JSE Profit Jumps 68% as South African Bourse Boosts Earnings

JSE Ltd., the operator of Africa’s biggest stock exchange, said full-year profit rose 68 percent as it earned more from the equity market and growing trading in currency derivatives.

Net income climbed to 506.6 million rand ($47 million) in the year through December, compared with 302.1 million rand in 2012, the company said in a statement today. Diluted earnings per share increased to 5.89 rand from 3.50 rand.

“Most divisions performed well, with standout revenue performance from the equity market, post-trade services and market data divisions,” the JSE said.

The JSE got a 17 percent boost from the operations of the equity market, the biggest earner, it said. The rand’s 19 percent slide against the dollar in 2013 came as the JSE’s currency derivatives business, including options and futures, saw a 37 percent surge in revenue from fees.

“Market sentiment was very much in line with, and in fact slightly better than, international markets,” Chief Executive Officer Nicky Newton-King said in a phone interview. Investors were “coming back to the equity market, moving out of bonds into equities,” she said.

The stock exchange introduced diesel hedge contracts as the wholesale price of the fuel was raised to a record 13.39 rand a liter by the government this month. South Africa relies on imports for 70 percent of its oil needs and the weakening rand adds pressure on the price of gasoline, which is set by the state.

The JSE’s final dividend increased 40 percent to 3.50 rand per share. It also declared a special dividend of 50 cents per share The stock rose 2.2 percent to 85.60 rand by the close in Johannesburg, the highest since Jan. 24.

Before it's here, it's on the Bloomberg Terminal.