SOUTH AFRICAN MARKETS REACH 11-MONTH HIGH
The stock markets in South Africa have recently been under the spotlight since the ousting of the country’s Finance Minister Pravin Gordhan only one month ago by President Jacob Zuma.
It was announced on Wednesday that the SA markets have now reached an 11-month high, displaying a renewed calmness in the market following this period of political turmoil.
At the heart of it all is the Johannesburg Stock Exchange (JSE), which serves secure, efficient primary and secondary capital markets across a diverse range of securities, supported by post-trade and regulatory services.
The JSE is currently ranked the 19th largest stock exchange in the world by market capitalisation and is the largest exchange in the African continent.
The future is looking bright for the exchange and the African continent as a whole.
The Sub-Saharan region of Africa is experiencing strong economic growth, accounting for 30% of South Africa’s total exports and an even greater proportion of manufacturing exports, making it the country’s largest export destination.
According to fin24, “the strong recovery in Sub-Saharan Africa is good news for South Africa’s economy. Following growth of just 0.7% in 2016, GDP in the region is expected to expand in 2017 by 3.5%, accelerating to 4.0% in 2018 amid rising international commodity prices and normalisation of weather patterns, in turn boosting agricultural output and hydroelectricity generation.”
This positive projected economic growth coupled with the 2011 decision to lift South Africa’s inward listing rules for foreign investors presents South Africa as an attractive listing destination for financial organisations.
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