New index spurs IT shares to fresh highs
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Information technology (IT) shares continued to sparkle yesterday on their first day as part of the Stock Exchange's new IT index.
Despite the reduced trading hours and subdued trading activity, the index's largest constituents surged ahead.
IT shares have risen sharply since the formation of the index was first announced at the beginning of December. In the past month, many IT shares have posted gains of between 10 and 20 per cent as institutional investors attempt to adjust their weighting to the sector.
FTSE International, which administers the Stock Exchange's indices, had originally planned to introduce the index at the end of 1998. But the launch date was moved forward due to demand from investors. The index is currently a component of the Support Services sector, but is expected to become a sector in its own right.
IT consultancy firms were particularly in demand, with Logica putting on 20p to 1,177.5p, CMG gaining 7.5p to 1,532.5 and Sema closing 5p higher at 1,487.5p. Also in demand were software developers Misys, up 12.5p to 1,842.5 and Micro Focus, up 12.5p to 2,405.
Although the index includes 88 stocks, the majority are small companies. Five large companies - Sema, Misys, CMG, Sage and Logica - account for over 40 per cent of the index's value.
- Peter Thal Larsen
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments