The dislocation in global financial markets and conditions within the domestic economy during 2008, rendered the expansion of BESA’s primary bond market difficult during the year. Notwithstanding this, new bond listings on BESA reported annual growth of 5.6% on 2007, albeit the slowest growth rate recorded since 2002.
Monica Ambrosi, BESA’s Head of Research elaborates, “At the end of 2008, there were 1,102 bond listings on BESA by 100 various issuers, totaling R824 billion, with a market capitalisation of R935 billion. When reviewing annual primary listings, the bulk of growth (37%) is attributable to increased issuance of commercial paper by corporates and issuance by state owned enterprises (SOEs). Other key contributors were banks (21%) and government (20%). Overall however, the year’s listings growth was dampened by contractions in the securitisation and other corporate categories, as redemptions far outweighed issuance.”
When looking at these statistics for Q4/2008, total new listings grew by 5.8% year-on-year, down from an average of 6.4% during Q3/2008.
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