By Thulani Mpofu
South Africa's main bourse, the Johannesburg Stock Exchange (JSE), has said 2024 is likely to be its best in five years as more companies join the market after at least 25 de-listings over the past two years.
Three companies have come on board since January with the last two, medicinal cannabis investor Cilo Cybin, and fast food group Rainbow Chicken, doing so on June 25 and 26, respectively. Two more companies are expected to do likewise over the next few months.
Valdene Reddy, the JSE's director of capital markets, News24 reported on June 26, expects 2024 to be a 'good momentum year compared to previous years.'
Denker Capital says 13 firms left the JSE in 2022 and 12 a year later. There were five listings in 2022 and three in 2023. In total, there are around 300 counters on the market, down from up to 600 in the 1990s. High listing costs, bankruptcy and acquisitions have been cited as factors behind the departures.
Reddy said there could be even more listings because 'there's a lot of corporate action in play if you look at the opportunities'.
The JSE is coming up with new products including actively managed certificates and exchange-traded funds, with Reddy adding the market could expect to see 'quite a few listings through that pipeline'.
The recent formation of a unity government could drive the economy forward, which could encourage more listings, Reddy told News24.
She said the results of the May 29 elections were a 'pivotal inflection point', adding that until South Africans cast their votes, investor sentiment had been subdued.
