The FTSE/JSE All Share Index (JALSH) is a market capitalisation-weighted index that tracks the performance of all listed companies on the Johannesburg Stock Exchange (JSE). It serves as a benchmark for the overall health and performance of the South African equity market.
Today’s JSE Africa All Shares Index – Chart & Price
The FTSE/JSE Africa All Shares Index has performed well over the last few years, quickly bouncing back from the COVID-19 pandemic lows to recently to reach record highs. It is currently (as of October, 2024) up more than 14% for the year to date.
As South Africa’s premier equity market index, the FTSE/JSE Africa All Shares Index reflects the growth of key sectors in the country, including mining, financials, and industrials. According to FTSE Russell, the index “represents 99% of the full market capital value i.e. before the application of any investability weightings, of all ordinary securities listed on the main board of the JSE, subject to minimum freefloat and liquidity criteria.”
The index is is also the basis for multiple sub-indices, such as the FTSE/JSE Top 40 Index and the FTSE/JSE Mid Cap Index.
Top 10 JSE Stocks – Daily Movers
JSE FTSE Africa All Shares Index Price Forecast
The FTSE/JSE Africa All Shares Index was initially launched as the JSE All Share Index in 1978. However, it was later rebranded to its current name following a partnership with FTSE Group in 2002. The index currently tracks over 123 stocks, covering sectors such as technology, telecommunications, healthcare, banks and more.
Bull Argument: The FTSE/JSE Africa All Shares Index benefits from South Africa’s rich mineral resources, strong financial sector, and growing consumer market. The country’s strategic location and trade relationships with other African nations also provide opportunities for growth. Analysts at Morgan Stanley recently said they see South African equities outperforming cash and bonds. Strategist Martin Curtis told investors in a July note that “South African assets have rallied significantly over the past three months, but the country’s equities still have some way to go to catch up with the performance of global benchmarks year to date.”
Bear Argument: Despite its strengths, the FTSE/JSE Africa All Shares Index faces headwinds such as economic inequality, political instability, and infrastructure constraints. In addition, the mining sector, which is a significant driver of the economy, remains vulnerable to commodity price fluctuations. Meanwhile, the index’s concentration in certain sectors, such as mining and financials, may increase its risk profile.
Who Should Buy the FTSE/JSE Africa All Shares Index
Before committing to investing in the FTSE/JSE Africa All Shares Index, investors should consider the following factors:
Exposure to South Africa’s Key Sectors: The index is heavily weighted toward basic resources (mining companies included) (17.6%) and banks (21.5%). Investors with a positive outlook on these sectors, particularly mining, may find opportunities for growth.
South Africa’s Economic Prospects: Investors bullish on South Africa’s long-term economic growth potential, despite current challenges, may see the index as a viable investment.
Volatility in Commodities: Due to its concentration in the mining sector, the FTSE/JSE Africa All Shares Index is more sensitive to commodity price fluctuations. Investors should be comfortable with the potential for volatility driven by factors such as changes in commodity prices and demand.
Belief in South Africa’s Economic Reforms: Investors who are optimistic about South Africa’s economic reforms, including measures to address inequality and improve infrastructure, may see the index as a promising investment opportunity. South African Reserve Bank Governor Lesetja Kganyago recently said the country is “getting to grips with the execution of the reform programme in spite of the difficult environment.”
FTSE/JSE Africa All Shares Index Top 10 Companies
The FTSE/JSE Africa All Shares Index is rebalanced quarterly in March, June, September, and December.
| Company | Market Cap (As of September 21, 2024) |
|---|---|
| Naspers | $36.90 Billion |
| Firstrand Limited | $26.57 Billion |
| Standard Bank | $22.49 Billion |
| Capitec Bank Holdings | $19.77 Billion |
| Gold Fields | $13.55 Billion |
| Prosus | $163.00 Billion |
| Anglo American | $33.87 Billion |
| British American Tobacco | $83.13 Billion |
| Compagnie Financiere Richemont | $79.47 Billion |
| AngloGold Ashanti | $11.78 Billion |
