The world is changing fast and to keep up you need local knowledge with global context.
By Lameez Omarjee
Johannesburg – Tobacco Company, British American Tobacco (BAT) is the biggest JSE listed company for 2016, with a market capitalisation over R1.5trn.
This is according to data compiled by investment firm BayHill Capital. The firm’s report looks at how the composition of the JSE has changed over 40 years. It focuses on the years 1976, 1986, 1996, 2006 and 2016 specifically. Over the four decades, companies from the natural resources sector and consumer goods sector dominated the list.
As far back as 1976, explosives and speciality chemicals group AECI was the largest company with a market capitalisation of R0.30bn. It slipped down the ranking and in 1986 it reported a market capitalization of R2.24 bn. AECI now has a market capitalisation over R14bn.
In 1986 Sasol claimed top spot with a market capitalisation of R5.34bn. The international energy and chemicals company now has a market capitalisation over R267bn, up from R247bn reported in 2016.
Before the record takeover by Anheuser-Busch InBev in 2016, beer brewing company SAB Miller which was known as South African Breweries (SAB) in 1996 was the biggest company on the JSE.
In 1986, SAB had followed closely behind Sasol in third place, with a size of R4.13bn. By 1996, it jumped to R37.56bn, overtaking Sasol which had a market capitalization of R33.54bn.
After becoming SAB Miller in 2002, the beverage company recorded a market capitalisation of R239m.
AB InBev’s listing on the JSE reflects a market capitalisation of over R2.5trn.
Before the global financial crisis, in 2006 Anglo American was the biggest listed company with a market capitalization of R571.98bn. Over the decade leading up to 2016, Anglo American’s size reduced to R298bn. It now has a market capitalization just over R269bn.
Biggest companies 2016
Since 2016, BAT’s market capitalization has grown to over R1.8trn. Multinational internet and media group Naspers follows with a size of R900 bn.
Glencore (R721.90bn), BHP Billiton (R494bn) and Anglo American (R298bn) are the remaining natural resources companies in the top 10 biggest companies for 2016.
Banks, Standard Bank just makes the list with a market capitalisation of R244.30bn. FirstRand, ranked higher had a market capitalisation of R283.30bn in 2016.
Since 2016, Standard Bank’s size has reduced to over R240bn. FirstRand’s market capitalisation has come down to R279bn.
Bloomberg previously reported that banks had lost value following the downgrade of the sovereign rating to junk status by Standard and Poor’s (S&P).
Retailer Steinhoff reported a market capitalisation of over R276bn. Luxury goods holding company Richemont reported a market capitalisation of R476bn.
Recent data shows Steinhoff’s market capitalisation has grown to over R294bn and Richemont’s has grown to over R585bn. – Fin24
*BayHill warned that this research is not an offer to sell or an invitation to invest. BayHill Capital Proprietary Limited does not accept any liability whatsoever for any loss arising from reliance on this article.