Sell-off in tech stocks on Bursa seen to be overdone

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However, a rebound might be on the cards soon.

have seen steep declines of around 30% to 70%, while the Technology Index has dropped close to 40%.

Wong also noted that the ringgit had weakened significantly against the greenback, which provides some buffer or downside support to tech companies’ earnings . Meanwhile, Rakuten Trade head of equity sales Vincent Lau thinks that the sell-off in tech-related stocks on Bursa Malaysia has been overdone and it is a matter of time before sentiment turns positive.

He noted that the general market view is that in the second half of 2023, the chip sector may see a recovery when inventories have been run down.

 

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