Technology Sector Leads Gains, But Property Sector Remains Flat Due to Lack of Catalysts

January 27, 2026
Sector Analysis
Star Biz

The Malaysian Technology Index surged 1.2%, buoyed by positive sentiment from the US Nasdaq's performance. In contrast, the property sector lagged, as investors await new government stimulus measures or potential interest rate cuts to boost demand.

The technology sector showed robust performance today, with the index rising 1.2%, primarily driven by optimism over the global semiconductor cycle recovery. Frontken gained 2.5%, and Malaysian Pacific Industries (MPI) rose 1.8%. However, the property sector continued to face challenges, with the index remaining largely flat. Despite a stable economic outlook, high construction costs and inventory of unsold properties remain major hurdles. Sime Darby Property edged down 0.5%, while UEM Sunrise remained unchanged. Analysts believe the property sector will remain under pressure throughout the first half of 2026 unless significant policy changes or lower financing costs materialize.
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