Investing in stocks is an ideal way to increase your financial status. For investors, the South African stock market presents a plethora of opportunities. Selecting the appropriate stocks is essential to maximize profits and lowering risks.
The Johannesburg Stock Exchange (JSE), the biggest and most well-known stock exchange in African countries, is the primary representative of the South African stock market. JSE Limited has developed into an advanced marketplace that provides various financial products, such as bonds, derivatives, and stocks. It is renowned for having strict corporate governance guidelines and a robust regulatory base.
Numerous well-known businesses from various industries, including mining, financial services, retail, and telecommunications, are based on JSE Limited. The financial markets are complex and appealing environments for investors, as worldwide and local economic situations impact them.
This article will guide you in finding the top 10 best stocks to buy in South Africa. Knowing these choices can help you make wise choices regardless of your experience as an investor or familiarity with the financial markets.
How to Invest in Stocks in South Africa?
Purchasing South African stocks is a simple investment.
- You must first open a brokerage account. Select a broker who provides Johannesburg Stock Exchange access.
- After completing the signup process, create an account. Usually, this entails confirming your identification and verifying personal information.
- Deposit into your account as soon as it is created. Most brokers accept several payment options, such as credit card payments and bank transfers.
- Next, do some research on the stocks you wish to buy. Examine market trends, business financials, and professional analyses.
- Choose which stocks to invest in. Use the brokerage platform to place an order. Market orders can be executed immediately, or limit orders can be purchased at a predetermined price.
- Regularly monitor your investments. Watch the market and the performance of the stocks. As necessary, adjust your portfolio to reflect your investing objectives better.
Consider diversifying your investments to spread risk. Invest in a variety of industries and businesses. Exchange-traded funds (ETFs) are another option to consider if you want more market exposure. Lastly, keep yourself informed. Keep up with developments and financial news on the South African market. This will assist you in choosing wiser investments.
Top 10 Best Stocks to Buy in South Africa
Deciding which shares to purchase can be challenging when numerous stocks are available. This is particularly true if you are new to stocks and shares. The following are the best companies to invest in South Africa easy equities:
1.  Harmony Gold Mining Company Limited (NYSE: HMY)
Harmony Gold Mining Company Limited is one of Africa’s largest gold mining corporations. It has nine mines in its native South Africa, where its headquarters are located. The company is presently going through a leadership transition, as its CEO is expected to depart shortly. It has numerous business rivals and market competition in the Precious Metals and Mining sector.
Its share price is currently ZAR 305.82. GFI saw a 1.10% decrease in its closing price of 305.62 ZAR on May 21, 2024, when it finished its last trading day on the Johannesburg Stock Exchange at 302.25 ZAR per share.
2.  Anheuser-Busch InBev SA/NV (JSE: ANH)
Based on EBITDA, Anheuser-Busch InBev is among the top five consumer goods firms globally and is the biggest brewery worldwide.
At ZAR 2.15 trillion, or around 10.6% of the Johannesburg Stock Exchange equities market, Anheuser-Busch InBev SA/NV is now the third highest-valued asset on the JSE. During the last three months (February-May 2024), Anheuser-Busch InBev has been the 129th most traded stock on the JSE.
The Anheuser-Busch InBev share price is at ZAR 1,195.81. ANH saw a 1.6% decrease in the final price of 1,215.76 ZAR on May 21, 2024, when it completed trading on the JSE at 1,196.13 ZAR per share.
3.  British American Tobacco (JSE: BTI)
Among the top 5 tobacco companies globally, British American Tobacco owns well-known tobacco brands. The price of BAT shares is rising, and the company is currently listed for sale on the London Stock Exchange and has an additional listing on the Johannesburg Stock Exchange.
British American Tobacco plc (BTI) trades for ZAR 570.98 per share. BTI saw a 1.28% decrease in its closing price of 573.42 ZAR on May 21, 2024, when it concluded trading on the Johannesburg Stock Exchange (JSE) at 566.10 ZAR per share. Currently, the tobacco company holds around 11% of the global cigarette market. Widely dispersed throughout emerging and developing markets, it accounts for 71% of BAT’s volume.
4.  Tesla, Inc (NASDAQ: TSLA)
American company Tesla, Inc. has its main office in Palo Alto, California. Its primary manufacturing activities are solar panels, solar roof tiles, electric vehicles, and battery energy storage.
