The JSE reported a slow start to 2024, but value traded in the equity market started to recover in the second quarter to end-June, with the trend extending into July, group CEO Leila Fourie said yesterday.
Higher trading activity was reflective of positive market sentiment stemming from the outcome of the national elections and the formation of the Government of National Unity (GNU), Fourie said at the release of the interim results of the operator of the JSE.
“We remain on track … to position the JSE as a diversified and sustainable exchange, through next-generation technology, expanding our range of products and services, entering new markets, providing fair and transparent regulation, and strengthening our operational capabilities,” she said.
Net profit after tax of R493 million, the same as at the same time last year, translated into headline earnings per share of 606 cents, which was 0.2% lower than at the half-year mark last year. The group continued to be cash generative, with cash generated from operations of R502.6m (R487.9m).
Operating income grew by 4.2% underpinned by increasingly diversified revenue streams. A strong performance of the JSE’s diversified business segments and asset classes, year on year (Y-o-Y) growth, offset the 12% decline in equity value traded.
JSE Investor Services (JIS) grew by 28.9%; commodity derivatives revenue by 24.7%; and revenue from bonds and interest rate trading by 7.8%.
“The results reflect our segment and asset class diversification as well as progress in growing non-trading income, which represents 39% of total operating income,” said Fourie.
Over the period, the JSE saw continued growth in sustainability products Eight new sustainability bonds were listed, bringing the total to 76 listed sustainability bonds, while the number of Actively Managed Exchange Traded Funds (AMETFs) grew by 100%.
The exchange was on track to complete its core market data-to-the-cloud transition by the end of the year.
Its analytics-as-a-service capabilities had been expanded to global exchanges and their ecosystems. A cloud-based colocation service, Colo 2.0, was delivered that offered brokers lower trading latency. There was also good progress in the development of the central clearing for the bond electronic trading platform (ETP) through JSE Clear.
“The JSE’s businesses remain resilient despite the fluid environment. The JSE Investor Services and Information Services businesses delivered expected growth on the back of management focus and investment,” she said.
Primary market revenue increased by 5.9% to R87m. Equity trading revenue fell 12% to R212m. Colocation fees increased 16.9% to R24m. Equity derivatives trading revenue fell 1.2% to R58m.
Bond and Interest Rate Trading revenue was up: 7.8% to R50m. Currency Derivatives Trading revenue was up 9.8% to R20m. Commodity Derivatives Trading revenue increased by 24.7% to R46m.
JSE Investor Services revenue was up 28.9% to R121m. In post-trade services, clearing and settlement revenue fell 10.9% to R197m. Back-office services revenue increased 12% to R203m.
JSE Clear revenue increased 13.2% to R60m. Information Services revenue increased 6.6% to R242m. Other income was up 50% to R27m.
BUSINESS REPORT