Shares of AEM, UMS Integration, and CSE Global rose on Tuesday, November 10, recovering from a sharp decline in technology stocks the previous week. AEM led the rebound, rising as much as 12% to S$6.99 before settling at S$6.77 by midday. UMS Integration gained about 5% to S$1.79, while CSE Global also advanced roughly 5% to a high of S$0.875, easing slightly to S$0.865 at midday.
Key Details
The three companies had experienced significant losses last week. AEM fell 16.8%, with S$27.1 million in net institutional outflows. UMS dropped 15.9%, recording S$10.1 million in outflows, and CSE Global lost 6.3% with S$10.9 million in outflows. The FTSE ST Technology Index fell 10% during the same period, with total net institutional outflows of S$71 million, according to the Singapore Exchange (SGX).
Background
The recent sell-off was attributed to concerns over artificial intelligence spending, regulatory issues, and the returns on such investments following the U.S. midterm elections. James Ooi, chief market strategist at Tiger Brokers, noted that the rebound mirrored U.S. tech stocks, indicating resilience in the sector. He stated that investors are willing to buy the dip, with the market absorbing corrections through sector rotation and dip buying, rather than a broad-based retreat from equities. Investors have shown a preference for technology stocks despite the recent volatility, as seen in the recovery of AEM, UMS, and CSE Global.
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The rebound in shares of AEM, UMS, and CSE Global is likely to influence investor sentiment in the technology sector, particularly in Singapore. This could lead to increased buying activity in tech stocks, especially if concerns over AI spending and regulations ease. Watch for further developments in the tech sector as investors assess the impact of the U.S. midterm elections on global market trends.
Based on reporting by: businesstimes.com.sg