Index to track performance in the UK launched by BDO Stoy Hayward

The index comprises only UK companies focused on internet activities. It already includes more than 70 companies involved in software or network development, access provision, e-commerce, content development or investments.

It shows the relative value of UK internet companies has grown by a massive 350% in seven months to March. But in the past two weeks, the BDO Internet Index has fallen by 20% as net stocks have gone off the boil.

Peter Hemington, head of mergers and acquisitions, said: ‘Internet share prices have been driven up partly by a massive increase in activity by private investors. But it will be interesting to see whether the recent fall is a temporary blip or a sign that investors are beginning to differentiate between the various internet business models.’

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