February was a tougher month for financial technology stocks with only a tiny fraction making positive returns as macro concerns hit the share prices of high-growth companies.
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A roaring start to the year for the AltFi Fintech Index in 2023 has been met by a tougher month in February.
During February, amid a dip in the bounceback in sentiment seen in January, the AltFi Fintech Index fell 8.7 per cent during the month.
By comparison, the MSCI World Index, which tracks thousands of the largest global companies, fell 2.7 per cent in February.
Asset management giant Amundi notes that global appetite for exchange-traded funds (ETFs) – a proxy for sentiment to risk markets – cooled in February. Despite ETFs seeing inflows of €14.9bn, the month also represented the lowest allocation to ETFs since April 2022.
This, Amundi says may well reflect investor concerns about the direction of interest rates.
“European investors added €6.8bn while US investors allocated €6.1bn,…