As mentioned previously, you’ll need to go through a stockbroker if you want to buy shares on the JSE. There are a number of member firms to choose from, and a full list can be viewed on the JSE website. When deciding on a broker, you’ll want to consider the associated charges, the way you want to trade and what you want to invest in.

Different firms often have different specialities, so make sure that you choose one with good experience in the specific sector you’re thinking of investing in. You’ll also want to take into account whether you want your stockbroker to take on afull-service role which includes offering advice and managing your portfolio, or whether you simply want an ‘execution-only’ broker who never suggests what to buy or sell, and only acts on your instructions. The first option is obviously far more costly, but advisory brokers can offer some solid insight into the best JSE shares to buy and how long to hold onto your shares before selling. With the latter option, you’ll generally be able to buy shares online quickly, using the first stockbroker available through your chosen member firm.

Stock exchange in Johannesburg, South Africa

For other uses, see JSE (disambiguation).

JSE Limited (previously the JSE Securities Exchange and the Johannesburg Stock Exchange)^[4] is the largest stock exchange in Africa. It is located in Sandton, Johannesburg, South Africa, after it moved from downtown Johannesburg in ^[5][6] In the JSE had an estimated listed companies and a market capitalisation of US$ billion (€ billion), as well as an average monthly traded value of US$ billion (€ billion).^[7] As of October , the market capitalisation of the JSE was at US$1, billion.^[2][3]

History[edit]

The discovery of gold on the Witwatersrand in led to many mining and financial companies opening and a need soon arose for a stock exchange. The first share transactions on the Rand took place in a rustic canvas tent, with trade taking place on Sundays, as this was the only day when mining was not allowed, owing to a strictly enforced regulation prohibiting the entry of African workers to the gold reefs.^[8][9]

The Johannesburg Exchange & Chambers Company was established by a London businessman, Benjamin Minors Woollan and housed at the corner of Commissioner and Simmonds Streets. Out of this the JSE was born on 8 November What immediately gave the JSE a clear advantage over exchanges such as Kimberley, Barberton, and, most importantly, London, was that listing of companies for a quotation on the Official List of the JSE was an easy and relatively cheap procedure. This relatively simple and non-restricting nature of the early Exchange promoted a wave of initial registrations on the Official List, with 68 companies by the end of November The Official List further expanded to more than companies by the end of January ^[10] By the trading hall became too small and had to be rebuilt but this too was outgrown. Trading then moved into the street. The Mining Commissioner closed off Simmonds Street between Market Square and Commissioner Street by means of chains.

In , a new building was built for the JSE on Hollard Street. It was a storey building that took up an entire whole city block bounded by Fox and Main, Hollard and Sauer Streets.

After World War II, it became apparent that this building was again inadequate and in the decision was made to rebuild the stock exchange. It took 11 years before construction began and in February the second exchange at Hollard Street was officially opened. By , the JSE became a member of the Federation International Bourses de Valeurs (FIBV).

In , the JSE took up residence at 17 Diagonal Street near Kerk Street, Johannesburg. saw the JSE become an active member of the African Stock Exchanges Association. After years, the open outcry system of trading was changed to an electronic system on 7 June

In September , the Johannesburg Securities Exchange moved to its present location in Sandton, Gauteng at the corner of Maude Street and Gwen Lane. It adopted the JSE Securities Exchange as its new official name.^{[citation needed]}

In an agreement was struck with the London Stock Exchange enabling cross-dealing between the two bourses^[11] and replacing the JSE's trading system with that of the LSE.^[12]

In the JSE acquired the Bond Exchange of South Africa for R million and rebranded it the JSE debt market adding South African government and corporate bonds as well as interest rate derivatives to its product set.^[13][14]

On 18 June , the JSE became a founding member of the United Nations Sustainable Stock Exchanges initiative on the eve of the United Nations Conference on Sustainable Development (Rio+20).^[15]

JSE Logo Prior to the April re-branding

On 14 April , the JSE re-branded to demonstrates the bourse's identity as a modern African marketplace that connects investors to growth opportunities not only in South Africa but globally.^[16]

About the JSE[edit]

The JSE provides a market where securities can be traded freely under a regulated procedure. It not only channels funds into the economy, but also provides investors with returns on investments in the form of dividends.^[17][18]p

The Johannesburg Exchange in

The exchange successfully fulfils its main function—the raising of primary capital—by rechannelling cash resources into productive economic activity, thus building the economy while enhancing job opportunities and wealth creation.

The exchange is directed by an honorary committee of 16 people, all with full voting rights. The elected stockbroking members, who cannot number less than eight or more than eleven, may appoint an executive president and five outside members to the committee. Policy decisions are made by the committee and carried out by a full-time executive committee headed by the executive president.

The JSE is governed by its members but through their use of JSE services and facilities, these members are also customers of the Exchange. Each year the JSE must apply to the Minister of Finance for an operating license which vests external control of the exchange in the FSB.^[19]

JSE TradElect[edit]

The JSE's fully automated (electronic trading) trading system is called the Millennium Exchange, which replaced the JSE TradElect system in , which in turn had replaced the JSE SETS system in April , which had replaced the JSE JET system in May

The change to the Millennium Exchange involved moving the platform from London to a new platform housed in the JSE building in Johannesburg, thus speeding up the execution of transactions. The JSE operates an order-driven, central order book trading system with opening, intra-day and closing auctions.

Sens[edit]

In August , the JSE launched the real-time Stock Exchange News Service (Sens) to enhance market transparency and investor confidence. Initially, it was optional for listed companies to use the service during its two-month trial period.

From 15 October, augmented JSE listing requirements oblige companies to disseminate any corporate news or price-sensitive information on the service prior to using any other media outlet. Sens is carried by all the major wire services.

