JSE Trading Update
June 21, 2010
JOHANNESBURG, 20 June 2010 – JSE trading statistics for May
2010 show that the number of cash equity trades that took place during the first
five months of this year is up 23.9% on the same period in 2009 (2010:10.1
million; 2009: 8.2 million).
Last month, three new trading records were
set on the exchange as global uncertainty and volatility increased. The first
record - of 184,336 trades - was set on 5 May, only to broken again two days
later when 189,253 trades were recorded on the exchange. The third record was
set by trade during the week of 3 May. During that week, a record 751,381 trades
took place, topping the previous record of 535,883 set in October 2008 in the
midst of the Global Financial Crisis.
“This record trading week was
prompted by increased global uncertainty. Fear in the market place leads to
increased volatility and increased trading activity,” says Leanne Parsons, Head
of Equities Trading at the JSE.
On the JSE’s equity derivatives market,
volumes of futures contracts traded rose 6.8 % during the first five months of
2010 on the previous period (2010: 51.3 million; 2009: 48.1 million). The number
of futures contracts traded in May alone was 6.8 million. “This year-on-year
growth is pleasing,” comments Allan Thomson, Head of Derivatives Trading at the
Also notable is that trade in index futures increased 101%
year-on-year off a low base.
The number of commodity futures contracts
traded on the JSE’s commodity derivatives market increased by 8.4% in the first
five months of 2010 compared with the same period in 2009 (2010: 662,000; 2009:
610,000). In the same period, volumes traded in commodity options have grown
In the JSE’s interest rate market, cash bond volumes
remain stable with volumes reported to the exchange in the month of May slightly
below R1.4 trillion compared to R1.1 trillion in April. Year-to-date volumes
also remain in the same range as 2009 with the 2010 reported trade number at
R5.85 trillion compared to R5.83 trillion in 2009.
“Given the stable
interest rate outlook and the continued issuance by National Treasury and
state-owned enterprises there is no reason to anticipate any major market
volatility with regard to price or volume movements. June and July will present
some volume pressure due to the soccer world cup; however volumes should return
to normal after the event,” comments Graham Smale, Director: Interest Rate
The market for listed interest rate derivatives continues to
see positive growth. Contracts traded during the three months ended May grew
44.9% year-on-year, off a low base. “We will continue to focus on building a
successful exchange-traded interest rate derivatives market,” adds Smale.
As South Africa’s only full service securities exchange, the
JSE connects buyers and sellers in four different financial markets, namely
equities, equity derivatives, commodities derivatives and interest rate
instruments. The JSE Ltd offers the investor a first world trading environment,
with world class technology, surveillance and settlement in an emerging market
context. It is amongst the top 20 largest equities exchanges in terms of market
capitalisation in the world.
For further information, please visit www.jse.co.za