The Johannesburg Stock Exchange (JSE), the largest stock exchange in Africa, is evaluating the possibility of implementing 24-hour trading sessions.
According to JSE CEO Leila Fourie, the move aims to align with international market standards and accommodate a growing class of global investors.
“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 stated in an interview with Bloomberg.
The JSE is currently gathering feedback from market stakeholders before making a medium- to long-term decision.
The proposed expansion in trading hours would position the JSE alongside other major stock exchanges that have recently extended their trading times to cater to retail investors and match the pace of other round-the-clock markets such as forex and cryptocurrency.
In recent months, the New York Stock Exchange (NYSE) revealed plans to operate for 22 hours daily, while Nasdaq and Cboe Global Markets are also rolling out similar changes. The London Stock Exchange is reportedly reviewing proposals to lengthen its trading window as well.
Read Also: Anti-Nigerian Tension Subsides in Ghana Following Diplomatic Talks
For South Africa, such a transition could offer substantial benefits due to the country’s strong global market ties and the significant number of companies dual-listed on international platforms.
“We are very pleased with the announcements by large exchanges to move to a 24-hour cycle, because it’s net positive and net beneficial for South Africa, largely because we have so many dual-listed counters,” Fourie added.
Despite the potential upside, local brokers and traders have expressed doubts, pointing to the relatively low trading volumes in South Africa as a challenge for sustaining around-the-clock operations.
Following the announcement, JSE Ltd. shares saw a brief rally—rising as much as 1.9% before settling at 0.3% higher at 136.73 rand as of 1:42 p.m. in Johannesburg.
The market response followed the exchange’s report of a 15% year-on-year increase in first-half earnings before interest and tax (EBIT).
Image Credit: Business Insider Africa