Strate[edit]

Since its inception over ten years ago, Strate (Pty) Ltd has become the licensed South Africa's Central Securities Depository (CSD) for the electronic settlement of financial instruments in South Africa. Strate's stated core purpose is to mitigate risk, bring efficiencies to South African financial markets and improve its profile as an investment destination.

Strate handles the settlement of a number of securities, including equities and bonds for the Johannesburg Stock Exchange (JSE), as well as a range of derivative products such as warrants, exchange-traded funds (ETFs), retail notes and tracker funds. It has now added the settlement of money market securities to its portfolio of services. It provides services to issuers for their investors in terms of the Companies Act and Securities Services Act (SSA),

Hours[edit]

JSE's normal trading sessions are from am to pm on all weekdays except Saturdays, Sundays and holidays declared by the exchange in advance.^[20]

Listed companies[edit]

Main article: List of companies traded on the JSE

Alternative Exchange[edit]

Main article: AltX

The Alternative Exchange is a stock exchange that was founded as a division of the JSE in order to accommodate small- and medium-sized high growth companies. Its website is accessible from the front page of the JSE's main website. The Alternative Exchange is known as AltX.

Ownership[edit]

The bourse is operated by JSE Limited, a company that listed on its own main board in June ^[21][22]

Fees and taxes[edit]

• Securities Transfer Tax (STT) %. Applies to share purchases only, not share sales.
• Strate % (excluding VAT) based on the value of the share transactions:
  • Minimum R for trades with a value up to R,
  • Maximum R for trades with a value over R1,,
• FSB Investor Protection Levy % (excluding VAT) on all trades.

See also[edit]

Further reading[edit]

Lukasiewicz, Mariusz. "From Diamonds to Gold: The Making of the Johannesburg Stock Exchange, –" Journal of Southern African Studies (). pp.&#;–

Klein, Harry. The story of the Johannesburg Stock Exchange: Johannesburg: The Committee of the Johannesburg Stock Exchange.

Rosenthal, Eric. On 'Change Through the Years: A History of Share Dealing in South Africa. Cape Town: Flesch Financial Publications.

References[edit]

External links[edit]

For more information about the Coronavirus (COVID), please visit www.oldyorkcellars.com

As the world continues to face challenges in dealing with the Coronavirus (COVID) pandemic, we are taking steps to provide some safety measures to our clients and staff.

Given the wide-ranging impact of the pandemic and in line with advice from government and the World Health Organisation (WHO), limiting unnecessary human contact is an invaluable precaution. We therefore strongly encourage you to use our suite of digital tools and trading platforms for your financial needs. Digital platforms provide an efficient, fast, safe and nearly instantaneous solution to many, if not all your investing requirements, away from public spaces.

KEEPING EVERYONE SAFE
The safety of our employees and clients is something that we care deeply about. While the extent of COVID is still unknown, our plans have the necessary flexibility to evolve as the situation requires.

As a result, Sharenet will unfortunately not be accommodating client meetings at a branch level, for the forceable future. As soon as the situation changes, we will advise you, our valuable clients accordingly.

ONLINE SAFETY
The widespread concern around COVID creates the perfect opportunity for cybercriminals to defraud customers. To ensure protection against targeted ransomware and Malware attacks, remember to install the latest version of a Multi-layered Antivirus program and never share your account details online or via email.

Sharenet remains fully operational and should you experience any technical difficulty, rest assured that our superior support staff is ready to assist with any technical queries and can be reached on:

Tel: +27 (0)21
Email: support@www.oldyorkcellars.com

We thank you for your understanding. All the best to you and your loved ones.

Africa is rapidly becoming one of the newest destinations for emerging markets investors. Since , the World Economic Forum has identified more than half of the world's fastest-growing economies as located in Africa. Here we look at the past 20 years of Africa's economic development and future prospects.

Africa's Vast Natural Resources

The African continent is incredibly rich in natural resources. It has huge, untapped reserves of natural gas and oil (12% of the world’s reserves) and largely unexploited hydroelectric power. It is home to vast gold, platinum, uranium, cobalt, and diamond reserves. Currently, only 10% of Africa’s arable land is being cultivated, yet it holds around 60% of the world’s cultivable land.

Africa also has the advantage of a large and relatively cheap labor force. The continent is undergoing a demographic transformation, with youth as its theme; there is a very high proportion of Africans in their 20s and 30s with fewer dependents—both old and young—that will play out over the next decade.

There is stability in terms of governance, and many countries that witnessed terrible periods of unrest have emerged as success stories. There are better policies in place, trade has improved and so has the business environment.

Economic Growth in Africa

According to the World Economic Forum, by , over 40% of Africans will belong to the middle or upper classes, and there will be a higher demand for goods and services. In , household consumption is expected to reach $ trillion, more than double that of at $ trillion.

Much of that $ trillion will be spent in three countries: Nigeria (20%), Egypt (17%), and South Africa (11%). But Algeria, Angola, Ethiopia, Ghana, Kenya, Morocco, Sudan, and Tunisia will attract companies seeking to enter new markets. The sectors expected to grow the most in the next 30 years are food and beverages, education and transportation, housing, consumer goods, hospitality and recreation, healthcare, financial services, and telecommunications.

Stocks Mirror the Economy

Sub-Saharan Africa has around 29 stock exchanges representing 38 countries including two regional exchanges. These exchanges have a lot of disparity in terms of their size and trading volume. The continent has a handful of prominent exchanges and many new and small exchanges that are characterized by small trading volumes and few listed stocks. Efforts are being put in place by all countries to boost their exchanges by improving investor education and confidence, improving access to funds, and making the procedures more transparent and standardized.

