Top 7 JSE Shares to Invest in South Africa 2023

Investing in Johannesburg Stock Exchange (JSE) can be the best thing you can do today to secure your future financial freedom. Investing in the stock market can be a great way to grow your wealth over time, but it’s important to choose the right stocks. If you’re looking for some ideas for the best shares to buy on the JSE in 2024, you’ve come to the right place.

Investing in JSE shares is not only for the wealthy. Anyone with the financial means to do so can invest from as little as R5 000 for the best results. If you do not have such an amount right now you can start by saving from the little you are left with from your monthly income till you have the recommended start-up amount.

There are several ways that one can invest in JSE shares, you can either invest via a stockbroker, through a Financial Services Provider (FSP) like Standard Bank, ABSA, etc., or via an Exchange Traded Fund (ETF) like Ashburton or Stanlib.

With all the risks that can be incurred in investing it can be extremely hard to decide on the best stock to invest in.In this article, we will be listing some of the best-performing JSE stocks that you can invest in 2024.

Top 7 JSE Shares to Invest in this year

1. Gold Fields Ltd

You can bank your money on Gold! Gold Fields Ltd stands out as one of the premier players in the global gold mining industry. With nine operational mines and projects spanning continents – Australia, Chile, Ghana, Peru, and its home base, South Africa – Gold Fields has firmly established itself as a powerhouse in the extraction of precious metals.

Diverse Global Operations: Gold Fields’ geographical diversification is a key strength, as it allows the company to navigate various economic and geopolitical conditions. This not only mitigates risks associated with a concentration in a single region but also positions the company to capitalize on the rich mineral deposits present in different parts of the world.

JSE Top Performer: Gold Fields has consistently proven its mettle on the Johannesburg Stock Exchange (JSE), ranking as a top performer among listed companies. Investors seeking exposure to the gold market find Gold Fields to be a compelling choice due to its robust operational performance and strategic positioning.

Positive Potential Growth: The company’s strategic focus on sustainable mining practices and technological innovation positions it for potential growth in the ever-evolving mining landscape. Gold Fields has invested in cutting-edge technologies to enhance operational efficiency, reduce environmental impact, and ensure responsible resource extraction.

Share Price Momentum: Investors have witnessed a continuous upward trajectory in Gold Fields’ share price on the JSE. This positive momentum reflects not only the company’s operational excellence but also the sustained demand for gold as a safe-haven asset and a hedge against economic uncertainties.

Global Economic Trends and Gold Demand: Gold Fields is well-positioned to benefit from global economic trends that drive demand for gold. As a precious metal, gold often sees increased demand during periods of economic uncertainty, serving as a store of value for investors. The company’s operations contribute to meeting this demand, offering investors an opportunity to capitalize on the precious metals market.

Sustainable Practices: Gold Fields places a strong emphasis on sustainability, incorporating responsible mining practices into its operations. This commitment not only aligns with growing investor preferences for environmentally conscious investments but also ensures the longevity and ethical standing of the company in the mining sector.

Exploration and Innovation: Beyond its current operations, Gold Fields continues to explore new opportunities and invest in exploration projects. This commitment to innovation and expansion underscores the company’s proactive approach to securing its future in the dynamic mining industry.

Investors eyeing both stability and growth in the precious metals sector may find Gold Fields Ltd to be a compelling addition to their portfolios. As with any investment, thorough research and consideration of individual financial goals and risk tolerance are crucial before making investment decisions.

Key Financial Highlights of Gold Fields Ltd:

• Market Cap: ZAR 216,049,233,175
• EPS – TTM (Earnings Per Share – Trailing Twelve Months): ZAR 1983.51
• P/E Ratio (Price to Earnings Ratio): 12.19
• Forward P/E: 13.13
• Dividend Yield: 3.18%
• Return on Equity: 21.5%
• Return on Assets: 19.15%
• Net Asset Value (NAV) per share: ZAR 8,713.61
• Price/NAV: 2.77
• Authorised Shares: 1,000,000,000
• Issued Shares: 893,540,813

2. Naspers Ltd

Established in 1915, Naspers Ltd has transcended time, evolving into one of the world’s largest and most influential technology investors. This South African multinational internet and media group has not only weathered the changing tides of technology but has consistently surged to new heights, making it a standout player in the global investment landscape. Operating in over 80 countries and markets, Naspers holds a diversified portfolio with substantial potential for long-term growth.

