JSE error turns net buys into R36bn in sales

The Johannesburg Stock Exchange. File picture: Siphiwe Sibeko

The Johannesburg Stock Exchange. File picture: Siphiwe Sibeko

Published Jul 25, 2016

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Johannesburg - A programming error at the JSE resulted in reported net purchases of South African shares by foreign investors since May becoming net sales of about R36.4 billion ($2.5 billion).

The net sales for May were R16.1 billion compared with net purchases of R6.4 billion reported previously, the Johannesburg-based bourse said in a statement on Sunday.

In June, there were R20.3 billion in net sales and not net purchases of R63.8 billion.

So far in July, non-residents have been net buyers of about R50 million of stocks and not 27.9 billion rand as the JSE stated before.

“We have taken immediate steps to correct the statistics and we are considering additional measures to avoid” a recurrence, JSE information services director Leanne Parsons said in the statement.

Data relating to the bond market hasn’t been affected, the South African Reserve Bank said in a statement on its website.

While the data on equities was referred to in the Monetary Policy Committee’s statement on July 21, it didn’t take this information into account when deciding to keep its benchmark interest rate unchanged.

BLOOMBERG

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