The Johannesburg Stock Exchange is the largest stock exchange in South Africa and the largest exchange on the continent of Africa. It was founded in 1887 and is headquartered in Johannesburg, the country’s largest city and the seat of the financial sector. The JSE has a high level of authority and sets the rules for listing and trading.

The stock exchange has increased the lot size of FTSE/ JSE Top 40 Futures to 15 from 10 and would be applicable for new generated and existing contracts, from September 18. Among the listings are well-known and actively traded companies such as the Barclays Africa Group, Anglo American, Sasol, Naspers and Standard Bank. The main stock index is the FTSE/JSE top 40, which tracks the performance of the 40 largest South African companies in terms of investable market capitalization. It was created in 2002 by a joint venture between JSE and the FTSE Group and is widely considered to be the benchmark index for the South African stock market.

The market could not sustain the gains and traded flat for most part of the day. But banking stocks were clear winners as the BSE Bankex ended 1.95% higher. Also, given the uncertain global environment, the timing for launching this may be off the mark. Says Siddharth Bhamre, head , Angel Broking Ltd, “At present we are seeing very little interest from investors in domestic futures and options, let alone international futures. This product can take a while to become popular and the timing of launch seems a bit optimistic.” The institutions backing investors increasingly require the organisations they back to meet stringent environment, social, and governance requirements.

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Their warning came on the last day of the four-month-long campaigning before polling booths open at 7 am local time tomorrow with the final result expected early on Friday. Auto stocks made impressive gains pushing the S&P BSE Auto index 2.44 per cent higher to 22,774, Difference Between Fundamental and Technical Analysis led by gains in the shares of Ashok Leyland and Maruti Suzuki India. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, and also little changed on the week. Japan’s Nikkei eased 0.3% and Chinese blue chips 0.1% , with trading very subdued.

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The index constituents are screened for eligibility and reviewed periodically. Part of the same headline series are the broad FTSE/JSE All Share Index and the FTSE/JSE Large Cap, Mid Cap and Small Cap indices. While there is a lot of interest in the BRICS economies and markets, as it stands now, this is a product only for domestic institutional investors, large brokers and ultra high networth individuals. For each overseas future listed on the BSE, the expiry day is specified separately.

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These new market lots for derivatives contracts based on the index measuring the largest and most liquid stocks in Hong Kong, would be applicable for November 2015 and subsequent expiries, from September 30. The study look at different stylized facts within the South African market , the historically data from the finance.Yahoo.com was employed for analysis. It was obtained that most of the stocks in JSE Top 40 Index showed larger upward movements than drawdowns similar to Indian stock market, which makes South African market a promising market to invest in. Some of the stocks revealed the presence of autocorrelation which can be a tool for predicting future prices which favours the investors. The behaviour of the South African market is almost the same as that of Indian stock market regarding stylized facts. The present study sought to bridge this gap by investigating the share price of 10 companies from the JSE/FTSE top 40 index.

It is further observed that managerial overconfidence tends to increase with firm size. This is made evident by the weak but positive correlation between the Q ratio and LnTA, and Q ratio and sales. In 2011, Sebi had permitted stock exchanges to introduce futures and options contracts on foreign stock indices in the equity derivatives segment. Leading bourse BSE has decided to revise upwards market lot sizes of equity derivatives contracts based on foreign indices.

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On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others. Futures contracts typically have a last trading day or an expiry day by which time you should either pay cash and settle the trade or be ready to take delivery of the underlying assets. Since futures are mainly used as a trading tool, usually the contracts are settled in cash for any gains or losses on the expiry day.

According to Heath and Platen (2001, p. 1), “the paper presents a financial market model that generates stochastic volatility using a minimal set of factors”. The empirical study analyzes derivative hedging strategies that can be implemented for an investor who has been holding SASOL Ltd.’s stocks before February 1999, in relation to that of Johannesburg Securities Exchange Top 40 Index. A correct execution of a derivative hedging strategy does not mean that no losses will be incurred, but that ideally, the overall net position of the derivative hedging strategy should be positive. Each investment portfolio needs a tailor-made derivative strategy that fits it well. Furthermore, for hedging strategy to work well, it needs proper monitoring by a skilled professional.

Futures are securities created from the value of an existing financial asset like an index. This is part of a joint initiative by exchanges from BRICS nations as an attempt to help investors in their respective countries to buy into overseas products directly. Further, BSE has revised upwards the lot size for Hang Seng Index Futures from 15 to 20.

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The discipline of corporate finance has undergone numerous transformations over the past two-and-a-half decades. A rich body of research in economics, finance, and even psychology has found evidence that managers are sometimes irrational. Driven by certain behavioral biases, it has been reported that managers sometimes make subjective decisions that do not always follow traditional corporate finance norms. There is a paucity of research on the impact of managerial overconfidence through corporate investments on the general movement of a company’s share price. Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant.

Says Sudip Bandyopadhyay, managing director and CEO, Destimoney Securities Pvt. Ltd, “This is an interesting product and people are talking about it, but there is little actual trading interest, mainly because of the uncertainty surrounding global markets. With much happening in our domestic equity market, most analysts and brokers are not even tracking this product as of now, so there is little in terms of experience of what is good or bad for the trade. Basically, if you want you can now buy and sell a IBOVESPA futures contract on BSE just like you buy a Sensex futures contract on BSE. The overseas exchange derivative contracts are also denominated in rupees, making it simple to trade. For each overseas derivative contract the details are specified separately and available on the BSE website.

By Claire Milhench LONDON, Jan Emerging market equities powered to their highest in nearly 10 years on Tuesday as Asian shares reached another record, while the rand firmed… JOHANNESBURG, June South Africa’s rand steadied against the dollar in late trade on Monday as investors waited for a supplementary budget due on… It is not just the risk of an overseas equity market you are taking on, but also currency risk as the underlying asset is denominated in a foreign currency. Stocks to Watch backed by strong results Recent release of company results this past week confirms they are on the stocks to…

While taking a gender-smart approach is something that every investor ought to do – both because it’s right and because it makes good business sense – it’s increasingly going to become a requirement. Leading rates of female entrepreneurship https://1investing.in/ for some time, as we’ve already noted, those ratios aren’t reflected in the available funding. Nor, for that matter, do high rates of female entrepreneurship translate into high levels of representation at the executive level.

“In pursuance of Sebi guidelines on review of minimum contract size in equity derivatives segment…the market lots of foreign index derivatives contracts shall be revised,” BSE said in a circular. Among other things, this initiative involves allowing cross-listing of index derivatives in specified exchanges across the five BRICS countries. What this means for us is that futures of the four foreign indices will be listed and traded on BSE. The four indices are Brazil’s IBOVESPA, Russia’s MICEX, Hong Kong’s Hang Seng, and South Africa’s FTSE/JSE Top40.

The results show the presence of managerial overconfidence observed through the investment-cash flow sensitivity of firms. The fixed effects panel regression reveals that Tobin’s Q, which is the proxy measure of the investment-cash flow sensitivity of a firm, does affect the share price. Holding every other explanatory variable constant, an increase in Tobin’s Q causes the share price to rise, thus suggesting that managerial overconfidence does have influences on the stock price.