Johannesburg - Following its acquistion of the Bond Exchange of South Africa (Besa), the JSE Ltd [JSE:JSE]
has solidified itself as the main player in the SA market - but not everybody is impressed.
"The biggest factor counting in the JSE's favour is its monopoly. This generally secures that as long as interest in the stock market persists it should continue to see good earnings, and the integration of Besa along with the constant flow of new products enhance its prospects even further," said analyst Steve Meintjes, head of research at stockbrokerage Imara SP Reid.
The firm upgraded the JSE to a "buy" from an "add" recommendation.
The JSE released interim results to end-June 2010 on Tuesday. Group revenue increased 14.5% to R623.3m and net profit after tax was up 13% to R207.6m.
After the results were released, group CEO Russel Loubser indicated the group was looking to consolidate following the acquisition of Besa, but would also continue to grow its presence in Africa.
The JSE Africa Board recently received its second new listing in the form of travel and tourism group Wilderness Africa.
Meintjes did, however, point out that the JSE had had its fair share of technology issues in the last few months, and this would need to be taken into consideration when looking at the IT spend.
The JSE suffered two technical glitches in July which interrupted trade. This was blamed on service provider MTN.
One group of analysts which is not overly impressed is Credit Suisse Standard Securities; it has maintained its "neutral" call on the stock.
It also indicated management at the JSE had said it was taking longer than expected to settle the Besa acquisition. "We view this as negative, given our view that it would require that these talks are finalised sooner for management's vision for these operations to be realised," the firm told clients.
Over the last year, shares in the JSE have risen from 5 675c to a high of 7 304c per share, presently tradign at around 7 182c.