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In today's blog we take a look at the sentiment across various sectors as measured by our Horizon Chart. It clearly shows which sectors are in and out of favour in the minds of South African investors.
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Looking at sentiment across sectors
We are often asked which sector investor sentiment is the highest or the best. Well share price growth reflects sentiment in a share, or index level changes reflects sentiment in sectors/industries as a whole. So we have developed this horizontal chart showing sentiment across various sector on one graphic.
So how to read or interpret this graphic? The darker the blue colour the higher the index growth rate , the darker the red colour the bigger the decline in the index level from the starting period selected. Lighter blue colours shows moderate growth in index levels from the starting point, while lighter red/orange colours shows more muted declines in the index levels from the selected starting point.
Lighter colours and smaller peaks, shows more stable index levels (I.e not a lot of upwards or downwards movement in the index in question.
So how to read or interpret this graphic? The darker the blue colour the higher the index growth rate , the darker the red colour the bigger the decline in the index level from the starting period selected. Lighter blue colours shows moderate growth in index levels from the starting point, while lighter red/orange colours shows more muted declines in the index levels from the selected starting point.
Lighter colours and smaller peaks, shows more stable index levels (I.e not a lot of upwards or downwards movement in the index in question.
As can be seen from the graphic the sentiment in technology and consumer goods shares have been exceptionally strong over recent years, while it has been extremely negative in basic materials and health care. Financials have been relatively stable based on the low peaks in the graphic and the very light colours shown by the financials.
Users can adjust the starting date and the graphic will recalculate. Note it will take some time as significant processing is required in recalculating the sentiment graphic.
Users can adjust the starting date and the graphic will recalculate. Note it will take some time as significant processing is required in recalculating the sentiment graphic.