Johannesburg — THE JSE's own share price surged as its results yesterday showed the bourse has weathered tough global market conditions well.

The share price briefly rose more than 8% to R68,70, which was a 52-week high. It closed 1,1% higher at R64,20.

The JSE's taxed profit fell 2,4% to R366m in the year to December 31, due mainly to a 12% increase in operating costs to R810m. The dividend was maintained at 192c a share.

The cost increase came about from higher personnel costs after the Bond Exchange of SA (Besa) acquisition and a bolstering of the IT team to enhance technology. Deputy CEO Nicky Newton-King said investment in IT would continue in the new financial year.

The Besa acquisition offered the opportunity to grow a consolidated market in spot interest rates and interest rate derivatives using the JSE platform. These markets were now traded on an over-the-counter basis.

The move would allow greater transparency and risk management, said Newton-King.

Revenue at the JSE climbed 8% to R1,16bn.

CEO Russell Loubser said: "The challenges of 2009 were significant. In addition to adapting to the aftermath of the crisis, management focused on positioning the exchange for continued growth. This included strategic initiatives such as the launch of the Africa board."

Volumes in the cash equity markets rose during the year while there had been strong performances from other divisions in the group. Last year, 10 new companies listed compared with 23 in 2008. High levels of corporate activity among JSE-listed companies boosted the revenue of the listings division.

Newton-King said there was a pipeline of new listings, but it had proved "a challenging period" to attract new listings.

The equities business contributed to the bulk of the JSE's revenue (R647m, or 56% of revenue). Foreign investors were net buyers of R75bn of equities, a swing of R130bn on 2008. Loubser said the foreign inflows showed confidence in SA's economic prospects, and trust in the JSE's systems and regulation.

In a bid to encourage trade and improve liquidity, a new pricing model that would encourage high volume and high value participants became effective this month. Investor confidence in equity derivatives showed signs of recovery from November's lows.

Bond market volumes fell last year after peaking in 2008. Volumes traded by foreigners last year were 49% below those of 2008. Despite this, the turnover volumes last year remained higher than previous years.