Malaysian technology stocks experienced a pullback today, while the banking and utilities sectors demonstrated strong performance, attracting significant capital inflows. This rotation reflects a shift in investor preference towards defensive and value-oriented sectors amidst global economic uncertainties and rising interest rate expectations.
Bursa Malaysia witnessed a sector rotation today, with technology stocks experiencing a pullback after recent gains, leading to a 1.5% decline in the technology index. Investors shifted capital towards more defensive sectors such as banking and utilities. The banking index rose by 0.8%, primarily driven by gains in Maybank and Public Bank. The utilities sector also performed strongly, with Tenaga Nasional advancing 0.4%. Analysts believe this trend reflects profit-taking in high-valuation tech stocks and a preference for sectors that demonstrate stability in the current economic climate. This sector rotation is expected to persist in the short term.
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