There is plenty of investment appetite for African stocks among institutional investors, and the continent’s financial markets are taking notice.
Nigeria, South Africa, Kenya and Angola have all recently pushed ahead with plans to deepen and improve their financial markets. But there is still a long way to go. Continue reading »
NewPlat, the world’s biggest platinum ETF (exchange traded fund), is leaving other players on South Africa’s financial markets in the dust.
New figures from eftsa.co.za show that in the first nine months of this year, R9.3bn ($954m) was raised in new capital by the exchange traded products industry through new listings on the Johannesburg Stock Exchange. Thanks to NewPlat, listed at the end of April, its issuer Absa Capital (an affiliate of Barclays) has been the main raiser of fresh capital, accounting for R8.2bn of the total raised. Continue reading »
Platinum prices have been pretty rocky of late (see chart), but that’s not stopped exchange traded funds in the metal doing well. Earlier this year, Absa listed its fully-backed platinum ETF, NewPlat, on the Johannesburg Stock Exchange.
It has now emerged that NewPlat now accounts for approximately 20 per cent of the total global platinum ETF holdings. Absa confirmed to beyondbrics that as of the end of Thursday, the fund held 391,789 ounces of platinum to back its securities, representing over one-fifth of all platinum held by ETFs. What’s going on? Continue reading »
South Africa is already known for being a one of the best-regulated financial markets – ranked first in the world by the World Economic Forum, no less. Now the country’s desire to keep in line with international market standards has prompted the Johannesburg Stock Exchange to strengthen its exchange traded derivatives market with a new default fund to protect investors.
The fund, announced on March 14, is aimed at protecting investors in the event of a clearing member defaulting – a necessity for clearing houses following the 2008 financial crisis. The question is – in the event it is needed, who ultimately pays? Continue reading »
After a tumultuous 2012 of strikes and unrest, South African mining stocks are on the up. The Johannesburg Stock Exchange main index briefly hit a new all-time high on Monday, and miners have joined the recent rally.
But not everyone is participating in the upswing. Harmony Gold, the country’s third largest producer, on Monday announced the suspension of operations at one of its main mines, and warned it may even close the site for good. The shares were down around 5 per cent. Continue reading »