Rising international oil prices have boosted Malaysia's energy sector, with Brent crude surpassing US$85 per barrel. However, the technology sector faces correction pressure due to slowing global chip demand and stretched valuations, leading to a sector rotation in the market.
The Malaysian stock market exhibited a clear sector rotation on Friday. International Brent crude oil prices surpassed US$85 per barrel due to geopolitical tensions in the Middle East and global supply concerns, boosting the local energy sector. Tenaga Nasional Bhd rose 1.2%, while Petronas Gas Bhd surged 2.8% to RM17.50. Concurrently, the technology sector faced significant correction pressure. Signs of a slowdown in the global semiconductor industry and investors taking profits from highly valued tech stocks led to a 1.5% decline in the technology index. Vitrox Corp Bhd fell 3.2%, and Inari Amertron Bhd dropped 1.8%. Analysts noted that funds are shifting from high-growth but high-risk tech stocks towards value and commodity-related sectors.
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