The AltX endured another morbid year, with market interest in small-cap companies diminishing even further. As a result, the relevance of maintaining the AltX, which was initially established as a platform to develop emerging and entrepreneurial companies as a distinctly "separate" mini-market, is now likely to be questioned far more pointedly.
Sadly, the AltX has also lacked new listings of late, a problem that has been compounded by the opening of a handful of new alternative stock exchanges aimed at attracting small entrepreneurial ventures. The threat from rival bourses is not to be underestimated and there are indications that the JSE might consider a new platform for capturing companies with an entrepreneurial bent.
Of course, it doesn’t help the AltX’s case that there is a paucity of standout performers, though some stalwart companies are managing to perennially churn out decent profits. Workforce Holdings and Oasis Crescent Property are two that come to mind.
What also detracts is that the AltX plays host to more than a few "mangy dogs" — like Pembury, Go Life, 4Sight, Imbalie, Nutritional Holdings and Visual International. These companies are prone to regular setbacks, which tends to cloud sentiment for the entire AltX. There’s not much to report in terms of encouraging share price performances over 2019. But Accéntuate can be mentioned for pure shock value: the company, which dabbles in flooring, commercial cleaning and water treatment, lost almost 90% of its market value over the year.
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