Historical Success and Longevity: Naspers’ journey, dating back to its founding in 1915, reflects a legacy of success and adaptability. Over the years, the company has demonstrated a keen ability to identify and capitalize on emerging trends, positioning itself as a front-runner in the rapidly evolving technology and internet sectors.

Global Footprint: Naspers’ expansive presence in over 80 countries showcases its commitment to global diversification. Operating in diverse markets provides the company with a unique advantage, allowing it to tap into a wide range of consumer behaviors, economic conditions, and technological landscapes.

Strategic Investments in Tech: As a key player in the technology sector, Naspers boasts a substantial portfolio of investments in e-commerce, online classifieds, and payments. This strategic diversification aligns with the evolving digital landscape, where online transactions, classified platforms, and payment systems play pivotal roles in shaping the future of commerce.

High-Growth Potential: Naspers is recognized as a high-growth stock, a designation that attracts investors seeking substantial returns. The company’s ventures in emerging technologies and its ability to identify disruptive business models contribute to its reputation as a dynamic player with considerable growth potential.

Volatility and Risk: It’s essential for investors to note that, while Naspers presents an exciting investment opportunity, it also carries a level of volatility. The dynamic nature of the technology sector, coupled with global market fluctuations, can result in variations in Naspers’ stock performance. Investors should be prepared for potential fluctuations and carefully assess their risk tolerance.

Investor Trust and Promising Future: Naspers has garnered the trust of investors through its consistent performance and forward-looking approach. The company’s commitment to staying at the forefront of technological advancements positions it as a promising investment for those looking to align their portfolios with the future of the digital economy.

Diversified Revenue Streams: Naspers’ broad portfolio spans multiple sectors within the technology and internet space, providing diversified revenue streams. This diversity not only enhances the company’s resilience but also positions it to capitalize on various market trends and consumer preferences.

As investors navigate the complexities of the ever-evolving technology landscape, Naspers stands out as a beacon of innovation and strategic investment. While its stock may exhibit volatility, its global footprint, historical success, and commitment to cutting-edge technologies make it a compelling option for those seeking exposure to the dynamic world of tech investments. As always, investors are encouraged to conduct thorough research and consider their risk tolerance before making investment decisions.

Key Financial Highlights of Naspers Ltd:

• Market Cap: ZAR 531,143,776,695
• EPS – TTM (Earnings Per Share – Trailing Twelve Months): ZAR 8087.87
• P/E Ratio (Price to Earnings Ratio): 35.85
• Forward P/E: 13.01
• Dividend Yield: 0.3%
• Return on Equity: 16.66%
• Return on Assets: 3.72%
• Net Asset Value (NAV) per share: ZAR 176,345.37
• Price/NAV: 1.64
• Authorised Shares: 500,000,000
• Issued Shares: 183,184,610

Interesting to read: Top 15 Investment Companies in South Africa 2024

3. Sasol

Sasol Limited, a South African integrated energy and chemical company, stands at the forefront of the global energy sector with its diversified operations spanning fuels, chemicals, and energy production. Operating on a global scale, Sasol has strategically positioned itself to navigate the complexities of the energy landscape and emerge as a potential key player in the future of clean energy.

Integrated Energy and Chemical Production: Sasol’s core operations involve the production of fuels, chemicals, and energy, reflecting a comprehensive and integrated approach to the energy value chain. This integrated model not only enhances operational efficiency but also positions Sasol to adapt to evolving market demands and regulatory landscapes.

Global Presence: With a significant international footprint, Sasol’s operations extend far beyond its South African roots. The company’s global reach ensures exposure to diverse markets and economic conditions, reducing reliance on any single region and providing resilience against geopolitical uncertainties.

