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5 Best Shares to Buy on the JSE

Updated 15 Aug 2022
5 Best Shares to Buy on the JSE

The 5 Best Shares to Buy on the JSE revealed. We have carried out extensive fundamental and technical analyses to identify the best shares that you can buy from the JSE.

This is a complete guide to the 5 Best Shares to Buy on the JSE

In this in-depth guide you’ll learn:

  • How do you know which shares to choose?
  • 5 Best Shares to Buy on the JSE
  • How to choose the Right Share Broker in South Africa
  • The Best Share Brokers in South Africa

And lots more…

So, if you’re ready to go “all in” with 5 Best Shares to Buy on the JSE…

Let’s dive right in…

How do you know which shares to choose?

Finding a company with solid fundamentals and valuable stock is crucial when beginning the process of stock choosing. This is particularly true if you want to keep the investment for an extended period.

However, before putting your confidence in a firm, you should do your homework to learn about its business processes, its competitive advantages, and whether it is a good fit for your investment portfolio.

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5 Best Shares to Buy on the JSE

Afrimat Limited (JSE: AFT)

Open pit mining is Afrimat’s major business and key expertise, and throughout southern Africa, a wide variety of businesses rely on the Group to provide them with the industrial minerals and building materials they need to operate.

Moreover, it exports and imports bulk goods to serve various markets worldwide. It was first listed on the JSE Main Board in 2006, and since then it has been part of the Construction and Materials sector.

With a market value of ZAR 8.14 billion (or around 0.041% of the equity market on the Johannesburg Stock Exchange), Afrimat Limited is presently the 131st most valuable stock on the JSE.

Growth, Valuation, Trading Information
Share Price 55.60 ZAR
Market Capitalization 8.14 billion ZAR
Gross Turnover 750,000 ZAR
52-Week Range 46.69 – 76.47 ZAR
Shares Outstanding 146 million
Earnings per Share 5.42 ZAR
P/E Ratio 10.24
Dividend per Share 1.86 ZAR
Dividend Yield 3.35%

Exxaro Resources Ltd (JSE: EXX)

Exxaro Resources Limited is a diverse resources firm established in South Africa. The firm has economic interests in South Africa, Europe, the Democratic Republic of the Congo, and the United States. It generates coal, iron ore, and renewable energy.

Exxaro Resources Ltd is now the 46th most valuable stock on the JSE, with a market value of ZAR 68.4 billion, representing about 0.343% of the Johannesburg Stock Exchange equity market.

Exxaro Resources started the year with a share price of 152.87 ZAR, which has since increased by 28.1%, placing it in the 21st position on the JSE in terms of year-to-date performance.

Growth, Valuation, Trading Information
Share Price 195.85 ZAR
Market Capitalization 68.4 billion ZAR
Gross Turnover 339 million ZAR
52-Week Range 143.40 – 239.98 ZAR
Shares Outstanding 349 million
Earnings per Share 46.60 ZAR
P/E Ratio 4.20
Dividend per Share 32.52 ZAR
Dividend Yield 16.6%

Liberty Two Degrees Ltd (JSE: L2D)

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When the Johannesburg Stock Exchange (JSE) began accepting CISP listings in December 2016, L2D was the first business to do so. On November 1st, 2018, L2D underwent a corporate REIT reorganization, changing its name to Liberty Two Degrees Ltd.

This improves L2D’s position for sustained expansion while maximizing shareholder value. The group is mostly involved in real estate investments in South Africa.

Liberty Two Degrees LTD is the 169th most valuable stock on the JSE, with a market value of ZAR 3.81 billion, which represents about 0.019% of the Johannesburg Stock Exchange equity market.

Growth, Valuation, Trading Information
Share Price 4.19 ZAR
Market Capitalization 3.81 billion ZAR
Gross Turnover 921,000 ZAR
52-Week Range 3.80 – 4.06 ZAR
Shares Outstanding 908 million
Earnings per Share 0.33 ZAR
P/E Ratio 12.58
Dividend per Share 0.34 ZAR
Dividend Yield 8.11%

Choppies Enterprises Limited (JSE: CHP)

Listed on both the Botswana and Johannesburg stock markets, Choppies Enterprises Limited is a Botswana-based investment holding company. They offer fresh farm produce and other food goods in the retail sector of the sub-Saharan African market.

Choppies is a grocery chain that sells both name-brand food items and FMCG from major companies across the world, as well as its own private label goods.

With a current market value of ZAR 873 million, or around 0.0044% of the equity market on the JSE, Choppies Enterprises Limited is the 268th most valuable stock.

Growth, Valuation, Trading Information
Share Price 0.67 ZAR
Market Capitalization 873 million ZAR
Gross Turnover 155,000 ZAR
52-Week Range 0.42 – 1.10 ZAR
Shares Outstanding 1.3 billion
Earnings per Share 0.13 ZAR
P/E Ratio 5.03
Dividend per Share 0.03 ZAR
Dividend Yield 4.48%

Ellies Holdings Ltd (JSE: ELI)

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To put it simply, Ellies Holdings is a holding company for companies that produce, trade, and distribute a wide variety of goods and services, such as direct-to-home (DTT) and satellite television products and accessories, electrical and signal distribution, and more.

In terms of market capitalization, Ellies Holdings Ltd is now the 355th most valuable stock on the JSE, with a value of ZAR 161 million (or around 0.0008% of the equities market on the Johannesburg Stock Exchange).

Growth, Valuation, Trading Information
Share Price 0.20 ZAR
Market Capitalization 161 million ZAR
Gross Turnover 367,000 ZAR
52-Week Range 0.16 – 0.50 ZAR
Shares Outstanding 805 million
Earnings per Share 0.01 ZAR
P/E Ratio 12.42
Dividend per Share 0.10 ZAR
Dividend Yield 50%

How to choose the Right Share Broker in South Africa

South African traders could not have picked a more favourable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.

Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.

Commission Charges

Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.

Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.

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Overall Reliability

There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.

That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Conduct Authority (FCA), the Financial Sector Conduct Authority (FSCA) and other regulators, or subject to additional oversight.

Account Fees

While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee. When switching brokers, your new firm could pay some or all your transfer expenses.

If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.

Annual costs, inactivity fees, trading platform subscriptions, and additional charges for research or data are all examples of the kind of expenses you should be aware of.

Pricing and Execution on Trades

Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.

However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.

This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.

Additional Tools, Educational Materials, and Features

Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.

You should also look at the broker’s commitment to educating its customers about the inherent hazards of more complex trading tactics like options.

Conclusion

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Do your due diligence before putting your money into a stock purchase. When investing in a company for the long run, finding a good deal should be your priority.

When you purchase stock in a firm, you become a shareholder, therefore it is important to complete your due diligence before making any purchases.

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