Johannesburg, Sunday
 Black South Africans own 18 per cent of the top 100 stocks listed on Johannesburg’s stock exchange, setting companies on course to meet a government target on loosening white control of the nation’s economy, a study found.
Requirements set out by the country’s Department of Trade and Industry were used as the basis for the study, Russell Loubser, chief executive officer of JSE Ltd., told reporters in Johannesburg today. The research excluded investments held by pension funds, the government, cross holdings, treasury shares held by companies and foreign operations, he said.

“This study indicates that there is a good basis from which to grow black ownership,” Mr Loubser said. “We believe this to be a comprehensive study based on a rigorous and transparent methodology” that is free from bias as the JSE can present the data in an impartial manner, he said.

South Africa has forced companies from banks to mines to sell shares to black investors to compensate for discrimination during apartheid, which ended in 1994. The trade and industry department’s empowerment codes target 25 per cent black ownership by 2017 while mining companies need to be 26 per cent black-owned by 2014 and banks 10 per cent.

In March trade union Solidarity, which represents mainly white workers, pegged black ownership on the JSE at about 24 per cent, adding empowerment must be monitored to determine if it still needs to exist.

The top 100 companies by market capitalization represent 85 per cent of the exchange’s market value. The research will continue to include mandated holdings, such as pension funds, and retail investors, which may increase black shareholding of companies on the exchange, Mr Loubser said.

To reach the conclusion on direct black ownership, Mr Loubser said the JSE and a research team from Trevor Chandler & Associates calculated cross holdings between companies at 11 per cent of the JSE’s top 100 stocks, 34 per cent of the shares as mandated investments, one per cent as held by the state and 11 per cent in foreign operations, leaving 44 per cent of the bourse’s shares available for investment.

It then took the black shareholding disclosed publicly by the top 100 companies, which amounted to eight per cent, and divided that by the 44 per cent available for investment, Mr Loubser said.
AGENCIES

Add this page to your favorite Social Bookmarking websites