Fewer stocks, bigger risks

JSE: LESS THAN 300 COMPANIES LISTED

- Keegan Marcia

The Johannesburg Stock Exchange (JSE) has faced significant challenges over the years, particularly in the form of a shrinking number of listed companies.

From a peak of 669 listings in 1998, the JSE has seen a decline of over 50%, with fewer than 300 companies currently listed. This reduction is attributed to factors such as increased regulatory costs, challenging economic conditions in South Africa, and strategic moves by companies to pursue delisting in favor of private equity opportunities.

The decline in new listings, particularly after the 2008 global financial crisis, has exacerbated this trend.

While the JSE attempted to rejuvenate the market with platforms like AltX for small and mid-sized enterprises, delistings have continued to outpace new entries.

The impact of these delistings is a more concentrated market, dominated by a few large companies, especially in sectors like commodities and tech, with major players like Naspers and Prosus holding weight.