JSE earnings down

JSE Ltd, operator of the Johannesburg Stock Exchange, has posted a 14% decline in first-half earnings, hurt by a decline in equity market revenues and write downs related to some of its software.

The JSE said on Wednesday diluted headline earnings per share totalled 244.4 cents in the six months to end-June, compared with 284.4 cents last year.

The JSE warned last week headline earnings per share was likely to fall by up to 20%. Headline earnings, which exclude certain one-time items, are the main profit measure in South Africa. Revenue for the period rose 2% to R682.8-million, despite a drop in the number of new listings and corporate actions.

The JSE said it wrote down the value of some of its back office software by R72.6m. It spent a further R13.5m in bonus and early retirement payments.

Despite lethargic economic growth in South Africa, investors are being drawn to shares by good earnings and healthy dividends.

Share prices have hit a series of record highs this month, led by retailers and banks.

Shares of the bourse operator are down 1.9% at R74.50, lagging a 0.4% decline by Johannesburg's All-share index.