Having entered the JSE Investment Challenge for the first time, Tsogo Secondary from Mmakau in North West is off to a flying start, with two teams taking top positions for the month of March.

The JSE Investment Challenge, which has been running for 51 years, is a youth corporate social investment programme that aims to teach learners and students about investing on the JSE and the larger role that this investment plays in the country’s economy.

Participants get to test their share trading skills through a simulated “ghost trading” programme. Each team of four members is given a virtual sum of R1-million to invest in JSEMmakau-listed shares. Their performance is tracked and measured against other teams taking part in the challenge.

The competition, which is open to both school and university teams, features four categories – income (low risk), equity (moderate risk), ETF/ETN (moderate risk) and speculator (high risk). Each team decides at the outset which category they want to compete in. The income portfolio has to maintain a cash component of R400,000, can trade any amount and can only invest in the JSE Top 40. The equity portfolio has to maintain a minimum cash component of R250,000, can trade up to 10% in a company in the Top 40 and 5% outside the Top 40 and can invest in about 121 shares across the JSE All Share Index. Those teams that choose to participate in the speculator category do not have to maintain any cash component, can trade up to 10% in companies within the Top 40 and 5% outside the Top 40 and can invest in all 282 companies listed on the JSE as well as in warrants.

The aim in the equity, ETF/ETN and speculator categories is to achieve the highest growth on the portfolio, while the aim in the income category is to achieve the highest income while beating inflation. The inflation rate for the purpose of the challenge is set at 6% a year or 0.5% a month.

Trades placed before the market closes at 5pm are completed at the closing price on the day that they are placed. Trades placed after 5pm are completed at the closing price on the following trading day. Just like any investor on the JSE, teams have to pay brokerage fees. Brokerage charged on a buy and sell will be 1% of the value of the securities traded, with a minimum brokerage charge of R75 per trade. Securities transfer tax of 0.25% will be levied on all purchases.

Accounting teacher Refilwe Baloyi says the school has entered 11 teams with four members each (44 Grade 11 pupils) in the challenge, and the children are very enthusiastic. “We don’t allow cellphones during school time, so they hand in their phones in the morning and collect them from me at break time to do their research. Each team has set up a WhatsApp group,” she says.

Kgaugelo Motiang says the challenge has been very interesting, although it was quite overwhelming at first. “We are checking the news sites, following the share prices,” she says. The members of her team, the Accountaholics, say Capitec is their favourite stock because it is a brand they know and use. “The share price is always up and everyone knows Capitec,” she says. The other members of Accountaholics, which won the equity category with growth of 5.02%, are Botshelo Motema, Kutlwano Mokgoko and Paballo Bokaba.

Koketso Pilane, the team leader for PTAT Traders, named African Rainbow Capital as their number-one pick. PTAT Traders took top position in the ETF/ETN category, with growth of 1.03%. “We like African Rainbow Capital as it’s owned by one of the most influential men in the country, someone we look up to – Patrice Motsepe,” he says.

Pilane’s teammates are Thato Tiro, Tebogo Ramarumo and Tshepang Seapi.

March 2024 winners

The winners for March were:

• MP the Unpredictable from Mpumelelo Secondary School in the income category with income of R16,453.24.
• Accountaholics from Tsogo Secondary School in the schools’ equity category with portfolio growth of 5.02%.
• Bochrim Tycoons from Yeshiva College in the schools’ speculator category with portfolio growth of 5.96%.
• PTAT Traders from Tsogo Secondary School in the schools’ ETF/ETN category with growth of 1.03%.
• Wall Street Pedestrians from the University of Johannesburg took the university speculator category with portfolio growth of 13.89%.
• ETF Wealth Generators from the University of the Free State took the university ETF/ETN category with growth of 1.60%. DM

This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R29.