Latest news with #JSEALSI
Daily Maverick
a day ago
- Business
- Daily Maverick
The JSE 100 000 points milestone that broke our market table
Unfortunately, automating the market table that goes into the Business Maverick morning newsletter was not the best idea, because technology is not immune to error when history is made. We apologise and have overengineered a solution to make sure it doesn't happen again. Remember Y2K? The Business Maverick team certainly does now. As eagle-eyed readers might have noticed, there was something wonky (sorry, it was just wrong) with the market report in our newsletter this morning. The FTSE/JSE All Share Index (ALSI) was showing as a rather pedestrian 179.80 points instead of its actual, history-making 100,179.80 points. The Yahoo Finance API that feeds our market data threw a digital tantrum when the JSE ALSI crossed the 100,000-point threshold for the first time in its 65-year history on Wednesday, 23 July 2025. Like those infamous millennium computers that couldn't cope with the year 2000, our system essentially 'reset' when faced with numbers it had never seen before. It's a fitting technological hiccup for what is genuinely a historic moment. Against all odds Over that journey, the ALSI has delivered annualised returns of more than 11% – not too shabby for a market that's weathered apartheid, sanctions, global financial crises and more commodity cycles than a mining engineer's nightmares. 'This milestone reflects the resilience, innovation and operational excellence of companies listed on the JSE,' Leila Fourie, group CEO of the JSE said in a statement, clearly having a better day than our data systems. And she has every right to crow. In 2025, the JSE has positioned itself among the best-performing markets globally in both dollar and rand terms. The ALSI now represents 125 listed companies with a combined market capitalisation of R21-trillion, capturing 99% of the eligible market capitalisation on the JSE Main Board. It's a trusted benchmark that has shown robust long-term growth since 2002, when it was redefined through a partnership with the FTSE. But before we get too carried away with the champagne and celebration, it's worth noting that this milestone comes against a backdrop of some serious structural challenges. The JSE may be hitting record highs, but it's doing so with significantly fewer players on the field. By June last year there were fewer than 300 listed companies. The competition conundrum Kearabilwe Nonyana, head of Scope Prime Africa for B2B, highlighted the drop in listings in an interview with Daily Maverick this week and he is quick to point out flaws in the JSE's competitive landscape. 'There's a lack of competition locally in terms of access specifically to local markets and our local exchange,' he says, referencing the execution costs that are 'quite exorbitant' for retail investors who have 'always gotten the shorter end of that stick'. The technological lag is particularly painful. Nonyana recounts instances where South African brokerages, comfortable in their monopoly over the industry, made clients trade over an Excel spreadsheet. The listing requirements themselves have become the ultimate barriers to entry for new businesses, often pushing companies to remain private and diverting potential listings to private equity. In 2022, the exchange did make moves to change listing requirements in an effort to encourage more listings. Now in 2025, the JSE is playing catch-up in innovative spaces like cryptocurrency ETFs, where Nonyana says it needs to come to the party and lead rather than follow. 'South Africa's relatively small population of 60-odd million people also creates challenges in achieving the economies of scale that larger markets enjoy.' It's hard to compete on cost when your addressable market is a fraction of what Brazil or other emerging markets can offer. Spread the good news Before you start planning the JSE's funeral, consider this: the exchange has some genuine competitive advantages that shouldn't be underestimated. The resurgence in dual-listed companies is creating interesting opportunities. 'These listings allow South African institutions to access international businesses on local boards without using their foreign investment allowance, while giving global investors access to African assets,' Nonyana explains. When the London Stock Exchange is open and the JSE is closed, trading can continue – a neat trick that extends market hours naturally. The global reach of South African companies is often overlooked. 'JSE-listed companies have tentacles worldwide – gold miners with operations in Canada and Papua New Guinea, Naspers/Prosus with stakes in Tencent and European assets,' he says. South African Breweries grew from a local player into a global giant before being acquired by AB InBev. These aren't provincial companies; they're global players that happen to call Johannesburg home. Then there are the 'crown jewels' – Nonyana is referring to South Africa's natural resources. Gold, platinum (still in supply deficit) and copper (the 'AI metal' with a projected supply deficit by 2035) remain compelling draws. Add significant energy resources from natural gas and oil explorations off both coasts, and you have a resource base that most countries would kill for. The bottom line The JSE's journey to 100,000 points is remarkable – a thousand-fold increase over 65 years that reflects genuine economic value creation and corporate resilience. Yes, there are fewer listed companies than before, and yes, the competitive environment has challenges that need addressing urgently. But dismissing the JSE because of the exodus misses the bigger picture. This is still the largest stock exchange in Africa, operating for 137 years and ranked among the top 20 globally by market capitalisation. The companies that remain are often global players with diversified operations and strong fundamentals.
