Technology starts to bounce back

The technology sector has rebounded sharply from an extremely oversold position this year. While business conditions continued to be challenging, there were early signs of stabilisation in the outlook leading to some bargain hunting. It was encouraging to see this broaden out to the smaller capitalisation shares that had been particularly hard hit. Earnings for the first and second quarters, while still depressed, generally came in line with expectations. Many companies have cut their cost structure significantly, resulting in improved profitability. The period also saw an increase in...