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In this update we take a look at the latest JSE market statistics updated (for the week ending 29 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 first time in 9 weeks foreigners have been net buyers of South African listed shares on the JSE instead of net sellers. Breaking a two month long streak where foreigners sold more in South African shares than what they bought. Is this a sign that they believe the local market offers value right now? Perhaps, but one swallow doesn't make a summer.
Emerging markets and South Africa has been hit by various factors recently. The factors include trade war talks and the tit for tat tariffs being imposed on traded goods 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 before bucking the trend last week? Well over the last 8 weeks foreigners have been net sellers of SA listed shares of -R27.86 billion, but with the R109billion in net buying being recorded for the week ending 29 June 2019, net selling over the last 9 weeks are now sitting at just under R16billion. But from the beginning of 2018 to the week ending 29 June 2018, foreigners are still net buyers of SA listed shares to the value of R17.38billion, a lot better than a year ago when for the same period a year earlier foreigners were net sellers of JSE listed shares to the value of R74.01billion.
Emerging markets and South Africa has been hit by various factors recently. The factors include trade war talks and the tit for tat tariffs being imposed on traded goods 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 before bucking the trend last week? Well over the last 8 weeks foreigners have been net sellers of SA listed shares of -R27.86 billion, but with the R109billion in net buying being recorded for the week ending 29 June 2019, net selling over the last 9 weeks are now sitting at just under R16billion. But from the beginning of 2018 to the week ending 29 June 2018, foreigners are still net buyers of SA listed shares to the value of R17.38billion, a lot better than a year ago when for the same period a year earlier foreigners were net sellers of JSE listed shares to the value of R74.01billion.