JSE Ltd is pursuing acquisitions in information services and technology to bolster its nontrading revenue — which accounts for more than a third of total income — but only if the price is right, according to its boss.
“Businesses that we’re targeting would be in information services or data. They could be in technology or infrastructure provision. It would all be in some way related to our core,” CEO Leila Fourie said in an interview with Business Day after Africa’s deepest capital market issued its half-year earnings report.
“But we are limited and would not ever consider entering a business that would directly compete and put us in competition with our market participants, and put us in a conflict of interest. So we are limited in the potential targets.”
Even with a chunk of the JSE’s R2.5bn liquidity pool locked away for regulatory and fiduciary purposes, the bourse operator has solid firepower for selective M&A and infrastructure transformation, without forcing shareholders to share the pain of lower dividend payouts.
The JSE’s push into new revenue streams slots into the global narrative of exchanges diversifying beyond volatile trading revenues and embracing data monetisation as they grapple with delistings that have hollowed out transaction-based income.
Still, trading remains core to the JSE as a marketplace, where companies access public equity funding, especially mid-sized and high-growth firms, to expand and create jobs.
As such, the exchange is replacing its legacy mainframe code with Amazon’s AI tools and preparing to be the first LSEG client on a cloud-based trading system, a move that will enable the JSE to roll out new products faster and cut costs as firms will pay only for usage, Fourie said.
Fourie was speaking shortly after the company issued its half-year results, which showed that elevated equity market activity has boosted the JSE
The JSE’s revenue for the six months to end-June rose 11.8% to R1.65bn, thanks to elevated equity market activity, while profit after tax was up 13.2% to R557.8m and headline earnings per share (HEPS) were 13.4% higher at 687c.
The group’s capital markets, post-trade and information services units each delivered solid revenue gains, reinforcing the strength of the JSE’s established businesses and improved quality of earnings stemming from a more diversified revenue base.
Capital markets revenue was up 16% year on year, post-trade services 17% and information services 5%.
However, revenue at JSE Investor Services fell 11% as a result of lower interest rates and a margin income adjustment in the prior year.
Total operating expenditure increased by 7.5% to R1.09bn, which the JSE said demonstrated a disciplined approach to cost management amid increased trade-related costs, with 1.56% of the increase relating to costs linked to higher trading activity.
“While newer segments remain in their build phase, they are aligned to long-term demand and progressing in line with expectations,” Fourie said.
“Backed by a strong balance sheet, an expanding product and data offering, and a disciplined investment approach, the JSE is well positioned to advance its strategic agenda in the second half.”
The JSE’s all share index is up more than 18% so far this year amid strong global markets and soaring gold and platinum prices. The bourse’s precious metals and mining index has doubled in value since end-December.
On July 23 the JSE’s benchmark index surpassed 100,000 points for the first time in its 137-year history, reaching 100,504 points on the day.
On Tuesday the all share closed 0.36% higher at 99,674.14 points.
Update: August 5 2025
This story has been updated with new information.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.