On February 5, 2026, Malaysia's technology sector experienced a pullback, with its index falling 0.8%, while the banking and energy sectors emerged as market highlights, rising 1.2% and 0.7% respectively. This movement reflects a sector rotation as investors shift focus towards value-oriented and cyclical stocks amid evolving economic conditions and global interest rate expectations.
On February 5, 2026, sector performance in the Malaysian stock market was mixed. The technology sector experienced a pullback after recent gains, with the technology index falling 0.8%, primarily influenced by global tech stock profit-taking. In contrast, the banking sector performed strongly, with its index rising 1.2%, boosted by robust blue-chip performance and optimistic economic recovery expectations. The energy sector also stood out, with its index gaining 0.7%, benefiting from stabilizing international oil prices. This rotation of funds from high-growth tech stocks to value and cyclical stocks indicates investors are re-evaluating risk and reward. Analysts anticipate continued attractiveness in traditional sectors like banking and energy, driven by economic recovery.
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