On February 5, 2026, the banking and plantation sectors in the Malaysian stock market showed robust performance, driven by strong earnings expectations and commodity prices. Conversely, the technology sector faced downward pressure due to global sentiment and concerns over chip demand. This divergence highlights a rotation of investor interest towards more defensive and value-oriented segments of the market.
On February 5, 2026, sector performance on Bursa Malaysia showed a clear divergence. The banking sector continued its strong momentum, benefiting from robust loan growth and expectations of improved net interest margins, collectively rising by 0.8%. The plantation sector also performed well, driven by sustained increases in crude palm oil prices, with its index climbing 1.1%. In contrast, the technology sector faced headwinds, declining by 0.7% overall, primarily due to uncertainties surrounding the global semiconductor industry outlook and concerns over slowing export demand. Investors appear to be rotating out of high-growth but volatile tech stocks into more defensive and value-oriented sectors. Analysts anticipate this sector rotation may continue amidst ongoing macroeconomic uncertainties.
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