The 7 Cheapest Shares on the JSE revealed. We have carried out in-depth research to compile a list of the 7 Cheapest Shares listed in South Africa on the JSE that are below R100.
7 Cheapest Shares on the JSE Revealed (2023):
- ☑️ DRDGOLD Ltd (DRD)
- ☑️ Pepkor Holdings Ltd (PPH)
- ☑️ Sibanye Stillwater Limited (SSW)
- ☑️ Sappi Ltd (SAP)
- ☑️ Netcare Limited (NTC)
- ☑️ Growthpoint Properties Limited REIT (GRT)
- ☑️ Grindrod Ltd (GND)
In this guide, you’ll learn:
- What is the strategy behind buying cheap shares?
- 7 Cheapest Shares on the JSE
- How to choose the right Stock Broker in South Africa
- The Best Stock Trading Brokers in South Africa
DRDGOLD Ltd (DRD)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | R9.64 ZAR |
| 📊 Market Capitalization | R8.22 Billion ZAR |
| 📊 Shares Outstanding | 865 million |
| 📊 Dividends per share | 0.60 |
| 📊 Dividend Yield | 6.31% |
| 📊 P/E Ratio | 8.24 |
| 📊 EPS | 1.1540 ZAR |
DRDGOLD Ltd. (DRDGOLD), founded on February 16, 1895, is a global pioneer in the retreatment of surface tailings for the recovery of precious metals.
DRDGOLD has a network of assets that is unique in South Africa and, with its integrated companies working as a single organization, is focused on optimizing these assets to boost gold output.
DRDGold Ltd is an active South African gold mining business involved in the exploration, extraction, processing, and smelting of surface gold tailings. It comprises two operational segments: the Ergo which is a surface gold retreatment procedure.
Pepkor Holdings Ltd (PPH)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | R19.66 ZAR |
| 📊 Market Capitalization | R72.5 Billion ZAR |
| 📊 Shares Outstanding | 3.7 billion |
| 📊 Dividends per share | 0.44 |
| 📊 Dividend Yield | 2.24% |
| 📊 P/E Ratio | 12.61 |
| 📊 EPS | 1.5560 ZAR |
The group is a big, four-segment retailer with enormous size and diversification. All the retail brands within the sectors concentrate on discount, value, and specialty items, as well as general merchandise, home goods, financial services, and more.
Pepkor Holdings Ltd is involved in a variety of retail operations. Clothing and General Merchandise, Furniture, Appliances and Electronics, Building Materials, and FinTech are the company’s four business segments.
Sibanye Stillwater Limited (SSW)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | R38.90 ZAR |
| 📊 Market Capitalization | R105 billion ZAR |
| 📊 Shares Outstanding | 2.83 billion |
| 📊 Dividends per share | 4.79 |
| 📊 Dividend Yield | 12.9% |
| 📊 P/E Ratio | 2.93 |
| 📊 EPS | 12.72 ZAR |
Sibanye-Stillwater Limited is a world leader in the mining of precious metals, with operations in the United States and Southern Africa, as well as gold operations and projects in South Africa and copper, gold, and PGM exploration sites in North and South America.
On a gold-equivalent basis, the corporation produces more gold than any other company in the world and more platinum than any other company.
Sibanye-Stillwater is also a notable producer of rhodium, other platinum group metals, and related minerals including chrome. The firm is the foremost recycler and processor of used PGM catalytic converter materials worldwide.
Sappi Ltd (SAP)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | R55.88 ZAR |
| 📊 Market Capitalization | R31.6 billion ZAR |
| 📊 Shares Outstanding | 570 million |
| 📊 Dividends per share | 2.45 |
| 📊 Dividend Yield | 4.43% |
| 📊 P/E Ratio | 5.17 |
| 📊 EPS | 10.70 ZAR |
Sappi is a multinational corporation with facilities in North America, Europe, and Southern Africa that focuses on producing dissolving wood pulp, packaging and specialty papers, printing and writing papers, as well as biomaterials and biochemicals for more than 150 countries.
