Ex­o­dus from JSE tech­nol­ogy in­dex con­tin­ues

Finweek English Edition - - TECHNOLOGY - BY GUGU LOURIE

The de­ci­sion by Gi­jima, a l e a d i n g S o ut h Af r i c a n s of t ware a nd c om­puter ser­vices group, to vol­un­tar­ily delist from the bourse places the JSE tech­nol­ogy in­dex un­der the spot­light.

Gi­jima’s delist­ing leaves only nine stocks on the tech­nol­ogy in­dex, which is made up of soft­ware and com­puter ser­vices as well as tech­nol­ogy hard­ware and equip­ment shares.

The tech­nol­ogy i ndex could be fur­ther de­pleted if Busi­ness Con­nex­ion ( BCX) i s bought by Telkom – a devel­op­ment that would see South Africa’s fastest-grow­ing tech­nol­ogy firm re­moved from the JSE. The R2.7bn deal, first an­nounced nearly a year ago, awaits ap­proval from SA’s com­pe­ti­tion watch­dog.

The t rans­ac­tion i s l i kely to be fi­nalised this year af­ter which Telkom has in­di­cated it will re­verse in­te­grate Cy­bernest i nto BCX – c r eat i ng a for­mi­da­ble un­listed stand­alone tech­nol­ogy busi­ness.

Last month, t ec hnolog y f i r m Con­vergeNet ex­ited the tech­nol­ogy in­dex and re­mod­elled it­self as an in­vest­ment com­pany un­der the new name Stel­lar Cap­i­tal Part­ners.

De­spite the ex­o­dus, the tech­nol­ogy i ndex, which has cre­ated value for in­vestors, has risen 116.6% in the past three years – and 29.9% in the past six months.

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