How to Invest

African stock markets come in different varieties, and they require deep understanding to select the appropriate stock exchange. Due diligence is key. Investing through a mutual fund or exchange traded fund (ETF) is often a better bet for small investors looking for exposure to the economies of Sub-Saharan Africa. Such funds track a large basket of companies doing business in the region, rather than relying on any single stock or venture.

Direct Access

It is possible to invest in African stocks directly, although this route may come with additional risks. Some foreign stocks trade in North American exchanges as depositary receipts, securities that represent stocks in a foreign company. Domestic brokerages, such as Fidelity, also offer trading in international stocks, although doing so does involve some additional paperwork.

There are downsides to trading international stocks. According to the U.S. Securities and Exchange Commission, domestic traders may face additional risks on the foreign stock market. Foreign companies may be subject to less stringent regulations or reporting requirements than those at home, and U.S. investors may incur unexpected taxes. In addition, foreign securities are often priced in a foreign currency, adding an additional layer of risk for the U.S. trader.

Exchange-Traded Funds

Investing via ETFs and mutual funds comes with the built-in advantage of ease (they are traded on U.S. exchanges), diversification, and professional management. Some prominent ones include:

VanEck Africa Index ETF

The VanEck Africa Index ETF (AFK) tracks some of the largest and most liquid stocks in Africa. It holds about 75 stocks and has a country allocation (top 3) to South Africa (%), Morocco (%), and Nigeria (%). Over the five years before , the fund has closed each quarter with a % gain in net asset value (NAV).

The iShares South Africa Index Fund

The iShares MSCI South Africa Index(EZA) is allocated % to mid-sized and large companies in South Africa in the financial, consumer discretionary, and telecommunication services sectors. Over the past five years, the fund has gained an average of % per quarter.

Market Vectors Egypt Index Fund

The Market Vectors Egypt Index ETF (EGPT) gives access to Egypt, the third-largest economy in Africa, with an allocation of around 85%. The remainder is spread to geographically diversify across Luxembourg, Canada, and Ireland. Over the past five years, the fund has closed each quarter with an average gain of % in net assets.

Mutual Funds

Mutual funds invest in a large basket of different securities, usually targetting specific economic sectors or regions of the world. There are many such funds invested in the developing world as a whole, as well as those that invest only in Africa, or only in specific countries. The following are some notable examples:

T. Rowe Price Africa and Middle East Fund

Abbreviated as TRAMX, this fund is focused on banks and companies in Africa and the Middle East, as well as a handful of European companies that do business there. Nearly 25% of their portfolio is located in South Africa. Over the five years before , the fund experienced average quarterly growth of %.

Commonwealth Africa Fund

Launched in , the Africa Fund(CAFRX) is one of five mutual funds under the umbrella of the Commonwealth International Series Trust. It largely invests in equity and debt securities issued by African companies involved in manufacturing and mining. Over the five years before , CAFRX experienced average quarterly returns of %.

ADRs

American depositary receipts (ADRs) are a good way for investors in the United States to trade select African stocks. These securities represent shares in a foreign-registered company, allowing U.S. investors to trade African stocks in a U.S.-based stock market.

Many of these are natural resources plays, such as AngloGold Ashanti (AU), DRD Gold (DRD), Gold Fields (GFI), Harmony Gold (HMY), Randgold (RNDFX), Sibanye Gold, and Sasol (SBSW).

All of the previously mentioned companies are in mining, with the exception of Sasol, which is in the oil and gas business. In addition, MiX Telematics (MIXT) is in the logistics technology business. There is a wider universe of African stocks that trade on the Pink Sheets or over-the-counter (OTC) market. Pink sheets are less regulated and are traded in thin volumes.

The Bottom Line

Although Africa has yet to recover from centuries of foreign domination, many African countries are becoming economic powerhouses in their own right. There is increasing demand from the growing middle classes, and local companies are filling that need expanding. Nobody can predict the growth trajectory with accuracy, but several countries on the African continent appear to be poised for growth.

Disclosure: The author did not hold any of the mentioned stocks or funds at the time this was written.

For more information about the Coronavirus (COVID), please visit www.oldyorkcellars.com

As the world continues to face challenges in dealing with the Coronavirus (COVID) pandemic, we are taking steps to provide some safety measures to our clients and staff.

Given the wide-ranging impact of the pandemic and in line with advice from government and the World Health Organisation (WHO), limiting unnecessary human contact is an invaluable precaution. We therefore strongly encourage you to use our suite of digital tools and trading platforms for your financial needs. Digital platforms provide an efficient, fast, safe and nearly instantaneous solution to many, if not all your investing requirements, away from public spaces.

KEEPING EVERYONE SAFE
The safety of our employees and clients is something that we care deeply about. While the extent of COVID is still unknown, our plans have the necessary flexibility to evolve as the situation requires.

As a result, Sharenet will unfortunately not be accommodating client meetings at a branch level, for the forceable future, investing in johannesburg stock exchange. As soon as the situation changes, investing in johannesburg stock exchange, we will advise you, our valuable clients accordingly.

ONLINE SAFETY
The widespread concern around COVID creates the perfect opportunity for cybercriminals to defraud customers. To ensure protection against targeted ransomware and Malware attacks, remember to install the latest version of a Multi-layered Antivirus program and never share your account details online or via email.

Sharenet remains fully operational and should you experience any technical difficulty, rest assured that our superior support staff is ready to assist with any technical queries and can be reached on:

Tel: +27 (0)21
Email: support@www.oldyorkcellars.com

We thank you for your understanding. All the best to you and your loved ones.

Africa is rapidly becoming one of the newest destinations for emerging markets investors. Sincethe World Economic Forum has identified more than half of the world's fastest-growing economies as located in Africa. Here we look at the past 20 years of Investing in johannesburg stock exchange economic development and future prospects.

