JSE sees pickup in new listings

Johannesburg - South African bourse operator JSE Ltd expected an increase in new listings in 2010 as investor confidence in the country's economy improves, CEO Russell Loubser said on Wednesday.

The JSE, one of three African bourses which are part of the World Federation of Exchanges (WFE), saw 12 IPOs in 2009. So far this year there have been four new listings, Loubser said in an interview.

"I do sense that confidence is returning, this year this time is a helluva lot better than this time last year. There are a number of good-sized companies in the (IPO) pipeline," Loubser said.

Loubser said IPO sentiment is likely to improve as investors regain confidence in the South African economy, which exited its first recession in 17 years in November last year.

Africa's biggest economy will probably get a boost from the soccer World Cup which South Africa hosts from June 11.

A Reuters survey of 22 economists found that the sporting event would add around 0.3 percentage points to growth while the economy is seen growing at an average of 3.1 percent in 2010.

"If things continue in the current sense of good confidence in our economy, I expect a number of new IPOs to come onto the market this year".

The JSE has been focused on expanding its reach in Africa, but called off a deal to buy a strategic stake in the Mauritius Stock Exchange in March.

Loubser said the JSE will now look at other opportunities after failing to get a foothold on the Indian Ocean island of Mauritius.

"We will now pursue other plans that we have in mind".

He saw some prospects in Nigeria.

"There are possibilities there and Nigeria is too big to ignore but at the same time Nigeria has a lot to do about things like corporate governance. We will continue to look at that part of the market but it is not without its dangers," Loubser said.

- Reuters