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JSE Launches FTSE/JSE Equally Weighted Top 40 Index
July 1, 2010--Today the Johannesburg Stock Exchange (JSE) and global index provider FTSE Group (FTSE) announce the launch of the FTSE/JSE Equally Weighted Top 40 Index. The new index adds to the existing FTSE JSE Index Series, providing an alternative to indices constructed according to the market values of the companies (or market capitalisation weightings). It is also the first equally weighted index to be launched in South Africa within the FTSE/JSE Index Series.
Aimed at fund managers globally, the introduction of the FTSE/JSE Equally Weighted Top 40 Index will extend the FTSE/JSE Africa index range and provides a variation from existing indices, allowing greater risk diversification and benchmarking for performance, particularly in equity portfolios. The majority of FTSE/JSE indices are market-cap based, with a few indices based on company fundamentals. “For some time FTSE and JSE have realised the existence of market demand for an equally weighted top 40 index. Current market conditions require a tool that allows for all companies to be considered on an even playing field,” says Ana Forssman, Senior General Manager of Information Product Sales.
“The new index provides the South African market with an exciting new investment opportunity, as well as raising visibility for South Africa amongst the international investor community,” says Jonathan Cooper, Managing Director Middle East and Africa, FTSE Group. “By providing a range of innovative strategies, FTSE is dedicated to enhancing both the level of choice and opportunities for investor diversification. We shall continue to build upon our work with the JSE to ensure we meet market demand.”
As with the FTSE/JSE Top 40 Index, the FTSE/JSE Equally Weighted Top 40 Index consists of the largest 40 companies on the JSE but unlike the FTSE/JSE Top 40 Index and other market capitalisation indices, all constituent companies have the same weighting and therefore the importance of each company in the index does not depend on its market capitalisation.
"Equal weighted indices give investors better access to all stocks in a particular segment," says Forssman. "If there's strength across a segment, products tracking equal weighting indices tend to outperform, but investments tracking market-cap weighting indices can do better depending on the market's leadership.” Forssman adds that investors could find that products based on the FTSE/JSE Equally Weighted Index are a useful aid in reducing the risk associated with the sudden drop in share price in large cap companies. Both institutional and retail investors can look forward to products tracking this index launching soon.
The FTSE/JSE Equally Weighted Top 40 Index follows the construction of the existing FTSE/JSE Top 40 index with regard to quarterly index reviews, constituents’ eligibility and constituent price data. The constituents of this index will therefore always reflect the constituents of the FTSE/JSE Top 40 index.
Source: Johannesburg Stock Exchange (JSE)
JSE declines ahead of G20 Summit
June 25, 2010--The JSE slipped for a fourth straight day on Friday amid some profit taking, with uncertainty also creeping back in to the market ahead of the G20 Summit in Toronto where the fiscal deficits afflicting some eurozone countries will once again be discussed.
At its close, the JSE all share index had lost 0.57% and resources shed 1.33%. Platinum miners gave up 0.19%, but gold miners added 0.82%. Banks moved 0.41% lower, and financials edged down 0.29%, but industrials were slightly higher, up 0.07%.
The rand was bid at 7.65 to the dollar, unchanged from the JSE's close on Thursday. Gold was quoted at US$1,254.03 a troy ounce from $1 243.47/oz at the JSE's previous close, while platinum was at $1 564.50/oz from $1 554.50/oz at the JSE's last close.
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Source: FIN24
Bonds open weaker in quiet trade
June 25, 2010-- Bonds were weaker in quiet early trade on Friday, feeling the effects of a softer rand.
By 08:45 the short-term government R154 bond was bid at 6.745% after closing at 6.730% on Thursday and the medium-term R157 was at 8.000% from 7.980% at its previous close. The long-term R186 was bid at 9.055% from 9.025% previously.
The rand was bid at R7.6433 to the dollar from R7.5742 at its previous close.
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Source: FIN24
Rand slips as euro/USD loses steam
June 25, 2010--The rand was softer in midday trade on Friday as traders trimmed their positions in the euro vs the US dollar ahead of the G20 summit in Canada. The euro lost steam against the US dollar after a brief bounce in mid-morning trade.
At 11:41 the rand was bid at R7.6563 to the dollar from R7.5742 at its previous close. It was bid at R9.4141 to the euro from its previous close of R9.3562 and was at R11.4159 against sterling from R11.3122.
The euro was bid at $1.2268 from $1.2335 overnight.
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Source: FIN24
JSE ends flat after a strong week
June 18, 2010-- The JSE ended with a whimper on Friday following a strong week, which was punctuated by the futures close-out and index rebalancing.
At the close, the JSE all share index lost 0.13%, with resources lower at 0.58% and platinum miners shed 2.12%. Gold miners were almost flat at 0.01%. Banks were 0.51% down, while financials fell 0.03%. But industrials edged up 0.26%.
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Source: FIN24
Bonds touch firmer, eye rand
June 18, 2010--Bonds are a few basis points firmer in quiet late trade on Friday, with little to go on besides the direction of the rand.
By 15:45 the short-term government R154 bond was bid at 6.685% after closing at 6.705% on Thursday and the medium-term R157 was bid at 7.940% from 7.960% at its previous close. The long-term R186 was bid at 8.955% from 8.960% previously.
The rand was bid at R7.5246 to the dollar from R7.5742 at its previous close.
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Source: FIN24
Quiet rand maintains firm footing
June 18, 2010-- The rand tracked a stronger euro in afternoon trade on Friday, but amid a lack of news to provide meaningful impetus.
At 15:36 the rand was bid at R7.5060 to the dollar from R7.5742 at its previous close. It was bid at R9.2979 to the euro from its previous close of R9.3816 and was at R11.1197 against sterling from R11.2187.
The euro was bid at $1.2370 from $1.2380 overnight.
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Source: FIN24
Rand eases amid Cup distraction
June 11, 2010--The rand eased a fraction in afternoon play on Friday in what a trader described as an "uninteresting day" ahead of the kick-off of the FIFA World Cup in Soweto.
At 15:21 the rand was bid at 7.7503 to the dollar from 7.6862 at its previous close. It was bid at 9.3745 to the euro from its previous close of 9.3010 and was at 11.2916 against sterling from 11.3000.
The euro was bid at US$1.2090 from $1.2100 overnight.
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Source: FIN24
Bonds a touch softer in thin trade
June 11, 2010--Bonds were a touch softer by midday on Friday, tracking a steady rand. A trader said volumes were extremely thin. The bond market closed at 12:00 because of the World Cup kickoff.
By 12:06 the short-term government R154 bond was bid at 6.760% after closing at 6.730% on Thursday and the medium-term R157 was at 7.990% from 7.980% at its previous close. The long-term R186 was at 8.965% from 8.920% previously.
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Source: FIN24
Brokers resist Nigerian watchdog
June 7, 2010--The new head of Nigeria’s stock market regulator is encountering “subtle and aggressive” resistance to efforts to root out brokers whose alleged abuses contributed to a $50bn crash that brought the financial sector close to collapse.
Arunma Oteh, who took over at the Securities and Exchange Commission in January, is battling to impose tougher oversight and increased disclosure to restore confidence in what was once viewed as a prime frontier market.
But some financiers who stand to lose lucrative trading licences are said to be applying pressure to thwart an SEC investigation aimed at establishing whether brokers misused investors’ funds and are in effect insolvent. Some financiers were seeking to use close ties to politicians to stall the investigation, suppress its findings or undermine Ms Oteh, allies said.
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Source: FT.com
