Technology: Triple Bottoms or Fad

The technology stocks listed on Bursa Malaysia experienced an epic eleven-month period of broadbased correction between November 2021 and October 2022. While the Bursa Malaysia Technology (KLTECH) index appears to have struggled in sustaining its rebound since the October 2022 lows, recent price movements suggest that investors are starting to differentiate between individual stocks based on their fundamentals within the sector. Furthermore, some of the underperforming stocks are showing early indications of a potential rebound, despite reporting disappointing quarterly results and experienced downward earnings revisions. These observations suggest that the sector may potentially provide a tradable short-term trading market for nimble investors, at the very least.