Foreign Capital Floods South African Markets As JSE Outperforms Global Emerging Market Peers

JSE CEO Leila Fourie reports record 1bn rand profit and rising foreign ownership as South African equities outperform global emerging market indices by nearly 30 percent.

By: AXL Media

Published: Mar 5, 2026, 6:58 AM EST

Source: The information in this article was sourced from BusinessTech

Outperforming The Global Competition

The JSE All-Share Index recorded a staggering 57 percent growth in 2025, vastly outstripping the MSCI Emerging Markets Index, which grew by 30.58 percent during the same period. While a rally in commodities and mining stocks provided a cyclical boost, structural improvements following the 2024 national elections have increasingly drawn in non-resident investors. Foreign equity ownership on the exchange climbed from 29.3 percent at the start of 2025 to 32.9 percent by the end of the year. This upward trend is further reflected in South Africa’s growing influence within international indices, as the country’s weighting in the FTSE Emerging Markets Index rose from 3.16 percent to 4.29 percent. Financial analysts suggest that crossing the 5 percent weighting threshold could trigger a massive secondary influx of passive foreign capital from global funds.

A Strengthening Bond Market And IPO Pipeline

The fixed-income market has seen an equally dramatic increase in appetite from abroad. Net foreign inflows into South African bonds spiked to 122 billion rand in 2025, representing a significant jump from the 82 billion rand recorded the previous year. This interest in South African debt instruments suggests a vote of confidence in the country's fiscal management and the relative attractiveness of its yields. Furthermore, the JSE is anticipating a major resurgence of new listings. Among the most anticipated moves is the listing of Coca-Cola Hellenic, following its 45 billion rand acquisition of a majority stake in Coca-Cola Beverages Africa. Other high-profile companies expected to hit the market include Canal Plus, which is preparing a secondary listing, and Fidelity Services Group, South Africa’s largest security firm.

Financial Milestones And Record Profits

The JSE’s own financial performance has mirrored this broader market success. For the first time in its history, the group’s profit after tax exceeded the 1 billion rand mark, with Headline Earnings Per Share growing by 17.7 percent to 1,329 cents. This robust cash position allowed the board to declare a total dividend payout ratio of 85.6 percent, which includes an ordinary dividend of 961 cents and a special dividend of 100 cents per share. Total dividends saw a year-on-year increase of 28.1 percent, signaling the exchange's confidence in its own operational efficiency...