Bradley Preston, Chief Investment Officer at Mergence Investment Managers, says one of the issues that the harmonisation of varius JSE indices will fix is the mismatch that resulted as the majority of institutional fund managers used the Capped SWIX and SWIX indices as their benchmarks while the liquid derivatives markets in South Africa are based on the Top 40 Index. “This mismatch has meant that a large volume of derivatives have traded over the counter in South Africa and not on the exchange.” Preston sees the harmonisation potentially aligning these two markets so that the liquid equity benchmark and the liquid derivatives benchmark are the same, which “should be positive for JSE volumes and liquidity in the SA derivatives market”.
Despite some market ‘overexcitement’ about AI, Naspers is bullish about making more bets
The latest Naspers/Prosus financial results show a jump in profitability across the group’s ecommerce portfolio and Tencent growth acceleration. Commenting