Related Articles
Top Stories
May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 28 2012 07:53
The City of Cape Town has spent R175m running the Myciti bus service since the Soccer World Cup compared to an income of R35m, a report says.
May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - Funding sought in the domestic and international primary share markets by companies listed on the JSE waned in 2008, although upticks were registered in March and June, the South African Reserve Bank (SARB) said on Tuesday in its latest quarterly bulletin.
A relatively subdued growth outlook and volatile global equity markets depressed local share prices and probably explain the reduced amount of R63.2bn raised as equity capital in the first ten months of 2008 - 38% below the R101.3bn raised in the corresponding period of 2007, the SARB said.
Companies with primary listings on the JSE accounted for 87% of the capital-raising activity thus far in 2008, with nearly equal contributions by the resources and financial sectors.
New listings on the JSE by either an introduction or a private placing were fairly sparse in the ten months to October 2008. Of the 23 new listings thus far in 2008, five occurred on AltX and of the total of 17 delistings, AltX recorded only one.
The number of companies listed on the JSE amounted to 428 at the end of October 2008 - comprising 336 companies on the main board, 78 companies on AltX, and 14 companies on the development and venture capital boards.
The SARB also noted that trading activity in the secondary share market was buoyant in 2008 and soared further in recent months alongside volatile share prices.
The South African Volatility Index increased from 19% at the beginning of May 2008 to 60% at the end of October. The daily average turnover increased markedly from R11.5bn in August 2008 to R14.2bn in October from a record high of R14.6bn in September.
The value of shares traded on the JSE amounted to R2.9 trillion in the first ten months of 2008, which was 16% more than the turnover in the corresponding period of 2007.
Only a fraction of total turnover was recorded on AltX: it amounted to R4.7bn in the first ten months of 2008, which was some 0.2% higher than the value traded in the corresponding period of 2007.
The total market capitalisation of the JSE declined from a record high of R6.3 trillion in May 2008 to R4.4 trillion in October due to lower share prices. However, according to the World Federation of Exchanges, the JSE maintained its ranking as the 19th largest stock exchange in the world in terms
of market capitalisation for the past two-and-a-half years.
Half of this market capitalisation was contributed by the ten largest companies as at the end of October 2008.
The market capitalisation of all companies listed on AltX also declined from R28.3bn in April 2008 to R19.2bn in October.
Total market liquidity, measured by annualised turnover as a percentage of market capitalisation, increased considerably from 48% in April 2008 to 94% in October, the SARB said.
- I-Net Bridge