JSE CEO discusses earnings, listing prospects for second half of the year

The Johannesburg Stock Exchange (JSE) has reported a 26 per cent drop in headline earnings per share for the six months ended June. Despite this decline, JSE CEO, Leila Fourie, remains optimistic about the exchange's performance and potential listings in the second half of the year. In a recent interview with CNBC Africa, Fourie discussed the factors that contributed to the decrease in earnings, as well as the market outlook for the coming months. The JSE faced challenges from lower revenue in the equity and bond markets, along with external factors such as interest rates and foreign exchange fluctuations. However, Fourie highlighted that the exchange's normalized costs remained stable, and the results were in line with expectations following significant market events. Despite the decline in transaction volumes and values on the equity side, the JSE saw positive growth in market capitalization and overall value, indicating investor confidence in the exchange. On the bond side, foreign flows have shown a significant increase, signaling renewed interest from foreign investors. Fourie also addressed the topic of listings on the JSE, acknowledging that fees remain a point of concern for potential listings. However, she emphasized that listings activity is influenced by market sentiment and macroeconomic conditions, both globally and in South Africa. The JSE is actively working to attract new listings, including a foreign IPO from the Middle East called Athena. Additionally, the exchange has introduced initiatives to support SMEs, such as an accelerator program and a private marketplace for capital raising. Fourie expressed excitement about the potential growth in the tech sector, particularly in fintech and SMEs, highlighting the JSE's efforts to create opportunities for these companies to access capital in a less stringent environment. With several listings in the pipeline and positive market indicators, the JSE is poised for continued growth and development in the second half of the year.