Technological Investment: Sasol’s commitment to innovation is evident through its active investment in technology. The company recognizes the importance of staying ahead of the curve in an industry marked by rapid technological advancements. Investments in cutting-edge technologies not only enhance operational efficiency but also position Sasol as a potential frontrunner in shaping the future of clean and sustainable energy.

Sustainability Initiatives: Embracing the global shift towards sustainability, Sasol has implemented various initiatives to reduce its environmental footprint. These initiatives include efforts to decrease greenhouse gas emissions, promote energy efficiency, and explore alternative, eco-friendly energy sources. As the world increasingly values environmentally responsible practices, Sasol’s focus on sustainability aligns with growing market trends.

Clean Energy Potential: Sasol’s active engagement in sustainability and technology positions it as a potential player in the future of clean energy. As the world transitions towards renewable and cleaner energy sources, Sasol’s diversified operations and technological investments could pave the way for the company to capitalize on emerging opportunities in the green energy sector.

Volatility and Resilience: While Sasol’s stock may experience some volatility, the company’s diversified operations contribute to its resilience. The integration of multiple facets within the energy industry allows Sasol to adapt to changing market conditions, mitigating risks associated with dependence on a single sector.

Strategic Adaptability: Sasol’s adaptability to global energy trends positions it favorably in an era of energy transition. The company’s ability to pivot towards cleaner energy solutions, while maintaining its proficiency in traditional energy production, showcases strategic foresight and adaptability in response to evolving market dynamics.

Investors looking for exposure to both traditional and emerging energy markets may find Sasol Limited to be a compelling addition to their portfolios. As with any investment, it’s crucial for investors to conduct thorough research, consider their risk tolerance, and stay informed about industry trends. Sasol’s strategic positioning in the energy and chemical sectors, coupled with its commitment to sustainability, makes it an intriguing prospect for those eyeing the future of the global energy landscape.

Key Financial Highlights of Sasol Ltd:

• Market Cap: ZAR 100,866,211,694
• EPS – TTM (Earnings Per Share – Trailing Twelve Months): ZAR 5372.11
• P/E Ratio (Price to Earnings Ratio): 2.94
• Forward P/E: 2.91
• Dividend Yield: 10.76%
• Return on Equity: 4.63%
• Return on Assets: 11.24%
• Net Asset Value (NAV) per share: ZAR 31,040.95
• Price/NAV: 0.51
• Authorised Shares: 1,127,690,590
• Issued Shares: 638,636,265

4. British American Tobacco PLC (SA)

Established in 1902, British American Tobacco is ranked high as a leading multi-category consumer goods company that manufactures and sells cigarettes, tobacco, and other nicotine products worldwide.

Rich Heritage and Global Presence: With a legacy dating back to the early 20th century, British American Tobacco has not only withstood the test of time but has also evolved into a global powerhouse. The company’s extensive reach spans continents, serving diverse markets with a wide array of consumer goods. This global presence positions BAT to capitalize on varied consumer preferences and economic conditions worldwide.

Consistent Performance on the JSE: British American Tobacco PLC’s listing on the Johannesburg Stock Exchange (JSE) has been marked by sustained success. As one of the strongest buys on the market, BAT’s stock has consistently performed well since its JSE listing, demonstrating resilience in the face of market fluctuations. This track record of stability and positive growth enhances the appeal of BAT as a reliable investment option.

Diversified Product Portfolio: BAT’s multi-category approach to consumer goods, encompassing cigarettes, tobacco, and other nicotine products, provides the company with a diversified revenue stream. This diversity not only contributes to its financial stability but also allows BAT to adapt to changing consumer trends and regulatory landscapes.

Resilience and Market Strength: BAT’s ability to weather economic uncertainties and regulatory changes showcases its resilience. The consumer goods industry is often subject to regulatory scrutiny, but BAT’s continued success suggests effective management strategies and a commitment to meeting evolving market demands.

