Why did ASX tech shares just have such a good FY22 first quarter?

digital screen of bar chart representing asx tech shares

Here at the Fool, we’ve been taking the liberty of checking out how some of the major ASX share market indices and shares performed over the most recent quarter. FY2022’s first quarter officially ended on 30 September, meaning it’s a great time to check out how things went.

So today, let’s examine the ASX tech sector.

The ASX tech sector is perhaps best represented by the S&P/ASX All Technology Index (ASX: XTX). The XTX Index started the quarter on 1 July at exactly 2,963 points. By the time 30 September rolled around, the XTX was sitting at 3,093.1 points.

That puts this index’s gain at a decent 4.39%. That’s a lot better than what the broader S&P/ASX 200 Index (ASX: XJO) managed. The ASX 200 was only able to add approximately 0.26% over the same period.

So which ASX tech shares were mostly responsible for this outperformance?

WAAAX on for ASX tech shares?

Well, according to the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC), which tracks the XTX index, its current top 3 holdings are Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO) and Seek Limited (ASX: SEK).

Well, as we discussed last week, Afterpay had a rather uninspiring quarter, going from $118.17 a share at the start of July to $121.32 by the end of September. That’s a return of 2.67% for investors.

Xero? The cloud-based accounting software provider began FY2021 at $137.10 a share and finished up the quarter at $139 – a gain of 1.39%.

Seek started the financial year at $33.14 but went backwards over the quarter, landing at $31.12 a share at market close on 30 September. That’s a decline of 6.1%.

However, the XTX’s next 2 ASX tech shares by index weighting helped carry the weight for the quarter. Computershare Ltd (ASX: CPU) shares went from $16.90 to $18.22 over the quarter, a gain of just over 7.8%.

But WiseTech Global Ltd (ASX: WTC) did one better. This WAAAX darling started July at $31.93, but ended up finishing last month at $53.65. That’s a whopping gain of just over 68%.

So it turns out WiseTech was the real ASX tech share winner over the FY22 first quarter. Who knows what surprises this quarter will bring!

The post Why did ASX tech shares just have such a good FY22 first quarter? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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