Equities, commodity derivatives and information product sales pushed revenue up over the past 12 months.
The Johannesburg Stock Exchange (JSE) released its annual results for the 12 months ending December 2010 just as its current CEO, Russell Loubser, announced he will be stepping down at the end of this year. Loubser will be replaced by current deputy chief executive Nicky Newton-King.
It’s been a rough-and-tumble year for the bourse, in what it admits have been “challenging conditions”, but the good news is it managed to grow its operating revenue by a healthy 9% (to R1,255-billion, up from R1,156-billion last year). The cash equity market performed strongly, as did commodity derivatives, and information products also sold well. Equities trading revenue grew 5%, up to R325-million from R310-million last year, and trading volumes increased—the number of daily equity trades increased 13%.
The number of futures contracts traded in the equity derivatives market rose, but revenue fell slightly. Trade in international derivatives grew particularly strongly, though trading in currency derivatives was down slightly.
Commodities derivatives recorded a 12% rise in contracts, to 2,1-million, aided by the expansion of trade into new hard commodities. Increased revenue from the interest-rate market was due to 12 months of revenue as against six months the previous year, when it was acquired from BESA. That said, like for like, revenue fell 10% to R35-million. Bond market volumes were driven by foreigners entering the South African bond market and interest-rate derivatives continued to grow off a low base.
One of the main reasons that revenue grew 7% in Information Product Sales (IPS) was the division’s focus on previously untapped markets.
The JSE’s main equity index, the FTSE/JSE All-Share Index (ALSI), rose 16,1%. The number of new company listings on the JSE rose to 14, including one on AltX and one on the Africa Board.
JSE operating costs before net finance income rose by 8% to R879-million, from R810-million last year.
The JSE announced that it has no borrowings and has R1 046-million in cash reserves—up from R921-million last year.
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