On Friday, the Malaysian stock market saw a notable divergence in sector performance. The technology sector experienced a decline of 1.5%, largely due to global tech sell-offs and concerns over rising interest rates potentially impacting growth stocks. In contrast, the banking sector emerged as a strong performer, gaining 1.1%, driven by robust economic recovery prospects and expectations of improved loan growth. This indicates a rotation from growth-oriented tech stocks to value-oriented banking stocks.
On Friday, sector performance in the Malaysian stock market showed a stark contrast. The technology sector faced significant pressure, declining 1.5% overall, primarily dragged down by global tech sell-offs and concerns that rising interest rates could impact growth stocks. For instance, Frontken Corporation Bhd saw a 2.1% drop. Concurrently, the banking sector performed exceptionally well, gaining 1.1%, benefiting from optimism surrounding economic recovery and expectations of improved loan growth. Major banking stocks like Maybank and CIMB led the charge. This trend suggests investors are rotating funds from high-valuation technology stocks towards value-oriented banking stocks with stable earnings prospects.
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