Internet, software and telecommunications stocks feature in an index of expected outperformers in the technology sector created by Dao Heng Securities. The index also includes media stock Television Broadcasts (TVB), as Dao Heng expects the broadcaster to soon announce wide-ranging Internet business plans. 'The focus . . . is to track listed companies that are using technology to grow their businesses,' Dao Heng said. 'Most of the stocks that make up the index are in technology and telecommunications sectors but stock in other sectors such as media and software are also represented.' Dao Heng follows Tanrich Financial Group in creating such an index since an Internet-led technology rally gripped the market after the announcement of plans for a Cyber-Port in the March Budget speech. The rally engulfed Hang Seng Index members such as Cable & Wireless HKT and Wharf (Holdings) - both have broad Internet ambitions - as well as an array of smaller speculative plays. The Tanrich index has 30 members. Dao Heng said its index members must have a market capitalisation of at least $400 million, a core business clearly focused in technology, financial transparency and management quality. The 11-member index is not meant to be a pure gauge of the technology sector's performance but a list of expected winners. Cable & Wireless HKT and Wharf are not included because Dao Heng considers them to be 'fully valued' after rallies that have seen their stock prices soar this year. Wharf's forthcoming Nasdaq spin-off, i-Cable Communications, will be considered for inclusion. However, TVB - this year's top performer in the Hang Seng Index - is included even though its core business is television broadcasting. Raymond Chong, head of research at Dao Heng, said TVB was chosen on expectations of further outperformance on strong growth plans through technology. The counter has gained 124 per cent this year. 'I think they are going to announce an Internet portal,' Mr Chong said. 'I also suspect they are going to provide content to [Cable & Wireless HKT's interactive multimedia services business] or i-Cable.' On Friday, Cable & Wireless HKT said it would soon make a key announcement. Some brokers expect this will be related to a Nasdaq spin-off of its Internet-related assets, but Mr Chong believed it could be an arrangement with TVB to provide news and entertainment content for Cable & Wireless HKT's multimedia businesses. Analyst Jenny Szeto Fong-wa will cover the sector for Dao Heng, which has also won a mandate to list TS Telecommunications on the soon-to-launch Growth Enterprise Market. HSI Services - the group that compiles the Hang Seng Index among others - is in the process of creating a technology index which could be launched before the end of next month.