Globally, converters employ Sappi’s dissolving wood pulp products to generate viscose fiber for stylish apparel and textiles, as well as other consumer goods.
Sappi Ltd manufactures and distributes a range of paper and paper-related goods. The two main categories are specialty cellulose and paper.
Netcare Limited (NTC)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | R14.61 ZAR |
| 📊 Market Capitalization | R20.9 billion ZAR |
| 📊 Shares Outstanding | 1.44 billion |
| 📊 Dividends per share | 0.54 |
| 📊 Dividend Yield | 3.73% |
| 📊 P/E Ratio | 21.69 |
| 📊 EPS | 0.66 ZAR |
Netcare Ltd. runs its business activities via a variety of different subsidiaries and is responsible for the employment of about 29,000 individuals.
The Netcare Group makes investments in expanding and consistently enhancing its skills and capacities, as well as cooperating with the public sector, to contribute to the efficiency of the national healthcare systems in which it is active.
Because of its consistent investments in innovative medical technology, high-caliber professional knowledge, and unwavering dedication to the wellbeing of its patients, Netcare has established itself as a market-leading supplier of healthcare services.
Growthpoint Properties Limited REIT (GRT)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | R13.20 ZAR |
| 📊 Market Capitalization | R44.8 billion ZAR |
| 📊 Shares Outstanding | 3.43 billion |
| 📊 Dividends per share | 1.22 |
| 📊 Dividend Yield | 9.34% |
| 📊 P/E Ratio | 8.55 |
| 📊 EPS | 1.52 ZAR |
Growthpoint is a REIT that has a total property portfolio of R139.4 billion. The company has a 66.0% stake in Growthpoint Properties Australia (GOZ), which gives it ownership of 57 properties with a total value of R38.7 billion.
Growthpoint also has a 50% stake in the V&A Waterfront properties with a total value of R9.6 billion; a 29.8% stake in Globalworth Real Estate Investment Ltd.’s 60 properties with a total value of R12.8 billion; and a 29.8% stake in Globalworth Real Estate Investment Ltd.
Grindrod Ltd (GND)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | R8.65 ZAR |
| 📊 Market Capitalization | R5.83 billion ZAR |
| 📊 Shares Outstanding | 698 million |
| 📊 Dividends per share | 0.20 |
| 📊 Dividend Yield | 2.4% |
| 📊 P/E Ratio | 9.06 |
| 📊 EPS | 0.92 ZAR |
In addition to its headquarters in South Africa and its presence on the Johannesburg Stock Exchange Limited (JSE), Grindrod has a presence in 31 other countries through its subsidiaries, joint ventures, and associated companies, and it employs more than 4,700 people with a wide range of expertise and commitment.
The Group is a publicly traded corporation in South Africa with the stated mission of maximizing shareholder value via the generation of consistent returns over the long term. The company’s two operational arms, Freight Services, and Financial Services are responsible for this outcome.
Freight Services’ long-term goal is to become the preeminent supplier of freight and logistics infrastructure and services by capitalizing on its current strategic portfolio of ports, terminals, and logistics solutions, as well as its intellectual property.
What is the strategy behind buying cheap shares?
Many prominent firms in South Africa are dinged in short-term market declines but tend to do quite well over time.
When you know the criteria of quality to follow to identify inexpensive stocks to purchase, you may choose winners that the market could reward with higher prices after the slump.
How to choose the right Stock Broker in South Africa
South African share traders could not have picked a more favorable 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 on the JSE could choose from a wide variety of online Stock trading Brokers. There are several factors to consider when choosing a broker; 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.
☑️ Buying and selling individual stocks may incur a fee from certain brokers. However, most internet brokers nowadays do not impose any commission fees on their clients.
☑️ Options – The stock trading commission (if levied by the broker) and a per-contract fee of 15 cents to $1.50 are typical costs associated with options transactions.
☑️ The acquisition of mutual funds may be subject to a commission from certain brokers. Selecting a broker that deals only in no-transaction-fee mutual funds is one way to cut down on or eliminate mutual fund transaction fees. Expense ratios are internal costs charged by mutual funds. These fees are levied by the fund, not the broker. Check out the top mutual fund brokers in the industry.
