One South African company benefiting from Trump’s tariff volatility

While the volatility and uncertainty arising from the United States’ on-off tariff policies have shaken many industries, the JSE has benefited significantly from the increased trading activity during this period.

The company saw higher profits and revenue in the first six months of the year, supported by a strong performance in its Capital Markets division, driven largely by equity trading.

The JSE, which operates the largest stock exchange in Africa, released its interim results for the six months through June 2025 on Tuesday, 5 August.

These results revealed a strong performance for the company, with revenue growth of nearly 12% to R1.65 billion and net profit growth of over 13% to R558 million.

The company’s operating income grew by 11.4% to R1.71 billion in the six-month period, primarily supported by equity market revenues.

While most of the JSE’s business segments reported growth in revenue for the period, Capital Markets and Post-Trade Services were standout performers, with revenue up by 16% and 17%, respectively.

The Capital Markets saw a significant boost from equity trading, which grew revenue by 28% to R272 million, making it the largest contributor to this segment’s R611 million total.

The JSE explained that this increased trading activity also came with higher costs, although these expenditures were carefully managed over the period.

Total operating expenditure increased by 7.5% to R1.09 billion amid increased trade-related costs. Around 1.56% of this increase relates to costs linked to higher trading activity.

The company also recorded R27 million in capital expenditure, down slightly from R29 million in the first half of its 2024 financial year. This spending was focused on protecting the JSE’s core business, as well as growing new business lines.

Overall, the JSE recorded a 13.4% increase in earnings per share to 687 cents, with headline earnings the same.

The JSE said these strong results were achieved during a period of heightened geopolitical and trade tensions.

“The bourse’s growth was driven by elevated equity market activity, supported by broad-based revenue growth across the core business, demonstrating high quality of earnings underpinned by diversification,” it said.

Reviving the JSE

These strong results come amid the JSE’s ongoing efforts to revive the exchange and reverse a trend of delistings.

The company recently said it is exploring 24/7 trading and regulatory reforms to reverse its delisting crisis, attract new listings, and enhance its competitiveness in a global market.

This comes as some major stock exchanges across the world are shifting toward round-the-clock trading, including the Nasdaq. The New York and London stock exchanges are also considering extending their trading hours.

“The use case and operating model for 24 X has been proven with trading across digital assets and, in particular, crypto,” Valdene Reddy, Director of Capital Markets at the JSE, told Daily Investor.

“So, it’s a model that has been in play with traditional assets looking to catch up.”

Reddy explained that the confluence of several factors could convince the exchange to make the switch.

This includes global shifts, the fact that over 25% of its counters are dual-listed, and its mix of both international and local issuers and investors.

“We are watching this space closely to understand the timing and trajectory of global market shifts and will respond appropriately to ensure the relevance of the SA capital markets,” Reddy said

However, he emphasised that while extended trading hours may offer more opportunities, the real value lies in whether they enhance market depth and quality. 

“A holistic view of the trading ecosystem is essential to assess the true impact of such a transition,” he said.

Other steps the JSE has taken to minimise delistings, increase new listings and draw investment include simplifying its listing requirements.

“The Simplification Project aims to simplify the Listings Requirements using plain language to record concise regulatory objectives, allowing better understanding and application of the requirements by listed companies, sponsors, and investors,” the exchange said.

According to the JSE, an additional benefit of the simplification is a significant reduction in the number of listing requirements.

“During the process, the JSE will also assess the regulatory relevance of each provision and ‘cut red tape’ where possible to ensure that the Listings Requirements are fit for purpose, aimed at an effective and appropriate level of regulation,” it said.

“To this end, any amendments beyond simplification will be clearly identified and the rationale explained.”