South Africa

Exchange news

JSE gives South African firms competitive advantage through corporate bonds

“South Africa’s established and efficient debt capital market is a key competitive advantage for South African firms” writes Barry Martin, joint head of debt capital markets at Rand Merchant Bank. Corporate debt issued in the first quarter of 2013 was R6.1 billion ($612 million).

Exchange news

Africa’s bourses should work together to channel investors

Africa’s 24 stock markets should learn to work together better if they are to seize high levels of investor interest, said Nicky Newton-King, CEO of South Africa’s JSE Ltd. She told an interviewer that plumbing, – technology and other links between exchanges and clearing and settlement – were more likely routes to more liquidity than trying to create a single exchange.

Capital raising

Rise of pension giants set to transform investment in Africa

New giants are arising in African investments – the domestic pension funds. Several countries have funds worth billions of US dollars and in many they are growing at 25% a year or more. Handled well, they could transform local equity markets, exits for private equity and infrastructure investment.

Exchange news

IOSCO global regulator gives bigger role to emerging markets – 80% of its membership

The 86 emerging markets members of the world’s securities markets regulator, International Organization of Securities Commissions form 80% of IOSCO membership and are increasingly important in the global economy. They back setting up IOSCO Foundation, to boost funding so IOSCO can scale up research, education and training and technical assistance.

Exchange news

JSE adds derivatives: grain specific to silos and more silver and platinum futures

South Africa’s JSE Ltd continues to expand its commodity derivatives range, adding silver and platinum “quanto futures” and it is helping South Africa’s grain market by allowing Safex silo receipts to complete a futures contract, so producers and buyers can trade grain depending on location.

Cote d’Ivoire

World Bank says 4.8% growth for sub-Saharan Africa in 2012, cuts earlier forecast

The World Bank has cut its growth forecast for sub-Saharan Africa. Earlier in the year it forecast 5.2% growth overall for SSA economies in 2012, but yesterday (4 Oct) it cut this to 4.8%.

Funds

Africa’s best real estate developer is private equity group Actis

Leading African private equity group Actis has won the title for “Best Developer in Africa” in the 8th annual global Euromoney Real Estate Survey run by finance magazine Euromoney

Capital raising

JSE growth board AltX scores 100th listing with Osiris

The 100th company listed on the AltX growth capital board of South Africa’s JSE Ltd securities exchange this week, when Bermuda-based Osiris Properties International did a dual-listing to help it raise capital.

Exchange news

SADC stock exchanges work together towards links, shared skills and better visibility

The ten stock exchanges of the Southern African Development Community (SADC) are working together to increase the effectiveness of their markets. The Committee of SADC Stock Exchanges (CoSSE) has agreed to concentrate on six priority areas in support of regional moves to more efficient capital markets.

Ethiopia

5 Africans named social entrepreneurs of 2012

Five leading Africans and innovators were named Social Entrepreneurs of the Year 2012 Africa by the Schwab Foundtion last week at the World Economic Forum on Africa in Addis Ababa.

Exchange news

JSE stock exchange unveils new Africa strategy

This morning South Africa’s securities exchange, the JSE Ltd, announced a revised strategy to attract more listings from other African countries, as international interest soars. The JSE is closing its Africa Board and moving the 2 listed companies onto the Main Board or to Alt-X if they are growth companies. The JSE is also stepping up trading in depository receipts (DRs) and offering a broader range of exchange-traded funds and debt instruments.

Exchange news

Kentucky wheat futures contract coming to JSE

The JSE will introduce its third wheat futures contract, with a cash-settled contract based on hard red winter wheat, referencing the Kansas City Board of Trade’s benchmark settlement prices. The contract will be introduced on 28 March with expiry dates in July, September, and December 2012 and March 2013.

Exchange news

Africa calls for regional integration and financial infrastructure

South Africa’s Minister of Finance, Pravin Gordhan said the continent needs to take advantage of having a market of 1bn people and some of the world’s fastest-growing economies: “You can’t ignore a continent like Africa. In the next 15-20 years the focus on Africa will sharpen.”

Capital raising

JSE seeks more African equity listings in 2012, targets telecoms, mining and financials

The JSE Ltd, South Africa’s securities exchange, is hoping to attract more listings from the rest of Africa in 2012 and to expand its range of products and services. This year should also see the JSE installing its equity trading system in Johannesburg, to avoid dependence on a transatlantic cable connecting it to the London Stock Exchange.

Exchange news

FTSE Group working on Pan-Africa index with African Securities Exchanges Association

FTSE has launched a FTSE-ASEA index with the African Securities Exchanges Association, which will help to unlock Africa an investment for larger portfolio investors. The index covers stocks on 16 exchanges and is adjusted for investibility, including free float and liquidity.

Exchange news

Is lack of liquidity driving African issuers to list on London Stock Exchange and others?

Reuters newsagency has put together stories on issuers’ and investors’ difficulties with African stock markets. These include lack of liquidity and sinking currencies. It notes that African companies are increasingly dual listing on international stock exchanges.

Exchange news

Private equity exits total $1.2bn

Private equity managers (GPs) have exited some $1.2bn of investments this year, spurred by new interest and good deal values, according to data from Preqin. This compares with $79m last year. This lists some deals.

Exchange news

BRICS stock exchanges form alliance

The securities exchanges of the “BRICS” emerging market bloc have announced a joint initiative to expose investors to the dynamic economies of the bloc members, Brazil, Russia, India, China and South Africa.

Exchange news

JSE boosts net profit by 22% for first half

South Africa’s JSE Ltd reported a 22% increase in net profit after tax to R253.8 million for the 6 months to June, driven by a 7% increase in revenue combined with controlled operating costs. The bourse declared a special dividend of 210c/share.

Exchange news

South Africa’s Financial Markets Bill open for comment, due 2012

South Africa’s Government has released the Financial Markets Bill for public comment, with comments due by 5 September. The new law would replace the Securities Services Act.