A spike in tech stocks volatility
Cheah Chor Sooi | 11 Jan 2019 00:30
Local technology stocks have just ushered in 2019 on a bleak note with the US-China trade feud taking a toll on their performance.
Inari Amertron Bhd recently bore the brunt of the uncertainties stemming from the US-China trade tension after Apple CEO Tim Cook issued a public letter to investors on Jan 3 that its sales were impacted by a slowdown in China.
This led to the global Big Four of technology (along with Amazon, Google and Facebook) lowering revenue guidance for their upcoming quarterly results by 6%-10%.
Inari, which is part of Apple’s supply chain via its involvement with radio frequency (RF) filters in smartphones, shed 18% to close at RM1.23 in the first week of trading in 2019 from RM1.50 on Dec 31 (the stock hit an all-time high of RM2.53 on Sept 8).
Apple made history in 2018 by becoming the first US public company to have a valuation of US$1 tril (RM4.11 tril) - a crown it quickly lost in the last quarter of the year when shares fell by 30% or US$450 bil - as concerns mounted that the latest generation of iPhones would not have the usual robust holiday sales.
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