The Johannesburg Stock Exchange has seen a mixed bag of success and failure for tech stocks over the last year, with some companies struggling to post any gains whatsoever, and others dipping into negative territory during the last year.
Ten tech stocks in particular did poorly over the course of the year which ended on June 30, and investors linked to those particular companies will be disappointed with the performances of their stocks during that period.
While big names such as Vodacom and Naspers grew their valuations on the JSE, the likes of Telkom and Blue Label Telecoms lost value over the period.
Here are the 10 worst performing tech stocks on the Johannesburg Stock Exchange.
Unlike major telecoms competitor Vodacom, which experienced gains of 20.7 percent year-to-date, MTN struggled during the same period and lost 2.7 percent in value since the beginning of January.
Blue Label Telecoms is another of the JSE tech stocks that failed to bring in positive returns over the last year, with a 9.1 percent loss since January, and a 6.2 percent loss over the last 12 months.
South African state-owned telecoms company Telkom saw a 10.6 percent drop in its share price since the start of the year, with analysts believing that this is due to its heavy reliance on its fixed-line business.
The information and communication technology firm is another of the underperformers on this list, having experienced a 13 percent year-to-date decline and a 17.5 percent share price drop over the last year.
Pretoria-based software company Silverbridge has had bad news for investors over the last year, with its shares on the Johannesburg Stock Exchange falling 14.6 percent and 11.3 percent with regards to year-to-date and over 12 months respectively.
Personal computer and ICT product assembler and distributor Mustek’s share price decline on the South African exchange has been attributed to its slow earnings growth and the general economic condition, with a staggering a 20.1 percent drop in value over the last 12 months.
NET1 Universal Electronic Payment System Technologies, a leading provider of secure and afforable transaction channels, disappointed their investors with a poor performance on the JSE. The company, which is also listed on the Nasdaq, was devalued by 20.7 percent on the JSE over the course of 2017.
Telecommunications service provider Telemasters was the third hardest hit of the tech stocks on the Johannesburg Stock Exchange during the time-frame under analysis, with massive losses amounting to 66.7 percent over the 12-month period.
EOH has often been one of the top performing shares on the JSE, but this year has been different. A 25.5 percent decline over the last 12 months, and a 33.9 percent drop since the beginning of the year has been blamed on the fact that investors are uncertain following the departure of former CEO Asher Bohbot and speculative media reports concerning alleged shady government deals.
The worst performer on this list of tech stocks is Adapt IT, which lost a massive 42.4 percent since January, and 27.5 percent over the course of the last 12 months. The ICT firm has grown steadily over the years, both organically and by acquisition, and this decline has come after the market became accustomed to consistent growth.