Avior Capital Markets - JSE (14SC) JSE | Getting out of the doldrums

Report

Avior Capital Markets

David Talpert ...

Harry Botha

JSE | Getting out of the doldrums

The JSE has experienced declining revenues due to lower trading activity. We believe the 15% YTD decrease in cash equity value traded is due to reduced SA business confidence and a global reduction in volatility. The JSE has successfully cut R170m in costs. We expect inflationary cost increases and a normalisation of trading activity to support an improvement in earnings growth. We expect full year earnings to decline with earnings growth recovering in FY â€˜20f. However, as the JSE's share price declined by 25% YTD, we believe the lower growth is reflected in the current price.

05/08/2019 13 EN

Underlying

JSE

JSE provides a range of products and services from trading to post-trade services and market data sales relying on automated systems. Co.'s segmants include: Cash Equities, which provides trading in equities, warrants and exchange-traded products; equity and currency derivatives, which provides trading in currency futures and options; Commodity derivatives, which provides trading in agricultural grain products and cash-settled rand-denominated derivatives on various international benchmark commodities; interest rate market, which provides trading in interest rate products in both the cash and the derivative Markets; and Market data, which sells live, statistical, historical and data.

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ZAE000079711 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

David Talpert

Harry Botha

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JSE | Getting out of the doldrums

1 director sold

Avior Financials | Nedbank CPF update | Bank lazy deposits | JSE | SNT | DSY

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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