Africa's Vast Natural Resources

The African continent is incredibly rich in natural resources. It has huge, untapped reserves of natural gas and oil (12% of the world’s reserves) and largely unexploited hydroelectric power. It is home to vast gold, platinum, uranium, cobalt, and diamond reserves. Currently, only 10% of Africa’s arable land is being cultivated, yet it holds around 60% of the world’s cultivable land.

Africa also has the advantage of a large and relatively cheap labor force. The continent is undergoing a demographic transformation, with youth as its theme; there is investing in johannesburg stock exchange very high proportion of Africans in their 20s and 30s with fewer dependents—both old and young—that will play out over the next decade.

There is real money making surveys in terms of governance, and many countries that witnessed terrible periods of unrest have emerged as success stories. There are better policies in place, trade has improved and so has the business environment.

Economic Growth in Africa

According to the World Economic Forum, byover 40% of Africans will belong to the middle or upper classes, and there will be a higher demand for goods and services, investing in johannesburg stock exchange. In , household consumption is expected to reach $ trillion, more than double that of at $ trillion.

Much of that $ trillion will be spent in three countries: Nigeria (20%), Egypt (17%), and South Africa (11%). But Algeria, Angola, Ethiopia, Ghana, Kenya, Morocco, Sudan, and Tunisia will attract companies seeking to enter new markets. The sectors expected to grow the most in the next 30 years are food and beverages, education and transportation, housing, consumer goods, hospitality and recreation, healthcare, financial services, and telecommunications.

Stocks Mirror the Economy

Sub-Saharan Africa has around 29 stock exchanges representing 38 countries including two regional exchanges. These exchanges have a lot of disparity in terms of their size and trading volume. The continent has a handful of prominent exchanges and many new and small exchanges that are characterized by small trading volumes and few listed stocks. Efforts are being put in place by all countries to boost their exchanges by improving investor education and confidence, improving access to funds, and making the investing in johannesburg stock exchange more transparent and standardized.

How to Invest

African stock markets come in different varieties, and they require deep understanding to select the appropriate stock exchange. Due diligence is key. Investing through a mutual fund or exchange traded fund (ETF) is often a better bet for small investors looking for exposure to the economies of Sub-Saharan Africa. Such funds track a large basket of companies doing business in the region, rather than relying on any single stock or venture.

Direct Access

It is possible to invest in African stocks directly, although this route may come with additional risks. Some foreign stocks trade in North American exchanges as depositary receipts, investing in johannesburg stock exchange, securities that represent stocks in a foreign company. Domestic brokerages, such as Fidelity, also offer trading in international stocks, although doing so does involve some additional paperwork.

There are downsides to trading international stocks. According to the U.S. Securities and Exchange Commission, domestic traders may face additional risks on the foreign stock market. Foreign companies may be subject to less stringent regulations or reporting requirements than those at home, and U.S. investors may incur unexpected taxes. In addition, foreign securities are often priced in a foreign currency, adding an additional layer of risk for the U.S. trader.

Exchange-Traded Funds

Investing via ETFs and mutual funds comes with the built-in advantage of ease (they are traded on U.S. exchanges), investing in johannesburg stock exchange, diversification, and professional management. Some prominent ones include:

VanEck Africa Index ETF

The VanEck Africa Index ETF (AFK) tracks some of the largest and most liquid stocks in Africa. It holds about 75 stocks and has a country allocation (top 3) to South Africa (%), Morocco (%), and Nigeria (%). Over the five years beforethe fund has closed each quarter with a % gain in net asset value (NAV).

The iShares South Africa Index Fund

The iShares MSCI South Africa Index(EZA) is allocated % to mid-sized and large companies in South Africa in the financial, consumer discretionary, and telecommunication services sectors. Over the past five years, the fund has gained an average of % per quarter.

Market Vectors Egypt Index Fund

The Market Vectors Egypt Index ETF (EGPT) gives access to Egypt, the third-largest economy in Africa, with an allocation of around 85%, investing in johannesburg stock exchange. The remainder is spread to geographically diversify across Luxembourg, Canada, and Ireland. Over the past five years, the fund has closed each quarter with an average gain of % in net assets.

Mutual Funds

Mutual funds invest in a large basket of different securities, usually targetting specific economic sectors or regions of the world. There are many such funds invested in the developing world as a whole, as well as those that invest only in Africa, or only in specific countries. The following are some notable examples:

T. Rowe Price Africa and Middle East Fund

Abbreviated as TRAMX, this fund is focused on banks and companies in Africa and the Middle East, as well as a investing in johannesburg stock exchange of European companies that do business there. Nearly 25% of their portfolio is located in South Africa. Over the five years beforethe fund experienced average quarterly growth of %.

Commonwealth Africa Fund

Launched ininvesting in johannesburg stock exchange Africa Fund(CAFRX) is one of five mutual funds under the umbrella of the Commonwealth International Series Trust. It largely invests in equity and debt securities issued by African companies involved in manufacturing and mining. Over the five years beforeCAFRX experienced average quarterly returns of %.

ADRs

American depositary receipts (ADRs) are a good way for investors in the United States to trade select African stocks. These securities represent shares in a foreign-registered company, allowing U.S. investors to trade African stocks in a U.S.-based stock market, investing in johannesburg stock exchange.

Many of these are natural resources plays, such as AngloGold Ashanti (AU), DRD Gold (DRD), Gold Fields (GFI), Harmony Gold (HMY), Randgold (RNDFX), Sibanye Gold, and Sasol (SBSW).

