A comeback for tech stocks?

Markets: A comback for tech stocks - at Moneyweek.co.uk - the best of the week's international financial media.

Could the technology sector, which peaked five years ago, be on the verge of taking off again? This week saw the Nasdaq and FTSE Techmark indices hit record highs and confidence has returned, says Maija Pesola in the FT. A recent survey of small UK technology firms by Grant Thornton shows that almost two-thirds expect revenues to grow by more than 50% a year for the next three years, with organic growth expected to be the key driver.

Technology flotations have also made a comeback and corporate spending on technology and telephone networks seems to be rebounding, says David Budworth in The Sunday Times. US IT spending grew by 12% last year, the first double-digit increase since 2000. Moreover, hot new technologies - such as Wi-Fi, which permits wireless internet surfing, and internet television - are at, or close to, the point of being commercially exploited, according to Lindsay Whitelaw of Artemis, so the hype looks unlikely to "turn to dust". "Sound" tech firms are now also available at "sensible prices", says John Bearman of Halifax's fund management arm.

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