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Index Change Advice – 20191223 Notes from the December 2019 Advisory Committee
To: Market Participants
From: FTSE/JSE
Date: 19 December 2019
Subject: Notes from the FTSE/JSE Advisory Committee Meeting held on Thursday, 5
December 2019
1. Background
The FTSE/JSE Advisory Committee (AC) met on Thursday, 5 December 2019 to discuss matters relating to the
FTSE/JSE Index Series. The items listed below were discussed during the meeting.
2. Quarterly Review Summary
The two tables below provide a summary of the changes made to the key indices and the largest changes in ranking
at the December 2019 Quarterly Review.
2.1 Changes to Key Indices
SII FF Largest Largest Projected Max 1 Way
Index Additions Deletions
Changes Changes Up* Down* Weight Churn
All Share S32, TON 13 10 SHP (0.04%) AGL (0.14%) NPN (13.06%) 0.33%
Large Cap S32 4 1 SHP (0.05%) AGL (0.17%) NPN (16.26%) 0.31%
Large and Mid Cap S32 6 3 SHP (0.04%) AGL (0.14%) NPN (13.46%) 0.28%
Mid Cap 2 2 RES (0.09%) AVI (0.12%) IMP (7.03%) 0.17%
Top 40 APN EXX 4 1 APN (0.75%) EXX (0.59%) NPN (15.57%) 0.83%
SWIX 40 APN EXX 4 3 APN (1.02%) EXX (0.81%) NPN (21.18%) 1.25%
Capped SWIX 40 APN EXX 4 3 NPN (1.34%) EXX (0.93%) NPN (10.00%) 2.64%
Eq Wgt 40 APN EXX 4 1 APN (2.5%) EXX (2.67%) ALL (2.50%) 7.38%
Resi 10 1 0 BHP (0.2%) AGL (0.42%) BHP (36.16%) 0.42%
Fini 15 3 0 NRP (0.08%) OMU (0.16%) SBK (15.31%) 0.16%
Indi 25 1 1 SHP (0.09%) AVI (0.05%) NPN (31.97%) 0.09%
All Property 5 2 GRT (0.34%) RDF (0.2%) GRT (15%) 0.88%
GRT NRP RDF
Tradable Property 2 1 NRP (0.85%) RDF (0.67%) 1.35%
(15%)
SAPY 4 1 RES (0.25%) RDF (0.18%) GRT (21.09%) 0.68%
*Shows the projected increase/decrease in percentage weight within the index
Page 1 of 4
2.2 Largest Changes in Ranking
All Share constituents compared at December 2019 and September 2019 Quarterly Reviews.
Noteworthy Top 40 Instruments
Alpha Instrument December Rank September Rank Move Comment
GFI Gold Fields Ltd 28 18 -10 Largest Top 40 down
MCG MultiChoice Group Ltd 32 24 -8 2nd Largest Top 40 down
IMP Impala Platinum Hlgs Ltd 19 25 6 2nd Largest Top 40 up
APN Aspen Pharmacare Hldgs Ltd 35 46 11 Largest Top 40 up (Addition)
Largest Decrease in Ranking in Main Board
Alpha Instrument December Rank September Rank Move Comment
REA Rebosis Property Fund Ltd A 230 196 -34 Remains in Fledgling
APF Accelerate Prop Fund Ltd 177 153 -24 Remains in Small Cap
TKG Telkom SA SOC Ltd 69 47 -22 Remains in Mid Cap
SNH Steinhoff Int Hldgs N.V. 147 125 -22 Remains in Small Cap
ADR Adcorp Holdings Limited 190 168 -22 Remains in Fledgling
Largest Increase in Ranking in Main Board
Alpha Instrument December Rank September Rank Move Comment
LTE Lighthouse Capital Ltd 120 145 25 Remains in Small Cap
WEZ Wesizwe Platinum Ltd 202 228 26 Remains in Fledgling
CRP Capital & Regional Plc 142 176 34 Remains in Fledgling
MFL Metrofile Holdings Ltd 195 231 36 Remains in Fledgling
OMN Omnia Holdings Ltd 124 164 40 Remains in Small Cap
3. Feedback on the FTSE/JSE Africa Index Series
3.1 Rebasing of Index Values
Due to various system limitations, the JSE cannot currently process an index level in excess of 99,999.99 where
that index has a derivative contract listed on it. As such, it has been the practice to rebase any index whose level
is approaching this value. No indices are currently due to be rebased. The below indices have index values in
excess of 70,000.00:
Index Class Index Value Derivative Listed Open Interest
J211 - Industrial 25 Capital Index 73,188.16 Yes (Contracts)
0
