Skip to main content

Advertisement

Advertisement

Business

Tech rally has further to run, JP Morgan says

Tech rally has further to run, JP Morgan says

FILE PHOTO: A JP Morgan logo is seen in New York City, US, Jan 10, 2017. (REUTERS/Stephanie Keith)

SINGAPORE: The enormous rally in tech stocks has further to run, according to analysts at investment bank JP Morgan, who recommend staying invested across the sector for its growth potential.

Stocks across the industry, from hardware to software, have outperformed the market by miles this year as the COVID-19 crisis accelerates reliance on the internet for commerce.

"In contrast to the dot-com bubble, the current rally has been supported by strong earnings delivery," JP Morgan's equity strategists said in a note on Monday (Aug 24), saying they are sticking with an "overweight" recommendation on the sector.

"In addition to resilient earnings growth, tech has healthy balance sheets and strong cash flow generation, again in contrast to the 2000 episode."

The MSCI World Information Technology index is up 27 per cent this year compared with a 1.5 per cent rise in global stocks.

Source: Reuters

Advertisement

Also worth reading

Advertisement