Tech Sector Pulls Back, Banking Remains Resilient

February 5, 2026
Sector Analysis
Star Biz

Malaysia's technology sector experienced a pullback today, with its index falling 1.2%. In contrast, the banking sector showed resilience, with the financial index rising 0.2%, supported by stable net interest margins.

On February 5, 2026, various sectors in the Malaysian stock market showed divergent performances. The technology index fell 1.2% today, primarily influenced by an uncertain global semiconductor industry outlook and recent concerns over elevated valuations. Companies like Inari Amertron dropped 1.5% to RM3.30, while Malaysian Pacific Industries (MPI) declined 1.8% to RM32.00. Meanwhile, the financial index demonstrated resilience, edging up 0.2%. Banking stocks benefited from stable net interest margins and expectations of loan growth. Besides Maybank and CIMB's gains, Public Bank Bhd also saw a slight increase of 0.1% to RM4.20. Analysts believe that while tech stocks might face short-term pressure, long-term growth potential remains. Banking stocks, due to their defensive nature and stable profitability, are more attractive in the current market environment.
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