S&P starts SA stock measures to rival FTSE/JSE

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Standard&Poors Reuters The Standard & Poor's building is seen in New York. Picture: Jessica Rinaldi

Johannesburg - Standard & Poor’s, the world’s largest provider of securities indexes, started nine indicators for South African equities that it said will place more emphasis on liquidity than the all-share benchmark compiled by FTSE Group and the Johannesburg bourse.

The S&P South Africa Composite Index has 149 stocks, according to information on the company’s website.

That compares with the FTSE/JSE Africa All-Share Index’s 165 members.

“Our liquidity constraints are tighter,” Zack Bezuidenhoudt, head of S&P Dow Jones Indices South African operations, told reporters in Johannesburg today, citing measures including market capitalisation.

“A company must have a market cap of $100 million and trade $50 million a year.”

The biggest constituents of the composite are BHP Billiton Plc, Cie. Financiere Richemont SA, and SABMiller Plc.

The top 10 stocks in the gauge have a 61 percent weighting, according to S&P’s website.

S&P also started a low-volatility index comprising British American Tobacco Plc, Omnia Holdings Ltd., Capital & Counties Properties Plc and Hosken Consolidated Investments Ltd.

Sanlam Ltd., Discovery Ltd., Spar Group Ltd., Naspers Ltd., Foschini Group Ltd., BAT and Mr Price Group Ltd. are included in the S&P South Africa Dividend Aristocrats Index, Bezuidenhoudt said. - Bloomberg News

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