JSE calls off Mauritius bourse deal, profit slips
Mauritius - Economic - 03-09-2010

South African stock exchange operator JSE Ltd has called off a deal to buy a stake in the Mauritius bourse due to local regulatory concerns, it said on 8 March 2010. The JSE, which reported a slip in 2009 profits on 8 March 2010, said the deal could not take place unless the Mauritian financial services regulator communicated its concerns to the JSE. quoteWe have to think right now that the deal is off until such times that itquotes put back on the table,quote Chief Executive Russell Loubser said. quoteWe would love to engage with the regulator and address his concerns but at the moment, he is just not telling us what those concerns are.quote The JSE said last March it was looking to buy a strategic stake in the Mauritian bourse as part of its drive to expand its footprint on the rest of the African continent. Shares in the JSE, which rose more than 3% during the day, came off after the firm reported its 2009 results. The JSE closed 1.10% higher at ZAR 63.50, outperforming a 0.64% stronger JSE mid-cap index.

The stock exchange operator reported a slip in headline earnings per share the key profit measure in South Africa to ZAR 4.56 from ZAR 4.57 in 2008. Revenue was up 8% at ZAR 1.156bn, helped mainly by increased volumes in equity markets as trading remained volatile due to uncertainty over the economic crisis. quoteThe results were broadly in line with my expectations. The performance was generally lifted by the market,quote said one Johannesburg-based financial services analyst. Increased foreign interest in South Africaquotes equities market ahead of the World Cup soccer tournament has also boosted revenue, it said. Foreigners bought ZAR 75bn worth of local shares in 2009. quoteI think we can expect our trading activity to improve compared to 2009. If that happens, then it will mean that our revenue will look good,quote Loubser said. New listings for 2009 stood at 10 compared to 23 in 2008, and Loubser said he expected to improve on 2009quotes figure. He was also optimistic about the companyquotes Africa Board and said he hoped some Mauritian banking and textile firms would list later in 2010 after conservation firm Wilderness Safaris lists in April 2010. Response to the Africa Board which was launched in 2009 to encourage African firms to take a secondary listing on the JSE has so far been slow. quoteIquotem not very excited about this Africa initiative. Why would any exchange like to tell their people to list on the JSE if they can list on their own exchange? This Africa Board will never provide a major kicker to revenue,quote said the financial services analyst.



Source: Reuters