KUALA LUMPUR (Jan 16): Malaysian Pacific Industries Bhd (MPI) emerged as the Bursa Malaysia’s top loser on Monday’s (Jan 16) morning trade, down as much as RM1.24 or 3.7% to a low of RM32.50, on the back of a dour outlook for the technology sector. 

MPI’s share price has declined 21.38% over the past year. At the time of writing on Monday, MPI was trading down 72 sen or 2.13% to RM33.02, giving it a market value of RM6.97 billion. It is currently trading at a historical price-to-earnings (PER) ratio of 21.9 times. 

Other local semiconductor-related stocks — Inari Amertron Bhd, Vitrox Corp Bhd and Greatech Technology Bhd — also dipped into the red as RHB Investment Bank Research (RHB IB) wrote in a note that inventory correction takes place amid demand uncertainty. 

“While the reopening of China could spur demand, the weakness is expected to carry through in the coming quarters amid weakening demand and inventory corrections,” said RHB IB. 

The share price of Inari was down three sen or 1.13% to RM2.62 with a market value of RM9.82 billion. The stock has fallen 23.84% from RM3.44 on Jan 17, 2022.

Vitrox slipped 1.13% to RM7.90 with some 68,600 shares traded; while Greatech was down 0.39% to RM5.12. 

RHB IB said overall guidance from chip-related companies is less bullish for the near term, clouded by the worsening macroeconomic outlook and low consumer confidence, but a few bright spots lie in vehicle electrification and high-performance computing-related chips. 

“Sector valuation is rather fair, at its five-year mean, capped by elevated bond yields and quantitative tightening cycle. Still, derailed earnings remain likely,” added the research house.