Roadshow to Prescient Securities Clients discussing the local index concentration issues, and how NPN’s unbundling of Prosus will affect the indexes.
This piece gives a brief overview of the evolution of the FTSE/JSE market index, showing that the current problem of consituent concentration is not new.
– Explain the FTSE/JSE float methodology, with the intention of providing readers with clarity on how foreign companies listed on the JSE are treated differently.
– Critique the index float methodologies proposed by the FTSE/JSE to address the current issues surrounding index construction and detail what we believe the best solution to be.
– Argue why we believe it is likely that the NewCo listing will not reduce Naspers’ weight in the uncapped market indices meaningfully.