AFTER a strong rally in 2019 and despite the broader market volatility, it is no surprise that technology stocks on Bursa Malaysia have become more expensive on the back of rising valuations.
Last year, the Bursa Malaysia Technology Index surged by 29%, outperforming the FBM KLCI which had declined by 6.02% in the one-year period.
This led the overall valuation of the Technology Index – as measured by its price-to-earnings (PE) ratio – to rise sharply from 21.46 times as at end-2018 to 32.5 times by end-2019.
...