UOB Kay Hian Research says the risk-reward trade-off and sector risk-on have improved after selldowns in the past year.
PETALING JAYA: The outlook for the local tech sector is turning brighter following the materialisation of the de-rating led by US interest rate hikes, appealing valuations after rounds of selldowns as a consequence of the de-rating, as well as the tapering off of Federal Reserve hawkishness and China’s “zero-Covid” stringency, says UOB Kay Hian (UOBKH) Research.
The research outfit said the risk-reward trade-off and sector risk-on have improved after selldowns in the past year, coupled with sector cyclicality against the Bursa Malaysia Technology Index (BM Tech Index) suggesting that the index could be on the brink of an upswing again after 12 months of consolidation.
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