All of the previously mentioned companies are in mining, with the exception of Sasol, which is in the oil and gas business. In addition, MiX Telematics (MIXT) is in the logistics technology business. There is a wider universe of African stocks that trade on the Pink Sheets or over-the-counter (OTC) market. Pink sheets are less regulated and are traded in thin volumes.

The Bottom Line

Although Africa has yet to recover from centuries of foreign domination, many Investing in johannesburg stock exchange countries are becoming economic powerhouses in their own right. There is increasing demand from the growing middle classes, and local companies are filling that need expanding. Nobody can predict the growth trajectory with accuracy, but several countries on the African continent appear to be poised for growth.

Disclosure: The author did not hold any of the mentioned stocks or funds at the time this was written.

As mentioned previously, you’ll need to go through a stockbroker if you want to buy shares on the JSE. There are a number of member firms to choose from, and a full list can be viewed on the JSE website. When deciding on a broker, you’ll want to consider the associated charges, the way you want to trade and what you want to invest in.

Different firms often have different specialities, so make sure that you choose one with good experience in the specific sector you’re thinking of investing in. You’ll also want to take into account whether you want your stockbroker to take on afull-service role which includes offering advice and managing your portfolio, or whether you simply want an ‘execution-only’ broker who never suggests what to buy or sell, and only acts on your instructions. The first option is obviously far more costly, but advisory brokers can offer some solid insight into the best JSE shares to buy and how long to hold onto your shares before selling. With the latter option, you’ll generally be able to buy shares online quickly, using the first stockbroker available through your chosen member firm.

Stock exchange in Johannesburg, investing in johannesburg stock exchange, South Africa

For other uses, see JSE (disambiguation).

JSE Limited (previously the JSE Securities Exchange and the Johannesburg Stock Exchange)^[4] is the largest stock exchange in Africa. It is located in Sandton, Johannesburg, South Africa, after it moved from downtown Johannesburg in ^[5][6] In the JSE had an estimated listed companies and a market capitalisation of US$ billion (€ billion), as well as an average monthly traded value of US$ billion (€ billion).^[7] As of Octoberthe market capitalisation of the JSE was at US$1, billion.^[2][3]

History[edit]

The discovery of gold on the Witwatersrand in led to many mining and financial companies opening and a need soon arose for a stock exchange. The first share transactions on the Rand took place in a rustic canvas tent, with trade taking place on Sundays, as this was the only day when mining was not allowed, owing to a strictly enforced regulation prohibiting the entry of African workers to the gold reefs.^[8][9]

The Johannesburg Exchange & Chambers Company was established by a London businessman, Benjamin Minors Woollan and housed at the corner of Commissioner and Simmonds Streets. Out of this the JSE was born on 8 November What immediately gave the JSE a clear advantage over exchanges such as Kimberley, Barberton, and, most importantly, Investing in johannesburg stock exchange, was that listing of companies for investing in johannesburg stock exchange quotation on the Official List of the JSE was an easy and relatively cheap procedure. This relatively simple and non-restricting nature of the early Exchange promoted a wave of initial registrations on the Official List, with 68 companies by the end of November The Official List further expanded to more than companies by the end of January ^[10] By the trading hall became too small and had to be rebuilt but this too was outgrown. Trading then moved into the street. The Mining Commissioner closed off Simmonds Street between Market Square and Commissioner Street by means of chains.

Ina new building was built for the JSE on Hollard Street. It was a storey building that took up an entire whole city block bounded by Fox and Main, Hollard and Sauer Streets.

After World War II, it became apparent that this building was again inadequate and in the decision was made to rebuild the stock exchange. It took 11 years before construction began and in February the second exchange at Hollard Street was officially opened. Bythe JSE became a member of the Federation International Bourses de Valeurs (FIBV).

Inthe JSE took up residence at 17 Diagonal Street near Kerk Street, Johannesburg. saw the JSE become an active member of the African Stock Exchanges Association. After years, the open outcry system of trading was changed to an electronic system on 7 June

In Septemberthe Johannesburg Securities Exchange moved to its present location in Sandton, Gauteng at the corner of Maude Street and Gwen Lane. It adopted the JSE Securities Exchange as its new official name.^{[citation needed]}

In an agreement was struck with the London Stock Exchange enabling cross-dealing between the two bourses^[11] and replacing the JSE's trading system with that of the LSE.^[12]

In the JSE acquired the Bond Exchange of South Africa for R million and rebranded it the JSE debt market adding South African government and corporate bonds as well as interest rate derivatives to its product set.^[13][14]

On 18 Junethe JSE became a founding member of the United Nations Sustainable Stock Exchanges initiative on the eve of the United Nations Conference on Sustainable Development (Rio+20).^[15]

JSE Logo Prior to the April re-branding

On 14 Aprilthe JSE re-branded to demonstrates the bourse's identity as a modern African marketplace that connects investors to growth opportunities not only in South Africa but globally.^[16]

About the JSE[edit]

The JSE provides a market where securities can be traded freely under a regulated procedure. It not only channels funds into the economy, but also provides investors with returns on investments in the form of dividends.^[17][18]p

The Johannesburg Exchange in

The exchange successfully fulfils its main function—the raising of primary capital—by rechannelling cash resources into productive economic activity, thus building the economy while enhancing job opportunities and wealth creation.

The exchange is directed by an honorary committee of 16 people, all with full voting rights. The elected stockbroking members, who cannot number less than eight or more than eleven, may appoint an executive president and five outside members to the committee. Policy decisions are made by the committee and carried out by a full-time executive committee headed by the executive president.

