PSG dumps JSE stake

Takes its chips off the table after being unable to increase its bet.

Financial services group PSG announced today that it had liquidated its entire 15% stake in the JSE for a total of R679m. At current market prices, the stake was worth about R750m. It said the disposal was effected in a series of transactions in the open market. PSG said it expects to receive the cash by Friday.

PSG Chairman Jannie Mouton told Moneyweb that the shares were sold over a period of three to four months to who he suspects were foreign buyers. Mouton said he was happy that the price he received was fair.

Rationalising its sale, PSG said that it had been unsuccessful in its stated objective to increase its strategic investment in the JSE beyond 15%. This is because regulators would not allow it to own more shares.

Read more at MoneyWeb.co.za

Nedbank rattles CFD cages

Becomes the first investment bank to enter this booming market.

The booming (and profitable) market for contracts for difference (CFD) will experience some competition with Nedbank Capital's entry.

Over the past few years CFDs have become very popular among South Africans because of the gearing and cost advantages they offer over conventional share trading. They are also deemed to be much easier to understand than other derivatives such as single-stock futures or warrants.

Currently, smaller companies such as Global Trader, Dealstream, Ideal CFDs and PSG dominate the CFD market. Nedbank's entrance is bound to shake up the market, to the benefit of the consumer.

Read more at MoneyWeb.co.za