Investor appetite in South Africa remains robust, despite the county having navigated a “particularly noisy socioeconomic environment” during 2016, with the JSE posting a 10% increase in its operating revenue to R2.3-billion.
The largest stock exchange on the continent also tallied 18 new listings during 2016, five of which were real estate investment trusts (Reits). Although this was lower than the 23 new listings in 2015, JSE CEO Nicky Newton-King noted that this included global commercial giants such as Anheuser-Busch (AB) InBev, the world’s largest brewer, as well as UK Reit Hammerson.
“We are becoming a home of Reits, both local and international. We are developing a good South African appetite for property and this is something we hope to see expand,” Newton-King said at a presentation of the JSE’s results, in Sandton, on Wednesday.
She further pointed out that the 25 delistings from the JSE in 2016, were a result of corporate activity, including the delisting of SABMiller as part of the AB InBev deal and the collapse of supermarket giant Pick n Pay Stores’ archaic pyramid control structure Pick n Pay Holdings, or Pikwik.
“Going forward, it is about maintaining a record for really good listings; benchmark listings that will enable our South African investors to diversify their investment opportunities,” said Newton-King.
During 2016, the JSE also saw 858 new bonds issued or listed, with a total nominal value of R2.7-trillion.
In its equity market, which accounts for 26% of total revenue, the JSE saw a revenue increase of 11% to R555-million, while trades were up 15%.
Newton-King noted that the company was looking at introducing an incentive model to create greater trading activity under its large-volume clients.
The bonds and financial derivatives division, accounting for 13% of total revenue, achieved a 7% increase in revenue to R275-million, and although the contracts traded declined by 5%, the value traded increased by 4% to R6.9-trillion.
Here, Newton-King pointed out, the JSE would further focus on upgrading the trading platform through its integrated trading and clearing project and increase its focus on refinancing renewable-energy funds.
Newton-King concluded that the JSE would continue being a constructive participant in "the SA Inc dialogue".
“The nature of the dialogue requires us to be heard as business people, such as actively involving the ratings agencies,” she said.