Five JSE stocks that left investors in tears
The five worst-performing shares on the JSE in 2024 were Sasol, Renergen, Montauk Renewables, Gemfields, and Jubilee Metals.
South Africa’s stock market performed well in the second half of the year after a favourable election outcome.
As international investors saw value in South Africa’s bond and equity markets, money started to flow into the country.
Many South African stocks were undervalued, and investors felt they could achieve better returns in local stocks than in other markets.
However, not all South African stocks achieved positive returns. Many have lost a lot of value during the year.
Sasol, one of the largest global chemicals and energy companies, performed particularly poorly last year, losing 54% of its value.
Sasol’s poor performance was driven by significant asset write-offs. In the 2024 financial year, Sasol reported a massive R75 billion asset impairment charge.
These charges, primarily related to its chemicals operations, contributed to the group’s loss of R44 billion for the 2024 financial year.
The gas producer Renergen saw its share price plummet by 54% as it missed its LNG production targets and failed to deliver to commercially produce and sell any helium.
It also reported its worst-ever financials, with a net loss of R71 million in the August 2024 interim period.
Montauk Renewables, a leader in biogas-based renewable energy development, saw its share price decline by 50% in 2024.
The company experienced significant impairment losses during the 2024 financial year related to one of its renewable energy generation sites and renewable natural gas equipment.
The group also experienced multi-day power outages due to hurricane damage, which adversely affected its production.
Gemfields, a British mining company headquartered in London, experienced a difficult year in 2024, with its share price declining by 49%.
It released its 2023 financials in March 2024 and reported a disappointing 23% reduction in annual revenue and a $2.8 million net loss, down from a $74 million profit.
Its September interim results were no better, as it reported another 17% reduction in interim revenue and a 25% decrease in interim net profit.
Jubilee Metals, a leading metals recovery company, had a challenging year, with its share price dropping by 46%.
The company’s copper sales decreased 9% for the 2024 financial year, and its Platinum Group Metals (PGM) sales decreased 31%.
The table below shows the worst-performing shares on the JSE in 2024.
Company | 2024 Performance |
Sasol | -54.4% |
Renergen | -53.6% |
Montauk Renewables | -49.8% |
Gemfields | -48.8% |
Jubilee Metals | -46.0% |
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