Technology Sector Leads Gains, Banking and Property Under Pressure

February 5, 2026
Sector Analysis
Bursa Malaysia

Today on Bursa Malaysia, the technology sector showed robust performance, with its index rising 1.2%, boosted by a recovery in global chip demand. In contrast, the banking and property sectors faced selling pressure, declining 0.7% and 0.4% respectively, amidst an uncertain economic outlook. Investors are shifting towards growth-oriented tech stocks.

KUALA LUMPUR, February 5, 2026 – The Malaysian stock market today displayed a clear divergence in sector performance. The technology sector emerged as a bright spot, with its index climbing 1.2%, primarily benefiting from signs of recovery in the global semiconductor industry and sustained growth in artificial intelligence (AI)-related demand. Local tech stocks like Inari Amertron (stock code: 0166) and Malaysian Pacific Industries (stock code: 3867) rose by 2.5% and 1.8% respectively. However, the banking sector faced challenges, with its index declining 0.7%, due to market concerns over future interest rate trajectories and slowing loan growth. CIMB and RHB Bank both recorded losses. Concurrently, the property sector was not spared, falling 0.4%, as the high-interest rate environment and rising construction costs continued to dampen buyer sentiment. Analysts anticipate this sector rotation may persist in the short term, with investors favoring industries with clear growth catalysts.
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