New indices open up African markets

6 October 2008

The JSE and global index provider FTSE Group have launched the FTSE/JSE All Africa 40 Index and the FTSE/JSE All Africa ex South Africa 30 Index, both of which are suitable for the creation of financial products, such as index funds warrants, certificates and exchange traded funds.

“Providing investors worldwide with access to the African continent is an important part of the JSE’s total Africa strategy, which also includes collaboration with other African exchanges and offering issuers the opportunity to dual list on our Africa Board,” said JSE CEO Russell Loubser in a company statement this week.

“By partnering to form these indices, FTSE and the JSE are improving the visibility of the high quality companies that exist across the continent. The JSE hopes that this will benefit all exchanges, raising their profiles and thereby enhancing the capital raising opportunities for their issuers.”

The FTSE/JSE All Africa 40 Index will consist of the top 40 companies by market capitalisation from Egypt, Cote d’Ivoire, Kenya, Morocco, Mauritius, Nigeria, South Africa and Tunisia while the FTSE/JSE All Africa ex South Africa 30 Index will consist of the top 30 companies by market capitalisation from Egypt, Cote d’Ivoire, Kenya, Morocco, Mauritius, Nigeria and Tunisia.

Representative indices

Both indices are designed to be representative of the markets covered and the weighting of any single country is capped at 40% of the indices. To ensure the indices remain representative, the constituent companies will be reassessed on a quarterly basis.

“Interest in African equities is on the rise both from international and domestic investors,” said FTSE Group Europe, Middle East and Africa MD Imogen Dillon Hatcher. “Today’s launch is part of FTSE’s strategy to provide institutional investors with an accurate benchmark as well as serve as the basis for innovative investment products.”

“These indices are further evidence of FTSE’s and JSE’s commitment to continue providing innovative solutions to investors both in South Africa and worldwide.”

SAinfo reporter

Using SAinfo material

Would you like to use this article in your publication
or on your website?
See: Using SAinfo material