Two companies saw sharp share price falls on Monday (November 2) as global markets digested corporate warnings and nervousness about artificial intelligence spending, according to an AFP markets report carried by Malay Mail.
Alstom's production problems
Shares in Alstom, the maker of France's TGV trains, fell more than 25 percent after the company said it had found new production issues with its new Coradia Max regional trains. The problem forced Alstom to lower its profit targets for the second time in six months. Its market value is now about 5.3 billion euros, compared with roughly 12 billion euros at the beginning of the year.
Kioxia's cautious outlook
In Asia, the share price of Japanese chipmaker Kioxia plunged nearly 16 percent after the company gave a cautious outlook that fell short of forecasts. The stock has fallen about 70 percent from its record high set in June, although it is still up more than 200 percent since the start of the year. Other chip names fared better, with Taiwan's TSMC adding almost two percent and SK hynix gaining 3.8 percent.
Tech selloff and the week ahead
Technology firms' shares retreated further after Friday's selloff, as poorly received earnings from US giants fanned concerns about the AI investment boom. Investors will closely watch results from Apple, Advanced Micro Devices and Palantir this week, alongside the US midterm elections. In Malaysia, the FBM KLCI closed Monday at 1,619.51, up 0.24 percent, as bargain hunting lifted the benchmark index.
Sources: Malay Mail (AFP) - Markets report | Malay Mail - Bursa Malaysia rebounds
