25 February 2016

South Africa: Active Markets Steer JSE Healthy

Johannesburg — FOLLOWING a commendable performance by the Johannesburg Stock Exchange (JSE), Chief Executive Officer Nicky Newton-King has called for greater collaboration between business, government and other stakeholders to ensure sustained growth for the economy.

"The recent State of the Nation Address and Finance Minister Pravin Gordhan's Budget speech clearly point to the economic stresses in our country," said Newton-King.

"This is a moment for all stakeholders to accept the government's invitation to partner in achieving inclusive growth. The JSE looks forward to playing its role in this collaboration."

JSE performed well in 2015, a period that saw profit grow 42 percent to R899 million.

Earnings before interest and tax (EBIT) increased by 45 percent (2014: 22 percent) to R1 billion (2014: R704 million) as earnings per share (EPS) and headline earnings per share (HEPS), at 1 051 cents (up 42 percent) and 1 026.3 cents (up 40 percent) respectively, reflect the Group's well-established commercial momentum.

"The JSE's solid performance is attributable to double-digit revenue growth across all operating divisions, driven by significantly higher market activity, which was well handled by the increasingly robust technology in which the exchange continues to invest," says Newton-King.

Looking forward, the JSE and its clients will be operating in a difficult economic environment in 2016, said Newton-King. Understanding this, these results have enabled JSE announce further reductions in trading fees with effect from April.

It announced that, subject to market readiness, it would move to T+3 settlement in July.

"We are excited that, although this investment will impact our income statement in the short term, it will position us well to continue to enhance the service we provide to clients and build on our long-established capabilities in operating Africa's leading exchange," said Newton-King.

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