As of 2016, Tesla, Inc. had 260 retail outlets around the United States. With US$6.35 billion in revenue and US$1 billion in automobile sales in China alone, Tesla, Inc. held the top spot in worldwide sales by 2016. A review of the stock market for the first quarter of 2024 revealed $5,985 million in total sales, $1,234 million in net profit, and US$951 million in adjusted EBITDA.
Tesla, Inc.’s cash and cash equivalents increased by US$1.8 billion to US$8.1 billion in the first quarter amid difficulties brought on by the rapid growth of COVID-19.
5.  Naspers Limited (JSE: NPN)
With operations in over 130 countries, Naspers Limited is a global media, internet, and entertainment powerhouse and one of the biggest financiers in technology. Naspers stocks have consistently outperformed the all-share index by about 300%, making them one of the JSE Limited stocks.
Naspers Ltd.’s share price is currently ZAR 3910.00. On May 21, 2024, NPN concluded its trading session on the Johannesburg Stock Exchange at 3938.40 ZAR per share, marking a 0.10% increase from its earlier closure price of 3934.39 ZAR. After rising 9.44% over the last four weeks, NPN’s share price now ranks 65th on the JSE Stock Exchange in terms of performance.
6.  Sibanye Stillwater Ltd. (JSE: SSW)
Sibanye Stillwater Ltd. is the biggest producer of gold in South Africa and one of the top ten producers worldwide. The firm is a prominent global player in the precious metals mining industry, with a broad range of platinum group metal activities in the United States and South Africa.
Sibanye Stillwater Ltd.’s share price is at ZAR 24.64. May 21, 2024, marked the last trading day for SSW on the Johannesburg Stock Exchange (JSE), where it closed at 25.27 ZAR per share, down 2.09% from the earlier closure price of 25.81 ZAR.
7.   Anglo American (JSE: AGL)
Anglo American is a multinational mining company. With headquarters in London, United Kingdom, and Johannesburg, South Africa. Anglo is recognized as the world’s leading producer of platinum, making up 40% of global production at present. It also produces a significant amount of coal, diamonds, nickel, copper, iron ore, and nickel.
Anglo American is a corporation that can be purchased on the London Stock Exchange. It is included in the JSE Top 40 Index and the FTSE 100. The challenging trading conditions have affected the value of the Anglo American share price, but the firm is starting to gain popularity again.
8.  TRIP.COM (NASDAQ: TCOM)
Trip.com Group, Ltd. is a Chinese international online travel company that offers a wide range of services, such as booking hotels, purchasing transportation tickets, organizing packaged tours, and managing business travel.
Due to Trip.com Group, Ltd.’s impressive rebound in March, an examination of com Group, Ltd.’s market performance for the first quarter ending in March showed net revenue of $628 million (9.1 billion ZAR), a 13% decline from the same quarter in 2024.
Comparing the first quarter of 2024 to the fourth, com Group, Ltd.’s net revenue dropped by 17%. Revenue from lodging reservations at Com Group, Ltd. was $241 million (3.5 billion ZAR), a 37% increase from the same period in 2024.
9.  Netflix, Inc (NASDAQ: NFLX)
The $2.5 million first investment served as Netflix’s start-up capital. The company’s notion of identifying a sizable sector of portable goods that could be offered online was inspired by a strategy that Amazon had adopted.
In 2018, Netflix, Inc.’s market value surpassed $100 billion, making it the most prominent online media and entertainment firm globally. The COVID-19 epidemic caused a 14% increase in share prices in 2024; at $375 a share, shares are now more than 96% higher than at the start of 2018.
10. Richemont
Richemont is an international corporation of luxury products that was founded in 1988 as a result of the foreign assets that the South African company Rembrandt Group Limited held. Currently, Richemont stands as the world’s second-largest luxury goods corporation.
Richemont shares provide South African investors a unique opportunity to hedge their rand in the exclusive luxury goods industry. If the market for luxury products continues to rise, investors purchasing Richemont shares can only hope for a notable improvement in the world economy.
Conclusion
Investors can access a wide choice of companies across multiple sectors with the help of the powerful JSE Limited. However, it is important to remember that stock investing involves risks, and the last year performance does not guarantee future results.
