Technology and Telecoms displays signs of emerging from downturn

Small T&T sector is beginning to rebound on improved economic data, seen in strong earnings growth

The heavily cyclical IMA Technology and Telecoms sector has been at the forefront of market volatility in the UK over the past year. Its IMA sector average shows a -1.9% return over one year to 13 July, according to Morningstar, but is up 3.6% over the past three months. Hopes of a rebound in the technology sector were lifted by a spate of recent positive earnings news from Apple, Intel and IBM, although such thoughts suffered a setback in late July as Microsoft reported an unexpected slump in quarterly sales, citing falling global demand for new PCs and servers. Stuart O’Gorman’s ...