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Our good friends over at Sharenet offers investors a wide variety of free graphics relating to South Africa's stock market and shares listed on it. Today we take a look at their heatmap and compare the heatmap for marketcap of the JSE All Share to the heatmap of the volume traded on the JSE All Share index
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Just because it has the biggest market cap doesn't mean its the most traded
The first image we will show provides a heat map with the size of the blocks being relative to the size of the company's market value/market capital. Thus the bigger the block, the bigger the overall worth of the company relative to the others listed.
JSE All Share Marketcap heatmap
From the image above it is clear that British American Tobacco (BTI) has the largest market capital of any of the shares on the JSE All Share Index, with Naspers (NPN) coming in a close 2nd. Other large companies include Glencore (GLN), BHP Billiton (BIL), Richemont (CFR), Anglo (AGL), FirstRand (FSR), Sasol (SOL) and Standard Bank (SBK). While a company's market capital shows just how big a firm is, it does not mean that the largest shares are traded the most often, or due to their shear size are the most traded shares in terms of value traded each day. Far from it. The heatmap below shows the JSE All Share Index heatmap (as per the one above), but this time the relative size of each block is based on the value of shares traded as at 10:20am 6/11/2018.
JSE All Share value traded heatmap
This time the heatmap looks a lot different. While Naspers came in a close second in terms of market capital, when looking at value traded NPN is by far the biggest. With Sasol (SOL) coming in a very distant second place. The biggest share in terms of market capital on the JSE, British American Tobacco comes in at the 10th biggest in terms of value traded as at 10:20am 6/11/2018. With far smaller shares such as MTN (MTN), Sanlam (SLM), Mondi (MNP) all having traded more in terms of value than the biggest share listed on the JSE.
The heatmaps also provide a great way of determining the overall sentiment on the markets at a particular point in time, as the darker the red, the further the share has fallen from its last closing price, and the darker the green, the higher the share price has climbed since its last closing price. the heatmaps above clearly show that its been a pretty red and negative day on the JSE, with only a few green blocks amongst the sea of red. Markets are eagerly awaiting the results of the United States mid term elections, with most participants looking to sit on the sidelines until the mid term elections results are out.
The heatmaps also provide a great way of determining the overall sentiment on the markets at a particular point in time, as the darker the red, the further the share has fallen from its last closing price, and the darker the green, the higher the share price has climbed since its last closing price. the heatmaps above clearly show that its been a pretty red and negative day on the JSE, with only a few green blocks amongst the sea of red. Markets are eagerly awaiting the results of the United States mid term elections, with most participants looking to sit on the sidelines until the mid term elections results are out.