JSE Market Segments
The JSE operates a tiered system of classification for its listed companies, and divides the securities traded on it into three market segments. These segments are as follows:
- Main Board: This is the primary category of listing and features the most capitalized stocks on the JSE. There are 40 of such stocks, tracked by the FTSE/JSE Top 40 index.
- AltX: AltX stands for “alternative exchange”, which is where small and mid-cap stocks are listed. These stocks have less capitalization than the stocks listed on the Main Board.
- Debt Market: The JSE also operates a bond market, where government and corporate bonds can be traded. This is the broadest market segment on the JSE as it features more products than the Main Board and the AltX. This segment features a lot of institutional participation from Africa and beyond.
The JSE is the largest exchange in Africa and also has the greatest market depth because it attracts listings from international companies. Many of the world’s biggest companies also list on the JSE and are part of the JSE All-Share Index. This makes the bourse a sought-after destination for investors looking for profitable exposure to the emerging markets of Africa and their investment capital.
The JSE, as well as its listed entities and the staff who work within the exchange, are all regulated by the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA). This is known as the Twin Peaks Model of regulation, which provides oversight by two regulatory bodies. The FCSA oversees the equities market as well as the operations of the trading infrastructure for this market, and the PA acts as a watchdog for financial institutions, the debt market and insurance corporations and reports to the central bank of South Africa, the South African Reserve Bank (SARB).
Main sectors on the JSE
The stocks that are listed on the JSE are divided into sectors, which reflect the consumer profiles for these companies’ products. Sectors featured on the JSE include banking & financial services, food & beverages, agriculture, mining, mobile telecommunications, real estate, technology, healthcare, energy.
- Mining: Anglo-American Ltd, Glencore Plc, Bauba Platinum Limited, Atlatsa Resources Corporation, Central Rand Gold Ltd, DRDGold Ltd.
- Telecommunications: MTN, Vodafone, Cognition Holdings Ltd, Huge Group Ltd.
- Food/Beverage: Nutritional Holding Limited, Shoprite Holdings Limited, Oceana Group Limited
- Banking & Financial Services: ABSA, Nedbank, RECM and Calibre Limited, London Finance and Investment Group, etc. Alexander Forbes Group Holdings Ltd, Anchor Group Limited, BK One Limited, Blue Financial Services Ltd, Capitec Banks Holdings Ltd.
- Real Estate: MAS Real Estate Company Ltd, Mainland Real Estate Company Ltd, Castleview Property Funds Ltd.
- General Retailers: Homechoice Ltd, Imperial Holdings Ltd, Curro Holdings Ltd.
- Oil & Gas (Energy): Efora Energy Ltd, Keaton Energy Holdings Ltd.
- Construction: Afrimat Limited, Aveng Ltd, Basil Real Holdings Ltd.