KUALA LUMPUR (Sept 5): The technology sector witnessed another day of steep losses with stocks like D&O Green Technologies Bhd (KL:D&O) and UWC Bhd (KL:UWC) emerging as the top decliners.

D&O, which mainly makes automotive light-emitting diodes (LEDs), dropped 16.8%, shedding 43 sen to close at RM2.13 — the lowest since July 2021. Consequently, short selling under the Intraday Short Selling (IDSS) framework for D&O was suspended for the remainder of the trading session. Trading will resume on Friday at 8.30am.

Despite the selldown, analysts remain optimistic about D&O’s long-term prospects. Public Investment Bank (Public IB) reaffirmed its ‘outperform’ call with a target price of RM3.70, on the back of the company’s robust order book and upcoming launches in its Bevel LED segment.

Public IB sees the Bevel LED venture as providing a new growth engine for D&O.

“It plans to begin commercial production for the Bevel LED 1515 product with the first order of 100 million pieces per annum by 4QFY24-1QFY25,” Public IB wrote in the research note.

“If successful, we believe the potential market size is tremendous, which can easily surpass 50% of the group’s current installed capacity,” it added.

Meanwhile, MIDF Research shares the bullish sentiment. The research outfit upgraded the stock to ‘buy’ with a target price of RM3.85, projecting a stronger second half of FY2024.

“Moreover, the anticipated higher proportion of Smart LED contribution for FY2024 of more than 10% (vs 7% for FY2023) should also help in the expansion of the group’s overall profit margin,” MIDF commented.

Over at UWC, its share price fell 17 sen or 8.33% to close at RM1.85, while Malaysian Pacific Industries Bhd (KL:MPI) fell 2.11%, shedding 60 sen to finish at RM27.90.

Similarly, Pentamaster Corporation Bhd (KL:PENTA) recorded a 4.44% drop, losing 18 sen to settle at RM3.87. Besides, Greatech Technology Bhd (KL:GREATEC) dropped 4.26%, down 20 sen to settle at RM4.50.

The Bursa Malaysia Technology Index dropped 3.27%, while the FBM KLCI declined by 0.32% to 1,664.82.