Workings of the Johannesburg Stock Exchange

Workings of the Johannesburg Stock Exchange Waldemar Budeli
From small beginnings…
The World Federation of Exchanges is an association of 58 publicly regulated exchanges
1887
JSE established
1963
Member of World Federation of Exchanges
1996
2001
Open outcry floor replaced with automated trading system
SAFEX acquired by the exchange
2002
JSE adopts London Stock Exchange's trading technology
2003
AltX launched with DTI
2004
SRI Index launched
2006
JSE Ltd lists on the Main Board
2014
1978
2001
2009
Bond market incorporated into the exchange
The exchange value chain
SETTLEMENT
CLEARING
Equity Derivatives
Equities
Commodity Derivatives
Interest Rate Products
TRADING
LISTING
Market Surveillance
Information Products
Regulatory Framework
• SARB: Banking Financial Services Sector
Banks
Building Societies
• FSB: Non Banking Financial Services Sectors ‐
Capital Markets
Insurance Houses
Retirement Funds
Collective Investment Schemes
Friendly Societies
JSE in the global context – August 2014
350
Shenzhen SE
300
Liquidity %
250
Istanbul SE
200
Shanghai SE
150
Deutsche
Börse
Tokyo SE Group
Hong Kong Exchanges
100
TMX Group
BM&FBOVESPA
50
NYSE Group
ASX
Bombay SE
Egypt SE
NSE India
JSE
0
0
OMX Nordic
1000
London SE Group
2000
3000
4000
Number of listed companies
5000
6000
www.jse.co.za
JSE in the African context
•
•
•
•
JSE dominates in terms of size, depth and liquidity (Mcap = $1.03 trillion)
Nigerian Exchange MCap = $81.2bn
Egyptian Exchange MCap= $73.4bn
Casablanca MCap= $55.4bn
*African Alliance & WFE stats
JSE in the African context …….
Country
BSE
BRVM
EGX
GSE (Ghana)
NSE (Kenya)
Malawi
SEM Casablanca Bourse (Morocco)
Namibia
Nigeria SE
Rwanda
South Africa (JSE)
Swaziland
DSE (Tanzania)
BVMT (Tunisia)
Uganda
ZSE
LuSE
Source: Trades US$m
24.80 23.51 2 267.60 4.73 168.03 0.66 54.19 229.62 0.84 374.81 6.49 25 048.06 ‐
34.59 19.90 2.66 25.19 23.61 Companies
35
37
239
35
62
14
66
74
33
192
5
383
6
20
75
16
66
24
Liquidity
Mkt Cap US$m
0.64%
2.43%
36.99%
0.34%
8.32%
0.55%
7.14%
4.97%
0.53%
5.53%
8.98%
29.07%
0.00%
3.36%
3.14%
2.69%
5.86%
6.03%
African Alliance Weekly Report and WFE stats
46 516 11 618 73 421 16 510 24 225 1 440 9 114 55 401 1 887 81 273 867 1 034 111 225 12 343 7 612 1 188 5 157 4 702 % of African MCap: Aug 2014
0.9%
0.5%
0.4%
0.3%
0.1%
0.1%
0.8%
3.4%
% of African MCap (US$)
5.3%
1.2%
1.7%
0.7%
4.0%
BSE
BRVM
EGX
GSE (Ghana)
NSE (Kenya)
5.9%
SEM
Casablanca Bourse
(Morocco)
Nigeria SE
JSE (South Africa)
74.7%
DSE (Tanzania)
BVMT (Tunisia)
ZSE
Source: African Alliance & WFE
African exchanges minus the JSE ‐ Aug 2014
100%
80%
60%
Ghana
Kenya
Liquidity
40%
Morocco
BSE
20%
ZSE
Tanzania
Tunisia
0%
0
50
100
‐20%
LuSE
SEM
‐40%
Namibia
‐60%
Nigeria
150
‐80%
‐100%
# of listed companies
200
EGX
250
300
JSE in global context ‐ Aug 2014
450%
400%
Shenzhen SE
350%
Liquidity
300%
NYSE Euronext 250%
Shanghai SE
200%
NASDAQ 150%
100%
D‐Borse
BM&F Bov
Taiwan
HKEX
ASX
50%
SIX Swiss 0%
Japan Exchange Group
Korea Exc
JSE
SGX 0 Moscow 1 000
LSE
NSE India
2 000
TMX Group
BME ‐
Spanish Exc
3 000
4 000
# of Listed Companies
Bombay SE
5 000
6 000
7 000
