The Johannesburg Stock Exchange will introduce new caps to help investors rebalance weightings after a stock swap between Naspers Ltd and Prosus NV.<\/p>\n
Effective from September, the capping level for the SWIX All Share Index and SWIX Top 40 Index will fall to 6% from 10%, according to a statement from the bourse.<\/p>\n
The interim measure is designed to align the companies\u2019 combined weighting in key indexes to prevailing levels, JSE said.<\/p>\n
The exchange will seek a permanent solution as quickly as possible after a consultation period following publication of a white paper in August.<\/p>\n
The deal between South Africa\u2019s Naspers and its spin-off Prosus this week caused havoc, with the JSE forced to delay opening by hours on Wednesday amid the rush of rebalancing trades.<\/p>\n
\u201cIt is important to avoid a temporary structural dislocation in index weightings,\u201d according to the JSE statement.<\/p>\n
Naspers is Africa\u2019s largest company by market value. The company\u2019s 31% stake in China\u2019s Tencent has helped to drive up its capitalization in recent years.<\/p>\n