The "Security Dealing Activities in South Africa 2024" report has been added to ResearchAndMarkets.com's offering.

The stockbroking industry is facing challenging times due to a decline in trade volumes and values on the JSE, due in part to the delistings trend and negative market sentiment. The value of shares traded declined in the first few months of 2024, following an almost 10% decline in 2023. As brokerage fees come under pressure, many brokers are likely to diversify by combining brokerage activities with asset management services.

Additionally, there is an anticipated rise in retail products, particularly through online platforms. Despite these challenges, investors remain optimistic about South African equities. Meanwhile, cryptocurrency trading is on the rise, with several exchanges and investment firms collaborating with the financial industry to offer crypto assets to the public.

The industry is experiencing consolidation, with the top 10 brokers on the JSE continuing to increase their share of trade value. Local markets have been affected by a series of crises, from loadshedding to poorly functioning rail and ports. However, several investors reported that they are bullish on South African equities.

Market Trends

• Advice and training to retail clients is growing in importance.
• AI is helping traders to place trades and to better assist clients.
• Cryptocurrency is gaining acceptance, but exchanges globally remain wary.
• Delistings continue apace.
• Increasing demand for sustainability-linked investment products.
• Interest in government bonds is growing.
• Investors are moving from active to passive investing.
• Retail investment is growing, driven by an increasing number smartphones and trading apps and online trading platforms.
• Social media has made investment analysis accessible.
• Stablecoins are growing in popularity to de-risk from bitcoin volatility.
• The number of stockbrokers is likely to decline as trading volumes on the JSE have declined significantly in 2023.
• The percentage of black investor clients of stockbrokers has increased substantially.
• There has recently been a significant net inflow into hedge funds.

Market Opportunities

• Expanding to offer financial services alongside stockbroking services.
• Offering retail trading clients advice and training.
• Research on small and mid-caps listed on local exchanges.
• Selling cryptocurrency products.
• Selling sustainability-linked investment products.
• Selling trading products to more black clients.
• Using AI to create robo-advisors and to execute trades.

Market Challenges

• Analyst coverage of listed companies, particularly small and mid-caps has declined.
• Delistings and the decline in the value of listed companies' shares due to the slowing economy.
• Fraud is a major challenge particularly in cryptocurrency.
• Increasing risk of cyberattacks on exchanges.
• JSE trade volumes have fallen dramatically in recent months.
• Only a few local stockbrokerages are black-owned.
• Several multinational firms have closed or downscaled their local operations, leading to decreased competition in the sector.
• South Africa's greylisting has affected capital raising and stockbrokers from signing on new clients.
• The performance of local exchanges has been affected by the poor local and global economic environment.

Key Topics Covered:

1. INTRODUCTION

2. DESCRIPTION OF THE INDUSTRY

2.1 Industry Value Chain

2.2 Geographic Position

2.3 Size of the Industry

3 LOCAL

3.1 State of the Industry

3.2 Key Trends

3.3 Key Issues

3.4 Notable Players

3.5 Corporate Actions

3.6 Regulations

3.7 Enterprise Development and Social Development

4. AFRICA

5. INTERNATIONAL

6. INFLUENCING FACTORS

6.1 Economic Environment

6.2 Labour

6.3 Environmental Issues

6.4 Technology, R&D, Innovation

6.5 Input Costs

6.6 Cybersecurity and IT Risks

6.7 Fraud

7. COMPETITIVE ENVIRONMENT

7.1 Competition

7.2 Ownership Structure of the Industry

7.3 Barriers to Entry

8. INDUSTRY SUMMARY

9. OUTLOOK

10. INDUSTRY ASSOCIATIONS

11. REFERENCES

11.1. Publications

11.2. Websites

ANNEXURE - Relevant Legislation

APPENDIX - Summary of Notable Players

Companies Featured

• A 2 X (Pty) Ltd
• A Trade (Pty) Ltd
• Absa Capital Securities (Pty) Ltd
• Absa Stockbrokers And Portfolio Management (Pty) Ltd
• Afrifocus Securities (Pty) Ltd
• Altify SA Das (Pty) Ltd
• Anchor Stockbrokers (Pty) Ltd
• Avior Capital Markets (Pty) Ltd
• Cape Town Stock Exchange (Pty) Ltd (The)
• Citigroup Global Markets (Pty) Ltd
• Easycrypto (Pty) Ltd
• First World Trader (Pty) Ltd
• FNB Stockbroking And Portfolio Management (Pty) Ltd
• Independent Securities (Pty) Ltd
• Integrated Exchange (Pty) Ltd (The)
• Investec Wealth And Investment International (Pty) Ltd
• J P Morgan Equities South Africa (Pty) Ltd
• JSE Ltd
• Kela Securities (Pty) Ltd
• Luno (Pty) Ltd
• Merrill Lynch South Africa (Pty) Ltd
• Momentum Securities (Pty) Ltd
• Navigare Securities (Pty) Ltd
• Nedgroup Private Wealth Stockbrokers (Pty) Ltd
• Nedgroup Securities (Pty) Ltd
• Nvest Securities (Pty) Ltd
• Peresec Prime Brokers (Pty) Ltd
• Prescient Securities (Pty) Ltd
• PSG Financial Services Ltd
• Purple Group Ltd
• Rand Swiss (Pty) Ltd
• RMB Morgan Stanley (Pty) Ltd
• RMB Securities (Pty) Ltd
• SA Stock Brokers (Pty) Ltd
• Sanlam Private Wealth (Pty) Ltd
• Sasfin Securities (Pty) Ltd
• SBG Securities (Pty) Ltd
• Sinayo Securities (Pty) Ltd
• Trive South Africa (Pty) Ltd
• TSB Securities (Pty) Ltd
• UBS South Africa (Pty) Ltd
• Valr (Pty) Ltd

For more information about this report visit https://www.researchandmarkets.com/r/fop4fb

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