Malaysia's technology sector declined 1.2% today, influenced by US interest rate hike expectations and a global tech stock pullback. Local investor concerns over stretched valuations also contributed to the selling pressure, leading to a cautious outlook for the sector.
Malaysia's technology sector faced pressure today, with the Technology Index dropping 1.2%, making it one of the worst-performing sectors. This was primarily due to escalating market expectations of further interest rate hikes by the US Federal Reserve and an overnight pullback in the Nasdaq Composite. Local tech giants like Inari Amertron fell 1.5%, while Frontken declined 1.8%. Analysts noted that despite optimistic long-term growth prospects, tech stocks might face valuation adjustments in the short term, especially in a rising global interest rate environment. Investors are shifting towards more defensive sectors such as utilities and consumer staples. Volatility in the technology sector is expected to persist until the global macroeconomic environment becomes clearer.
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