AEM, UMS and CSE Global shares rebound after last week’s tech rout
[SINGAPORE] Shares of AEM, UMS Integration and CSE Global rose on Tuesday (Nov 10) morning, clawing back some ground after last week’s sharp sell-off in technology stocks.
AEM rose as much as 12 per cent to S$6.99 in morning trading. UMS Integration gained about 5 per cent to S$1.79, while CSE Global advanced some 5 per cent to S$0.87.
The three counters had fallen sharply last week, amid a broader retreat from technology stocks. AEM was the worst hit of the trio, shedding 16.8 per cent and recording S$27.1 million of net institutional outflows. UMS fell 15.9 per cent with S$10.1 million of outflow, and CSE Global lost 6.3 per cent with S$10.9 million of outflow.
The FTSE ST Technology Index fell 10 per cent over the same period, recording total net institutional outflows of S$71 million, according to the Singapore Exchange (SGX).
SGX said the global sell-off was led by weakness across semiconductors, technology hardware, software and telecommunications stocks, amid concerns over artificial intelligence spending, regulation and the returns on such investments following the US midterm elections.
The rebound mirrored US tech stocks on Monday, signalling the resilience of the sector, said James Ooi, chief market strategist at Tiger Brokers.
Investors have shown willingness to buy into the dip, added Ooi, with the market “absorbing corrections through sector rotation and dip buying, rather than experiencing a broad-based retreat from equities”.
