Finextra50 rises to 102.46

Finextra50 rises to 102.46

Despite the closure of the US markets for the Independence Day holiday, the Finextra50 Financial Technology Index rose a healthy 1.63% last week to close at 102.46.

Major gainers

Authentication vendor Vasco Data Security led the pack by posting the biggest gains of the week, rising 7.821% to $24.54. Although the shares dipped last week, authentication remains a hot topic with banks and the stock recovered despite the closure of the US markets for the Independence Day holiday.

Shares in UK dealing systems vendor Fidessa were up 6.011% at 970.00 pence. The company disclosed that Legal & General Group had acquired shares in the business and also reported that it had extended its European Trader Workstation (ETW), which was launched last year, to include member trading on the Madrid Stock Exchange.

Offshore outsourcing outfit Cognizant also performed strongly and rose 5.187% to $78.89 on the back of news that it was setting up a second IT and BPO services unit in Kolkata. The new facility will double the firm's headcount in the city to 8000. The vendor also received some positive PR with its inclusion in BusinessWeek's 2007 InfoTech 100, the magazine's annual ranking of technology firms.

Other rises on the index include DST Systems which was up 5.151% and Hypercom which rose 4.738% after it released details of a major restructuring which includes the outsourcing of its manufacturing operations. Misys stock also rose 4.051% to end the week at 244.00 pence.

Fundtech, which joined the index last week, saw its stock rise 3.377% during the week.

The losers

UK IT services firm Microgen posted the biggest fall in the index last week, with its stock sinking 8.611% to 43.41 pence.

Shares in the London-based firm - which agreed a £25.6 million cash offer for banking and securities software vendor Trace Group last month - dipped ahead of its first half trading update released today. Friday was also the first closing date of its increased cash offer for Trace. Microgen said it had received valid acceptances for shares representing 17.02% of Trace Group so far. The offer has been extended to Friday 13th July.

Australian share registry and capital markets technology provider Computershare also fell and ended the week down 5.137% at A$10.71 per share. Last week Computershare reported its EUR12 million acquisition of Ireland's Datacare Software Group, which provides entity management and subsidiary governance technology.

Other losers on the index included German insurance systems house FJH which saw its stock fall 4.895% during the week, Patsystems which dropped 3.571% and The Innovation Group which fell 3.448%.

Index comparison

More information on the Finextra50 Financial Technology Index methodology and constituent stocks can be found here.

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