Believe it or not, there are more than 300 sell-side investment analysts in the local market, working for domestic and international brokerage houses and producing research for institutional clients. The value they add for their clients and their employers varies greatly. Jos Gerson There are the space fillers, the solid citizens and the dozens of quality analysts, many of whom produce work that oils the market and may do much to build reputations and attract brokerage revenues for their firms.
Some employers question the analysts' role.
But there is also a small elite, the eight or 10 people who are rated at the top of the JSE's large market capitalisation sectors, and a few other vital areas such as economics and investment strategy. In a highly concentrated equity market, where a few sectors house many of the most valuable and more liquid stocks, the analysts with powerful reputations and credibility can carry enormous influence. A top mining house analyst can hold a pivotal position on the local equity market. And when Anglo Plc floated its shares on the London Stock Exchange last year, Barnard Jacobs' Dave Pleming was on the spot. He is known for his keenly cultivated relationships with corporate managers.