-- The funds that won big from Asia’s worst-performing major equity market placed their bets on technology stocks.
The worst may be over for Malaysia as investors have set their expectations low despite lingering uncertainties, UBS Securities said in a report. “We think the market could trend higher once earnings growth bottoms and confidence recovers,” according to the Monday note, which expects the benchmark to reach 1,680 by end-2020.Here’s what the funds are buying:
Malaysia’s technology index has jumped 26% in 2019 as companies like Inari Amertron Bhd. and ViTrox Corp Bhd. reap a windfall from the U.S.-China trade war. Malaysia shipped an additional US$2 billion of tariff-affected goods to the world’s two largest economies since the levies were imposed, according to the World Bank. Semiconductors and electronic circuits made up the bulk of exports to U.S.