Kogan.com, Dubber, Redbubble among 7 ASX companies dropped from the All Tech Index

Online retailer Kogan.com, along with six other ASX-listed companies, have been dropped from the S&P/ASX All Technology Index, as part of a quarterly rebalancing of indices.

The change takes effect from today, March 20.

Alongside 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) were also removed from the index. No companies were added on this rebalance.

The 7 companies cut from the All Tech Index in its latest rebalance

The announcement came earlier this month, shortly after Kogan.com revealed its half-yearly loss had doubled on 12 months ago, with the online retailer posting a statuary loss of $23.8 million as gross sales fall 32.5% to $471.1 million and revenue fall 34.3% to $275.6m on a year ago. Kogan’s share price has fallen more than 27% over the last year to a market cap under $420 million.

Dubber, the cloud-based call recording and voice intelligence software platform has also had a horror run of losses with its share price falling more than 85% over the last 12 months.

Redbubble has faced similar woes, with its share price down more than 70%, while Temple and Webster’s share price and market cap has dropped 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 making up the top 10.

The Index originally launched in February 2020. Three years on, it has delivered an increase in value of around 15% thanks to the tailwinds provided to tech stocks during the global pandemic, but reflecting a more broader hammering of the sector and valuations over the last 12 months, the All Tech Index is down around 11%.

The performance of the All Tech Index since it launched in Feb 2020. Source: S&P

More than two-thirds of the index, 68.9%, involve information technology companies with a quarter, 26.5%, in communication services and health care.

On the third anniversary of the index S&P also announced changes to category classifications, with Internet & Direct Marketing Retail, removed as an eligible sub-industry, while Data Processing & Outsourced Services and Transaction & Payment Processing Services were added.

A spokesperson for S&P said they cannot comment on the removal of individual companies, referring us to the eligibility criteria for the S&P/ASX Australian Indices methodology.

The new membership classification for index stocks are: Information Technology Sector plus the following sub-industries: Consumer Electronics, Internet & Direct Marketing Retail, Interactive Media & Services, or Health Care Technology.

The index had 45 companies on it, and the removal of seven puts the total at 38, eight less than the 46 the index launched with in 2020.