A mature business
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.