The Valuations function at the JSE determines the closing prices for the listed instruments at the Exchange as a representative of the most up-to-date valuation of a listed security. The JSE’s valuation role is not to provide an economic fair value of a listed instrument where fundamental valuation approaches are included. The Exchange’s valuations are based solely on marked data.
The valuations criteria used are generally agreed in consultation with market participants and approved by the relevant advisory committees of the respective markets.
The valuation of a security is useful for both issuers and investors. The determined value of a security that is deemed fair is easy to determine for liquid markets like cash equities and a little more challenging for over-the-counter instruments like bonds.