Exodus from JSE technology index continues
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.