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JSE Sectors Reference

What this page covers

The JSE uses the Industry Classification Benchmark, the same scheme as most global exchanges. Knowing which sector a share sits in tells you what it will react to, which is usually more useful than knowing its index weight.

25%basic materials weight
22%financials weight
ICBthe classification used
9main industries
The main industries and what moves them
IndustryApproximate index weightPrimary driver
Basic materialsAbout 25%Commodity prices and the rand
FinancialsAbout 22%Interest rates and credit quality
Consumer discretionaryAbout 16%Household income and confidence
IndustrialsAbout 10%Global growth and logistics
Consumer staplesAbout 9%Food inflation and volumes
TelecommunicationsAbout 7%Regulation and subscriber growth
Health careAbout 4%Policy, including NHI
Real estateAbout 4%The long bond yield
TechnologyAbout 3%Global sentiment
Rand hedges against domestic earners
TypeEarnings mostly fromA weaker rand
Dual listed industrialsOffshoreHelps
Mining and resourcesOffshore, commodity priced in dollarsHelps
BanksSouth AfricaNeutral to negative
RetailersSouth AfricaHurts, through import costs
Listed propertySouth Africa mostlyHurts, through the bond yield
TelecomsMixed, significant African exposureMixed
Sector indices published by the JSE
IndexCovers
Resources 10The ten largest resource counters
Financial 15The fifteen largest financials
Industrial 25The twenty-five largest industrials
SA Listed PropertyListed property, formerly SAPY
Top 40The forty largest across all sectors

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How these figures work

The figures on this page come from published sources and change on a schedule rather than continuously, which is what makes them worth recording in one place. Sector weights move with prices, so a commodity rally raises basic materials' weight without a single share being added. Weights quoted anywhere are a snapshot.

The rand hedge distinction matters more on the JSE than sector does. Two industrials can react in opposite directions to the same rand move depending on where they earn.

★ A worked example

Reading the tables together is where the value is. A sector index is not a diversified portfolio. Resources 10 is dominated by a handful of names, and concentration within a sector is often higher than across the market.

✕ Common mistakes

  • Sector weights move with prices, so a commodity rally raises basic mat. Sector weights move with prices, so a commodity rally raises basic materials' weight without a single share being added. Weights quoted anywhere are a snapshot.
  • The rand hedge distinction matters more on the JSE than sector does. The rand hedge distinction matters more on the JSE than sector does. Two industrials can react in opposite directions to the same rand move depending on where they earn.
  • A sector index is not a diversified portfolio. A sector index is not a diversified portfolio. Resources 10 is dominated by a handful of names, and concentration within a sector is often higher than across the market.
  • Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.

Notes on reading these figures

  • Sector weights move with prices, so a commodity rally raises basic materials' weight without a single share being added. Weights quoted anywhere are a snapshot.
  • The rand hedge distinction matters more on the JSE than sector does. Two industrials can react in opposite directions to the same rand move depending on where they earn.
  • A sector index is not a diversified portfolio. Resources 10 is dominated by a handful of names, and concentration within a sector is often higher than across the market.

To put these figures to work, the JSE Indices Reference runs the arithmetic on your own numbers, and JSE ETF Reference covers the same ground in ordinary language. Mining and the rand and Most Actively Traded JSE Shares go into the detail this table only summarises. The Beta Calculator covers the part this table leaves out.

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Terms used on this page

Definitions
ICB
Industry Classification Benchmark, the scheme the JSE uses.
Rand hedge
A company earning mostly offshore, which benefits from a weaker rand.
Domestic earner
A company earning mostly in South Africa, hurt by a weaker rand.
Sector index
An index covering one industry, usually more concentrated than the market.
Index weight
A share's proportion of an index, which moves with price.

Frequently asked questions

What classification does the JSE use?

The Industry Classification Benchmark, the same scheme as most global exchanges.

Which sector is largest?

Basic materials, at about 25% of index weight, followed by financials at about 22%.

What is a rand hedge?

A company earning mostly offshore, whose rand earnings rise when the rand weakens. Most large JSE industrials and miners qualify.

Do sector weights change?

Continuously, because they move with price. A commodity rally raises basic materials' weight without a single share being added.

Is a sector index diversified?

Less than the market. Resources 10 is dominated by a handful of names, and within-sector concentration is often higher than across it.

Why do two industrials move differently?

Usually because one earns offshore and the other domestically. On the JSE that distinction matters more than sector.