June 2010: JSE Trading Update

July 20, 2010


 

JOHANNESBURG, 19 July 2010 – JSE trading statistics for June 2010 show that the number of cash equity trades during the first six months of 2010 year is up 22.44% on the same period in 2009 (2010:12.2 million; 2009: 10.0 million). The value of equities trades conducted on the exchange is also up 17.11% year-on-year (2010: R1, 5 billion; 2009: R1, 3 billion).

A record futures close-out occurred on 17 June, with 205,784 equity trades valued at more than R20 billion recorded on the exchange. Close-outs, the days on which futures contracts are settled, take place every quarter. On these days there is typically a spike in equity trading activity as traders close their positions and purchase the underlying shares. “This is the first time in the JSE’s 123 year history that the day’s number of trades has crossed the two hundred thousand mark,” says Leanne Parsons, Head of Equities Trading at the JSE. A general rise in average daily trade numbers in 2010 also contributed to the record.

Net foreign buying on the JSE for the first half of the year stands at R19.4 billion. “We are still seeing healthy net foreign inflows continue in the spot equity market, although at lower levels than last year,” adds Parsons.

On the JSE’s equity derivatives market, volumes of futures contracts traded on the exchange for the first half of 2010 increased 12.1% year-on-year (2010: 74.1 million; 2009: 66.1 million). The number of futures contracts traded in June, a futures close-out month, was 23.0 million. Volumes of options traded on the exchange are lower year-on-year for the first 6 months of 2010 (2010: 10.1 million; 2009: 15.9 million).

The number of commodity futures contracts traded on the JSE’s commodity derivatives market increased by 11.2% in first half of 2010 compared with the same period in 2009 (2010:872 000 ;2009:784 000 ). In the same period, volumes of commodity options traded grew 17.7% year-on-year (2010: 140 000; 2009: 119 000). “While the number of commodity derivatives contracts traded has increased, the value of these contracts is down 13.0% on futures contracts and down 13.9% on options contracts. This is due largely to the lower grain prices, compared with the same period last year,” says Senior General Manager: Commodity Derivatives Rod Gravelet-Blondin.

In the JSE’s interest rate market, cash bond volumes remain stable with volumes reported to the exchange in the month of June slightly below R1.5 trillion. Year to date volumes have shown a marginal increase in comparison to 2009 with the 2010 reported trade number at R7.33 trillion compared to R6.88 trillion in 2009.

Open interest for all interest rate derivatives products topped the 100,000 mark for the first time in the interest rate exchange traded products history to an amount of 100,191 open contracts. “Constant positive growth continues to be the trend in the interest rate exchange traded space. We will continue to focus on growing and building a successful exchange traded interest rate derivatives market,” says Graham Smale, Director: Interest Rate Products.

 

JSE Limited
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.

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ON BEHALF OF:
Michelle Joubert
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JSE Limited
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Email: michellej@jse.co.za