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JSE stock trading to resume after delay caused by record volumes

As investors adjusted their holdings in Naspers.
Image: Bloomberg

The start of equities trading on South Africa’s main stock exchange was delayed by hours Wednesday after the bourse was unable to fully process record transactions in the previous session as investors adjusted their holdings in local market giant Naspers.

Tuesday saw R145 billion ($9.7 billion) of equities traded, which caused “significant delays” in processing on some systems, bourse operator JSE said. Continuous trading will resume at 2:30 p.m. local time, the exchange said at 1 p.m., apologising “for the inconvenience caused.”

Read: Naspers, Prosus complete share swap, new cross-holding structure

Naspers dominated trading in Johannesburg Tuesday, falling 8.1% on surging volumes as partly owned Chinese online titan Tencent Holdings slumped and following the Aug. 16 completion of a restructuring and exchange transaction with unit Prosus NV. That deal changed the weighting of the two stocks in key South African equity indexes, pushing money managers who follow the gauges to adjust their portfolios.

“Because Naspers now has a smaller weighting in the JSE’s indices, and Prosus has a bigger weighting, index-tracking funds would have had to sell their Naspers holdings and buy Prosus shares to keep their portfolios in line with the new weightings,” said Lester Davids, a strategist at Unum Capital. “On the back of the re-weighting, the daily value of the shares traded rose to record highs, with Naspers alone trading above R70 billion.”

Naspers now accounts for 5.9% of the benchmark FTSE/JSE Africa All Share Index compared with 12% as of Tuesday, data compiled by Bloomberg show. Prosus has jumped to 7.5% from 0.9%.

Wednesday’s delay meant investors in Naspers, the biggest shareholder in Tencent, were unable to immediately trade in reaction to earnings from the Chinese company released after the market close in Hong Kong. Naspers has a 29% stake in Tencent, through Prosus. In Amsterdam trading, Prosus shares climbed as much as 5.1% and were 5.1% higher as of 1:20 p.m.

The JSE said the equity market will resume with off-book trades at 1:30 p.m., an opening auction at 2 p.m. and continuous trading 30 minutes after that. Its other markets were operating as normal, the company said.

Tuesday’s trading surpassed a previous record of R71 billion from December 2017, the exchange operator said. In 2017, the JSE paid out claims from clients and conducted reviews after technical issues prevented equities and derivative trading for an hour and 45 minutes.

© 2021 Bloomberg

 

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I thought that the same hacker who stole all the bitcoin from Africrypt also took off with my shares! Markus Jooste had a headstart on them anyway….

I think the JSE is preventing a massive sell off in the Naspers / Prosus …. and thats why they stopped trading…. u know …calm the market….

@ JSE CEO…. its about time you upgrade your systems if you cant deal with volumes!

If only there was a process which didn’t rely on a back office or a settlement process which only worked between office hours… something which is decentralized…. something which can settle thousands of transactions in a few seconds…

I shall invent it and call it blockchain.

Charles : very funny! If the JSE volume had to process via blockchain the backlog would be years not days

Ripple network: 1,500 tx/s (confirmation: ~4 seconds)
Stellar (Ripple fork): 1,000 tx/s; (confirmation: ~2 seconds)

Visa does 24,000 transactions a second (tx/s), but they have had decades to perfect it. Apparently 38% of the top 100 banks in the world already use the Ripple network already, and they claim their platform is capable of handling 50,000 tx/s.

This is not my area of specialty, so I could be wrong.

..actually I thought it was due to the adoption of slow blockchain that may’ve caused the problem *lol*

Blockchain is now with us longer than a decade…getting old tech.

I belong to a Crypto WhatsApp group….the daily comment and general chaos on it is something to behold. Can’t take it seriously.

Let’s hope blockchain morphs into something better in future.
Even IT people have their doubts:

https://davidgolumbia.medium.com/cryptocurrency-is-garbage-so-is-blockchain-3e80078e77fe

This is just one of many recent system issues. Another SA institution in a death spiral. Don’t even try getting answers from them when these things happen, nobody there knows whats going on. Be very careful of trading on SA markets at the moment

Stopped trading them a long time ago.

No need. The world is one’s oyster.

The risk in SA is not just political instability, corruption, theft, cadre deployment, mafia etc. etc.

This is what happens when an “emerging market” stops emerging.

Yet you live there. Strange.

If you live in a place like SA and you talk about what is wrong, people want to know why you are still here. If you move and then talk about what’s wrong in SA people ask why you are talking about a country you’re not living in.

Lesson : Shut up and suck it up. That’s how we roll.

So. Aonk, where do you live? I have asked you before.

Oh dear seems I have upset some people with a persecution AND an inaction complex.

Hint:if you keep whining but don’t do anything about it, people won’t take you seriously because you don’t take yourself seriously.

So Aonk, you don’t understand my question? Or you don’t know where you live?

Beware — Total Idiots in play !!!

Great to hear will all going to be alright! The stock markets booming! The economy is saved! We all gonna be rich now……right? Please tell me it works both ways

You need to wear shorts in this weather. You need to be able to forecast the weather inside the JSE computer room. This can be incredibly profitable.

End of comments.

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