JSE benefits from Covid-related volatility


JSE benefits from Covid-related volatility


Published Date: 2021-02-26 | Source: Stephen Gunnion | Author: Stephen Gunnion

JSE benefits from Covid-related volatility

The stock and bond exchange operator also attributed higher earnings to its investments in technology and skills.

JSE Limited has reported a healthy rise in annual earnings after last year's market volatility boosted trading volumes. However, the stock and bond exchange operator also attributes its performance to its investments in technology, skills and relationships with its stakeholders.

The JSE said initial public offerings remained under pressure in 2020, with just four deals for the year versus five in 2019 owing to uncertain market conditions. However, it said there was a growing demand for green bonds in emerging markets, driven by private borrowers looking for investments in sustainable energy, cleaner water, transport and smart buildings. There were 20 de-listings, down from 24 the previous year, which were largely the result of corporate actions and schemes of arrangement in mostly small-to-mid-sized, illiquid counters. Although the number of listed entities declined, it said the aggregate market capitalisation of all entities listed on the JSE increased by 2% during 2020.

Total revenue increased by 13% to R2.5 billion, supported by a 14% increase in turnover at its Equity Markets unit and a 16% rise in clearing and settlement revenue at its Post-Trade Services operation. This was driven by increased billable value traded and central order book activity in the Equity Market. Group earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 19% and profit after tax grew by 12% to R778 million. Earnings and headline earnings per share rose 15% to 936.7c and it raised its dividend by 5% to 725c per share.

The exchange said it remained in a healthy position with regard to cash and capital, with net cash generation supporting a stable cash balance of R2.5 billion at the end of December.

The company's shares rose 1.4% to R118.60 yesterday.


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