By MIKE PAUL
KUALA LUMPUR, Nov 13 — YTL Power International Bhd shares tumbled more than eight per cent on Thursday, wiping over RM3 billion off its market value, as the resignation of Nvidia co-founder Jensen Huang sent fresh tremors through Malaysia’s data centre stocks.
The utilities and data centre group closed 39 sen lower at RM4.40 on Bursa Malaysia, extending a slide that began earlier in the week when reports surfaced linking Huang to a woman suspected by United States officials of spying for China.
The selling came as the FTSE Bursa Malaysia KLCI fell for a fourth straight session, ending 9.23 points down at 1,585.96, its lowest close so far this year.
What happened at Nvidia
Nvidia announced that Huang had stepped down as president, chief executive officer and board member with immediate effect, ending 33 years at the helm of the chipmaker he co-founded in 1993. Chief financial officer Colette Kress was named interim CEO, while former Synopsys chief executive Harvey Jones became the company’s first board chair, according to the company’s official filing with the US Securities and Exchange Commission.
The company did not give a reason for the departure. US media reports linked it to disclosures of extramarital relationships, including one with an executive at Singapore-based Megaspeed, a firm that US and Singapore authorities are reportedly investigating over the alleged diversion of restricted Nvidia chips to China.
Why YTL Power is in the spotlight
YTL Power is one of Nvidia’s cloud and data centre partners and runs an artificial intelligence data centre in Johor that uses the US company’s processors.
There is, however, no verified evidence linking YTL Power to Megaspeed or to any breach of export controls. A YTL Power official declined to comment when approached by The Edge earlier this week.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani was quoted on Tuesday as saying the government had yet to receive evidence that Speedmatrix Sdn Bhd, a Malaysian company linked to Megaspeed, had broken Malaysian law. He said any credible evidence or formal request from a foreign authority “will be assessed and acted upon” under the country’s laws and processes.
Research house CGS International said in a note that the correction in YTL Power’s share price was overdone, pointing to earnings support from the group’s utilities operations in Singapore and the United Kingdom.
EPF exposure in focus
The sell-off has prompted questions about the Employees Provident Fund (EPF), which holds a direct stake of about 12.74 per cent in YTL Power based on Bursa Malaysia filings. US regulatory filings for the second quarter also show the fund held about 6.85 million Nvidia shares.
According to calculations by The Rakyat Post, the one-day paper loss on the Nvidia holding is tiny compared with EPF’s RM1.54 trillion in investment assets. The fund has previously stated that unrealised mark-to-market movements are not paid out as dividends, which come from realised gains, fixed income and cash dividends.
Rakuten Trade vice-president of equity research Thong Pak Leng told Bernama that market confidence remains fragile amid continued selling in index heavyweights, although he believes the recent correction has made selected blue chips more attractively valued.
Investors are now watching Nvidia’s third-quarter results, due on Nov 17, for signs that the company’s business plans remain on track under interim leadership.
The slide adds to wider concerns raised by economists over Malaysia’s growth model, and to the debate over how energy supply will shape the country’s data centre ambitions.
– TNS News