Global index company FTSE is to continue to treat South Africa as an advanced emerging market, the JSE Securities Exchange South Africa (JSE) said in a statement on Wednesday.
At the invitation of FTSE, the JSE made representations in December 2003 to the FTSE policy committee regarding the most appropriate criteria to use in classifying countries.
However, FTSE said on Wednesday that “consultation has identified that South Africa’s quality of markets are robust, and in many cases, match or are superior to many developed markets. The consultation also showed that international investors want countries to meet the World Bank’s GNI [gross national income] per capita economic ratings in order to meet a developed market status. South Africa’s GNI does not currently meet that rating”.
The JSE’s deputy CEO, Nicky Newton-King, said that while the JSE was obviously disappointed that FTSE had decided not to reclassify the country, it was pleased at the recognition that FTSE had given to the reforms implemented by the JSE over the past number of years. This had resulted in quality of markets that according to FTSE were “robust, and in many cases match or are superior to many developed markets”.
She continued that the JSE would now use this opportunity to work with the government and the local financial community to stress to international investors the benefits of trading in the South African financial markets. — I-Net Bridge