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JSE
GEN
GEN - FTSE/JSE Africa Index Series - Proposed treatment of shares previously
classified as inward listings
Proposed treatment of shares previously classified as inward listings
FTSE/JSE Africa Index Series
04 November 2011
Following the reclassification of inward-listed shares as domestic assets on 25
October 2011, these shares are now eligible for inclusion in the FTSE/JSE Africa
Index Series as per the current Ground Rules.
Furthermore, National Treasury has introduced a restriction on the free float of
these shares, and only the locally held free float will be considered for index
purposes.
The FTSE/JSE Index Advisory Committee (AC) has discussed this matter at length,
and an in-principle agreement was reached at a special meeting of the AC held
today. The agreed treatment in the Index Series is:
* All shares previously classified as inward listings will be considered for
inclusion at the December 2011 index quarterly review. They will be added
as a constituent of the Index Series if they meet all eligibility criteria
as defined in the Ground Rules. The results of the December review will be
published after close of business on Wednesday, 7 December 2011 and made
effective on Monday, 19 December 2011 at start of business.
* In order to accommodate the condition set by National Treasury, these
shares will have their free float adjusted to exclude non-South African
shareholdings. This adjusted free float number will be used for all index
related purposes, including liquidity screening, minimum free float tests
and weighting in market capitalisation weighted indices. This will require
a change to section 4.3 of the Ground Rules, with the introduction of rule
4.3.7:
Any company classified as an inward-listed share by National Treasury on 24
October 2011 will have its free float adjusted to exclude non-South African
shareholdings. Any share listed after 24 October that is classified by
National Treasury as foreign for index purposes will have its free float
adjusted to exclude non-South African shareholdings.
* There will be no change to the weightings applied in non-market
capitalisation weighted indices. This includes equally weighted indices,
RAFI indices, Style indices and the Dividend Plus Index.
Should any market participant have serious concerns around any adverse or
unexpected impacts of this treatment, please address them to indices@jse.co.za
by close of business on Tuesday, 08 November 2011. These will be considered,
and the final decision regarding the treatment of shares previously classified
as inward-listed will then be made. Thereafter, an ICA will be published giving
the formal changes to the Ground Rules.
FREE TRIAL OFFER: FTSE offers free one month index trials to interested clients.
For further information or general enquiries please contact us at info@ftse.com
or indices@jse.co.za or call:
Client Services in UK: Tel: +44 (0) 20 7866 1810
Client Services in Europe, Middle East & Africa: Tel: +44 (0) 20 7866 1810
Client Services in US: Tel: +1 888 747 FTSE (3873)
or +1 212 314 1139
Client Services in Asia Pacific: Tel: +852 2164 3333 or
+65 6223 3738 or
+81 3 3581 2811
JSE Limited: Tel: (+27 11) 520 7106 or
+ (+27 11) 520 7137
Alternatively please visit our website at www.ftse.com or www.ftsejse.co.za
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Date: 04/11/2011 17:32:41 Produced by the JSE SENS Department.
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