Malaysia's technology sector declined 1.8% due to global semiconductor cycle concerns. In contrast, the energy sector gained 1.5% on stable oil prices, while the banking sector also showed strong performance, indicating a shift in investor preference.
In the latest market review, Malaysian sector performances showed a clear divergence. The technology sector faced pressure on Friday, with the FBM Technology Index declining 1.8%, primarily due to concerns over a global semiconductor industry slowdown and export demand. Investors are re-evaluating tech valuations and shifting towards more defensive sectors. In contrast, the energy sector performed strongly, with the FBM Energy Index rising 1.5%, buoyed by stable international crude oil prices, with Brent crude hovering around US$85 per barrel. The banking sector also continued its robust momentum, with the FBM Financial Services Index gaining 0.7%, benefiting from Bank Negara Malaysia's (BNM) decision to maintain the Overnight Policy Rate (OPR), which helps preserve banks' net interest margins. Analysts expect funds to continue flowing into less cyclical sectors amidst an uncertain macroeconomic environment.
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