The global information technology sector has become one of the biggest targets for short sellers at a time when question marks are hanging over the valuation of several high profile flotations and there are increasing worries of another dot.com bubble.

Hedge funds and other short-sellers borrowed more stocks from the listed US technology sector last week than any other sector, believing their share prices would fall and they could buy them back at a lower price to make a profit, according to research firm Data Explorers.