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JSE Market Statistics update
Date: 27 August 2018 Category: Stock Market |
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In this update we take a look at the latest JSE market statistics updated (for the week ending 24 August 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 still net sellers of 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.
The graphic above shows that foreigners have been net sellers of JSE listed shares for 16 out of the last 19 weeks A clear sign that sentiment towards the South African Stock market is overwhelmingly negative based on the behaviour of foreign investors and traders. But South Africa has been caught up in the emerging market contagion caused largely by Turkey. The economic and political instability in Turkey is fueling worries about emerging markets and this has lead to emerging market stocks and currencies being sold of heavily in the last few weeks.
While this does sounds very bad, and is not exactly providing great support for the Rand of South African listed shares on the JSE, it is not all bad news. For the year to date, foreigners are still net buyers of South African shares. The summary below shows the year to date value for 2018 and for 2017 so that reader can see what the net buying/selling position of foreigners are this year and compare it to the same time period of last year.
In total there has been R3 649 139 440 000 (or R3.65 trillion) in shares traded on the JSE so far in 2018 (up from R3.33 trillion for the same time period of 2017). That is a 9.6% increase in the total value traded on the JSE compared to last year this time.
Total JSE market cap came in at R14.97 trillion (down 0.54% compared to 12 months ago) when the JSE total market cap was sitting at R15.06 trillion
While this does sounds very bad, and is not exactly providing great support for the Rand of South African listed shares on the JSE, it is not all bad news. For the year to date, foreigners are still net buyers of South African shares. The summary below shows the year to date value for 2018 and for 2017 so that reader can see what the net buying/selling position of foreigners are this year and compare it to the same time period of last year.
- 2018: +R4.77billion
- 2017: - R62.9 billion
In total there has been R3 649 139 440 000 (or R3.65 trillion) in shares traded on the JSE so far in 2018 (up from R3.33 trillion for the same time period of 2017). That is a 9.6% increase in the total value traded on the JSE compared to last year this time.
Total JSE market cap came in at R14.97 trillion (down 0.54% compared to 12 months ago) when the JSE total market cap was sitting at R15.06 trillion