Celestial Asia Securities Holdings (Cash) has launched a technology index to track Hong Kong's Internet frenzy. The index comprises 40 technology-related firms, all listed at least a year ago and with a minimum capitalisation of US$100 million, said the firm's research head Herbert Lau. It is the third index tracking local technology counters to be launched and, like the other indices, is weighted by market capitalisation. Tanrich Securities launched one in May last year and Dao Heng Securities in November. Unlike the other two, Cash's technology tracker does not include the hottest technology play, Pacific Century CyberWorks. 'We want to prevent any distortion made on the index by some overweighted stocks,' Mr Lau said. However, Legend Holdings has become an index heavyweight after soaring 114.17 per cent in the past month, giving it a market capitalisation of more than HK$95 billion. 'The rally of Legend has brought a lot of gains to our index since February,' Mr Lau said. The computer maker now accounts for about 20 per cent of the Cash index. Mr Lau said he thought most of the index members would be included in the proposed Hang Seng Tech Index (HSTI) expected to be launched next month by HSI Services, which compiles the Hang Seng Index. 'I anticipate that 80 per cent of the companies now listed in our index will become constituents in the upcoming HSTI,' he said.
