South Africa's security dealing sector is well established and large multinational companies and the large banks are active in the sector. The first months of 2020 were a busy time for stockbroking firms as the JSE's all share index dropped sharply in March in line with a global sell-off of shares in reaction to measures to limit the spread of the coronavirus. Challenging macro-economic conditions compounded by rising labour and compliance costs continue to have a significant effect on the performance of the security dealing sector. Several multinational stockbrokers closed or downscaled their local trading and equity research businesses in 2018 and 2019.
The profit of South Africa's security dealing firms is under pressure as the weak economy has led to low trading volumes, and fewer mergers and acquisitions and initial public offerings. Many South African investors prefer to invest overseas, which also reduces the demand for the services of local security dealing firms. Profits of stockbroking firms that offer research have also been affected by the cost of complying with the Markets in Financial Instruments Directive II and a move away from active to passive investing.
This report focuses on Security Dealing Activities in South Africa, including comprehensive information on the size and state of the sector, influencing factors, corporate actions and developments.
There are profiles of 30 companies, including the JSE and brokers that are its members. There are profiles of large stockbroking firms including Citigroup, Investec Securities, JPMorgan, Legae Peresec, Merrill Lynch, RMB Morgan Stanley, SBG Securities and UBS. There are also profiles of companies such as Anchor Stockbrokers, in which Masimong Group Holdings bought a stake and Avior Capital Markets which was bought in 2020.
Key Topics Covered:
2. Description of the Industry 2.1. Industry Value Chain 2.2. Geographic Position
3. Size of the Industry
4. State of the Industry 4.1. Local 4.1.1. Corporate Actions 4.1.2. Regulations 4.1.3. Enterprise Development and Social Economic Development 4.2. Continental 4.3. International
5. Influencing Factors 5.1. Economic Environment 5.2. Rising Costs 5.3. Technology, Research and Development (R&D) and Innovation 5.4. Environmental Concerns 5.5. Labour
6. Competition 6.1. Barriers to Entry
7. SWOT Analysis
9. Industry Associations
10. References 10.1. Publications 10.2. Websites
Nedgroup Private Wealth Stockbrokers (Pty) Ltd
Deutsche Securities (Pty) Ltd
Investec Securities (Pty) Ltd
PSG Konsult Ltd
RMB Morgan Stanley (Pty) Ltd
Sanlam Private Wealth (Pty) Ltd
Sasfin Securities (Pty) Ltd
SBG Securities (Pty) Ltd
J P Morgan Equities South Africa (Pty) Ltd
Merrill Lynch South Africa (Pty) Ltd
Citigroup Global Markets (Pty) Ltd
UBS South Africa (Pty) Ltd
Legae Peresec Capital (Pty) Ltd
Absa Stockbrokers and Portfolio Management (Pty) Ltd
Momentum Securities (Pty) Ltd
SA Stock Brokers (Pty) Ltd
RMB Securities (Pty) Ltd
Prescient Securities (Pty) Ltd
FNB Stockbroking and Portfolio Management (Pty) Ltd
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