News and developments on African capital markets, includes: African securities, African stock exchanges/stock markets, African equities, African bonds, African private equity/venture capital, and African social impact investment
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.
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.
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.
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.
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.
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.
South Africa’s Johannesburg Stock Exchange says that a record number of trades were executed on the exchange today (10 August). The new record is 230,797 trades, valued at more than $4 billion.
The JSE securities exchange has appointed an advisory committee to boost its JSE Africa Board to achieve its mission and attracet dual listings to a world-class stock exchange platform and help attract capital.
Flows into South African bonds turned positive in the last few days, although money is still being moved out of equities. For much of 2011 (year to date) investors had followed the global trend of less appetite for emerging markets and there have been outflows from South African bonds and equities after 2010 saw record inflows.
South Africa’s largest private equity company is transforming itself into a long-term investment holding company and aims to raise ZAR 6 billion ($857.7 million), according to a report on Bloomberg. Brait SA, listed on the JSE Ltd, will use the funds to purchase a long-term stake of 24.6% of Pepkor Ltd, South Africa’s biggest clothes retailer, and 49.9% of Premier Foods.