{"id":775056,"date":"2024-06-04T09:18:21","date_gmt":"2024-06-04T07:18:21","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=775056"},"modified":"2024-06-04T09:18:25","modified_gmt":"2024-06-04T07:18:25","slug":"jse-in-serious-trouble","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/775056\/jse-in-serious-trouble\/","title":{"rendered":"JSE in serious trouble"},"content":{"rendered":"\n

Companies listed on South Africa\u2019s Johannesburg Stock Exchange (JSE) are at a 30-year low, dropping 56% since 1998. <\/p>\n\n\n\n

Data compiled by The Outlier showed that Listings peaked at 669 listings in 1998, but the dot-com crash led to 128 companies delisting within 2 years.<\/p>\n\n\n\n

“Between 2003 and 2008, there was a brief resurgence with the introduction of AltX, which aimed at small- and medium-sized enterprises, but this was short-lived due to the global financial crisis. <\/p>\n\n\n\n

Companies often delist because of mergers, acquisitions, or relocation abroad. <\/p>\n\n\n\n

However, the JSE has found it challenging to attract sufficient new listings to compensate for these losses.<\/p>\n\n\n

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In 2022, AmaranthCX issued a warning about a series of delistings from the JSE. The company mentioned that South Africa had 332 listed companies across the JSE and the three challenger stock exchanges at the beginning of 2022. <\/p>\n\n\n\n

By the end of 2023, 11 delistings had taken place, with two more delistings occurring so far in 2024.<\/p>\n\n\n\n

Sean Neethling, the head of investments at Morningstar South Africa, has expressed concerns about the future of investing in local equities due to the delisting trend. <\/p>\n\n\n\n

He mentioned that the shortage of new listings, the relatively weak performance of local shares, and the depressed levels of business confidence have further exacerbated fears among market participants.<\/p>\n\n\n\n

Despite the warning signs, JSE CEO Leila Fourie has recently<\/a> introduced several initiatives to reverse the downward trend. <\/p>\n\n\n\n

The JSE recently finalized new requirements and amendments for listed companies to reduce red tape and simplify compliance. <\/p>\n\n\n\n

This includes allowing secondary listings for companies primarily listed on the Hong Kong Exchanges & Clearing. <\/p>\n\n\n\n

Fourie anticipates as many as 10 listings in 2024. “We are optimistic that it is looking better, but we’re cautiously optimistic,” she said.<\/p>\n\n\n\n

What’s more, renowned economist Dawie Roodt has pointed out that the stock exchange is currently undervalued and that a positive outcome from the elections could boost the equity and bond markets.<\/p>\n\n\n\n

According to Roodt, the JSE is lagging behind similar global markets by 30% to 50% and has not experienced the same growth as other global markets in the past eighteen months. <\/p>\n\n\n\n

He believes that positive news could potentially increase the JSE by 20% to 30%. <\/p>\n\n\n\n

Roodt stated, “The JSE is a highly undervalued market,” suggesting that South African equities are priced at a bargain. <\/p>\n\n\n\n

Additionally, he mentioned that South Africa’s capital market offers yields of around 10%, and a positive election outcome could increase the market by 200 basis points.<\/p>\n\n\n\n

\n\n\n\n

Read: Nenegate 2.0: Warning of massive blow to the rand<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The volume traded on South Africa\u2019s Johannesburg Stock Exchange (JSE) has plummeted, but there is some hope. <\/p>\n","protected":false},"author":92,"featured_media":775064,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[175,853,17955],"class_list":["post-775056","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-jse","tag-south-africa","tag-the-outlier"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/775056","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=775056"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/775056\/revisions"}],"predecessor-version":[{"id":775163,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/775056\/revisions\/775163"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/775064"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=775056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=775056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=775056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}