Rising interest rates and the risk of a recession prolonging a rout in tech stocks wiped $110 billion off the market value of Singapore's tech stocks.

(Reuters)

[Financial Channel/Comprehensive Report] Investors in Singapore's two largest Internet companies are facing huge losses, as rising interest rates and the risk of a recession prolong the plunge in technology stocks, causing the market value of overall technology stocks to evaporate US$110 billion (TWD 3.34 trillion) .

Shares of e-commerce platform operator Sea Ltd. have plunged 78% this year, while ride-hailing company Grab Holdings Ltd. has seen its shares more than halve.

Both companies are listed in New York and are the largest technology companies in Singapore by market value.

Please read on...

Donghai Group and Grab were added to the MSCI Singapore index with much fanfare over the past two years, but higher interest rates and slowing economic growth have followed a challenging year, with investors questioning the profitability of tech companies.

The MSCI Singapore index is down 14 percent this year, with Donghai Group's weight at 8.4 percent and Grab at about 2 percent.

In contrast, the Straits Times Index, which is dominated by old-economy sectors such as banks and property, rose about 5%.

Recession fears in the tech industry have prompted layoffs, business unit closures and other measures to rein in spending.

Donghai Group announced in an internal memo that it will freeze the wages of most employees and pay lower bonuses this year in response to the deterioration of the global economic environment in 2023.

Grab will also implement measures such as hiring and wage freezes.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news