Malaysia's technology sector experienced profit-taking today, declining by 0.8%, while the energy sector gained 0.5%, supported by rising oil prices. Investors are actively rebalancing their portfolios amid shifting market dynamics. The tech downturn is seen as a short-term correction after recent strong gains, while energy benefits from global supply concerns.
Sector performance on Bursa Malaysia was mixed today. The technology sector faced profit-taking pressure after its recent strong rally, with the overall index declining by 0.8%. Key tech stocks like Inari Amertron Bhd dropped 1.5%, while Malaysian Pacific Industries Bhd (MPI) slid 1.0%. Analysts believe this is a normal correction as the market digests previous gains. In contrast, the energy sector showed robust performance, gaining 0.5% overall. International oil prices, particularly Brent crude, surpassing US$80 per barrel, provided strong support for local energy stocks. Velesto Energy Bhd rose 2.0%, and Dialog Group Bhd also recorded a 1.2% gain. Investors are reallocating funds from high-valuation tech stocks to energy stocks benefiting from rising commodity prices, seeking better risk-reward profiles.
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