The Citizen
2 days ago
- Business
- The Citizen
JSE All Share Index hit 100k points
The All Share Index is like a scoreboard for the JSE, displaying the performance of all the major companies listed collectively. The Johannesburg Stock Exchange (JSE) All Share Index (ALSI) hit 100 000 points on Wednesday, which is 1 000 times higher than its starting value of 100 points in January 1960. JSE ALSI is a premier stock market index, tracking the performance of all listed companies on the JSE. It's a capitalisation-weighted index that includes companies from various sectors, such as mining, finance, retail and telecommunications. In simple terms, it is like a scoreboard for the JSE, displaying the performance of all the major companies listed collectively. ALSO READ: Investing in JSE shares: What you need to know JSE ALSI 65-year journey Leila Fourie, Group CEO of the JSE, says reaching 100 000 points shows that investors keep placing their trust in the South African market and in the ability of the listed companies to drive growth and deliver value. 'Over its 65-year journey, the ALSI has delivered annualised returns of over 11%, reflecting the resilience and growth of South Africa's capital markets. '2025 has positioned the JSE among the best-performing markets in the world in dollar and rand terms.' Purpose of JSE ALSI Mark Randall, Director of Information Services, notes that the index represents 125 listed companies on the JSE with a combined market capitalisation of R21 trillion, spanning a diverse range of sectors and geographies. ALSO READ: R4.5 billion in unclaimed dividends: JSE urges South Africans to check if they are owed 'While the ALSI does not include every listed company, it remains a trusted benchmark, capturing 99% of the eligible market capitalisation on the JSE Main Board.' Randall says the JSE ALSI distils the daily performance of large, mid, and small-cap stocks into a single, accessible figure visible across media platforms and financial tickers, underscoring the strength of South Africa's equity market and the JSE's role as a gateway to African investment. Past five years He explains that the years 2020 to 2025 were particularly dynamic, with the index rebounding strongly from pandemic lows, driven by commodity booms (gold, platinum), resilient corporate earnings and improved investor sentiment. 'Key sectors like mining, banking and technology fueled gains, while structural reforms and fiscal stability underpinned the JSE's rise as a gateway to African markets. This feat reflects both the index's resilience and its role as a barometer of South Africa's economic potential.' NOW READ: JSE reaches a new high
The Star
05-06-2025
- Business
- The Star
Equities surged in May while the Rand stabilised
Chris Harmse | Published 3 days ago The JSE had a bumper month and year-to-date. Given all the growing uncertainties on the global and domestic geo-political front, investors and the public expected the worst for the share and foreign exchange markets during the month of May. Given the Trump administration's chop-and-change announcements in the trade war between the US and other countries, like China, Canada, and European countries, as well as the jittery South Africa/US relations, it was expected by many members of the public that the economy and financial markets would go from better to worse. Table 1: Various share indices performances since the beginning of 2015 Index 1 month 3 months Year-to-date JSE ALSI 3.4% 10.2% 12.1% JSE Top40 3.4% 10.8% 14.4% JSE Financial15 4.3% 8.7% 16.0% JSE Industrial 25 4.2% 8.7% 16.0% JSE Res 10 3.1% 21.1% 31.3% Dow S&P500 5.5% -0.13% -0.14% UK FTSE 3.3% -0.04% 7.3% MSCI Europe 3.8% 7.0% 18.3% Hang Seng 5.3% 1.7% 16.10% In contrast, share prices on the JSE reached record high levels and their best annual five months since the 2020 Covid-Virus equity downward streak, and all the main indices recorded growth of above 10% since the beginning of the year. Prospects for share and capital markets Despite the national budget woes, US trade tariff threats, the lack of domestic service delivery, and a deterioration of transport infrastructure and export facilities, signs of an economic recovery in South Africa boost capital and equity markets. The cut in the repo rate by the Monetary Policy Committee , nine consecutive months where the inflation rate remained less than the Reserve Bank's midpoint target of 4.5%, and expectations of an inflation rate remaining around the 3.0% proposed new target range, boosted domestic and global investment confidence. The expected further cut in fuel prices in June, despite the hike in the fuel levy by the Treasury, the possible extension of the Agoa agreement, and lower proposed US tariffs against South Africa, increase domestic and foreign investment appetite on the South African