Technology Sector Faces Adjustment Pressure, Energy and Financial Sectors Show Resilience

March 1, 2026
Sector Analysis
Star Biz

Malaysian technology stocks faced profit-taking pressure this week, with the technology index falling 0.8%. Expectations of slowing global semiconductor demand and a correction in US tech stocks were key factors. In contrast, the energy and financial sectors showed resilience, supported by stable crude oil prices and robust banking earnings.

KUALA LUMPUR, Feb 28, 2026 – Sectoral performance on Bursa Malaysia was mixed this week. The technology sector came under pressure, with the FBM Technology Index declining 0.8%, primarily due to a correction in the US Nasdaq and uncertainties surrounding the global semiconductor industry outlook. Investors engaged in profit-taking on high-valuation tech stocks. In contrast, the energy sector remained robust, supported by international oil prices (Brent crude hovering around US$83 per barrel), with stocks like Petronas Gas performing positively. The financial sector also showed resilience, buoyed by strong banking earnings reports and dividend expectations, acting as a market stabilizer. Analysts anticipate continued rotation of funds into value and defensive sectors amidst macroeconomic uncertainties.
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