The Johannesburg Stock Exchange (JSE), located in South Africa, is the largest stock exchange in Africa and one of the most established financial markets in the world.
With roots going back to the late 19th century, the JSE plays a crucial role in facilitating the growth of companies and offering investment opportunities to both local and international investors. In this article, we will explore the history, key divisions, and impact of the JSE in the global financial landscape.
Daily Movers – JSE Top 10 By Market Cap
Top South African Listed Companies
The Johannesburg Stock Exchange is home to a diverse range of companies, with over 800 listed securities and approximately 400 listed companies. This number can change from time to time, as new firms IPO, and others may delist.
Whilst there are many companies listed, certain stocks get more attention than others. We have highlighted some of the top JSE listed stocks below, but there are many more besides. Depending on your investing or trading goals, there will be certain sectors or trends that might appeal to you more than others.
Top 10 By Market Cap
| 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 |
Daily Movers – Indices
Demystifying the Johannesburg Stock Exchange
Key Points
| Detail | |
|---|---|
| Foundation Year | 1887 |
| Market Capitalization | Around $1.1 trillion USD (as of 2023) |
| Major Markets | Main Board, AltX, Commodity Derivatives Market |
| Notable Milestones | Demutualization in 2005, 2014 London Stock Exchange partnership |
The Johannesburg Stock Exchange was founded in 1887 during the gold rush in Witwatersrand, South Africa. This boom led to the need for a formalized marketplace where gold mining companies and other businesses could raise capital. The initial trading took place in a small building and was limited to mining companies, as the South African economy at the time was predominantly driven by mining.
As the country’s economy diversified, so did the JSE, expanding to include companies from sectors like banking, retail, manufacturing, and technology. Over the decades, the JSE has undergone significant transformations to modernize its operations, increase market transparency, and attract global investors.
In 1996, the JSE replaced its open outcry system with electronic trading, a significant leap towards modernization. In 2005, the exchange demutualized, meaning it transformed from a member-based organization into a for-profit entity, listed itself on the JSE, and became publicly traded. This was a crucial step in aligning the exchange with international best practices.
Structure of the Johannesburg Stock Exchange
The JSE is divided into several key segments designed to cater to the various needs of investors and listed companies:
Main Board
The Main Board is the primary market of the JSE, hosting some of the largest and most established companies in South Africa. Companies listed here represent a wide variety of sectors, including mining, financial services, telecommunications, and consumer goods. Some of the most recognized names on the Main Board include Anglo American, Sasol, MTN Group, and Standard Bank.
Listing requirements for the Main Board are stringent, ensuring that only mature and stable companies are included. This gives investors confidence in the financial health and transparency of these companies.
AltX
Launched in 2003, AltX is the JSE’s alternative exchange aimed at small- to medium-sized businesses. This segment offers an opportunity for growing companies to access capital while benefiting from less rigorous listing requirements compared to the Main Board.
AltX was created to encourage entrepreneurship and innovation in South Africa by providing a platform for companies that may not yet meet the criteria for a Main Board listing. It has helped numerous businesses gain visibility and attract investment, contributing to economic development in the region.
Commodity Derivatives Market
South Africa has a long history of mining and agriculture, and the Commodity Derivatives Market on the JSE reflects this. It allows investors to trade contracts based on the prices of key commodities such as precious metals (gold and platinum), base metals, and agricultural products (corn, wheat, soybeans).
This market is particularly important for hedging and speculation in industries directly linked to South Africa’s natural resources. It allows businesses involved in these sectors to mitigate risk and stabilize cash flows against price fluctuations.
Currency Derivatives Market
The Currency Derivatives Market on the JSE allows investors to trade futures and options based on the exchange rates of major global currencies. These instruments help companies and investors manage risks associated with currency fluctuations, especially important for an economy like South Africa’s, which is influenced by international trade and foreign direct investment.
Bond Market (JSE Debt Market)
The JSE Debt Market, previously known as the Bond Exchange of South Africa (BESA), is one of the largest bond markets in the world, offering a range of government, corporate, and parastatal bonds. It provides a vital platform for raising debt capital for both public and private entities in South Africa.
This market helps support the country’s infrastructure development and provides fixed-income investment options for institutions and individuals.
Innovations and Global Impact
In 2014, the JSE partnered with the London Stock Exchange to launch a new electronic trading link that allows companies dual-listed on both exchanges to access broader liquidity and a more extensive investor base. This collaboration increased international exposure for South African companies and offered investors more trading opportunities.
As sustainability and environmental responsibility become global priorities, the JSE has taken steps to encourage companies to adopt Environmental, Social, and Governance (ESG) principles. In 2004, the JSE launched the FTSE/JSE Responsible Investment Index, helping investors identify companies that adhere to responsible business practices.
The JSE also encourages listed companies to report on their sustainability efforts and offers green bonds as a part of its suite of financial products, helping drive investments toward projects with positive environmental and social impacts.