Investing in South African Stocks
South Africa’s Johannesburg Stock Exchange (JSE) is home to many of the continent's top companies, spanning a range of different industries. In this article, we will highlight three of the top South African stocks listed on the JSE and examine their advantages and risks in 2025.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
The Johannesburg Stock Exchange: Background
Founded in 1887, the Johannesburg Stock Exchange (JSE) is the largest stock exchange in Africa and home to many of the continent’s largest public companies.
In total, there are around 400 companies listed on the JSE which, in terms of market capitalisation, are dominated by miners, banks and consumer focused groups. However, there is also growing representation from other industries such as technology and renewable energy.
Top South African Stocks
In the following sections, we will take a look at some of the top JSE stocks this year, highlight their performances and explain what to look out for.
Naspers
Naspers is a multinational holding company, the largest company in South Africa in terms of market cap and one of the largest technology investors in the world.
It is the majority owner of Prosus, a global consumer internet group through which the majority of Naspers’s international business is owned. Prosus was spun off from Naspers in 2019 and listed on the Euronext Amsterdam, with Naspers retaining a 57% stake in the company.
Prosus wholly or partially owns a range of internet and technology companies around the world. Its wholly owned subsidiaries include OLX Group and Stack Overflow, whilst it also holds significant minority stakes in companies such as Tencent and Remitly.
Consequently, Naspers provides shareholders with exposure to a diversified portfolio of companies around the world, most notably Tencent - a leading Chinese tech company which owns “super app” WeChat and is the world’s largest video game company.
It also offers this diversification at a discount, with Naspers consistently trading considerably below the value of its assets. Indeed, as of 5 November 2025, Naspers traded at around a 40% discount to its net asset value.
Naspers has been taking steps to reduce the discount gap for some time, but it continues to persist. Whilst the discount may make it sound attractive, the gap is by no means guaranteed to close and could persist indefinitely.
Another factor to consider is that much of Naspers’s value depends on its indirect stake in Tencent. This could make it vulnerable in the future to potential geopolitical tensions or shifting Chinese tech regulations.
AngloGold Ashanti
AngloGold Ashanti was formed in 2004 as a result of the merger of AngloGold and Ashanti Goldfields Corporation. It is the sixth largest gold mining company in the world in terms of production.
As the name suggests, AngloGold is primarily a gold mining company, although it does also produce silver as a by-product of its gold mining operations.
Consequently, AngloGold offers investors exposure to gold without investing in the physical commodity itself.
However, as the precious metal accounts for the vast majority of revenue, AngloGold is heavily dependent on gold prices. Whilst this has resulted in share price performing well over the last couple of years, a drop in gold prices would likely have the opposite effect and is a risk which should be considered by potential investors.
In the year ended 31 December 2024, AngloGold produced 2.66 million ounces of gold and 3.75 million ounces of silver, reporting revenue of $5.8 billion and a pretax profit of $1.7 billion.
The gold miner has paid a dividend each year since 2017 and currently has a dividend yield of around 2.5%. Of course, it’s important to remember that future dividends are never guaranteed.
Shoprite
Shoprite is South Africa’s largest retailer by a number of metrics including market cap and revenue. As well as its namesake supermarket chain, it operates a number of other retail brands including Usave, Checkers, Freshmark and House & Home.
Through its brands, the group sells consumer staples such as food, drink and healthcare products. These are the type of essentials that people tend to buy regardless of what’s going on in the wider economy, giving the stock defensive characteristics.
Its defensive nature is reinforced by Shoprite’s diverse customer base thanks to its different brands. For example, whilst its discount brand Usave appeals to cost-conscious shoppers, Checkers targets the more affluent end of the market.
In the year ending 29 June 2025, the group's revenue rose by 8.6% to R257 billion and operating profit rose 17.5% to R15 billion.
It’s worth bearing in mind that, largely due to the high level of competition, supermarkets tend to be low margin businesses, relying on high sales volume to generate profit. In 2025, Shoprite’s operating margin was less than 6%.
Subsequently, Shoprite may be sensitive to scenarios where costs rise or sales fall, either of which can further erode already thin margins and squeeze profitability.
Shoprite has paid a dividend every year since 1996, with the stock currently yielding 2.7%, although future dividends are not guaranteed.
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Frequently Asked Questions
How many stocks are on the JSE?
There are around 400 companies listed on the Johannesburg Stock Exchange.
Who are the top 40 JSE listed companies?
The largest 40 JSE companies in terms of market capitalisation form a stock index known as the JSE Top 40 Index.
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