Investor Confidence and Strong Buy Status: BAT’s status as one of the strongest buys underscores the confidence investors place in the company’s performance. The absence of significant downturns in its market history adds to its appeal, making it an attractive option for those seeking a combination of stability and potential returns.

Global Tobacco Market Dynamics: As a major player in the global tobacco market, BAT benefits from the consistent demand for tobacco and nicotine products. Despite evolving trends in health consciousness and regulatory shifts, the tobacco industry maintains a stable market, and BAT’s market strength positions it to navigate the changing dynamics effectively.

Social Responsibility Initiatives: Recognizing the evolving landscape of consumer preferences and societal expectations, BAT has undertaken various social responsibility initiatives. These efforts include sustainable sourcing, environmental stewardship, and engagement in community development projects. These initiatives not only reflect a commitment to responsible business practices but also align BAT with the expectations of socially conscious investors.

Investors considering British American Tobacco PLC (SA) for their portfolios may find the company’s rich heritage, global presence, and consistent performance on the JSE to be compelling factors. As always, investors should conduct thorough research, consider their individual investment goals, and stay informed about industry trends before making investment decisions.

Key Financial Highlights of British American Tobacco PLC (SA):

• Market Cap: ZAR 1,391,911,760,086
• EPS – TTM (Earnings Per Share – Trailing Twelve Months): ZAR 8104.86
• P/E Ratio (Price to Earnings Ratio): 6.99
• Forward P/E: 6.54
• Dividend Yield: 9.16%
• Return on Equity: 11.11%
• Return on Assets: 44.29%
• Net Asset Value (NAV) per share: ZAR 75,840.00
• Price/NAV: 0.75
• Authorised Shares: 2,858,265,349
• Issued Shares: 2,456,907,419

5. Tesla

Founded in July 2003 and synonymous with innovation, Tesla has emerged as a powerhouse in the automotive and energy sectors. Helmed by the visionary entrepreneur Elon Musk, Tesla is not just a car manufacturer; it’s a disruptor that has fundamentally changed the way the world views electric vehicles and sustainable energy solutions. As of 2022, Tesla is not only a market leader but also finds itself upgraded to a Zacks Rank #1, solidifying its position as a strong buy in the eyes of financial analysts.

Elon Musk’s Visionary Leadership: At the helm of Tesla is Elon Musk, a billionaire entrepreneur known for his ambitious goals and unrelenting pursuit of innovation. Musk’s leadership has been a driving force behind Tesla’s success, with a commitment to pushing the boundaries of technology and sustainability.

Zacks Rank #1 Upgrade: Tesla’s recent upgrade to a Zacks Rank #1 signifies the company’s exceptional standing in terms of earnings estimates. This upgrade is a reflection of the positive trajectory in Tesla’s financial performance, and Zacks Rank upgrades often capture the attention of investors seeking stocks with strong potential for future growth.

Earnings Impact on Stock Prices: The upgrade to Zacks Rank #1 indicates an increasing trend in earnings estimates, a factor known to have a significant impact on stock prices. As Tesla continues to demonstrate robust financial performance and growth prospects, investors may find it an attractive option for capitalizing on the potential for upward movement in stock value.

Innovation in Electric Vehicles: Tesla has revolutionized the automotive industry with its electric vehicles (EVs). The company’s commitment to producing high-performance electric cars with cutting-edge technology has positioned it as a leader in the rapidly growing EV market. With an expanding product lineup and continuous advancements in battery technology, Tesla remains at the forefront of the electric vehicle revolution.

Energy Solutions Beyond Cars: Tesla’s influence extends beyond electric cars. The company is actively involved in renewable energy solutions, including solar panels and energy storage through products like the Powerwall and Powerpack. This diversification positions Tesla as a comprehensive player in the broader clean energy ecosystem.

Young Company, Tech Industry Dynamics: Despite being a relatively young company, Tesla’s industry positioning aligns with the dynamics of the tech sector. The convergence of technology and automotive innovation places Tesla at the intersection of two high-growth industries. As tech companies continue to be viable investment options, Tesla’s unique position makes it an intriguing prospect for investors seeking exposure to both sectors.

