Business19.01.2023

How much money you would have if you invested R1,000 in South African tech companies in 2022

Naspers

Many investors who bought shares in South African technology companies at the start of 2022 would have lost money by the end of the year.

Globally, the technology industry has been among the worst hit by weak economic growth and high inflation, strangling consumer and business spending.

We analysed the share price performance of technology companies listed on the JSE from the opening of trade on Monday, 3 January 2022, to the close of the market on the last day of trading for the year, 27 December 2022.

We then calculated how much money R1,000 in shares bought in each company at the start of the year would have been worth by the end.

Despite the challenging operating conditions, we found several companies saw their share prices increase during the period.

The share prices of seven of the 16 technology companies listed showed growth during the period — with Alviva Holdings and Etion Limited leading the way.

Alviva counts several major tech equipment distributors — such as Pinnacle, Tarsus, and Axiz — in its fold, in addition to multiple tech and data-focused companies.

Its share price increased by over 62% during 2022 — climbing from R16.70 per share to R27.17.

A person who bought R1,000 in Alviva shares at the opening of trading on the JSE on 3 January 2022 would find their investment was worth R1,627.55 by the close of trade on 27 December 2022.

The company reported strong financial results at various points in 2022, but according to Daily Investor, a potential buyout by a consortium of investors has also bumped the value of shares.

A similar impact can be seen in Etion’s shares, whose share price surged from 34 cents to 55 cents over the same period — an increase just short of 62%.

That surge was due to Etion shareholders being offered 55.58c per share as part of a deal to delist the company and unlock shareholder value.

Etion develops specialised hardware and software solutions for particular scenarios, like military applications.

The big losers

But these two companies were among the few bright spots in an overwhelmingly gloomy picture for the local tech industry.

A notable loser in the year was EOH Holdings, which recorded a disastrous 44.12% decline in its share price, nearly halving from R6.80 to R3.80.

R1,000 in EOH shares at the start of 2022 would have been worth R558.82 by the close of trading for the year.

EOH’s weak share performance was primarily due to poor financial results and a rights offer.

But matters looked even worse for Jasco Electronics, which saw its share price drop nearly 60% over the same period.

Jasco sells digital media equipment and energy components, and manufactures electrical adaptors, plugs, and extension cables.

The company suffered significant financial losses due to reported “gross misconduct” in the leadership at its struggling fire and security divisions.

Its dire situation has led to a warning to shareholders that it might no longer be a going concern.

Bytes Technology, Karooooo, and Ayo Tech Solutions were among the other big losers during the year, with shares declining by close to 30%.

Overall, the average share price between these 16 companies fell by 2.3%. If you bought a R1,000 stake in each company for a total of R16,000 at the start of the year, you would’ve had R15,631.99 at the end.

The table below shows how much a R1,000 investment at the opening of the JSE on 3 January 2022 would have been worth by the close of trading on 27 December 2022.

South African tech share performance in 2022
Listed company Opening share price — Monday, 3 January 2022 Closing share price — Tuesday, 27 December 2022 Change Value of R1,000 investment
Prosus N.V. R1,306.10 R1,177.80 -9.82% R901.27
Naspers Limited R2,465.00 R2,824.36 +14.58% R1,145.78
Bytes Technology Group R112.05 R78.85 -29.63% R703.70
Karooooo Ltd R554.50 R400.01 -27.86%
R721.39
Datatec Limited R39.47 R30.99 -21.48% R785.15
Altron Limited R9.16 R9.00 -1.75% R982.53
Alviva Holdings Limited R16.70 R27.18 +62.75% R1,627.54
Capital Appreciation Limited R1.70 R1.50 -11.76% R882.35
PBT Group Limited R8.00 R9.85 +23.13% R1,231.25
Mustek Limited R13.27 R14.37 +8.29% R1,082.89
AYO Tech Solutions R3.50 R2.40 -31.43% R685.71
EOH Holdings R6.80 R3.80 -44.12% R558.82
Etion Limited R0.34 R0.55 +61.76% R1,617.65
Sebata Holdings Limited R2.00 R2.11 +5.5% R1,055.00
Cognition Holdings Limited R0.77 R0.95 +23.38% R1,233.77
Jasco Electronics Holdings R0.36 R0.15 -58.33% R416.67
Average -2.30% R977.00

Now read: South Africa’s best computing hardware wholesalers

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