How to take advantage of the JSE’s unique composition
Stephen Grootes gets expert insight into cracking the JSE code and unpacks why the exchange stands apart from other markets worldwide. All this and more on Investment School, brought to you by CFI, an Authorized FSP.
On the rollercoaster ride that global stock markets have been experiencing for most of this year, the Johannesburg Stock Exchange’s loops and turns seem calmer than most, leading many investors to wonder why, and of course, how this behaviour can be capitalized on. Is it the unique composition of the exchange, the variety of investors, or the impact of gold exposure?
To break down what makes the JSE tick and how investors can make the most of it, Stephen Grootes hosts Chantal Marx, Head of equity research at FNB Wealth & Investments and Asanda Notshe, Chief Investment Officer at Mazi Asset Management, in this episode of Investment School. Brought to you by CFI, an Authorized FSP.
Listen to the full conversation below:
“We have an extremely diversified exchange, and importantly, we have a geographically diversified exchange. It’s not just focused on South Africa.” – Chantal Marx, FNB Wealth & Investments, Head of Equity Research
Marx continues to explain how most of the JSE is made up of Rand Hedge stocks or stocks that earn their revenue in US dollars, giving the stock exchange some protection if the Rand weakens. She also highlights that 11% of the JSE all-share index comprises gold-mining shares, providing another level of safety during volatile and uncertain economic conditions.
Investor behaviour also plays a big role in how the JSE reacts, mentions Notshe. “We need to look at ourselves in the mirror as well – the South African investment community tends to be very conservative. I think that says something about the way people think about raising capital when it comes to the JSE,” he says.
Adding to the diversity of the JSE, many new foreign entries are worth paying attention to for investors, such as:
Shuka Minerals
The London-listed miner made its debut on the JSE’s Alternative Exchange (Altx) as its secondary listing towards the end of May, becoming the first miner to debut on the exchange since 2023 “They were solely listed on the London exchange, but decided that Joburg makes a lot more sense to them,” says Marx.
Greencoat Renewables
The Europe-based renewable energy infrastructure firm recently applied for a secondary listing in the JSE’s Altx to diversify its shareholder base. In a previous episode of Investment School, Grootes and his guests explored why international companies such as Greencoat Renewables would be interested in listing in the JSE. Listen to the full episode here.
ASP Isotopes
Although they’re not listed yet, Marx mentions that the Nasdaq-listed isotope enrichment tech company has their manufacturing facilities based in Pretoria, which makes the secondary listing on the JSE a sensible move for them.
Stay up to speed on the ever-changing world of investing, make sure you tune in to Investment School, brought to you by CFI, every Thursday on The Money Show with Stephen Grootes (6pm-8pm).
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