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Security Dealing Activities in South Africa
BY Alex Conradie
South Africa
23 April 2020
R 14 400.00 (ZAR)  
estimated $ 866.41 (USD) *
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Security Dealing Activities in South Africa


South Africa’s security dealing sector is well established and large multinational companies and the large banks are active in the sector. The first months of 2020 were a busy time for stockbroking firms as the JSE’s all share index dropped sharply in March in line with a global sell-off of shares in reaction to measures to limit the spread of the coronavirus. Challenging macro-economic conditions compounded by rising labour and compliance costs continue to have a significant effect on the performance of the security dealing sector. Several multinational stockbrokers closed or downscaled their local trading and equity research businesses in 2018 and 2019.


Under Pressure


The profit of South Africa’s security dealing firms is under pressure as the weak economy has led to low trading volumes, and fewer mergers and acquisitions and initial public offerings. Many South African investors prefer to invest overseas, which also reduces the demand for the services of local security dealing firms. Profits of stockbroking firms that offer research have also been affected by the cost of complying with the Markets in Financial Instruments Directive II and a move away from active to passive investing.


Report Coverage


This report focuses on Security Dealing Activities in South Africa, including comprehensive information on the size and state of the sector, influencing factors, corporate actions and developments. There are profiles of 30 companies, including the JSE and brokers that are its members. There are profiles of large stockbroking firms including Citigroup, Investec Securities, JPMorgan, Legae Peresec, Merrill Lynch, RMB Morgan Stanley, SBG Securities and UBS. There are also profiles of companies such as Anchor Stockbrokers, in which Masimong Group Holdings bought a stake and Avior Capital Markets which was bought in 2020.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 1
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 4
4.1. Local 4
4.1.1. Corporate Actions 9
4.1.2. Regulations 11
4.1.3. Enterprise Development and Social Economic Development 12
4.2. Continental 13
4.3. International 14
5. INFLUENCING FACTORS 15
5.1. Economic Environment 15
5.2. Rising Costs 16
5.3. Technology, Research and Development (R&D) and Innovation 16
5.4. Environmental Concerns 17
5.5. Labour 17
6. COMPETITION 18
6.1. Barriers to Entry 18
7. SWOT ANALYSIS 19
8. OUTLOOK 19
9. INDUSTRY ASSOCIATIONS 20
10. REFERENCES 20
10.1. Publications 20
10.2. Websites 21
APPENDIX 1 22
Summary of Notable Players 22
COMPANY PROFILES 28
A TRADE (PTY) LTD 28
ABSA STOCKBROKERS AND PORTFOLIO MANAGEMENT (PTY) LTD 29
ANCHOR STOCKBROKERS (PTY) LTD 31
ANGLORAND SECURITIES (PTY) LTD 33
AVIOR CAPITAL MARKETS (PTY) LTD 35
CITIGROUP GLOBAL MARKETS (PTY) LTD 37
DEUTSCHE SECURITIES (PTY) LTD 39
FNB STOCKBROKING AND PORTFOLIO MANAGEMENT (PTY) LTD 41
INVESTEC SECURITIES (PTY) LTD 43
J P MORGAN EQUITIES SOUTH AFRICA (PTY) LTD 45
JSE LTD 47
KHUMO SECURITIES (PTY) LTD 51
LEGAE PERESEC CAPITAL (PTY) LTD 52
MERRILL LYNCH SOUTH AFRICA (PTY) LTD 54
MOMENTUM SECURITIES (PTY) LTD 56
NEDGROUP PRIVATE WEALTH STOCKBROKERS (PTY) LTD 58
NVEST SECURITIES (PTY) LTD 60
PRESCIENT SECURITIES (PTY) LTD 62
PSG KONSULT LTD 64
PURPLE GROUP LTD 68
RENCAP SECURITIES (PTY) LTD 71
RMB MORGAN STANLEY (PTY) LTD 73
RMB SECURITIES (PTY) LTD 75
SA STOCK BROKERS (PTY) LTD 77
SANLAM PRIVATE WEALTH (PTY) LTD 79
SASFIN SECURITIES (PTY) LTD 82
SBG SECURITIES (PTY) LTD 84
TAQUANTA SECURITIES (PTY) LTD 86
THEBE STOCKBROKING (PTY) LTD 88
UBS SOUTH AFRICA (PTY) LTD 89