Jse equity and equity derivatives markets end 2014 with record highs – cover publications marketing future


Trading activity on the JSE’s Equity Market was most pleasing in 2014; with the number of trades notably up on the previous year, with value of trade marginally increasing gold price chart. The Equity Derivatives Market also had an excellent year, posting several new records and reflecting ongoing foreign participation in the products available in this segment of the exchange silver chart kitco. Both of these markets posted several new records in terms of volume and value of trade.

Donna Oosthuyse, Director Capital Markets at the JSE, comments: “The JSE Equity Market is the bedrock of the exchange and we are pleased with the performance of this segment of the market for the year, driven mainly by renewed positive US economic sentiment and a rapid decline in oil prices dollar exchange rate history. December was a particularly exciting time for the Equity Market, as we recorded new daily and monthly value trade records, complemented by the addition of eight new counters, with a total market cap of R23bn, to the bourse.

In total, there were 24 companies which debuted on the JSE in 2014, with these new listings adding a market capitalisation of R86bn 1 usd to inr yesterday. The performance of the Equity Derivatives Market is also pleasing as it signals to the improving appetite of local and foreign investors to participate in this segment of our capital markets.”

For the Equity Market, total number of trades in 2014 increased by 19% compared to the previous year, and value traded saw a marginal increase of 2% year on year, with the value of trades largely driven by foreign participation in five key sectors: Mining (R621bn); Media (R499bn); Banking (R339bn); Mobile Telecommunications (R327bn); and General Retailers (R199bn) put and call option agreement. Oosthuyse notes that “although the increase in value of trade was marginal, overall trading in 2014 had been robust”.

December was particularly pleasing for the Equity Market as it achieved the highest turnover traded for that month at R345.5bn (representing a 45% increase from the comparable period in December 2013) 1 usd to ngn. This is a record high for a December month, from a value traded and number of deals perspective when compared with the last three years.

Adding to these achievements, on 18 December, the JSE Equity Market posted a record high in daily value traded at R53.7bn, increasing the daily average value traded to R17.3bn gender roles. The record for the number of trades executed in a day was recorded on 16 October 2014, with 395 969 trades going through the exchange.

The JSE’s Equity Derivatives Market also delivered a stellar performance in 2014 usd cad news. This market achieved a record high on 17 June, when it reached an all-time daily high in value traded at R157bn, increasing the daily average value traded to R24bn.

This market provides traders and private investors with a platform for trading Futures, Exchange Traded CFDs, Options and other Derivative Instruments funny quotes and sayings. The value traded on this market was up 18% to R6 trillion, which shows a large increase relative to the benchmark performance of the Equity Market where value traded, grew by 2%.

The growth in trading value on the Equity Derivatives Market was driven by the JSE’s flagship equity derivative futures products – Index Futures and Single Stock Futures (SSFs) – which both increased by 19%. The ratio of Index Futures and SSFs to cash equity market turnover increased to 1.44, the highest it has ever been for the derivatives market. Oosthuyse points out that foreign participation in index futures has increased compared to 2013, from 31% to 37%. “This is a promising development as any increase in foreign participation can only breed more liquidity and galvanize our status as a first world exchange.”

Options did not perform well in 2014 due to volatility below its 10 year historical mean of 20%, especially in the second and third quarters of 2014.

December was also a good month for the Equity Derivatives Market, with monthly records being posted joy newsome. The R3.9 billion value traded in futures for December 2014 represents an all-time high for the market and the R133 million value traded in options is the highest this decade.

For 2014, Open interest was up 67%. Open interest records the number of contracts for particular futures or options which are outstanding. The large percentage of open interest indicates more activity and positions taken in equity derivatives contracts.

“Going into 2015, a key focus for us will be to sustain these positive growth levels for the Equity and Equity Derivatives Markets” says Oosthuyse. “For the Equity Market our priority will be to ensure that the JSE remains an attractive venue for participation in the capital markets. For the Equity Derivatives Markets, our key focus will be to remain responsive to the needs of the market by offering investors with innovative products that provide global exposure and an ability to weather the prevailing economic environment.