Risks and Volatility: It’s important for investors to note that, like many high-growth tech companies, Tesla’s stock can experience volatility. Factors such as market sentiment, regulatory developments, and competition can influence the stock’s performance. Investors should be mindful of the associated risks and consider their risk tolerance before making investment decisions.

With its Zacks Rank #1 upgrade, visionary leadership, and innovative contributions to both electric vehicles and clean energy, Tesla remains a compelling choice for investors looking to align their portfolios with cutting-edge technology and sustainability. As always, potential investors should conduct thorough research, stay informed about industry trends, and consider their individual investment goals and risk tolerance before making decisions.

6. Anglo American PLC (SA)

Established in 1917, Anglo American PLC has cemented its position as a global mining giant, contributing significantly to the extraction and production of a diverse range of minerals. The company’s expansive portfolio includes copper, platinum, diamonds, coal, iron, nickel, and more. With a century-long legacy, Anglo American has demonstrated resilience and adaptability, making it a notable player in the worldwide mining industry.

Diversified Mineral Portfolio: Anglo American’s extensive operations cover a broad spectrum of minerals critical to various industries. From copper to diamonds, alloys to coal, the company’s diversified portfolio positions it to navigate the cyclical nature of commodity markets and capitalize on the global demand for essential minerals.

Market Outperformance and Returns: Anglo American’s notable performance in the market is underscored by its impressive returns, surpassing the ZA metals and mining industry by over 40% in the past year. This outperformance reflects the company’s strategic positioning, operational efficiency, and effective management in a sector often characterized by volatility.

Stable Share Price and Weekly Movements: Investors in Anglo American can appreciate the stability in its share price, characterized by modest weekly movements of around +/- 7%. This stability can provide a level of predictability for investors, contributing to a sense of confidence in the stock’s performance.

Short-Term Stability vs. Long-Term Growth: While the estimated annual growth in the next 1 to 3 years suggests a potential decline, Anglo American remains an attractive option for those seeking longer-term returns. The forecasted return on equity of 34.6% in 3 years highlights the company’s strategic initiatives and growth potential over a more extended horizon.

Market Trends and Industry Dynamics: Mining, by nature, is influenced by global economic trends and industrial activities. Anglo American’s ability to outpace industry returns indicates effective management and a keen understanding of market dynamics. Investors can benefit from aligning their investments with a company that demonstrates resilience and adaptability in the face of industry challenges.

Forecasted Return on Equity: The anticipation of a 34.6% return on equity in the next 3 years signals optimism regarding Anglo American’s future profitability and efficiency in capital utilization. This forecast reflects the company’s strategic initiatives, cost management, and potential for delivering value to its shareholders.

Risks and Considerations: As with any investment, there are inherent risks associated with the mining industry, including commodity price volatility, regulatory changes, and geopolitical factors. Investors should carefully assess their risk tolerance and conduct thorough research before making investment decisions.

Anglo American PLC’s rich history, diversified mineral portfolio, and strong market performance make it an appealing option for investors seeking exposure to the mining sector. While short-term fluctuations may occur, the company’s stability, coupled with the forecasted return on equity over the long term, positions Anglo American as a compelling choice for those looking to invest in the enduring potential of the mining industry. As always, investors should consider their individual financial goals and conduct due diligence before making investment decisions.

Key Financial Highlights of Anglo American PLC (SA):

• Market Cap: ZAR 569,834,942,496
• EPS – TTM (Earnings Per Share – Trailing Twelve Months): ZAR 5966.67
• P/E Ratio (Price to Earnings Ratio): 7.14
• Forward P/E: 8.27
• Dividend Yield: 5.46%
• Return on Equity: 11.23%
• Return on Assets: 9.67%
• Net Asset Value (NAV) per share: ZAR 41,020.03
• Price/NAV: 1.04
• Authorised Shares: 1,820,000,000
• Issued Shares: 1,337,577,913

7. MTN Group Ltd

In the dynamic landscape of the telecommunications sector, MTN Group Limited has emerged as a standout performer, delivering robust returns and solidifying its position as a leading player in the industry. With a focus on mobile voice, enterprise solutions, and a suite of telecommunication services, MTN Group has not only exceeded industry benchmarks but also showcased stability in a market often marked by volatility.

