Malaysia's technology sector fell 2.1% on Friday due to profit-taking, weighing on the broader market. However, the banking sector remains favored, driven by robust loan growth and improving asset quality, with positive earnings expected.
The spotlight on the Malaysian stock market on Friday was the notable pullback in the technology sector. The FBM Technology Index declined by 2.1%, making it the worst-performing sector of the day, primarily due to profit-taking by investors following its recent strong rally. Key technology counters like Inari Amertron and Vitrox recorded losses. Meanwhile, the banking sector showed resilience, with the FBM Financial Services Index inching up 0.1%. Analysts noted that despite short-term pressure on tech stocks, the outlook for the banking sector remains positive, with upcoming earnings expected to show robust growth, supported by stable net interest margins and expanding loan portfolios. The energy sector also saw a slight dip of 0.5%, influenced by a minor correction in international oil prices.
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