Fledgling appeal
MARC HASENFUSS: Can ZAR X really challenge the JSE?
So exactly how the ZAR X will find suitable listings candidates — in other words companies that are of suitable quality — is going to be an interesting process to follow
I won’t, at least for now, have to pay constant attention to the ZAR X — the new licensed stock exchange operating in SA. To call the ZAR X a rival to the JSE, which for yonks has enjoyed a monopoly position, would be like calling oil exploration junior SacOil a rival to Sasol. Nonetheless, it is to be hoped that the ZAR X will provide an intriguing sideshow to the main market attractions on the JSE. At this point the ZARX hosts only two listings: agribusiness conglomerate Senwes and its holding company, Senwesbel. These are interesting counters, whose value-laden balance sheets and operational niche have already attracted the likes of Remgro-aligned logistics group Grindrod. But neither Senwes nor Senwesbel is going to generate the trading volumes or provide the listing service fee that will make the ZAR X generate a huge cash flow. Many more listings will need to be brought to market, and quite quickly too, I’d imagine.Ten years ago there was a cluster of unlisted companies with s...
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