A ma­ture busi­ness

Finweek English Edition - - MARKET PLACE -

The JSE’s re­sults seem to show a busi­ness that looks to have peaked. No spe­cial div­i­dend was de­clared, af­ter both pre­vi­ous years had spe­cial div­i­dends. Lo­cally vol­umes are trend­ing side­ways and large list­ings such as those of AB InBev and Ham­mer­son are not likely to be a con­tin­u­ing trend. Fur­ther, it has a fair bit to spend on tech­nol­ogy and while the bourse can well af­ford it, this does mean spe­cial div­i­dends are a thing of the past. Two new ex­changes – the 4AX and ZAR X – are both up and run­ning, but it will be many years be­fore they start mak­ing any sort of dent in the JSE’s earn­ings. It is still a great busi­ness, but it looks to have ma­tured and is prob­a­bly fairly val­ued on the cur­rent his­toric P/E of around 13 times.

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