Investor confidence in technology companies listed on the London stock exchange is at its greatest since the dot-com bubble burst.

The FTSE Techmark 100 index, which averages the share price of 100 London listed technology companies, this week reached its highest point since May 2001, mid way through the dot com crash. However, it is still well below the index’s peak at March 2000.

The index consists primarily of IT companies from the UK, including ARM Holdings, Autonomy Corporation, Logica, Misys and Sage.

The improved confidence among investors in these companies may derive from the recent flurry of mergers and acquisitions in the IT sector, improved IT spending plans of businesses and the gradual return to growth and profitability among IT companies.

The Information Age European Index, which averages the revenue growth rates among the continent’s largest business IT suppliers, has risen gradually since October 2009, at which point it was at its lowest since February 2004.