The JSE is governed by its members but through their use of JSE services and facilities, these members are also customers of the Exchange. Each year the Investing in johannesburg stock exchange must apply to the Minister of Finance for an operating license which vests external control of the exchange in the FSB.^[19]

JSE TradElect[edit]

The JSE's fully automated (electronic trading) trading system is called the Millennium Exchange, which replaced the JSE TradElect system ininvesting in johannesburg stock exchange, which in turn had replaced the JSE SETS system in Aprilwhich had replaced the JSE JET system in May

The change to the Millennium Exchange involved moving the platform from London to a new platform housed in the JSE building in Johannesburg, thus speeding up the execution of transactions. The JSE operates an order-driven, investing in johannesburg stock exchange, central order book trading system with opening, intra-day and closing auctions.

Sens[edit]

In Augustthe JSE launched the real-time Stock Exchange News Service (Sens) to enhance market transparency and investor confidence. Initially, it was optional for listed companies to use the service during its two-month trial period.

From 15 October, augmented JSE listing requirements oblige companies to disseminate any corporate news or price-sensitive information on the service prior to using any other media outlet. Sens is carried by all the major wire services.

Strate[edit]

Since its inception over ten years ago, Strate (Pty) Ltd has become the licensed South Africa's Central Securities Depository (CSD) for the electronic settlement of financial instruments in South Africa. Strate's stated core purpose is to mitigate risk, bring efficiencies to South African financial markets and improve its profile as an investment destination.

Strate handles the settlement of a number of securities, including equities and bonds for the Johannesburg Stock Exchange (JSE), as well as a range of derivative products such as warrants, exchange-traded funds (ETFs), retail notes and tracker funds. It has now added the settlement of money market securities to its portfolio of services. It provides services to issuers for their investors in terms of the Companies Act and Securities Services Act (SSA),

Hours[edit]

JSE's normal trading sessions are from am to pm on all weekdays except Saturdays, Sundays and holidays declared by the exchange in advance.^[20]

Listed companies[edit]

Main article: List of companies traded on the JSE

Alternative Exchange[edit]

Main article: AltX

The Alternative Exchange is a stock exchange that was founded as a division of the JSE in order to accommodate small- and medium-sized high growth companies. Its website is accessible from the front page of the JSE's main website. The Alternative Exchange is known as AltX, investing in johannesburg stock exchange.

Ownership[edit]

The bourse is operated by JSE Limited, a company that listed on its own main board in June ^[21][22]

Fees and taxes[edit]

• Securities Transfer Tax (STT) %. Applies to share purchases only, not share sales.
• Strate % (excluding VAT) based on the value of the share transactions:
  • Minimum R for trades with a value up to R,
  • Maximum R for trades with a value over R1,
• FSB Investor Protection Levy % (excluding VAT) on all trades.

See also[edit]

Further reading[edit]

Lukasiewicz, Mariusz. "From Diamonds to Gold: The Making of the Johannesburg Stock Exchange, –" Journal of Southern African Studies (). pp.&#;–

Klein, Harry. The story of the Johannesburg Stock Exchange: Johannesburg: The Committee of the Johannesburg Stock Exchange.

Rosenthal, Eric. On 'Change Through the Years: A History of Share Dealing in South Africa. Cape Town: Flesch Financial Publications.

References[edit]

External links[edit]

As mentioned previously, you’ll need to go through a stockbroker if you want to buy shares on the JSE. There are a number of member firms to choose from, and a full list can be viewed on the JSE website. When deciding on a broker, you’ll want to consider the associated charges, the way you want to trade and what you want to invest in.

Different firms often have different specialities, so make sure that you choose one with good experience in the specific sector you’re thinking of investing in. You’ll also want to take into account whether you want your stockbroker to take on afull-service role which includes offering advice and managing your portfolio, or whether you simply want an ‘execution-only’ broker who never suggests what to buy or sell, and only acts on your instructions. The first option is obviously far more costly, but advisory brokers can offer some solid insight into the best JSE shares to buy and how long to hold onto your shares before selling. With the latter option, you’ll generally be able to buy shares online quickly, using the first stockbroker available through your chosen member firm.

Stock exchange in Johannesburg, South Africa

For other uses, see JSE (disambiguation).

JSE Limited (previously the JSE Securities Exchange and the Johannesburg Stock Exchange)^[4] is the largest stock exchange in Africa. It is located in Sandton, Johannesburg, South Africa, after it moved from downtown Johannesburg in ^[5][6] In the JSE had an estimated listed companies and a market capitalisation of US$ billion (€ billion), as well as an average monthly traded value of US$ billion (€ billion).^[7] As of October , the market capitalisation of the JSE was at US$1, billion.^[2][3]

History[edit]

The discovery of gold on the Witwatersrand in led to many mining and financial companies opening and a need soon arose for a stock exchange. The first share transactions on the Rand took place in a rustic canvas tent, with trade taking place on Sundays, as this was the only day when mining was not allowed, owing to a strictly enforced regulation prohibiting the entry of African workers to the gold reefs.^[8][9]

The Johannesburg Exchange & Chambers Company was established by a London businessman, Benjamin Minors Woollan and housed at the corner of Commissioner and Simmonds Streets. Out of this the JSE was born on 8 November What immediately gave the JSE a clear advantage over exchanges such as Kimberley, Barberton, and, most importantly, London, was that listing of companies for a quotation on the Official List of the JSE was an easy and relatively cheap procedure. This relatively simple and non-restricting nature of the early Exchange promoted a wave of initial registrations on the Official List, with 68 companies by the end of November The Official List further expanded to more than companies by the end of January ^[10] By the trading hall became too small and had to be rebuilt but this too was outgrown. Trading then moved into the street. The Mining Commissioner closed off Simmonds Street between Market Square and Commissioner Street by means of chains.

In , a new building was built for the JSE on Hollard Street. It was a storey building that took up an entire whole city block bounded by Fox and Main, Hollard and Sauer Streets.

