Amtek Engineering (M1P.SG) off 1.9% at $1.01, extending 20.8% loss yesterday on debut, as investors still wary of contract manufacturer’s IPO valuations.

But downside likely limited with Morgan Stanley Asia helping to stabilise share price. Underwriter bought 8.3 million shares at $0.99-$1.05 each yesterday, expected to continue purchase during Amtek’s first month of listing if price weakens further.

With $1.30/share IPO price translating to 4.1x P/B, “valuation appeared relatively expensive,” says Kim Eng Securities; “with an abundance of (technology) stocks trading at attractive valuations, we can see why Amtek did not find favour with investors.”

Prefers InnoTek (M14.SG), which trades at 9.2% dividend yield, UMS Holdings (558.SG), which trades at 6.2x P/E. Orderbook quotes suggest yesterday’s $0.985 intraday low not likely tested.