Malaysian technology stocks generally declined today, mirroring weakness in global tech counters. In contrast, the energy sector showed robust performance, driven by a rally in international crude oil prices. Investors appear to be rotating funds from high-valuation tech stocks towards energy counters with stronger fundamentals, anticipating continued demand for oil and gas. This shift highlights a defensive play amidst market uncertainties.
Today, the Malaysian Technology Index fell by 1.8%, primarily influenced by an overnight decline in the US Nasdaq index. Local tech giants such as Inari Amertron and Malaysian Pacific Industries saw drops of 2.5% and 1.9% respectively. Conversely, the energy sector bucked the trend, rising 1.5%, with oil and gas counters like Petronas Chemicals Group and Dialog Group gaining 1.0% and 1.3% as Brent crude prices surpassed US$85 per barrel. Analysts note a rotation of funds from growth-oriented tech stocks to value-oriented energy stocks amid inflation concerns and uncertain interest rate outlooks.
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