After World War II, it became apparent that this building was again inadequate and in the decision was made to rebuild the stock exchange. It took 11 years before construction began and in February the second exchange at Hollard Street was officially opened. By , the JSE became a member of the Federation International Bourses de Valeurs (FIBV).

In , the JSE took up residence at 17 Diagonal Street near Kerk Street, Johannesburg. saw the JSE become an active member of the African Stock Exchanges Association. After years, the open outcry system of trading was changed to an electronic system on 7 June

In September , the Johannesburg Securities Exchange moved to its present location in Sandton, Gauteng at the corner of Maude Street and Gwen Lane. It adopted the JSE Securities Exchange as its new official name.^{[citation needed]}

In an agreement was struck with the London Stock Exchange enabling cross-dealing between the two bourses^[11] and replacing the JSE's trading system with that of the LSE.^[12]

In the JSE acquired the Bond Exchange of South Africa for R million and rebranded it the JSE debt market adding South African government and corporate bonds as well as interest rate derivatives to its product set.^[13][14]

On 18 June , the JSE became a founding member of the United Nations Sustainable Stock Exchanges initiative on the eve of the United Nations Conference on Sustainable Development (Rio+20).^[15]

JSE Logo Prior to the April re-branding

On 14 April , the JSE re-branded to demonstrates the bourse's identity as a modern African marketplace that connects investors to growth opportunities not only in South Africa but globally.^[16]

About the JSE[edit]

The JSE provides a market where securities can be traded freely under a regulated procedure. It not only channels funds into the economy, but also provides investors with returns on investments in the form of dividends.^[17][18]p

The Johannesburg Exchange in

The exchange successfully fulfils its main function—the raising of primary capital—by rechannelling cash resources into productive economic activity, thus building the economy while enhancing job opportunities and wealth creation.

The exchange is directed by an honorary committee of 16 people, all with full voting rights. The elected stockbroking members, who cannot number less than eight or more than eleven, may appoint an executive president and five outside members to the committee. Policy decisions are made by the committee and carried out by a full-time executive committee headed by the executive president.

The JSE is governed by its members but through their use of JSE services and facilities, these members are also customers of the Exchange. Each year the JSE must apply to the Minister of Finance for an operating license which vests external control of the exchange in the FSB.^[19]

JSE TradElect[edit]

The JSE's fully automated (electronic trading) trading system is called the Millennium Exchange, which replaced the JSE TradElect system in , which in turn had replaced the JSE SETS system in April , which had replaced the JSE JET system in May

The change to the Millennium Exchange involved moving the platform from London to a new platform housed in the JSE building in Johannesburg, thus speeding up the execution of transactions. The JSE operates an order-driven, central order book trading system with opening, intra-day and closing auctions.

Sens[edit]

In August , the JSE launched the real-time Stock Exchange News Service (Sens) to enhance market transparency and investor confidence. Initially, it was optional for listed companies to use the service during its two-month trial period.

From 15 October, augmented JSE listing requirements oblige companies to disseminate any corporate news or price-sensitive information on the service prior to using any other media outlet. Sens is carried by all the major wire services.

Strate[edit]

Since its inception over ten years ago, Strate (Pty) Ltd has become the licensed South Africa's Central Securities Depository (CSD) for the electronic settlement of financial instruments in South Africa. Strate's stated core purpose is to mitigate risk, bring efficiencies to South African financial markets and improve its profile as an investment destination.

Strate handles the settlement of a number of securities, including equities and bonds for the Johannesburg Stock Exchange (JSE), as well as a range of derivative products such as warrants, exchange-traded funds (ETFs), retail notes and tracker funds. It has now added the settlement of money market securities to its portfolio of services. It provides services to issuers for their investors in terms of the Companies Act and Securities Services Act (SSA),

Hours[edit]

JSE's normal trading sessions are from am to pm on all weekdays except Saturdays, Sundays and holidays declared by the exchange in advance.^[20]

Listed companies[edit]

Main article: List of companies traded on the JSE

Alternative Exchange[edit]

Main article: AltX

The Alternative Exchange is a stock exchange that was founded as a division of the JSE in order to accommodate small- and medium-sized high growth companies. Its website is accessible from the front page of the JSE's main website. The Alternative Exchange is known as AltX.

Ownership[edit]

The bourse is operated by JSE Limited, a company that listed on its own main board in June ^[21][22]

Fees and taxes[edit]

• Securities Transfer Tax (STT) %. Applies to share purchases only, not share sales.
• Strate % (excluding VAT) based on the value of the share transactions:
  • Minimum R for trades with a value up to R,
  • Maximum R for trades with a value over R1,,
• FSB Investor Protection Levy % (excluding VAT) on all trades.

See also[edit]

Further reading[edit]

Lukasiewicz, Mariusz. "From Diamonds to Gold: The Making of the Johannesburg Stock Exchange, –" Journal of Southern African Studies (). pp.&#;–

Klein, Harry. The story of the Johannesburg Stock Exchange: Johannesburg: The Committee of the Johannesburg Stock Exchange.

Rosenthal, Eric. On 'Change Through the Years: A History of Share Dealing in South Africa. Cape Town: Flesch Financial Publications.

References[edit]

External links[edit]

For more information about the Coronavirus (COVID), please visit www.oldyorkcellars.com

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Africa is rapidly becoming one of the newest destinations for emerging markets investors. Since , the World Economic Forum has identified more than half of the world's fastest-growing economies as located in Africa. Here we look at the past 20 years of Africa's economic development and future prospects.

