With more than 80% of the African market capitalization, the Johannesburg Stock Exchange (JSE) has exploded its counters in 2021.
The composite index of the Johannesburg Stock Exchange, the FTSE / JSE Africa, achieved an increase of more than 20% in 2021. A performance not achieved since 2012 and which contrasts with the fall of 7% recorded by the market index emerging markets (MSCI Emerging Market). Despite this performance, the valuation level (PER) of the JSE remains below the emerging market average, indicating significant upside potential in 2022.
Expressed in dollars, the rise of the South African market reached 10% driven by the communications sector and, paradoxically, by travel and leisure. In other words, the omicron variant that has rocked the country since the end of September has not broken the momentum of the recovery.
Among the best increases of the year, note that of MTN, which saw its share jump by 183.6% over the year boosted by performance in Africa and the decision to withdraw from the Middle East.
For 2022, analysts like Jonathan Kennedy-Good of JPMorgan Chase & Co, quoted by News24, are banking on double-digit growth of the JSE driven by the weakness of the Rand, a policy of the South African Reserve based on moderate rates and listed companies that will ride the recovery.