UK TechTracker

Electronics Times, March 27, 2000

The UK TechTracker was outperformed by the FTSE All Share and techMark All Share indices for the first time since its launch in the week to 22 March.

The UKTT remained ahead of its rivals but slipped back to 121.20 from almost 131 points last time. The FTSE rose to 97.03 from 96, while techMark had a more modest drop to 110.12 from 115.73.

So is the long-anticipated high-technology market correction underway? Those tech stocks just admitted to the FTSE 100 conspicuously failed to get the usual price rises from tracker funds piling in.

Losses for the week occurred almost across-the-board. Some 45 of the UKTT's 60 stocks posted falls, with 23 losing 10% or more of their value and three falling by more than a fifth (Redstone Telecom down 22.6%, Viglen Technology down 21.9% and Psion down 20.5%).

But on the Wednesday after the latest UKTT period closed, many stocks were clawing back price falls. The clutch of technology sector incentives in chancellor Gordon Brown's Budget appeared to have restored some market goodwill.

Some companies may have had steeper falls as new shares were issued just as profit-taking became the order of the day. Both Redstone and Psion put the final touches to all-stock acquisitions during the week.

Four stocks were unchanged on the week, while there were 11 risers. With the Budget still in mind, the most notable hike was at Smiths Industries, up 16.25% to 833.5p. Smiths' medical technology businesses look set to benefit from Brown's cash infusion for the NHS.

Meanwhile, Advanced Power Components started the week in the red ink majority, but bounced back on the Tuesday after Alcatel endorsed its new Internet access technology. It ended the week 2.26% up at 340p - no mean feat given the circumstances. `Morpheus'