Malaysian technology stocks have recently faced a correction, while the energy and healthcare sectors are gaining favor among investors. This shift is driven by rising global oil prices and sustained demand for healthcare services. The technology index declined by 1.5%, contrasting with a 0.7% rise in the energy index, indicating a rotation of capital.
Sectoral performance on Bursa Malaysia has been mixed. The technology sector, after a period of strong growth, is currently facing profit-taking pressure, with the technology index declining by 1.5%. This is largely influenced by adjustments in the global semiconductor cycle and expectations of further interest rate hikes by the US Federal Reserve. For instance, Inari Amertron fell 2.1%, and Malaysian Pacific Industries also dropped 1.8%. Concurrently, the energy sector has been buoyed by rising international crude oil prices, with Brent crude surpassing USD85 per barrel, leading to a 0.7% rise in the energy index. Petronas Gas gained 0.5% and Dialog Group advanced 0.9%. The healthcare sector also maintained resilience due to an aging population and increased medical demand, with its index inching up 0.2%. Investors are rotating capital from high-valuation tech stocks to more defensive sectors and those benefiting from commodity price appreciation.
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