How to Invest on the Johannesburg Stock Exchange

Photo by Henti Smith

South Africa is far and away the most economically developed of African states, and, as such, will likely be the continent’s economic gateway for the foreseeable future.

Truth be told, however, the Johannesburg Stock Exchange (JSE) isn’t exactly the most bullish of markets these days. In fact, the market is now at its lowest point in nearly two years.

But this isn’t necessarily bad news for value investors. Falling prices mean an increasing number of bargains are on offer. Earnings multiples are dropping and dividend yields are rising.

And because the Johannesburg Stock Exchange is one of the most sophisticated in the world, investors can scoop up these deals with a click of their mouse. The market’s accessibility and convenience make it an ideal place for new Africa investors to get their feet wet.

Here’s how to get started.

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Is Africa’s Greatest Grocer a Bargain Stock?

Photo by Nchenga

If you’ve ever traveled in Southern Africa, I’m sure you’ve spotted a Shoprite store. Whether it be the bright red logo of their eponymous supermarkets, the upscale suburban Checkers stores, or their Hungry Lion fast food joints, the company’s dominant market presence is difficult to miss.

Clearly, Shoprite feeds a continent on the rise.

This reality is anything but revelatory to Africa investors. The company’s share price has risen exponentially as the narrative of the continent’s emerging middle class took hold.

The stock now sports a P/E ratio of 27. Is it worthy of the hype?

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10 South African Stocks Poised to Beat the Market in 2013

Photo by Dave Dugdale

It’s time to stick my neck out.

I’ve talked a lot about the past performance of various African stocks, and I’ve asked a number of local experts for their favorite listings. But I haven’t often gone out on a limb and made picks of my own, and many of you have noticed.

So, it’s only fair that I go on record with my best bets.

Here are my top South African stock picks. I expect that, on average, they will outperform the Johannesburg Stock Exchange All Share Index over the next 12 months.

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6 (More) Reasons to Invest in South Africa

Photo by Kicki Holmen

Yesterday, Jan Schalkwijk, CFA of Africa Capital Group began to make the case for investing in South Africa. Today, he bolsters his argument with six additional reasons to be a South Africa bull.

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The Case for Investing in South Africa

Photo by Paul Watson

South Africa may not be getting much good press of late, but Jan Schalkwijk, CFA, of San Diego-based Africa Capital Group believes its stock market remains promising. He explains why in this guest post.

South Africa offers investors frontier markets-type growth, but with more liquidity, more mature capital markets, greater data richness and greater transparency. Although markets such as Nigeria, Kenya, and Ghana hold great potential for sustained high growth, South Africa is the most mature stock market on the continent.

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Seven Paying Six: High-Yield South African Stocks

Photo by Andrew Cook

Let’s face it. For all the talk of “being greedy when others are fearful” and “buying when there’s blood in the streets” nobody delights in seeing their portfolio value swing southward.

That’s why I love stocks that pay a steady, consistent dividend, and this week I came across some generous South African firms whose shares currently yield more than 6%.

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Cash Out On UEPS?

Photo by Cian Ginty

Johannesburg-based Net 1 UEPS Technologies (UEPS.US and NT1.SJ) reported its third quarter 2012 earnings earlier this month.

Let’s get acquainted with the stock and see whether it represents a compelling opportunity for Africa investors.

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18 South African Stocks That Trade On Wall Street

Photo by Damien du Toit

I’m a big fan of investing directly in African stock markets. The exchanges in Accra, Lagos, and Nairobi generally offer better bargains than what you find listed on the NYSE or Nasdaq. That said, it’s definitely not for everyone. Opening up foreign brokerage and bank accounts can be a real […]

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The 10 Best-Performing South African Stocks of 2012 (So Far)

Photo by Andrew Ashton

Construction stocks dominate this list of the Johannesburg Stock Exchange’s top performers thanks in part to President Zuma’s announcement of “massive” infrastructure development. Share prices in the sector are at their highest level in three years as investors anticipate a turnaround.

But hard hats are not required in order to read further.

Companies from a range of other industries bulldozed their way into the top ten, too.

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How to Invest in South African Stocks — from Main Street, USA

Photo by Keso

Setting up African brokerage accounts isn’t a whole lot of fun. In fact, it can be downright tedious. So I try to avoid the process as much as possible and content myself with the ever-expanding universe of South African stocks available in the form of ADRs, ETFs, and OTC listings. […]

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