KUALA LUMPUR, Dec 16 (Bernama) -- Bursa Malaysia extended its positive performance, closing higher for a fourth consecutive session, supported by improving local market sentiment underpinned by a firm domestic macroeconomic backdrop. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.59 points, or 0.28 per cent, to 1,648.31, from Monday’s close of 1,643.72. The index had opened 0.95 of a point lower at 1,642.77, and moved between 1,636.50 and 1,648.71 throughout the trading session However, on the broader market, decliners beat gainers 699 versus 408. A further 520 counters were unchanged, 1,149 untraded and 12 suspended. Turnover rose to 2.59 billion units worth RM2.27 billion from 2.50 billion units worth RM2.16 billion on Monday.
Key Takeaway
Chinese AI chipmaker Cambricon Technologies (688256.SS) plunged ~12% in morning trade Thursday, its steepest intraday drop since Jan 2025, as investors booked profits after a parabolic August rally. The selloff also weighed on China’s broader semiconductor sector and the STAR50 Index.
Market Snapshot
Cambricon Technologies: –12% intraday (Sept 4)
STAR50 Index: –5%
Onshore Semiconductor Stocks: –6%
CSI300 Index: +10% over past month
Drivers of the Decline
Profit-Taking: Stock more than doubled in August, triggering rotation.
Index Rebalancing Risk:
Cambricon’s weight in STAR50 rose to 15%, breaching 10% single-stock cap.
Rebalancing expected on Sept 12, raising selling pressure concerns.
Company Warning: Cambricon issued risk disclosure last week, cautioning investors about speculative excess.
Macro Headwinds: Reports that regulators may curb speculation after US$1.2T rally since early Aug.
Sector Context
AI & Tech Surge:
STAR50 YTD: +26%
AI Shares YTD: +47%
Regulatory Risks: Authorities considering measures to temper sharp gains, echoing caution after 2015 bubble.
Investor Watch
Short-Term: Volatility likely until STAR50 rebalancing (Sept 12).
Medium-Term: AI remains core driver of China’s bull run, but regulatory intervention could dampen sentiment.
Opportunities:
Pullbacks may offer re-entry for long-term investors bullish on China’s AI ecosystem.
Diversification into broader semiconductor names could mitigate index-concentration risk.
Risks: Heavy retail participation, policy-driven cooling measures, and overextended valuations.
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