share and capital markets. The rand against the dollar stabilises and gives reason for a rate cut. On the foreign exchange market, the rand improved in May to its strongest level against the major currencies for 2025. Against the dollar, the rand improved over the month of May by 3.1% or 50 cents from R18.59 to R17.99 on Friday. Against pound sterling, the currency appreciated by 2.5% or 57cents to R24.21/£ and against the Euro, stronger by 3.0% or 64c to R20.24/€. The stronger rand also contributes to a surge in financial, retail, and property shares on the JSE with the capital market returns also higher. The Trump administration's latest tariff surge threatens. US President Trump doubled tariffs on steel imports on Friday from 25% to 50% and announced: 'Nobody is going to get around that,' as he also introduced 50% tariffs on imported aluminum. This 'new' tariffs surge will be introduced on June 4. This latest tariff craze put global equity markets and currencies under pressure. The Euro Stoxx 50 index lost 1.07% last week, and the Hang Seng index in Hong Kong traded 1.2% lower on Friday and tumbled by 1.4% over the week. Prospects for this coming week This coming week, domestic and foreign investors await the release of US non-farm payrolls for May 2025, which will be released on Friday. The market expects 140 000 new jobs, and the unemployment rate to remain at 4.2%. These two indicators will give an indication of prospects for a bank rate cut by the Federal Reserve at their next interest rate meeting later this month. Domestically, the new vehicle sales for May will be released today. Elsewhere, the ECB will make its interest rate decision on Thursday. Chris Harmse is the consulting economist of Sequoia Capital Management and a senior lecturer at Stadio Higher Education. BUSINESS REPORT
IOL News
02-06-2025
- Business
- IOL News
Equities surged in May while the Rand stabilised
The JSE had a bumper month and year-to-date Image: Supplied The JSE had a bumper month and year-to-date. Given all the growing uncertainties on the global and domestic geo-political front, investors and the public expected the worst for the share and foreign exchange markets during the month of May. Given the Trump administration's chop-and-change announcements in the trade war between the US and other countries, like China, Canada, and European countries, as well as the jittery South Africa/US relations, it was expected by many members of the public that the economy and financial markets would go from better to worse. Table 1: Various share indices performances since the beginning of 2015 Index 1 month 3 months Year-to-date JSE ALSI 3.4% 10.2% 12.1% JSE Top40 3.4% 10.8% 14.4% JSE Financial15 4.3% 8.7% 16.0% JSE Industrial 25 4.2% 8.7% 16.0% JSE Res 10 3.1% 21.1% 31.3% Dow S&P500 5.5% -0.13% -0.14% UK FTSE 3.3% -0.04% 7.3% MSCI Europe 3.8% 7.0% 18.3% Hang Seng 5.3% 1.7% 16.10% In contrast, share prices on the JSE reached record high levels and their best annual five months since the 2020 Covid-Virus equity downward streak, and all the main indices recorded growth of above 10% since the beginning of the year. Prospects for share and capital markets Despite the national budget woes, US trade tariff threats, the lack of domestic service delivery, and a deterioration of transport infrastructure and export facilities, signs of an economic recovery in South Africa boost capital and equity markets. The cut in the repo rate by the Monetary Policy Committee, nine consecutive months where the inflation rate remained less than the Reserve Bank's midpoint target of 4.5%, and expectations of an inflation rate remaining around the 3.0% proposed new target range, boosted domestic and global investment confidence. The expected further cut in fuel prices in June, despite the hike in the fuel levy by the Treasury, the possible extension of the Agoa agreement, and lower proposed US tariffs against South Africa, increase domestic and foreign investment appetite on the South African share and capital markets. The rand against the dollar stabilises and gives reason for a rate cut. On the foreign exchange market, the rand improved in May to its strongest level against the major currencies for 2025. Against the dollar, the rand improved over the month of May by 3.1% or 50 cents from R18.59 to R17.99 on Friday. Against pound sterling, the currency appreciated by 2.5% or 57cents to R24.21/£ and against the Euro, stronger by 3.0% or 64c to R20.24/€. The stronger rand also contributes to a surge in financial, retail, and property shares on the JSE with the capital market returns also higher. The Trump administration's latest tariff surge threatens. US President Trump doubled tariffs on steel imports on Friday from 25% to 50% and announced: 'Nobody is going to get around that,' as he also introduced 