Report Coverage
This report on security dealing in South Africa, including trade in equities, bonds, currencies and derivatives, contains information on the major exchanges, major players and their performance and corporate actions. There is information on the size and state of the industry, challenges, cryptocurrency, fraud, trends such as online trading, delistings and passive investment, hedge funds and AI. It includes profiles of 42 companies in the sector such as exchanges like the JSE and the Cape Town Stock Exchange, major financial service group-linked companies such as Sanlam Private Wealth, SBG Securities, JP Morgan Equities and RMB Securities, brokers such as Peresec, Kela Securities and Anchor Stockbrokers, and crypto exchanges including Luno and VALR.
Introduction
• The stockbroking industry is facing challenging times due to a decline in trade volumes and values on the JSE, due in part to the delistings trend and negative market sentiment. \r\n
• The value of shares traded declined in the first few months of 2024, following an almost 10% decline in 2023. \r\n
• The industry is experiencing consolidation, with the top 10 brokers on the JSE continuing to increase their share of trade value. \r\n
• Local markets have been affected by a series of crises, from loadshedding to poorly functioning rail and ports. \r\n
• However, several investors reported that they are bullish on South African equities.
Trends
• Advice and training to retail clients is growing in importance.
• AI is helping traders to place trades and to better assist clients.
• Cryptocurrency is gaining acceptance, but exchanges globally remain wary.
• Delistings continue apace.
• Increasing demand for sustainability-linked investment products.
• Interest in government bonds is growing.
• Investors are moving from active to passive investing.
• Retail investment is growing, driven by an increasing number smartphones and trading apps and online trading platforms.
• Social media has made investment analysis accessible.
• Stablecoins are growing in popularity to de-risk from bitcoin volatility.
• The number of stockbrokers is likely to decline as trading volumes on the JSE have declined significantly in 2023.
• The percentage of black investor clients of stockbrokers has increased substantially.
• There has recently been a significant net inflow into hedge funds.
Opportunities
• Expanding to offer financial services alongside stockbroking services.
• Offering retail trading clients advice and training.
• Research on small and mid-caps listed on local exchanges.
• Selling cryptocurrency products.
• Selling sustainability-linked investment products.
• Selling trading products to more black clients.
• Using AI to create robo-advisors and to execute trades.
Challenges
• Analyst coverage of listed companies, particularly small and mid-caps has declined.
• Delistings and the decline in the value of listed companies’ shares due to the slowing economy.
• Fraud is a major challenge particularly in cryptocurrency.
• Increasing risk of cyberattacks on exchanges.
• JSE trade volumes have fallen dramatically in recent months.
• Only a few local stockbrokerages are black-owned.
• Several multinational firms have closed or downscaled their local operations, leading to decreased competition in the sector.
• South Africa’s greylisting has affected capital raising and stockbrokers from signing on new clients.
• The performance of local exchanges has been affected by the poor local and global economic environment.
Outlook
• Local stockbrokers are at a crossroads, where their numbers are likely to decline given waning investment sentiment, delistings, and declining trade volumes.\r\n
• As fees are squeezed, more brokers are likely to mix brokerage activities with asset management. \r\n
• An increase in retail products such as online platforms is expected. \r\n
• Investors indicated they were bullish on South African equities. \r\n
• Trade in cryptocurrency is growing, and several exchanges and investment companies are working with the financial industry to offer crypto assets to the public.