Africa's Vast Natural Resources

The African continent is incredibly rich in natural resources. It has huge, untapped reserves of natural gas and oil (12% of the world’s reserves) and largely unexploited hydroelectric power. It is home to vast gold, platinum, uranium, cobalt, and diamond reserves. Currently, only 10% of Africa’s arable land is being cultivated, yet it holds around 60% of the world’s cultivable land.

Africa also has the advantage of a large and relatively cheap labor force. The continent is undergoing a demographic transformation, with youth as its theme; there is a very high proportion of Africans in their 20s and 30s with fewer dependents—both old and young—that will play out over the next decade.

There is stability in terms of governance, and many countries that witnessed terrible periods of unrest have emerged as success stories. There are better policies in place, trade has improved and so has the business environment.

Economic Growth in Africa

According to the World Economic Forum, by , over 40% of Africans will belong to the middle or upper classes, and there will be a higher demand for goods and services. In , household consumption is expected to reach $ trillion, more than double that of at $ trillion.

Much of that $ trillion will be spent in three countries: Nigeria (20%), Egypt (17%), and South Africa (11%). But Algeria, Angola, Ethiopia, Ghana, Kenya, Morocco, Sudan, and Tunisia will attract companies seeking to enter new markets. The sectors expected to grow the most in the next 30 years are food and beverages, education and transportation, housing, consumer goods, hospitality and recreation, healthcare, financial services, and telecommunications.

Stocks Mirror the Economy

Sub-Saharan Africa has around 29 stock exchanges representing 38 countries including two regional exchanges. These exchanges have a lot of disparity in terms of their size and trading volume. The continent has a handful of prominent exchanges and many new and small exchanges that are characterized by small trading volumes and few listed stocks. Efforts are being put in place by all countries to boost their exchanges by improving investor education and confidence, improving access to funds, and making the procedures more transparent and standardized.

How to Invest

African stock markets come in different varieties, and they require deep understanding to select the appropriate stock exchange. Due diligence is key. Investing through a mutual fund or exchange traded fund (ETF) is often a better bet for small investors looking for exposure to the economies of Sub-Saharan Africa. Such funds track a large basket of companies doing business in the region, rather than relying on any single stock or venture.

Direct Access

It is possible to invest in African stocks directly, although this route may come with additional risks. Some foreign stocks trade in North American exchanges as depositary receipts, securities that represent stocks in a foreign company. Domestic brokerages, such as Fidelity, also offer trading in international stocks, although doing so does involve some additional paperwork.

There are downsides to trading international stocks. According to the U.S. Securities and Exchange Commission, domestic traders may face additional risks on the foreign stock market. Foreign companies may be subject to less stringent regulations or reporting requirements than those at home, and U.S. investors may incur unexpected taxes. In addition, foreign securities are often priced in a foreign currency, adding an additional layer of risk for the U.S. trader.

Exchange-Traded Funds

Investing via ETFs and mutual funds comes with the built-in advantage of ease (they are traded on U.S. exchanges), diversification, and professional management. Some prominent ones include:

VanEck Africa Index ETF

The VanEck Africa Index ETF (AFK) tracks some of the largest and most liquid stocks in Africa. It holds about 75 stocks and has a country allocation (top 3) to South Africa (%), Morocco (%), and Nigeria (%). Over the five years before , the fund has closed each quarter with a % gain in net asset value (NAV).

The iShares South Africa Index Fund

The iShares MSCI South Africa Index(EZA) is allocated % to mid-sized and large companies in South Africa in the financial, consumer discretionary, and telecommunication services sectors. Over the past five years, the fund has gained an average of % per quarter.

Market Vectors Egypt Index Fund

The Market Vectors Egypt Index ETF (EGPT) gives access to Egypt, the third-largest economy in Africa, with an allocation of around 85%. The remainder is spread to geographically diversify across Luxembourg, Canada, and Ireland. Over the past five years, the fund has closed each quarter with an average gain of % in net assets.

Mutual Funds

Mutual funds invest in a large basket of different securities, usually targetting specific economic sectors or regions of the world. There are many such funds invested in the developing world as a whole, as well as those that invest only in Africa, or only in specific countries. The following are some notable examples:

T. Rowe Price Africa and Middle East Fund

Abbreviated as TRAMX, this fund is focused on banks and companies in Africa and the Middle East, as well as a handful of European companies that do business there. Nearly 25% of their portfolio is located in South Africa. Over the five years before , the fund experienced average quarterly growth of %.

Commonwealth Africa Fund

Launched in , the Africa Fund(CAFRX) is one of five mutual funds under the umbrella of the Commonwealth International Series Trust. It largely invests in equity and debt securities issued by African companies involved in manufacturing and mining. Over the five years before , CAFRX experienced average quarterly returns of %.

ADRs

American depositary receipts (ADRs) are a good way for investors in the United States to trade select African stocks. These securities represent shares in a foreign-registered company, allowing U.S. investors to trade African stocks in a U.S.-based stock market.

Many of these are natural resources plays, such as AngloGold Ashanti (AU), DRD Gold (DRD), Gold Fields (GFI), Harmony Gold (HMY), Randgold (RNDFX), Sibanye Gold, and Sasol (SBSW).

All of the previously mentioned companies are in mining, with the exception of Sasol, which is in the oil and gas business. In addition, MiX Telematics (MIXT) is in the logistics technology business. There is a wider universe of African stocks that trade on the Pink Sheets or over-the-counter (OTC) market. Pink sheets are less regulated and are traded in thin volumes.

The Bottom Line

Although Africa has yet to recover from centuries of foreign domination, many African countries are becoming economic powerhouses in their own right. There is increasing demand from the growing middle classes, and local companies are filling that need expanding. Nobody can predict the growth trajectory with accuracy, but several countries on the African continent appear to be poised for growth.

Disclosure: The author did not hold any of the mentioned stocks or funds at the time this was written.