FTSE launches tech indices
FTSE International has devised two new technology stock indices in a move which it says heralds the start of several initiatives to promote growing and smaller companies.
The two new indices are based on companies listed on London Stock Exchange’s young Techmark market. Techmark was launched in September as a new exchange for growth companies in the technology sector.
The broader of the two indices – the FTSE Techmark All-Share – includes all companies listed on Techmark.
The other index – the FTSE Techmark 100 – is intended to give investors exposure to young, high-growth stocks involved in technology. It only takes in companies with market capitalisation of less than £4bn, so excludes the largest stocks of the Techmark all-share index such as Vodafone, Glaxo Wellcome, SmithKline Beecham, BT and AstraZeneca. These five stocks together have a 50% weighting in the Techmark All-Share index.
FTSE International says this is only the first in a series of initiatives to promote growing and smaller companies. “There are initiatives being taken by the exchange, and we are looking at this too,” says Steven Vale of FTSE International. “We are certainly looking at the area of European small caps,” he adds.
The Techmark 100 index will be calculated real-time. Close Fund Management has already launched a fund based on this narrower index, which became open to investors early in November. Rachel Fixsen