Malaysia's technology sector experienced a 2.5% decline today, mirroring a global tech stock pullback. In contrast, the banking sector demonstrated relative resilience, supported by strong earnings prospects and improved net interest margins, positioning it as a defensive play amidst market volatility.
On Bursa Malaysia today, the technology sector emerged as the primary decliner, with the FBM Technology Index falling 2.5%. This was largely influenced by an overnight pullback in the Nasdaq Composite and profit-taking activities in high-valuation tech stocks. Key players like Inari Amertron (INARI) dropped 3 sen to RM3.15, while Malaysian Pacific Industries (MPI) shed 50 sen to RM30.00. In contrast, the banking sector demonstrated remarkable resilience. The FBM Financial Services Index only saw a marginal dip of 0.05%, primarily supported by expectations of robust upcoming earnings reports. Blue-chip banking stocks such as Maybank and CIMB performed relatively stable, acting as a safe haven amidst current market uncertainties. Analysts anticipate this resilience in the banking sector to persist, bolstered by a favorable interest rate environment and healthy loan growth.
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