What's the Beef with: JSE stock analysis (JSE)

JSE Limited (JSE)

The largest and oldest stock exchange in Africa, the Johannesburg Stock Exchange Limited (JSE) has seen its fair share of ups and downs, don’t mind the puns!

The Johannesburg Stock Exchange has been in existence for 131 years. In 2014 the JSE re-branded to demonstrate the bourse's identity as a modern African marketplace that connects investors to growth opportunities, not only in South Africa but globally.

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Fundamentals and outlook

Yes, boys and girls if you haven’t realised it by now the Johannesburg Stock Exchange is a business like any other and the bourse de-mutualised before listing on its own exchange in 2005. By looking at the JSE Limited (JSE) stock’s performance, one can gouge the state of the local economic environment to a certain extent.

By looking at the latest earnings we can see that the current economic environment has contributed to the share price drop. And to top it off, Nicky Newton-King is also on her way out. The JSE announced earlier in the week that its CEO of eight years is set to retire. Newton-King was the first woman to take the helm of Africa’s largest exchange back in 2012. She will be replaced by Leila Fourie, a Commonwealth Bank of Australia executive

Chart Life

Looking at the chart of the JSE Limited we can see that the price action has been under pressure for some time now as local and international pressures mount.

Source - Bloomberg

Portfolio particulars:

• Portfolio Neutral (Current)
• Portfolio Buy opportunity: Neutral 
• WhatsTheBeef long term target price: None. 

Know your company: JSE Limited (JSE)

• 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 1887.
• It took 125 years before Nicky Newton-King become the first woman to become CEO of the JSE.
• After 108 years, the open outcry system of trading was changed to an electronic system on 7 June 1996.
• In 2000, the Johannesburg Securities Exchange moved to its present location in Sandton and changed its official name to the JSE Securities Exchange. In 2001 an agreement was struck with the London Stock Exchange enabling cross-dealing between the two bourses and replacing the JSE's trading system with that of the LSE.

Source - JSE

*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio.

**Portfolio Buy opportunity refers to Technical level crossed which might imply that the markets behaviour would support the outlook and Close above refers to a share price close above a Technical Resistance level.

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Barry is a market analyst with GT247.com, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.