☑️ Exchange-traded funds (ETFs) are susceptible to stock trading fees if the broker imposes such a fee since they trade like stocks and are acquired at a share price. Yet, many brokers provide a list of commission-free ETFs. Find one of these brokers if you want to trade ETFs. Here is a rundown of the top ETF brokers.
☑️ Increasing numbers of brokerages are providing clients with the opportunity to trade in a small number of cryptocurrencies; nevertheless, clients should be aware of the potential costs and dangers involved with such transactions.
☑️ Bonds may not subject traders to a transaction fee or a commission but to buy bonds, brokers might charge a fee, with a possible minimum and maximum.
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 Industry Regulatory Authority, the Financial Sector Conduct Authority (FSCA), or subject to additional oversight.
The Account Minimums
Several top-rated brokers need no minimum deposit. However, some brokers call for a $500 minimum opening deposit.
Even if you can create a brokerage account with a little amount of money, it may be difficult to invest it since many mutual funds need comparable minimum contributions.
Account Fees
While it may 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 because commission-free transactions are 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.
Promotions Offered
Many businesses, including online brokers, provide promotions to attract new clients. One common promotion is a cash incentive for making a minimum first deposit. If you are on the fence about which broker to go with, a promotion may tip the scales in one direction or the other.
However, choosing a broker based on promotion alone is not the best idea since a high commission over time may quickly negate any savings or bonus you might get.
The Best Stock Trading Brokers in South Africa
In this article, we have listed the best Stock trading brokers which offer share trading to South African traders. We have also pinpointed the Stock trading brokers who go beyond what is required to meet the needs of their clients.
Best MetaTrader 4 / MT4 Stock trading Broker in South Africa
Overall, Admirals is the best MT4 Stock trading Broker in South Africa. Admirals are well-liked in South Africa due to their extensive product offerings and high-quality study materials.
Admirals also have several Supreme Edition add-ons for MetaTrader 4, which is a plus.
Best MetaTrader 5 / MT5 Stock trading Broker in South Africa
Overall, GV Markets is the best MetaTrader 5 Stock trading Broker in South Africa. Since its inception in 2010, GV Markets has amassed more than 30 years of expertise in the financial markets.
MetaTrader 5 allows South African traders to conduct in-depth fundamental and technical research.
Best Stock Trading Broker for beginners in South Africa
Overall, eToro is the best Stock trading Broker for beginners in South Africa. eToro offers traders access to more than 3,000 different symbols, as well as a comprehensive Learning Academy complete with video lessons, articles, and weekly webinars.
For those with little trading knowledge or who just trade occasionally, eToro’s website and mobile app are great choices.
Best Low Minimum Deposit Stock trading Broker in South Africa
Overall, Axi is the best Low Minimum Deposit Stock trading Broker in South Africa. Axi is a non-dealing-desk (NDD) broker that operates on both the ECN and STP formats.
Axi has won several accolades and is used by retail traders from over 150 countries. South Africans may deposit whatever amount they choose into their Axi accounts since there is no minimum required.
Best ECN Stock trading Broker in South Africa
Overall, FOREX.com is the best ECN Stock trading Broker in South Africa. In contrast to some other brokers, FOREX.com provides clients with an execution assessment. You may trade a broad variety of instruments on FOREX.com, which uses a top-tier ECN trading platform.
Best Islamic / Swap-Free Stock trading Broker in South Africa
Overall, Exness is the best Islamic / Swap-Free Stock trading Broker in South Africa. Multi-currency trading accounts are available on Exness for traders in South Africa.
Traders who identify as Muslim and open an account with Exness have the option of switching to an Islamic trading account.
Best Share Trading App in South Africa
Overall, Trading212 is the best share trading app in South Africa. More than 14 million people have downloaded Trading 212 and more than 40,000 of those users have left positive feedback.
The Trading 212 app is available for download in the South African app stores, Apple’s App Store, and Google Play.