50% tariffs on imported aluminum. This 'new' tariffs surge will be introduced on June 4. This latest tariff craze put global equity markets and currencies under pressure. The Euro Stoxx 50 index lost 1.07% last week, and the Hang Seng index in Hong Kong traded 1.2% lower on Friday and tumbled by 1.4% over the week. Prospects for this coming week This coming week, domestic and foreign investors await the release of US non-farm payrolls for May 2025, which will be released on Friday. The market expects 140 000 new jobs, and the unemployment rate to remain at 4.2%. These two indicators will give an indication of prospects for a bank rate cut by the Federal Reserve at their next interest rate meeting later this month. Domestically, the new vehicle sales for May will be released today. Elsewhere, the ECB will make its interest rate decision on Thursday. Chris Harmse is the consulting economist of Sequoia Capital Management and a senior lecturer at Stadio Higher Education. Image: Supplied Chris Harmse is the consulting economist of Sequoia Capital Management and a senior lecturer at Stadio Higher Education. BUSINESS REPORT
IOL News
19-05-2025
- Business
- IOL News
Financial markets: The JSE ALSI is a silent warrior, with fuel prices heading for another cut
This coming week investors domestic and foreign await the release of South Africa's inflation rate for April to be released by STASSA on Wednesday. Image: File. Despite all the attention on the US trade debate and the South African lack of budget consensus, the worrying unemployment data (32.9%) for Q1, the ALSI on the JSE continue its impressive performance. The index closed on Friday on 92 619, only twenty points away from its record level of 92 638, which was recorded last Tuesday. Not only did ALSI end the week with 0.9% in the green but it is now 9.7% up for the year to date. Foreign buying interests in SA shares, the strong recovery in Naspers and Prosus saw the Rand exchange rate moving close to the R18.00/$ level. Financial shares were the best performer on the JSE last week as the FIN15 index gained 2.7%. JSE ALSI compared with other global indices. (15 May 2025) Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ JSE ALSI compared with other global indices. (15 May 2025) Image: Supplied. On the foreign exchange market, the Rand improved against the US$ over the week by thirty cents to close on Friday at R18.04/$. This is the strongest level for the year-to-date. Against the British £ the Rand improved by twenty-five cents to R23.96/ £ and against the Euro appreciated the last five days by twenty-two cents to R20.12/€. Given the stable but lower Brent oil price around $65 per barrel, the price for fuel is expected to come down by between twenty-two cents (petrol) and fifty-seven cents (diesel) at the beginning of June 2025. In the week after the drastic cut in the proposed tariff increases by both the USA (down from 147%) and China (down from 120%) to 30% and 10% on imports from the other one, S&P500 on Wall Street shot up by 5,5%, whereas the Shanghai in China initially recovered last week up to Wednesday by increasing 2.2%, but ended Friday flat for the week, with 22 point gaining only 0.65% on the pre-trade US trade discussions level the previous weekend. This coming week investors domestic and foreign await the release of South Africa's inflation rate for April to be released by STASSA on Wednesday. It is expected that the annual increase in the CPI will be 2.9%. This is higher than the annual inflation rate of 2.7% recorded for March 2025, but still lower than the 3.0% target envisaged by the Monetary Policy Committee of the Reserve Bank, that it had set 'unofficially' for their new inflation rate target. It also will be the ninth consecutive month that the rate is lower than the current midpoint target of 4.5%. The debate around when the MPC lowers its repo rate will continue. A rate of lower than 3.0% will be favorable for the Rand and especially financial shares. STATSSA will also publish the retail sales for March 2025 on Wednesday. The meeting between President Trump and President Ramaphosa on Wednesday will also attract attention of investors and will also affect equity prices, bond rates and the rand exchange rate. Globally countries like Great Britain, Canada, Japan, and the EU will announce their inflation rates for April during the week. China will release its retail numbers for April today. In the US data on home sales, jobless claims, and various Purchasers Managers Indices (PMI's) will be announced. Chris Harmse is the consulting economist of Sequoia Capital Management and a senior lecturer at Stadio Higher Education. Chris Harmse is the consulting economist of Sequoia Capital Management and a senior lecturer at Stadio Higher Education. Image: Supplied BUSINESS REPORT Visit:
