Malaysia's banking sector performed robustly today, buoyed by strong earnings expectations. In contrast, the technology sector faced selling pressure due to a slowdown in global semiconductor demand, leading to declines in several tech stocks. Investors are re-evaluating growth prospects.
On February 5, 2026, sector performance on Bursa Malaysia showed a divergence. The banking sector was the highlight of the day, with the Financial Index rising 0.9%, primarily driven by major banks like Maybank and CIMB. Market sentiment remains optimistic about banks' profitability amidst stable interest rates and recovering economic activity. In contrast, the technology sector faced pressure, with the Technology Index declining 0.7%. Despite positive long-term prospects, the recent slowdown in global semiconductor demand impacted local tech counters such as Inari Amertron and Malaysian Pacific Industries, which fell 1.5% and 1.0% respectively. Investors are re-evaluating tech valuations and potentially rotating into more defensive sectors.
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