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In this update we take a look at the latest JSE market statistics updated (for the week ending 22 June 2018). And we place particular emphasis on the buying and selling behaviour of shares by foreigners as this provides a glimpse of the sentiment of foreign investors of the South African stock market.
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Are foreigners buying or selling SA listed shares?
The graphic below shows the "net buying/net selling"graph from foreign investors over the last number of weeks. A positive value shows foreigners were net buyers (bought more Rand value worth of shares than what they sold) during a particular week, while a negative value shows that foreigners sold more Rand value worth of shares than what they bought.
Strong positive values shows positive sentiment towards South African stocks and its stock market, while negative values shows negative sentiment towards South African markets.
Strong positive values shows positive sentiment towards South African stocks and its stock market, while negative values shows negative sentiment towards South African markets.
For the last 7 weeks foreigners have been net sellers of South African listed shares on the JSE. Clearing a sign of declining confidence in our local market. And if the sell off in SA listed shares is not a strong enough sign of confidence in SA and emerging markets falling away (largely due to trade war talks between China and the USA) the depreciation of South Africa's exchange rate is another sign of investors pulling money out of emerging markets and out of South Africa. See more on the Rand's performance here: Rand news
So just how much has foreigners been selling in SA listed shares in the last 8 weeks? Well over the last 8 weeks foreigners have been net sellers of SA listed shares of -R27.86 billion. Yes you read right. Foreign investors sold R27.6billion more in SA listed shares in the last 8 weeks than what they bought. That is a significant amount of disinvestment taking place. And during the last week (week ending 15 June) the pace of disinvestment has slowed from the previous week but is still significant
While it all sounds like bad news, the one piece of positive news is the fact that for the year to date, foreigners are still net buyers of SA listed shares to the value of R6.4billion (for the week ending 22 June 2018), but now only . But based on the current trend in foreign selling we doubt that this figure will remain positive much longer.
Interestingly during the same time period for 2017, foreigners were net sellers of R76.6billion in South African shares.
So just how much has foreigners been selling in SA listed shares in the last 8 weeks? Well over the last 8 weeks foreigners have been net sellers of SA listed shares of -R27.86 billion. Yes you read right. Foreign investors sold R27.6billion more in SA listed shares in the last 8 weeks than what they bought. That is a significant amount of disinvestment taking place. And during the last week (week ending 15 June) the pace of disinvestment has slowed from the previous week but is still significant
While it all sounds like bad news, the one piece of positive news is the fact that for the year to date, foreigners are still net buyers of SA listed shares to the value of R6.4billion (for the week ending 22 June 2018), but now only . But based on the current trend in foreign selling we doubt that this figure will remain positive much longer.
Interestingly during the same time period for 2017, foreigners were net sellers of R76.6billion in South African shares.