JSE heavyweights Naspers, Richemont shoot up by R100bn
Technology investor Naspers and luxury goods company Richemont gain on favourable MSCI annoucement
The combined valuations of JSE heavyweights Naspers and Richemont soared by more than R100bn on Wednesday after a major global index provider decided not to punish stocks with dual share structures. Technology investor Naspers gained as much as 9.4% and luxury goods company Richemont added 4.4% partly thanks to MSCI’s announcement that it would not amend its benchmark indices to exclude or reduce the weightings of companies that give certain investors higher voting rights than others. The gains by Naspers and Richemont, the second- and third-largest stocks on the JSE, respectively, lifted SA’s main bourse as much as 3.2% on Wednesday as global stock markets rebounded. In Asia, the Nikkei 225 index gained 2.2% and the Hang Seng rose 1.6%. Naspers and Richemont both have dual class share structures, whereby unlisted shares have more voting rights than listed ones. While these control structures have faced opposition from activist shareholders, they are relatively common and some compa...
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