The Johannesburg Stock Exchange (JSE) has experienced a significant surge in trading activity, with a 41% increase in average daily volume and a rise in new listings and product launches. Valdene Reddy, the director of capital markets at JSE, sheds light on the factors driving this growth after a period of stagnation in South Africa’s markets.

Despite a decade of subdued performance characterized by low volumes and uninspiring listings, recent years have witnessed a turnaround for JSE, propelled by improved macroeconomic conditions and a shift in political dynamics. Reddy emphasizes the exchange’s commitment to operating as a world-class platform and capitalizing on emerging trends to cater to client needs while leveraging its status as the largest exchange in Africa.

JSE’s strategic focus on diversification across asset classes, such as equities and bonds, has fostered a robust derivatives market encompassing various products including equity, currency, commodity, and interest-rate offerings. The exchange has made substantial investments in product development and data solutions, aiming to enhance market quality and liquidity.

Political reforms and structural changes have bolstered JSE’s performance, leading to a remarkable year marked by a 52% increase in returns and a 41% surge in average daily trading volume. Reddy likens this resurgence to emerging from a period of dormancy, with the market witnessing fresh record highs and narrowing valuation gaps compared to global peers.

International interest in South Africa’s market has been reignited, with a notable uptick in new listings and renewed investor confidence. The country’s appeal as a growth platform has attracted companies from the UK and Europe, signaling a shift towards a more globally relevant marketplace. Initiatives like the sustainability segment and innovative product offerings, including actively managed certificates and ETFs, have further enriched JSE’s capital-raising landscape.

Looking ahead, JSE is poised for continued growth with a focus on expanding into new markets, embracing digital assets, enhancing infrastructure, and fostering connectivity. The exchange’s enduring legacy as a pillar of financial market infrastructure underscores its commitment to facilitating capital raising and trading while ensuring market resilience and functionality.

In conclusion, JSE’s resurgence underlines its readiness for a new era of transformation and growth, positioning itself as a dynamic player in the global financial landscape.