Online retailer Kogan.com, along with six other ASX-listed companies, has been delisted from the S&P/ASX All Technology Index as part of a quarterly index rebalancing.
The change takes effect from today, March 20.
In addition to Kogan.com (ASX: KGN), Dubber (ASX: DUB), RedBubble (ASX: RBL), Temple and Webster Group (ASX: TPW), Cettire (ASX: CTT), Frontier Digital Ventures (ASX: FDV) and Fineous Corporation Holdings (ASX:FCL) was also removed from the index. No companies have been added in this reshuffling.
The announcement came earlier this month, shortly after Kogan.com revealed that its half-year loss had doubled from 12 months ago, with the online retailer posting a statutory loss of $23.8 million while gross sales were up 32.5%. fell to $471.1 million and sales fell 34.3%. to $275.6 million compared to a year ago. Kogan’s share price has fallen more than 27% over the past year to a market cap of less than $420 million.
Dubber, the cloud-based software platform for recording calls and voice information, has also suffered a horrendous run of losses, with its share price dropping more than 85% in the past 12 months.
Redbubble has faced similar issues, with its share price down more than 70%, while Temple and Webster’s share price and market cap has fallen by more than 50%.
The All Tech Index now has 45 constituent companies, led by logistics platform Wisetech Global, with Xero, Seek, Carsales.com, REA Group, Computershare, NextDC, Altium, Technology One and Block in the top 10.
The index originally launched in February 2020. Three years later, it has returned about a 15% increase in value thanks to the tailwinds technology stocks received during the global pandemic, but due to broader industry hammering and valuations over the past 12 months the All Tech Index is down about 11%.
More than two-thirds of the index, 68.9%, relate to information technology companies and a quarter, 26.5%, to communications services and healthcare.
On the third anniversary of the index, S&P also announced changes to category classifications, removing Internet & Direct Marketing Retail as an eligible subsector, while adding Data Processing & Outsourced Services and Transaction & Payment Processing Services.
The new membership classification for index stocks is: information technology sector plus the following subsectors: consumer electronics, internet and direct marketing retail, interactive media and services or healthcare technology.
The index had 45 companies, and removing seven brings the total to 38, eight fewer than the 46 the index launched with in 2020.