On February 5th, the banking sector stood out in the Malaysian stock market with strong gains, while the technology sector faced profit-taking. This marked a clear market rotation, with funds shifting towards more defensive financial stocks amidst evolving economic outlooks.
On February 5, 2026, sector performance in the Malaysian stock market showed significant divergence. The banking sector was a standout, with the FBM Financial Services Index rising 0.6%, primarily driven by expectations of robust earnings and stable dividends. Maybank, CIMB, and Public Bank all recorded modest gains. Conversely, the technology sector experienced profit-taking, with the FBM Technology Index declining 0.9%, influenced by a pullback in US tech stocks and local investor concerns over valuations. Semiconductor-related companies like MPI and Inari Amertron both saw declines. Analysts noted that this sector rotation reflects investors seeking more resilient industries in the current high-interest-rate environment. As the global economic outlook evolves, funds are expected to continue flowing between different sectors in pursuit of optimal risk-adjusted returns.
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