South African investors can now buy into the world's top two technology businesses, Microsoft and Google.
According to the Johannesburg Securities Exchange (JSE), it has listed single stock futures (SSF) of both the companies, giving South Africans access to trade.
“The listing of SSFs on these two IT stocks, as well as the present SSF listing on Apple, will allow South African investors to further diversify their portfolios,” says director of derivatives trading at the JSE, Allan Thomson.
The exchange says Microsoft and Google stocks can be bought through any JSE-registered broker in the same way one would purchase local derivatives products. They will also not count towards the limit of R2 million, which is applied to all foreign stocks, since they are listed as local.
“While retail investors and corporate entities do not have any exchange control restrictions, institutional investors do have to comply with foreign portfolio regulations. Contracts are priced and settled in rands.”
Similar products trading on the JSE currently include blue chip companies like Berkshire Hathaway, Bank of America, Nokia, LVMH Moet Hennessy Louis Vuitton, BP, Vodafone and GlaxoSmithKline.
Since the listing last week Friday 13 009 contracts have been traded on Microsoft and 656 on Google.
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