Companies & Securities








Companies Listed – 384
Foreign Listings – 59
Domestic ‐ 325
New Listings – 15
Delistings ‐ 20
Alternative Exchange Companies – 62
Number of Securities Listed – 876 Market Cap – 11 108 911 (Rm)
Why do companies issue stock
•
•
•
•
Transition from private‐to‐public company
Initial Public Offering (IPO)
Primary & Secondary markets
Capital is raised to expand business interests
The Role of the Stock Market
Benefits for Corporations
• Raising Capital
Benefits for investors
• Improved returns
Benefits for the economy
• Channelling people’ savings to work
• Measure of the economy’ performance
• Corporate Governance
• Access to funds for Governments
Top40 Companies
British American 1 237 026 664 233.18 SABMiller plc
983 379 214 764.97 BHP Billiton plc
613 127 949 007.08 Naspers Ltd ‐N‐
496 211 863 210.00 Richemont
461 709 000 000.00 MTN Group Ltd
436 008 670 656.21 Sasol Limited
357 763 248 623.82 Anglo American plc
329 638 427 193.60 Firstrand Ltd
230 028 020 911.20 Standard Bank Group Ltd
206 323 620 435.00 Vodacom Group Ltd
187 199 492 740.00 Aspen Pharmacare
154 880 129 972.43 Old Mutual plc
149 447 176 049.61 Sanlam Limited
133 021 368 888.40 Barclays Africa Grp 130 977 479 905.50 Steinhoff Int Hldgs
129 758 706 503.00 Remgro Ltd
108 268 177 504.80 Nedbank Group Ltd
107 190 651 162.90 Anglo American Plat 95 871 910 473.00 21) Bidvest Ltd 22) Kumba Iron 23) Shoprite 24) Mediclinic
25) RMB Holdings 26) Intu Properties 27) Woolworths 28) Mondi plc
29) Tiger Brands 30) Investec plc
31) Growthpoint
32) Discovery Ltd
33) Impala Platinum 34) Mr Price Group 35) Anglogold
36)Capital&Counties
37) Reinet Inv
38) Life Healthc Grp 39) Exxaro
40) Imperial 41) Assore Ltd
42) Investec Ltd
43 Mondi Ltd
92 902 415 585.05 85 945 421 302.16 77 687 166 495.60 76 250 051 001.25 75 963 750 160.58 73 385 014 840.16 69 899 766 678.00 62 743 091 534.25 59 897 457 029.40 55 802 285 107.12 55 709 028 343.20 54 274 698 163.00 53 358 884 894.40 50 578 383 459.12 48 709 149 091.40 47 900 098 992.60 46 927 937 997.00 44 721 220 372.50 44 356 186 449.30 35 879 389 755.45 31 538 617 370.00 26 151 713 976.96 20 251 631 930.75 Top 40 Constituents
15
Some of the Mid caps Constituents
16
Some of the Small caps Constituents
17
What influences the market?
Local Economy
International Economies
Politics
The Market
Company related happenings
International
Markets
Commodity Prices
www.jse.co.za
How does a person trade on the JSE?
Stockbroker
Buyer
Seller
Stockbrokers are members of the stock exchange who act on behalf of clients to buy or sell their shares.
To get a list of the stockbrokers visit our website
www.jse.co.za
www.jse.co.za
Investing/trading on the JSE
Buyer
Stockbroker
Stockbrokers are members of the stock exchange who act on behalf of clients to buy or sell their shares.
To get a list of the stockbrokers visit our website
www.jse.co.za
JSE
How do I gain access to the Stock Market?
How do I gain access to the Stock Market?
www.jse.co.za
How do I gain access to the Stock Market?
www.jse.co.za
JSE FREE 30 day Simulator
www.jse.co.za/jsevirtualtrader
24
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