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Glove stocks back on investors radar on rotational play

Technology demand putting heat in tech stocks rally

Tech indices ONE of the main theme investors, industry players and analysts are telling themselves is that stay-at-home orders because of the pandemic have accelerated the usage of technology. A question that is hogging the investment world these days is whether the lofty valuations of tech stocks are justified. The concern is whether the share prices of tech stocks are in for a major correction. Is this going to be a repeat of the year 2000 dot.com bubble burst? And with the Covid-19 pandemic continuing to hurt economies around the world, it is unusual for technology stocks to surge to all-time highs.

Bursa-listed tech stocks surge after Nasdaq up

KUALA LUMPUR (March 10): Share prices of Bursa Malaysia Technology Index constituents including Malaysian Pacific Industries Bhd (MPI) and ViTrox Corp Bhd rose among top gainers in morning trade today after the US’ tech-laden Nasdaq closed up about 4% in overnight transactions as US bond yields fell and as investors bargain-hunted for beaten-down technology stocks. On Bursa today, MPI’s share price had risen RM1.60 or 4.58% to RM36.50 at the time of writing, while ViTrox added 36 sen or 2.48% to RM14.86. On stocks selection, the overnight strong Nasdaq’s relief rally could spill over to local technology stocks and trigger renewed buying optimism after share prices corrected 20%-30% from their recent peaks,” Hong Leong Investment Bank Bhd analyst Ng Jun Sheng wrote in a note today.

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