The time has come for the JSE and other regulators to step up and protect shareholders from directors who take speculative positions in their companies’ stock. Weighed down by SA’s economic woes, the JSE’s all-share index has struggled to make headway in the past four years. The country’s main bourse has gained just 9% in that time, versus the S&P 500 Index’s 38% rise. In this low-growth environment, the last thing investors want to see is forced equity sales by a company’s directors, who are supposed to act in the best interests of shareholders. This only adds to value destruction.

PODCAST: Understanding the vulnerability of the JSE.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now