Malaysian technology stocks faced selling pressure on Monday, while the energy sector showed strong performance driven by rising international oil prices. Investors are shifting funds from high-valuation tech stocks towards energy counters benefiting from commodity price increases. This rotation reflects a cautious outlook on growth stocks amid global uncertainties.
The technology sector on Bursa Malaysia faced selling pressure on Monday, with major tech counters like Inari Amertron declining by 1.5%. Conversely, the energy sector performed strongly as Brent crude oil prices breached US$85 per barrel. Velesto Energy rose 2.1% and Dialog Group gained 1.8%. Global inflation concerns and expectations of the US Federal Reserve maintaining higher interest rates are making investors cautious about tech stock valuations. Meanwhile, persistent geopolitical tensions continue to support oil prices, providing a positive earnings outlook for energy companies. This sector rotation indicates a market reassessment of risk and reward, favoring industries with stronger fundamentals or those benefiting from the current macroeconomic environment.
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