The principal market for Kumba Resources Limited is the JSE.
As a constituent of the All Share Top 40 index (ALSI 40 index),
Kumba shares trade through the STRATE system.
STRATE is the authorised central securities depositary (CSD)
for equities in South Africa that incorporates an electronic settlement
system. STRATE achieves secure, electronic settlement of share
transactions on the JSE and for off-market trades. Shares in companies
listed on the JSE can no longer be bought or sold unless they
have been dematerialised on to the STRATE system. This process
involves submitting paper share certificates to a custodian bank
or JSE member firm (broker) for conversion into an electronic
record, an exercise referred to as dematerialisation.
The introduction of the Johannesburg Equity Trading (JET) system
a few years ago highlighted the deficiencies in the JSEs
paper-based settlement system. Shares were no longer traded on
a trading floor, and this contributed to a massive leap in the
number of trades each day. Back-office support services were incapable
of handling this increase in daily transactions efficiently in
a paper-based environment. The transition to an efficient settlement
system has increased market activity and will certainly improve
the international perception of the South African market by reducing
settlement and operational risk in the market, increasing efficiency
and ultimately reducing costs. Accordingly, by heightening investor
appeal, STRATE enables South Africa to compete effectively with
other international markets, and not just those of emerging countries.
For additional information please refer to the STRATE website:
www.strate.co.za.
Closing JSE share prices are published in most national and
regional SA newspapers and are available during the day on the
Kumba and other websites. Share prices are also available on I-Net
Bridge, Reuters and Bloomberg.
Kumba has an over-the-counter (OTC) sponsored American depositary
receipt (ADR) facility with the Bank of New York (BoNY) under
a deposit agreement. |