There are plenty of top South African stocks to consider putting on your hit list, and we will be doing out bit to give you 10 of the best JSE shares to watch.
Whilst it is not easy to decide on the best stocks in South Africa to put in your portfolio, we believe that this list will go some way towards helping you with that decision!
JSE Stocks To Watch
The Johannesburg Stock Exchange (JSE) is the largest stock exchange in Africa and ranks among the top 20 exchanges in the world. The JSE offers a wide range of trading options, making it an attractive destination for both local and foreign investors.
There are many different ways to measure which are the best South African stocks to buy, but ultimately it depends on your own investment goals and risk tolerance. However, there are some common factors that can help you choose promising local stocks. Below, you will find our top 10 to consider for investing in South African shares.
Top 10 Best South African Stocks To Consider
South Africa is home to many great businesses, and these ten top stocks below are some of the best opportunities for investors looking to gain exposure to this market.
While there are risks associated with investing in any stock, these companies have proven themselves to be resilient and profitable over time, and they offer potentially attractive returns going forward.
Here are 10 of the best South African stocks to buy right now:
1. Naspers Ltd. (NPN:JSE)
Naspers is a company that needs no introduction. It is one of the largest companies in South Africa and has a significant presence in many other countries around the world. The company was founded in 1915 as a newspaper publisher and has since transformed into a global internet and media group.
Naspers is also known for its 31% stake in Tencent Holdings, the Chinese tech giant behind WeChat. Naspers’ investment in Tencent has been hugely successful, with the value of its stake increasing from $34 million to over $140 billion over the past decade.
While Naspers’ share price has come under pressure recently due to concerns about its valuation and exposure to China, the company remains a compelling long-term investment and is beginning to turn positive again. With growth of 10,000% over the prevailing 10 years, Naspers is one of the best South African shares to keep an eye on.
2. Richemont (CFR:JSE)
Richemont is a Swiss luxury goods conglomerate that owns a number of world-renowned brands, including Cartier, Van Cleef & Arpels, and IWC. The company generates the vast majority of its revenue and profits from its jewelry businesses, which have performed exceptionally well in recent years.
Richemont has been one of the best-performing stocks on the JSE over the past decade, delivering a total return of over 1,700%. The company’s share price has risen 200% in the past 2 years, reflecting an excellent return on one of South Africa’s best stocks.
3. Steinhoff International Holdings NV (SNH:JSE)
Steinhoff is a South African retailer that owns a number of well-known brands, including Conforama, Poundland, and Mattress Firm. The company has operations in over 30 countries and employs over 60,000 people.
Steinhoff has been through some tough times in recent years, including an accounting scandal that led to the resignation of its CEO and the departure of several senior executives. However, the company has since stabilised and is starting to see some improvement in its financial performance.
4. Sasol Limited (SOL:JSE)
Sasol is a South African chemical and energy company with operations in over 30 countries around the world. The company is best known for its synthetic fuel production capabilities, which have made it a major player in the global oil market.
Sasol has been one of the best-performing stocks on the JSE over the past year, delivering a total return of over 80%. The company’s share price has come under pressure in recent months due to concerns about the global economy, but Sasol remains a compelling long-term investment.
5. FirstRand Limited (FSR:JSE)
FirstRand is one of South Africa’s largest financial services groups, with operations in retail banking, corporate banking, and insurance. The group has a strong presence in both South Africa and other countries in Africa.
FirstRand has performed exceptionally well in recent years, delivering a total return of over 500% since 2009.
6. Aspen Pharmacare Holdings Limited (APN)
Aspen Pharmacare is a leading South African pharmaceutical company with operations in over 50 countries around the world. The company specialises in the production of generic and branded drugs, and has a strong focus on the emerging markets.
Aspen Pharmacare had been one of the best-performing stocks on the JSE over the past decade before taking a rather dramatic fall. This could be a value opportunity for the periods to come.
7. Nampak Limited (NPK:JSE)
Nampak is a leading South African packaging company with operations in over 30 countries around the world. The company’s products are used by a wide range of industries, including food and beverage, pharmaceuticals, and cosmetics.
The company’s share price has performed very poorly in the preceding 5 years, before finding a base in mid 2020 and doubling in value since. Nampak remains a high-quality business with strong long-term prospects for the believers amongst you.
8. Mr Price Group Limited (MPC:JSE)
Mr Price is a leading South African retailer with operations in over 1,000 stores across Africa. The company sells a wide range of products, including clothing, homeware, and cosmetics.
With a strong upward trending chart over the past 2 years, it seems as though MPC could be a solid option for South African stocks watchers to consider.
9. Growthpoint Properties Limited (GRT)
Growthpoint is the largest JSE listed real estate investment trust (REIT), with a portfolio of over R40 billion. The company’s properties are located in South Africa, Australia, and the United Kingdom.
Similar to some of the other top South African stocks on this list, Growthpoint share price has come under pressure in recent months due to economic concerns, but remains a high-quality business.
10. MTN Group Limited (MTN)
MTN is a leading South African telecommunications company with operations in over 20 countries around the world. The company is best known for its mobile voice and data services, but also offers fixed-line and broadband services.
MTN had been one of the best JSE stocks on the JSE in the early 2000s, delivering a total return of over 2,400% over the next 15 years. Since reaching highs in 2015, MTN shares have pulled back some 80% from those levels leading into 2020, before more than doubling in value over the past 2 years. MTN stock could be one of the best South African shares for the next few years, but you will need to keep your wits about you with this one as volatility swings both ways.
Disclaimer: The above list is not exhaustive and is not a recommendation to buy or sell any security. Investors should do their own research and consult with a financial advisor before making any investment decisions.
The Various South African Stock Exchanges
There are five different stock exchanges in South Africa: the JSE Limited (JSE), A2X Markets (A2X), Capetown Stock Exchange (CTSE), Equity Express Securities Exchange (EESE), and the ZAR X (ZARX).
The JSE Limited is the largest stock exchange in Africa and is located in Johannesburg. It offers trading in a wide range of 388 listed securities, including shares, bonds and derivatives. Having been established in 1887, the JSE is the second oldest stock exchange in Africa, only behind the Egyptian Stock Exchange which was formed just 4 years prior in 1883.
The Capetown Stock Exchange (CTSE) is the second largest stock exchange in South Africa. It is located in Cape Town and it offers trading in shares, bonds and derivatives.
Each of the other South Africa based stock exchanges are relative newcomers in historical terms, having been launched post 2017. A2X Markets was launched in October 2017, located in Cape Town, whereas the EESE, and the ZAR X are both located in Johannesburg.
South Africa can now be said to have a number of different stock exchanges, each with its own unique offerings. Whether you’re looking to trade in shares, bonds or derivatives, there’s an exchange that can cater to your needs.