Browsing: JSE

Remarks by Governor Kganyago Lesetja at the Johannesburg Stock Exchange (JSE) and New York Stock Exchange (NYSE) market close event. JSE/NYSE signed an MOU to foster ties & increase economic partnerships & trade opportunities. www.theexchange.africa

The agreement was finalized during a visit to the NYSE by a South African delegation including JSE Group CEO Dr. Leila Fourie and South African Reserve Bank Governor Lesetja Kganyago. The signing ceremony took place shortly before the delegation rang the Closing Bell, followed by a keynote address by Kganyago on monetary policy.

“The New York Stock Exchange is pleased to sign this collaboration agreement with the Johannesburg Stock Exchange in support of the important economic and trade relationship between our two markets,” said Lynn Martin, NYSE president.

“Exploring the dual listings of companies on our two exchanges stands to increase opportunities for investors on both continents, underscoring the value public companies and our capital markets generate in the global economy. We look forward to collaborating on new product development with the JSE team and to the innovation that comes when two great organizations work together.”

The remainder of Anglo’s coal assets were demerged from the group and bundled into a new company called Thungela Resources Limited. This strategy in coal mining circles is called “mine to mouth” and is being continued by Seriti. Eskom, South Africa’s power utility, has an agreement where its thermal power stations are fed with coal from the company’s Kriel and New Largo mines. These mines are adjacent to the power stations.

Seriti Resources (the company’s name is from the native Sotho language and means integrity) was formed in 2017. Mike Teke, through his investment vehicle Masimong Holdings Group owns 25% of Seriti Resources.

The remainder of the shares in the energy company is owned by Sandile Zungu’s Zungu Investments Company, Thebe Investments Corporation, and Community Investment Holdings.

The underlying constituents of the new 1nvest ETF, which will track the MSCI World SRI Select Reduced Fossil Fuels Index, are companies that mitigate risks posed by climate change and exhibit high levels of the environment, and social, and governance (ESG) performance.

According to an article published by the JSE on July 28, 2022, to qualify for inclusion in the index, companies are required to have an MSCI ESG rating of ‘A’ or above.

The ETF has an investment mandate that excludes companies in industries related to goods and services such as nuclear weapons, tobacco, civilian firearms, conventional weapons, alcohol, gambling, adult entertainment,   genetically modified organisms, thermal coal, and oil & gas.

Director of Capital Markets at the JSE, Valdene Reddy, said that the listing of the latest 1nvest ETF demonstrates the JSE’s commitment to remain a capital-raising platform of choice. As this segment grows, a listing on the JSE enables ETF issuers to attract investors that aim to diversify their portfolios, while fulfilling their ESG objectives.

In the cement industry, the South African Government has taken a protectionist stance, banning the import of cement especially for infrastructure projects that it is sponsoring. The ban came from Treasury in October.
This decision has been widely celebrated by the cement sector which has been struggling since 2014. This period is profound in that cheap cement flooded the South African market and reduced the profits of local producers.
These cement producers according to industry body, Cement and Concrete South Africa have been under siege from cheap imports from Pakistan, China, and Vietnam.

The pursuit of a greener earth and universal reliance on renewable presents a unique dilemma for countries in Sub Saharan Africa which rely heavily on energy provided by coal, shale, and other fossil fuels but also their economic livelihoods depend on the black gold.
The elimination of coal and related energy sources would severely prejudice economies that constitute SSA which are still developing or emerging.
It is against this background that the outgoing Chief Executive of the largest coal miner on the JSE, who is also the President of the Minerals Council is on record for saying that African countries should be allowed to make the transition from fossil fuels to greener renewable energies at their own pace.

Not to be mistaken the adverse impact of the times have been felt at Richemont with sales for the half-year ending 30 September 2020 decreasing significantly by 26 per cent to €5.48 billion against the previous year. This decline in sales resulted in a fall in operating profits of 61 per cent from €1.165 billion to €452 million.

Notwithstanding this slowdown in profits, the company was able to deliver a 78 per cent increase in sales from their China market which has now been overtaken by the Americas as the company’s largest market.