The Johannesburg stock exchange offers endless investment opportunities to anyone looking forward to investing in the best stock exchange market in South Africa. JSE is, thus, the largest and the best stock exchange market in Africa. The market is highly regulated and allows traders to not only trade in its assets but also gives them a chance to invest in stocks for purposes of earning dividends.
JSE is a fully automated market that is open for trading from Monday to Friday, starting from 9.00 am to 5.00 pm. The market remains closed on Saturday, Sunday and any other day declared a public holiday. Continue reading to see why you should Invest in JSE top 40.
What is the JSE Top 40 Index?
JSE’s top 40 Index consists of the top 40 companies on the JSE stock exchange. This index is sometimes referred to as South Africa 40 index or FTSE and is made up of the 40 largest companies listed on the Johannesburg stock exchange. The index represents only 10% of all companies listed on South Africa’s leading stock exchange. The 40 companies represent 80% of JSE’s market capitalization. Therefore, the JSE top 40 index is a reliable benchmark that represents 99% of the JSE market capital value.
The list of JSE’s top 40 companies includes Absa Group Limited, Anglogold Ashanti, Anglo American Platinum, and Anglo American Company. Others include BidCorp ltd, BHP group, Aspen Pharmacare, and Anheuser Busch InBev, among others.
JSE Top 40 index comprises of companies weighted according to market capitalization. It consists of companies with the largest market cap, and which have the most significant influence on the exchange.
Why should one invest in JSE Shares?
There are good reasons why you should consider investing in the JSE shares. They include:
It is a robust market. JSE is the largest stock exchange market in Africa and provides the best investment opportunity. Besides, the market shares critical information that makes it easier for traders to make investment decisions.
JSE is an old secure, reliable market. Gold was discovered in South Africa in 1886. In 1887, the stock exchange was started in response to raising the money needed to invest in gold mining. Thus, for over 130 years, the market has offered investors plenty of investment opportunities.
It is efficient. JSE is efficient and has been in operation for the past 130 years. It allows buyers and sellers to trade in different equity derivatives, shares, currency derivatives, commodity derivatives, and interest rate products.
Allows for online trading. Initially, JSE was a floor-based market where traders had to meet on the floor to trade. However, the market has been modernized and adopted electronic trading. Thus it is more secure and accessible and allows traders to even trade online.
What are the best JSE shares to buy?
Being the largest stock exchange In Africa, JSE has several companies a prudent investor should consider investing in. According to the Bank of America Global research, the buy ideas from JSE include Nedbank, Absa, Mr. Price, Bidcorp, Barloworld, and Bidvest. Others include Bidcorp, Aspen, Airtel Africa, MTN, and Netcare. The list consists of companies that experienced the most robust growth in 2021, albeit the coronavirus pandemic.
How to invest in the JSE Top 40 Index?
To succeed investing in JSE, a trader needs to open an account with a reputable broker. They also need to identify companies with bright prospects and research on them. They should also listen to news, watch other international markets and understand how currency fluctuations could influence share prices on JSE. Also, they will need to keep an eye on news impacting the companies before they choose companies to invest in.
So how do you get started?
Before you start, you need to find an appropriate broker and open an account with them. After funding the account, you must research the companies listed, and select the ones to invest in.
Conclusion
Investing in shares has become the easiest way to create wealth if you do not want to go the long route of starting your own business venture. In South Africa, JSE gives the public a chance to invest in the largest companies in South Africa. It lists companies such ABSA, Bidcorp, Aspen, Airtel Africa, and MTN. But the investor needs to be weary and keep an eye on the many risks that may make the prices of stocks dip. So before they invest, they must look out for labor strikes, social tension, protests, and load shedding factors.