Best ZAR Trading Account Stock trading Broker in South Africa
Overall, HFM is the best ZAR Trading Account Stock trading Broker in South Africa. HFM is widely regarded as a top brokerage in the United States.
Traders like the ZAR-denominated account, the convenience of depositing and withdrawing funds in their native currency, and the absence of any known security issues.
Best Lowest Spread Stock trading Broker in South Africa
Overall, Alpari is the best lowest spread Stock trading Broker in South Africa. Over 2 million traders in more than 150 countries have taken use of Alpari’s services.
In addition to a variety of CFD and FX trading choices, Alpari provides some of the lowest spreads available to traders in South Africa.
Best Nasdaq 100 Stock trading Broker in South Africa
Overall, Capital.com is the best Nasdaq 100 Stock trading Broker in South Africa. Capital.com offers South Africans the most markets of any CFD broker, making it the greatest choice for trading in that country.
More than three thousand stock CFDs, including Nasdaq, are available to South Africans. Capital.com also offers some of the finest spreads on foreign exchange and equities, in addition to cheap fee rates.
Best Volatility 75 / VIX 75 Stock trading Broker in South Africa
Overall, AvaTrade is the best Volatility 75 / VIX 75 Stock trading Broker in South Africa. AvaTrade offers South Africans a standard account that gives them access to 1,260 instruments, including VIX 75.
AvaTrade also provides a transparent and well-regulated trading environment, and competitive spreads with zero commission charges on trades.
Best NDD Stock trading Broker in South Africa
Overall, RoboForex is the best NDD Stock trading Broker in South Africa. RoboForex is a widely used STP and ECN broker that gives retail traders many account types to choose from.
Traders using RoboForex may take advantage of instant order execution and 0 pip spreads on a wide range of currency pairs and CFDs.
Best STP Stock trading Broker in South Africa
Overall, ThinkMarkets is the best STP Stock trading Broker in South Africa. ThinkMarkets is a worldwide forex trading platform with operations in over 180 countries.
ThinkMarkets provides traders in South Africa with access to low trading costs, a wide variety of account options, and blazing-fast transaction execution.
Best Sign-up Bonus Broker in South Africa in South Africa
Overall, InstaForex is the best sign-up bonus broker in South Africa. When it comes to foreign exchange (FX) and contracts for difference (CFDs), you may put your faith in InstaForex.
When South Africans open a live trading account with InstaForex, they are eligible for a $1,000 no-deposit incentive.
Conclusion
Some South African traders believe that share trading is reserved for those who have large sums of money. However, there are cheaper shares available on the JSE for investors who want to start small.
When compared to stocks with a larger value, those with a smaller price tag are seen as having a greater potential to double their money. Low P/E equities cost less to purchase because of the unique relationship between stock price and earnings per share.
Frequently asked questions
What is the ideal minimum amount to buy shares in South Africa?
The minimum will vary according to the share or overall asset class in which you are interested. If you want to buy individual shares, you can expect to start trading from R100, or less, depending on the fees of your broker.
However, if you are interested in Exchange Traded Funds (ETFs), you can expect an initial minimum investment requirement between R300 and R1,000.
Can I buy shares for R100?
Yes, you can start investing from as little as R100, but if you are aiming to either profit from the appreciation of stocks or to gain a return on investment through dividends, you must slowly grow your investments by putting money towards shares every month.
Is Netcare a good share to buy?
Yes, Netcare is a good share to buy in 2023. Netcare shares are expected to begin flourishing once again once economic circumstances have improved, as the firm continues to develop and boost its position as a key worldwide leader in private healthcare.
Shares of Netcare remain on analysts’ and investors’ recommended buy lists.
Where can you buy the cheapest shares?
Using a discount broker to buy shares of a firm is the most cost-effective option. In contrast to the full-service broker, who charges more but offers more complete services such as advising on stock picks and financial planning, a bargain broker offers less financial guidance.
How do beginners invest in stocks with little money?
Investing in shares of stock or stock mutual funds via an online investing account is a great method to get started in the stock market for novices. The minimum initial investment required by many brokerage accounts is the cost of a single share.
Featured SA Shares Writer and Forex Analyst.
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