Full Report
R 20 000.00(ZAR) estimated $1145.96 (USD)*
Industry Landscape
R 14 000.00(ZAR) estimated $ 802.17 (USD)*
Historical Reports
Security Dealing Activities in South Africa 2020-04-23
R 1 900.00(ZAR) estimated $108.87 (USD)*
View Report Add to CartSecurity Dealing Activities in South Africa 2016-07-07
R 1 900.00(ZAR) estimated $108.87 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1 | Industry Value Chain | 2 |
2.2 | Geographic Position | 4 |
2.3 | Size of the Industry | 5 |
3 | LOCAL | 8 |
3.1 | State of the Industry | 8 |
3.2 | Key Trends | 17 |
3.3 | Key Issues | 18 |
3.4 | Notable Players | 18 |
3.5 | Corporate Actions | 21 |
3.6 | Regulations | 22 |
3.7 | Enterprise Development and Social Development | 24 |
4. | AFRICA | 25 |
5. | INTERNATIONAL | 27 |
6. | INFLUENCING FACTORS | 30 |
6.1 | Economic Environment | 30 |
6.2 | Labour | 31 |
6.3 | Environmental Issues | 33 |
6.4 | Technology, R&D, Innovation | 33 |
6.5 | Input Costs | 34 |
6.6 | Cybersecurity and IT Risks | 35 |
6.7 | Fraud | 36 |
7. | COMPETITIVE ENVIRONMENT | 38 |
7.1 | Competition | 38 |
7.2 | Ownership Structure of the Industry | 38 |
7.3 | Barriers to Entry | 39 |
8. | INDUSTRY SUMMARY | 39 |
9. | OUTLOOK | 40 |
10. | INDUSTRY ASSOCIATIONS | 41 |
11. | REFERENCES | 41 |
11.1. | Publications | 41 |
11.2. | Websites | 42 |
ANNEXURE 1 | 44 | |
Relevant Legislation | 44 | |
APPENDIX 1 | 51 | |
Summary of Notable Players | 51 | |
COMPANY PROFILES | 60 | |
A 2 X (PTY) LTD | 60 | |
A TRADE (PTY) LTD | 62 | |
ABSA CAPITAL SECURITIES (PTY) LTD | 63 | |
ABSA STOCKBROKERS AND PORTFOLIO MANAGEMENT (PTY) LTD | 65 | |
AFRIFOCUS SECURITIES (PTY) LTD | 67 | |
ALTIFY SA DAS (PTY) LTD | 69 | |
ANCHOR STOCKBROKERS (PTY) LTD | 70 | |
AVIOR CAPITAL MARKETS (PTY) LTD | 71 | |
CAPE TOWN STOCK EXCHANGE (PTY) LTD (THE) | 73 | |
CITIGROUP GLOBAL MARKETS (PTY) LTD | 75 | |
EASYCRYPTO (PTY) LTD | 77 | |
FIRST WORLD TRADER (PTY) LTD | 78 | |
FNB STOCKBROKING AND PORTFOLIO MANAGEMENT (PTY) LTD | 80 | |
INDEPENDENT SECURITIES (PTY) LTD | 82 | |
INTEGRATED EXCHANGE (PTY) LTD (THE) | 84 | |
INVESTEC WEALTH AND INVESTMENT INTERNATIONAL (PTY) LTD | 87 | |
J P MORGAN EQUITIES SOUTH AFRICA (PTY) LTD | 89 | |
JSE LTD | 91 | |
KELA SECURITIES (PTY) LTD | 95 | |
LUNO (PTY) LTD | 96 | |
MERRILL LYNCH SOUTH AFRICA (PTY) LTD | 97 | |
MOMENTUM SECURITIES (PTY) LTD | 99 | |
NAVIGARE SECURITIES (PTY) LTD | 101 | |
NEDGROUP PRIVATE WEALTH STOCKBROKERS (PTY) LTD | 103 | |
NEDGROUP SECURITIES (PTY) LTD | 105 | |
NVEST SECURITIES (PTY) LTD | 106 | |
PERESEC PRIME BROKERS (PTY) LTD | 108 | |
PRESCIENT SECURITIES (PTY) LTD | 110 | |
PSG FINANCIAL SERVICES LTD | 112 | |
PURPLE GROUP LTD | 117 | |
RAND SWISS (PTY) LTD | 120 | |
RMB MORGAN STANLEY (PTY) LTD | 121 | |
RMB SECURITIES (PTY) LTD | 123 | |
SA STOCK BROKERS (PTY) LTD | 125 | |
SANLAM PRIVATE WEALTH (PTY) LTD | 127 | |
SASFIN SECURITIES (PTY) LTD | 130 | |
SBG SECURITIES (PTY) LTD | 132 | |
SINAYO SECURITIES (PTY) LTD | 134 | |
TRIVE SOUTH AFRICA (PTY) LTD | 136 | |
TSB SECURITIES (PTY) LTD | 137 | |
UBS SOUTH AFRICA (PTY) LTD | 138 | |
VALR (PTY) LTD | 140 |