Issues affecting the development of capital markets: the case of the Swaziland Stock Exchange
Date
2014-08-29
Authors
Buluma, Thokozile Bridget
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Abstract
The research aims to identify issues affecting the development of the Swaziland Stock Exchange, particularly the public equity market. In particular, the impacts of recent legislative changes on the development of the Swaziland Stock Exchange are assessed. The research particularly assesses the impact of the 30% domestic investment requirement for insurance companies and retirement funds which is stipulated in the Insurance Act of 2005 and the Retirement Funds Act of 2005. The research also aims to identify impediments to the development of the Swaziland Stock Exchange.
An interrupted time series design is used to assess movements of dependant variables (stock market development indicators) under consideration over time both before and after the implementation of the intervention (30% domestic investment requirement) in order to assess whether there is an obvious change. The findings of the research are that the implementation of the 30% domestic investment requirement stipulated in the both the Insurance Act and the Retirement Funds Act of 2005 had a positive impact on market capitalization in the time period after the implementation of the requirement but had no impact on turnover value and turnover ratio of the Swaziland Stock Exchange.
Description
Thesis (M.M. (Finance & Investment))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration, 2014.