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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 18 October 2019 and compare the numbers to that of a year ago.
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Trading statistics for the week ended 18 October 2019
The summary below shows the inflation rates per province in South Africa for September 2019. And surprise surprise the inflation rate of Limpopo is the highest of any province. The first time in 30 months its not been the Western Cape
So for the last 30 months, the Western Cape has had the highest inflation rate of any of South Africa's provinces, and this month its the first time in 31 months that another province recorded an inflation rate higher than that of the Western Cape. Western Cape's persistently higher inflation rate has been attributed to the growth rate in their property rent. See more regarding this in our Cape Town Property Bubble article.
Other noteworthy inflation numbers for South Africa in September 2019
The extremely low rates of inflation for durable and semi-durable goods (all goods expected to last between a year and 5 years such as appliances, and clothing and footwear etc) shows that retailers are struggling to sell these type of goods thus very little price increases are levied on such goods else retailers wont be able to move the stock as consumers wont buy it. It is a manifestation of the weak economic conditions and struggling consumer demand in South Africa. So the question is what excuse will the South African Reserve Bank (SARB) monetary policy committee (MPC) come up with now not to cut interest rates at their next MPC meeting?
Read more about South Africa's inflation rate here
- Limpopo: 4.8%
- Western Cape: 4.6%
- Northern Cape: 4.1%
- South Africa: 4.1%
- Free State: 4.0%
- Gauteng: 4.0%
- KwaZulu-Natal: 4.0%
- Mpumalanga: 3.7%
- Eastern Cape: 3.7%
- North West: 3.6%
So for the last 30 months, the Western Cape has had the highest inflation rate of any of South Africa's provinces, and this month its the first time in 31 months that another province recorded an inflation rate higher than that of the Western Cape. Western Cape's persistently higher inflation rate has been attributed to the growth rate in their property rent. See more regarding this in our Cape Town Property Bubble article.
Other noteworthy inflation numbers for South Africa in September 2019
- Pensioners inflation: 4.2%
- Inflation for services: 4.2%
- Inflation for all goods: 4.0%
- Inflation for durable goods: 2.4%
- Inflation for semi-durable goods: 2.1%
- Inflation for non durable goods: 4.5%
The extremely low rates of inflation for durable and semi-durable goods (all goods expected to last between a year and 5 years such as appliances, and clothing and footwear etc) shows that retailers are struggling to sell these type of goods thus very little price increases are levied on such goods else retailers wont be able to move the stock as consumers wont buy it. It is a manifestation of the weak economic conditions and struggling consumer demand in South Africa. So the question is what excuse will the South African Reserve Bank (SARB) monetary policy committee (MPC) come up with now not to cut interest rates at their next MPC meeting?
Read more about South Africa's inflation rate here
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JSE Trading Statistics for the week ending 25 October 2019
Number of trades:
Number of trades (2019): 1 643 573
Number of trades (2018): 1 513 027
% change year on year: 8.63%
Volume traded:
Volume traded (2019): 2 000 817 000
Volume of traded (2018): 1 823 905 000
% change year on year: -9.70%
Value of trades:
Value of trades (2019): R103 892 507 000
Value of trades (2018): R102 985 257 000
% change year on year: 0.88%
Foreign purchase/selling:
Net sales/Purchases (2019): -R1 379 452 000
Net sales/Purchases (2018): -R2 886 309 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R86.937 billion
Net sales/Purchases (2018): -R16.999 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R16.99 billion for the YTD while this year they have been net sellers to the tune of -R86.937 billion in the year to date (YTD). That is a R69.9 billion difference between the net buying/selling position last year compared to this year as foreigners accelerate their selling of SA's listed stocks.
A clear sign that foreign capital is still leaving South African equities in vast amounts. This while the South African government continues to try and convince investors that South Africa is open for business. But the large scale corruption, poor government service delivery, slow economic growth, restrictive labour laws, worries about property rights, crime and general public disorder in the forms of strikes and looting are keeping potential investors away from South Africa.
JSE total market capitalisation:
Market Cap (2019): R17.365 trillion
Market Cap (2018): R13.401 trillion
% change year on year: 29.58%
So as shown in the JSE total market capitalisation above, the value of the overall market capitalisation of the stocks listed on the JSE has increased significantly over the course of the last 12 months (and it would have been even higher if it wasn't for the tariff war between the USA and China). The markets had a particularly positive start to the year, with all four months of the year ending in positive territory. However since then there has been a few negative months. Including September 2019 in which the JSE All Share Index ended down roughly 2%
See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2019 will be:
Number of trades:
Number of trades (2019): 1 643 573
Number of trades (2018): 1 513 027
% change year on year: 8.63%
Volume traded:
Volume traded (2019): 2 000 817 000
Volume of traded (2018): 1 823 905 000
% change year on year: -9.70%
Value of trades:
Value of trades (2019): R103 892 507 000
Value of trades (2018): R102 985 257 000
% change year on year: 0.88%
Foreign purchase/selling:
Net sales/Purchases (2019): -R1 379 452 000
Net sales/Purchases (2018): -R2 886 309 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R86.937 billion
Net sales/Purchases (2018): -R16.999 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R16.99 billion for the YTD while this year they have been net sellers to the tune of -R86.937 billion in the year to date (YTD). That is a R69.9 billion difference between the net buying/selling position last year compared to this year as foreigners accelerate their selling of SA's listed stocks.
A clear sign that foreign capital is still leaving South African equities in vast amounts. This while the South African government continues to try and convince investors that South Africa is open for business. But the large scale corruption, poor government service delivery, slow economic growth, restrictive labour laws, worries about property rights, crime and general public disorder in the forms of strikes and looting are keeping potential investors away from South Africa.
JSE total market capitalisation:
Market Cap (2019): R17.365 trillion
Market Cap (2018): R13.401 trillion
% change year on year: 29.58%
So as shown in the JSE total market capitalisation above, the value of the overall market capitalisation of the stocks listed on the JSE has increased significantly over the course of the last 12 months (and it would have been even higher if it wasn't for the tariff war between the USA and China). The markets had a particularly positive start to the year, with all four months of the year ending in positive territory. However since then there has been a few negative months. Including September 2019 in which the JSE All Share Index ended down roughly 2%
See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2019 will be:
- Exchange Rate (seems to be see sawing a lot. See our exchange rate page)
- The impact of the 25 bp cut announced by the South African Reserve Bank (SARB) monetary policy committee and the impact will have on the Rand as well as the South African economy on the medium to long term. Additional interest rate cuts are now being discussed considering the muted inflation numbers published by Statistics South Africa yesterday and discussed earlier in this article
- ESKOM's financial woes and weaker than expected tax collections is forcing government to borrow more money, which is negatively affecting the South African exchange rate, and potential credit rating cuts coming for South Africa's government which pushes up the cost of borrowing, and this at a time when government is borrowing more and more
- Expropriation of land without compensation (EWC)
- Potential expansionary monetary policy coming considering the very weak economic growth numbers
- Sluggish economic growth. See our SA GDP page and high levels of unemployment
- Tax increases announced in the budget speech and how it will affect South African consumers spending patterns and potentially increase inflation levels as taxes were increased by rates higher than inflation. In particular lack of bracket creep relief and higher sin taxes, fuel levies and road accident fund levies will hurt consumers.