The rally in technology stocks is tactical and sentiment-driven, rather than reflective of a sustained structural turnaround, analysts say.
PETALING JAYA: The recent price spike in technology stocks has been encouraging, but the rally is tactical and sentiment-driven, rather than reflective of a sustained structural turnaround, analysts say.
BIMB Research said in a report investors are advised to take profit if prices revisit their respective target levels while also adopting a wait-and-see approach for potential re-entry at more attractive valuations.
The research house added the second half of this year may present better opportunities once policy clarity, inventory stabilisation and genuine demand recovery take firmer shape.
The partial rollback of the United States-China tariffs earlier this week temporarily eased concerns over bottlenecks in the semiconductor supply chain.
While structural risks remain, it catalysed a sentiment-driven rally across tech counters.
The research house noted that its target prices for manufacturing-related tech counters remained unchanged.
BIMB Research’s target price for Malaysian Pacific Industries
Bhd stands at RM26.80 a share, Dagang Nexchange Bhd at 52 sen, Inari Amertron Bhd at RM2.30, and Unisem (M) Bhd at RM1.60.
BIMB Research, which has a “neutral” stance on the technology sector.
