JPMorgan Chase & Co. (NYSE:JPM) think tank has pondered over reducing its net shareholding on Capitec from the current valuation of 6.23% to the expected percentage of 4.96%. The announcement came at the Johannesburg Stock Exchange this Tuesday.
Price Not Yet Decided
The price or the pro-rata basis rate hasn’t been decided yet. On the global front, there hasn’t been any detailed report and announcement. However, the disposal hasn’t quite earned positive vibes from analysts and the banking sector, on the whole. The recent results suggest that there is some lack or drop in confidence looming around in the South African banking parlance.
Share Percentage Raised In November 2014
Last year in November, JPMorgan Chase & Co. (NYSE:JPM) took the chance and added to the net share acquisition of Capitec by 6.23%. The enhanced percentage of shares aimed at the beneficial interest of the company. The percentage takeover was notified by Capitec as 6.23%, to the Takeover Regulation Panel.
The Banking Sector Is Profitable
In a statement pertaining to the banking parlance, the Reserve Bank of South Africa has reviewed the banking industry – holistic functioning and turn-around efforts. The Reserve Bank commented that the banks were doing profitable businesses, aptly established and quite well capitalized.
The South African markets fared well, with the rising crude oil prices. The internet based or media group companies bettered their profits. A number of miners and gold dealers witnessed growth in sales despite fluttering gold prices. The country’s retailers had mixed reviews of the market. The Johannesburg Stock Exchange stayed positive at day end. Banks are considered profitable, even when an economy enhances are meager rates! Despite basic economic failures, the stock index has soared higher; hence, the banks are deemed to make a lot of profits.
JPM’s move to lower the percentage shares in Capitec is primarily a thought provoked by the company’s board of directors who might have different thought processes, under its disposal.