Tech Sector Faces Selling Pressure, Energy Buoyed by Oil Prices

February 5, 2026
Sector Analysis
Reuters

Malaysia's technology sector experienced a broad decline of 1.5% today, reflecting global tech slowdown concerns. In contrast, the energy sector gained 0.7%, bolstered by rising international oil prices. This divergence highlights a shift in investor focus towards more defensive and commodity-linked sectors amidst current market volatility.

Bursa Malaysia witnessed a clear divergence in sector performance today. The technology index fell by 1.5%, with several tech companies' share prices under pressure, as investor concerns over a global semiconductor sales slowdown spread to the local market. In contrast, the energy sector performed strongly, gaining 0.7%, primarily benefiting from the rise in international crude oil prices, with Brent crude surpassing US$80 per barrel. Petronas Chemicals rose 0.5%, and Genting Energy also recorded a slight increase. Analysts believe that in the current environment of increased macroeconomic uncertainty, capital is shifting from high-growth technology stocks to energy and value stocks supported by stable cash flows and commodity prices.
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