Fin24

More blacks buy into JSE-listed firms

2012-12-06 11:59

Johannesburg - Black investors hold similar stakes in listed companies as white investors, according to research released on Thursday. 

The research focused on ownership of the top 100-listed companies. 

"This year's study found a similar participation level among black and white South African investors - 21% and 22% of the Top 100 by value respectively," said JSE CEO Nicky Newton-King. 

"We also think one can assume that the black economic interest will continue to climb in future, and that this research provides a base for future measurement." 

If the methodology allowed by the Black Economic Empowerment Codes of Good Practice was applied, black shareholding rose to 33%. 

"This is principally due to the fact that listed companies who own businesses in multiple countries are allowed to exclude the value of these foreign business operations from the calculation of black economic interest," said researcher Trevor Chandler. 

Foreign investors hold 34% of the market, while a further 2% was held directly by the government. 

Most shares - 40% - are owned by institutional investors such as pension funds and life insurance companies, according to the research. 

Only 24% of shares are held directly by South African individuals. 

By excluding foreign and government stakes, the proportion of black investors in the remaining categories could be calculated. 

This year's study had been more comprehensive than in the past two years, accounting for an increase in the numbers of black investors, said Chandler. 

He declined to put a value on total black shareholding, as share and exchange values changed daily and the JSE's biggest companies had multiple listings across the world.

 

Comments
  • avanwyk2 - 2012-12-06 12:20

    According to cosatu in Jan 2012 more than 80% of the JSE is white owned but 9 months later black investors held similar stakes than white investors.Somebody was lying....wonder who? Hhhhmmmm

      zamindlela.bhengu - 2012-12-06 12:45

      These numbers depend on how the calculation is done. Here they state that overseas holding by these companies is excluded, which then skewews the picture. Also, black investors in this case means companies with black shareholding

      sefako.mokgalaka - 2012-12-06 14:04

      You will find most of the black shareholding is funded by long term loans. The article is misleading if you ask me.

  • crracker.crackerr - 2012-12-06 12:44

    The economy is there for the taking. Just buy into it. But if the idea is to buy into the economy with colour/compulsion as the currency (money) the economy will lose its value and attraction. Now for an honest land/economic audit. Let's get the real facts about who owns what land and what economic activities are taking place on that land.

  • oliver.bromley.3 - 2012-12-06 12:49

    who the hell cares what colour you are and who owns what

      nombuso.n.mtshali.1 - 2012-12-06 13:31

      Exactly! Race this race that?

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