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Security Dealing Activities industry South Africa

Security Dealing Activities industry in South Africa 2020

Alex Conradie | South Africa | 23 April 2020

Security Dealing Activities Industry in South Africa 2016

Ebrahim-Khalil Hassen | South Africa | 07 July 2016

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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.

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.

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Security Dealing Activities industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

Security Dealing Activities Industry in South Africa 2016-07-07

R 1 900.00(ZAR) estimated $100.20 (USD)*

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Table of Contents

[ Close ]
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

Report coverage

The Security Dealing report describes the local industry, focusing on the significant challenges in the last two years related to the political situation, as well as the JSE’s role in economic transformation. Factors influencing the success of the sector, including the impact of recently introduced regulations, are also discussed. The JSE and 20 other role players are profiled. The companies range from major players such as PSG Konsult Ltd and Sanlam Private Wealth (Pty) Ltd to smaller entities such as Peregrine Securities (Pty) Ltd, a stock brokerage with a niche focus on hedge and private funds.

The South African Security Dealing Sector

This report focuses on security dealing activities, which involve the buying and selling of equities or shares in companies and other financial instruments from 2013 to 2016. The Johannesburg Stock Exchange, now known simply as the JSE, has been the only stock exchange in South Africa since 1958. In April 2016, it had 384 companies listed: 316 local and 68 foreign-owned companies. Market capitalisation of the JSE was estimated at R14-trillion in June 2016, making it the biggest stock exchange in Africa, and the 17th-largest in the world.

A highly rated sector

The security dealings sector forms part of South Africa’s highly rated Financial Services sector. In the World Economic Forum’s 2015-16 Global Competitiveness Index, South Africa was ranked first out of 140 countries for financing through the local equity market, and second for the regulation of security exchanges.

Growing competition

The dominant position of the JSE could be challenged by the launch of three new exchanges. ZAR X has already received regulatory approval to operate from the Financial Services Board, while 4AfricaExchange (4AX) and A2X recently submitted their applications to the board. The implications of these new exchanges competing with the JSE are too early to accurately assess, but represent the biggest change the industry has experienced since 2013.

Report coverage

The Security Dealing report describes the local industry, focusing on the significant challenges in the last two years related to the political situation, as well as the JSE’s role in economic transformation. Factors influencing the success of the sector, including the impact of recently introduced regulations, are also discussed. The JSE and 20 other role players are profiled. The companies range from major players such as PSG Konsult Ltd and Sanlam Private Wealth (Pty) Ltd to smaller entities such as Peregrine Securities (Pty) Ltd, a stock brokerage with a niche focus on hedge and private funds.

Read More..
Security Dealing Activities Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

Security Dealing Activities industry in South Africa 2020-04-23

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Geographic Position 3
2.2. Industry Value Chain 3
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 11
4.1. Local 11
4.1.1. Corporate Actions 13
4.1.2. Regulations 15
4.1.3. Enterprise Development and Social Economic Development 16
4.2. Continental 18
4.3. International 19
5. INFLUENCING FACTORS 21
5.1. Economic and Political Environment 21
5.2. Government Initiatives 22
5.3. Technology, R&D and Innovation 22
5.4. Labour 23
5.5. Environmental Concerns 23
6. COMPETITION 24
6.1. Barriers to Entry 24
7. SWOT ANALYSIS 26
8. OUTLOOK 26
9. INDUSTRY ASSOCIATIONS 27
10. REFERENCES 27
10.1. Publications 27
10.2. Websites 28
APPENDIX 1 29
Table 4: Detailed description of JSE products and services 29
APPENDIX 2 34
Table 5: Listings on the JSE (2013-2016) 34
APPENDIX 3 39
Table 6: De-listings on the JSE (2013-2016) 39
COMPANY PROFILES 45
ABSA STOCKBROKERS (PTY) LTD 45
CITIGROUP GLOBAL MARKETS (PTY) LTD 47
DEUTSCHE SECURITIES (PTY) LTD 49
FNB SECURITIES (PTY) LTD 51
INVESTEC SECURITIES (PTY) LTD 53
J P MORGAN EQUITIES SOUTH AFRICA (PTY) LTD 55
JSE LTD 58
MERRILL LYNCH SOUTH AFRICA (PTY) LTD 62
MOMENTUM SP REID SECURITIES (PTY) LTD 64
NEDGROUP PRIVATE WEALTH STOCKBROKERS (PTY) LTD 66
PEREGRINE SECURITIES (PTY) LTD 68
PRESCIENT SECURITIES (PTY) LTD 70
PSG KONSULT LTD 72
PURPLE GROUP LTD 75
RENCAP SECURITIES (PTY) LTD 78
RMB MORGAN STANLEY (PTY) LTD 80
RMB SECURITIES (PTY) LTD 82
SA STOCK BROKERS (PTY) LTD 84
SANLAM PRIVATE WEALTH (PTY) LTD 86
SASFIN SECURITIES (PTY) LTD 89
UBS South Africa (Pty) Ltd 91