J213 - Financial and Industrial 30 Capital Index 76,858.79 Yes 265
J853 - Nonlife Insurance Capital Index 80,048.36 - -
J257 - SA Industrials Capital Index 78,977.06 - -
JS54 - SWIX Media Capital Index 105,869.47 - -
JS54 - SWIX Media Total Return Index 132,482.58 - -
Page 2 of 4
3.2 Corporate Actions for the quarter
The table below summarises all intra-quarter index adjustments made to the All Share and Top 40 indices since
the September 2019 review:
Amendment Type Top 40 Index All Share Index Top 40 Notes
CA - Constitution Addition 0 1 Impala platinum and Sibanye Gold addition
CD - Constitution Deletion 3 5 Aspen Pharmacare, PSG Group and Sappi deletion
CP - Special Dividend 2 1 No special dividend declared
DV - Dividend 0 0
IC - Weight Change 2 15 Prosus free float change after Naspers unbundling
IS - Shares Update 4 11 Shares in issue update due to Naspers Capitalisation Issue
results
NC - Name Change 0 0
3.3 Arrowhead and Gemgrow unbundling: reverse takeover of Gemgrow by Arrowhead
On 29 August 2019, Gemgrow Properties Ltd announced its intention to acquire all of the Arrowhead Properties
Ltd ordinary shares by way of scheme of arrangement. As such, shareholders of Arrowhead Properties were to
receive 0.8237 shares in Gemgrow Properties Ltd B.
Gemgrow Properties Ltd B replaced Arrowhead Properties within all the existing market cap weighted JSE Indices
with the index shares based on terms received and added at a price based on Arrowhead Properties close price
adjusted by the offer terms therefore deeming the transaction market cap neutral. Furthermore, Gemgrow
Properties Ltd changed the name to Arrowhead Properties Ltd on 25 September 2019.
The first informative notice was published on 21 August 2019, followed the updated notice on 30 August 2019.
3.4 Removal of TIDM Identifier Field
On 01 August 2019, the JSE in consultation with the Index partner FTSE Russell decided to implement changes by
removing all TIDM identifiers from all indices data products. Following approval from the relevant governance
bodies, the removal of TIDM identifiers was implemented on 20 September 2019. Notice and communication was
released to the market as well as affected data vendors.
4. Naspers and Prosus Capping proposal
Following the market consultation published on 5 November 2019, comments, submissions and responses were
requested to be submitted to the JSE on or before 22 November 2019. FTSE/JSE is appreciative of all the responses
and input received during this consultative process. FTSE/JSE published an Informative Notice on 10 December
2019, which fully details the outcome of the consultation process.
5. 1% Free Float Threshold
At the September 2019 AC meeting, the AC was presented with a proposal to review the 1% and 3% free float
threshold rule (4.3.6) for companies that utilise the Strate register number in the Index Series. There were a
number of alternatives that were presented and discussed at the September meeting. The finalised proposal was
presented to and approved by the relevant governance bodies. The rule change will ensure that Strate register
changes will be reflected in the Index Series more quickly. The notice regarding the Ground Rule change will be
published on 19 December 2019 and will be effective for the March 2020 review.
The next AC meeting will be held on Thursday, 5 March 2020.
Page 3 of 4
For further information, please contact the FTSE/JSE Indices Department.
Email: indices@jse.co.za
Tel: +27 (0)11 520 7000
Page 4 of 4
Date: 19-12-2019 05:15:00
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