priced in too quickly, leaving the sector vulnerable to profit-taking and valuation compression. The research house recommended partial profit-taking on trading positions while maintaining exposure to fundamentally strong names to manage near-term risk.
The selldown halted a tech rally that began in early April, driven by enthusiasm over global AI infrastructure spending and data centre projects. Global equities retreated on Tuesday as investors grew wary of the US Federal Reserve’s next move, with stronger-than-expected economic data increasing the likelihood of more aggressive action to curb inflation.