Africa’s Biggest Stock Exchange Considers Extending Trading to 24 Hours
Africa’s largest stock exchange is weighing the introduction of 24-hour trading as part of efforts to align with global market trends, according to Johannesburg Stock Exchange (JSE) CEO Leila Fourie.
“We are investigating this avenue and we’ll work with our market to make sure that we deliver what’s right for the South African market,” Leila Fourie told Bloomberg.
Stock exchanges across the globe are extending their trading hours to cater to a growing wave of retail investors who now trade seamlessly via smartphones.
The push for longer trading windows is also aimed at accommodating investors across different time zones and keeping pace with the always-on nature of other asset classes like foreign exchange (FX) and cryptocurrencies.
In recent months, the New York Stock Exchange (NYSE) has announced plans to operate for 22 hours a day, from 1:30 a.m. to 11:30 p.m., while Nasdaq and Cboe Global Markets have unveiled similar initiatives. The London Stock Exchange is also reviewing proposals to lengthen its trading sessions.
For South Africa, transitioning to 24-hour trading could bring meaningful advantages, particularly given its deep ties to global markets and the number of companies dual-listed on international exchanges.
“We are very pleased with the announcements by large exchanges to move to a 24-hour cycle, because it’s net positive and net beneficial for South Africa, largely because we have so many dual-listed counters,” Fourie said.
She noted that a final decision on extending the JSE’s trading hours will be made in the “medium- to long-term” following consultations with market participants.
However, brokers and traders are deeply sceptical, saying South Africa’s thin trading volumes make this unviable.
Shares of JSE Ltd. rose as much as 1.9% and were trading 0.3% higher at 136.73 rand by 1:42 p.m. in Johannesburg. The gains followed the company’s earlier report that first-half earnings before interest and tax (EBIT) grew 15% compared to the same period last year.
