A Look Back at the JSE Performance in 2016

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The Johannesburg Securities Exchange (JSE) performance in 2016 experienced strong growth from almost all divisions. Regarded as one of the top 20 exchanges in the world in terms of market capitalization, the JSE saw group earnings after tax increase by 19%.

Formerly known as the Johannesburg Stock Exchange, the Securities Exchange has been operating as a market place for the trading of financial products for 129 years.

According to experts, the South African market is now aligned to global standards, helping to make South Africa more attractive to foreign investors.

More about the JSE performance in 2016

The big five banks, as well as upstart Capitec managed to gain some strong returns.

The South African financial sector recovered from “NeneGate” in December 2015 and banks managed to record growth. It was a year in which South Africa faced possible downgrades by international ratings agencies, which led to hesitation on the part of potential investors, many companies managed to recover well.

It was a turbulent year for South Africa’s markets, where almost half of the country’s 40 biggest companies lost share value.

Mining stocks were bolstered by relatively steady labour conditions and ‘safe’ bets due to global economic uncertainty. Where investments in other stocks proved to be too risky, investors sought solace in gold investments and other ‘safe’ commodities.

Companies with strong trade in the United Kingdom suffered losses due to Brexit

Anglo American share prices went from R64,89 to R195,00.

Capitec share prices went from R523,99 to R695,00.

Shoprite share prices went from R136,51 to R171,46.

Vodacom share prices went from R146,42 to R152,00.

Overall, the JSE performance in 2016 recovered well following a turbulent year for the markets as a result of various political decisions.