Fintech stocks steady

The Finextra50 Financial Technology Index rose 1.3% to 55.59 last week driven by decent bounces for many fintech stocks including Temenos and Mphasis after the previous week's market wreckage. But others, such as Oracle Financial Services Solutions, continued to plummet in value.

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Fintech stocks steady

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Exactly half of the 50 index constituents bounced last week after the previous week's market shock dragged all downwards. After losing 44.58% of its value the previous week, Temenos led the bouncers, rising 34.09% to Chf14.75 by end of trading Friday after several client announcements last week.

The company said that in September Bank of Shanghai completed its roll-out of Temenos' T24 software across its retail operations comprising 11 million accounts. And in the US, the company's partnership with Metavante to market T24 is bearing some fruit, with the signing of Metavante processing client EverBank. The bank has agreed to implement T24 to run its global trading and commodities operations.

In India, Mphasis saw a 31.85% rise to Rs178 on Friday after reporting that revenue for the quarter ended 30 September was up 39% year-on-year. Quarterly net profit was up 79%. During the quarter the group added 20 new clients including 15 relationships through majority owner EDS, an HP Company.

In an interview with CNBC-TV18 the company's CEO Jeya Kumar said that in the company's banking, financial services and insurance business unit, they were seeing some project delays, but no cancellations. "That is why if you compare in terms of our BFSI number, on a QoQ basis we actually grew about 2%," he said. "But with all that is happening in the industry, I think the opportunities are also there. There is going to be a lot more integration than anybody had ever thought about."

Orc Software rose 15% to Skr74.75 by market close on Friday after reporting 8% revenue growth for the quarter ending 30 September, and reiterating its full-year expectation to increase both revenue and the order book compared to 2007.

Other companies to see increases include:

  • SimCorp, up 25% to Dkr500.00
  • S1, up 15.8% to $5.35

Losers

Oracle Financial Services Solutions (OFSS) led the fallers last week, dropping a further 16.78% to Rs431.10.

Bravura Solutions was down 13.33% to AUD$ 0.52, despite the wealth management software provider announcing that an in-principle agreement for the repayment of margin loans and the return of the 30% of the company’s shares held by the group chief executives has been reached following the collapse of Lift Capital.

Others to lose more ground include:

  • Hedge fund BPO specialist GlobeOp, which fell to 13.13% 173.7p
  • Trading and connectivity system vendor Fidessa, which fell 10.47% to 573p

 

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Methodology
More information on the Finextra50 Financial Technology Index methodology and constituent stocks can be found here.

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