The Johannesburg Stock Exchange (JSE), Africa’s largest bourse, is exploring the possibility of introducing 24-hour trading as part of a broader effort to align with global market trends.
JSE CEO Leila Fourie confirmed that the proposal is under review, with consultations underway among market participants before a medium- to long-term decision is made.
“We are investigating this avenue and we’ll work with our market to make sure that we deliver what’s right for the South African market,” Fourie told Bloomberg.
Global exchanges are increasingly extending trading hours to serve a new generation of retail investors who trade seamlessly via mobile platforms, while also accommodating participants across multiple time zones. The New York Stock Exchange (NYSE) recently announced plans to operate for 22 hours a day, with Nasdaq and Cboe Global Markets making similar moves. The London Stock Exchange is also reviewing extended trading sessions.
For South Africa, the JSE’s transition to a 24-hour cycle could offer distinct benefits, particularly given its extensive links to global markets and the large number of companies dual-listed on international exchanges. “It’s net positive and net beneficial for South Africa, largely because we have so many dual-listed counters,” Fourie said.
However, scepticism remains within the local trading community. Brokers and traders have cautioned that South Africa’s relatively thin trading volumes could make 24-hour operations commercially unviable.
The news coincided with JSE Ltd.’s earnings report, showing a 15% year-on-year rise in first-half EBIT. Shares rose as much as 1.9% before settling 0.3% higher at R136.73 by mid-afternoon in Johannesburg.
A decision on whether to proceed with round-the-clock trading is expected only after a thorough consultation process, potentially reshaping the future of Africa’s most prominent stock exchange.
Source: Further Africa