Telecom Success Story: MTN Group, along with its subsidiaries, operates at the forefront of the telecommunications industry, offering a diverse range of services that include mobile voice, enterprise bundles, dedicated internet, and international calling. Its strategic presence in these key segments positions MTN as a comprehensive telecom provider catering to both individual and business communication needs.

Market Outperformance: Over the past year, MTN Group has demonstrated impressive market performance, surpassing industry averages with a remarkable 34.7% in returns. This exceptional growth reflects the company’s ability to navigate the competitive telecom landscape and capitalize on the increasing demand for connectivity and communication services.

Diversified Service Portfolio: MTN’s diverse service portfolio, encompassing both consumer and enterprise solutions, provides a strategic advantage. The company’s ability to cater to a broad spectrum of telecommunications needs contributes to its resilience and ability to capture market share in various segments.

Stability in Stock Movements: Amidst the volatility often associated with ZA stocks, MTN Group stands out for its stability. With weekly movements typically around +/- 6% over the past 3 months, the stock exhibits a level of consistency that can be appealing to investors seeking a reliable and predictable investment.

Earnings Growth Potential: The predicted annual earnings growth of 26.7% over the next 1 to 3 years positions MTN Group as a high-growth prospect. This forecast, significantly above the national savings rate of 8.9%, underscores the company’s potential to generate substantial returns for investors over the medium term.

Telecom Sector Stability: The telecommunications sector, often considered a defensive sector, tends to exhibit stability and consistent demand, even during economic downturns. MTN Group’s presence in this sector aligns with the resilience that telecom companies often demonstrate, making it an attractive option for investors seeking stability and growth potential.

Strategic Vision for Connectivity: As the world becomes increasingly interconnected, the demand for reliable and efficient communication services continues to grow. MTN Group’s strategic positioning in the telecommunications industry places it at the forefront of meeting this demand, positioning the company for sustained growth in the evolving digital landscape.

Considerations for Investors: While MTN Group presents a compelling investment case, investors should be mindful of potential regulatory changes, competitive pressures, and technological advancements that can impact the telecom sector. A comprehensive understanding of these factors, coupled with ongoing market analysis, is essential for making informed investment decisions.

MTN Group Limited’s exceptional market performance, stability, and forecasted earnings growth underscore its prominence in the telecom sector. For investors seeking exposure to a dynamic industry with growth potential, MTN Group stands as a noteworthy option. As always, potential investors are encouraged to conduct thorough research, assess their individual investment goals, and consider the associated risks before making investment decisions.

Key Financial Highlights of MTN Group Ltd:

• Market Cap: ZAR 199,751,437,046
• EPS – TTM (Earnings Per Share – Trailing Twelve Months): ZAR 1189.79
• P/E Ratio (Price to Earnings Ratio): 8.91
• Forward P/E: 9.35
• Dividend Yield: 3.11%
• Return on Equity: 17.16%
• Return on Assets: 12.44%
• Net Asset Value (NAV) per share: ZAR 6,955.58
• Price/NAV: 1.52
• Authorised Shares: 2,500,000,000
• Issued Shares: 1,884,269,758

Related: Best Performing Stocks In 2023 That Are Worth Looking Into In 2024

In conclusion, the showcased companies, including Gold Fields, Naspers, Sasol, British American Tobacco, Tesla, Anglo American, and MTN Group, each bring unique strengths and opportunities to the investment landscape. While these companies demonstrate promising returns, it’s essential to remember that investing always carries risks. Opting for stable companies with a proven track record and continuous growth is advisable. Diversifying your investments across various JSE shares mitigates risks and ensures a safety net, preventing significant losses if one company faces challenges. The key to successful investing lies in thorough research, prudent decision-making, and a diversified portfolio strategy.