SA40 opening and closing times: when can you trade?

What is the SA40?

The South Africa 40 index (SA40) is a capitalisation weighted index made up of 42 of the biggest, most liquid constituents of the Johannesburg Stock Exchange (JSE) – known as the JSE Top 40. Since you cannot trade the JSE Top 40, IG has created the SA40 to give you exposure to these stocks. Some companies have more than one listing, which is why there are 42 shares in the index.

What are the opening and closing times of the JSE?

The JSE opens at 9am and closes at 5pm (SA time), Monday to Friday. However, IG offers longer trading hours, depending on how you want to trade. If you want to trade the SA40 via IG, you can do so between 12am on Monday and 11pm on Friday (SA time), non-stop.

Above is a breakdown of the index’s trading hours. The SA40’s hours are based on the JSE opening times. The JSE is the stock exchange that manages the JSE Top 40 index (SA40 with IG) and where its constituents are listed. These hours are most relevant to investors looking to buy SA40 exchange traded funds (ETFs) or shares.

SA40 futures continue to trade outside of the exchange’s hours and allow traders to get greater exposure to the index through derivatives. They are priced according to the spot value of the underlying market, plus any spread or commission that you pay for executing your trade.

IG’s SA40 hours and pricing are derived from corresponding futures elements, but the hours are longer. This gives traders even more opportunity to realise a profit. Note that the market is priced differently if you trade SA40 futures compared to trading the index out of hours.

You can’t trade the SA40 on weekends, Christmas Day, New Year’s Day, Good Friday, or other holidays in the UK and South Africa. And, if these holidays fall on a Monday, you can’t start trading again on the preceding Sunday night. For trading hours specific to SA40 constituents, open the IG trading platform and check the ‘market info’ tab on the deal ticket of the stock.

Ready to start trading the SA40? Open an IG account in just a few minutes.

When is the best time to trade the SA40?

Generally speaking, the best time to trade the SA40 is when the market is most active. This is often just after the Johannesburg Stock Exchange opens – at 9am (SA time).

Liquidity and volatility will likely be high during this time as traders begin interacting with the market. The SA40 will also be more liquid during the overlap between the UK and South African markets, which are open during almost identical hours.

Lastly, earnings announcements of SA40 constituents can also increase liquidity and volatility. Keep an eye on our economic calendar for other developments that may impact the index.

How to take a position on the SA40

There are different ways to take a position on the SA40, namely trading and investing. Trading cash indices or index futures is the only way to get direct exposure to the SA40’s price movements. You can trade the index using CFDs.

Alternatively, you can gain exposure to the index by either buying shares in ETFs that track the price of the index or shares of individual constituents. When investing, you own the underlying asset, and the aim is to make a profit when you sell the shares at a later date.

Remember, it’s important to always follow your trading plan and have a risk management strategy in place.

Open an IG account to get exposure to the SA40.