The technology sector is facing pressure due to global interest rate concerns, while the energy sector is experiencing active trading benefiting from Brent crude oil prices surpassing US$85 per barrel. Investors are shifting focus, seeking opportunities in commodity-linked stocks amidst the current market dynamics and geopolitical tensions.
Sector performance on Bursa Malaysia diverged this week. The technology sector continued to face pressure amid expectations of Federal Reserve interest rate hikes and global economic slowdown concerns, with the FBM Technology Index falling by 1.2%. Investors remained cautious towards high-valuation tech stocks. Concurrently, the energy sector received a boost from rising international oil prices. Brent crude surpassed US$85 per barrel, prompting investors to refocus on energy stocks. For instance, Petronas Chemicals Group Bhd (PChem) rose 0.8%, and Dialog Group Bhd also recorded a 0.5% gain. Analysts anticipate that the positive momentum in the energy sector is likely to persist as long as oil prices remain elevated.
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