Tech Sector Leads Declines, Banking Sector Strength Supports Market

February 5, 2026
Sector Analysis
Star Biz

The technology sector underperformed today, declining 1.5% amidst global semiconductor outlook concerns. However, the banking sector showed robust performance, rising 1.0% due to positive earnings expectations and stable interest rates. This strength in financials helped to cushion the overall market from a sharper decline, highlighting a divergence in sector fortunes.

Sector performance on Bursa Malaysia today was polarized. The technology sector emerged as the weakest performer, declining 1.5%, primarily influenced by an uncertain global semiconductor outlook and a pullback in US tech stocks. For instance, Inari Amertron saw a 2.0% drop. Concurrently, the banking sector demonstrated robust strength, collectively rising 1.0%, acting as a significant stabilizer for the market. Key banking stocks like Maybank and CIMB recorded gains, benefiting from stable net interest margins and positive expectations for their upcoming earnings reports. The energy sector also performed well, gaining 0.7% as oil prices stabilized. This differentiated performance across sectors indicates that investors are strategically allocating assets based on individual industry fundamentals and macroeconomic outlooks.
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