Tech stocks are weathering the economic storm well, according to Grant Thornton.
The firm’s Technology Index report, which tracks the performance of 142 UK listed tech firms outside the FTSE 100 and Micro Cap lists, claimed the valuation of mid-market technology companies had fallen by just four per cent, despite political uncertainty and public sector cuts.
This is compared to a greater decline on the FTSE 100 and FTSE 350 which saw valuations drop by 13 per cent.
Wendy Hart, technology partner at Grant Thornton said: "Despite a slight drop in valuations in the second quarter of 2010, technology stocks are holding up well and we are seeing a greater appetite for mergers and acquisitions.
“We are particularly seeing the resurgence of investment from the US, where investors are willing to put their heads above the parapet again. There may be good opportunities for US investment in the UK, given the strength of the dollar against the pound."
Eight FTSE 100-listed tech firms saw their values decline in Q2 – including Invensys, Vodafone Group and Cable & Wireless. ARM Holdings was the only FTSE 100 firm to buck the trend, seeing share value increase by 16 per cent, this was in part boosted by the launch of iPhone 4.
Hart added: "Semiconductor businesses are benefiting from the move from conventional infrastructure to wireless and internet protocal technology and this is only set to increase as consumers and businesses require greater flexibility from technology."
Struggling security titan makes three board appointments after investor took 5.8 per cent stake last month
Commvault ousted its CEO in May and has since undergone a radical refocus
As employees demand more flexible working environments, CRN asks how the channel is adapting to the changing working landscape
Wall Street less than impressed with Oracle's growth as cloud numbers remain hidden