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JSE Market Statistics update
Date: 9 July 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 6 July 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.
So while last week provided a short reprieve in foreigners selling shares listed on the JSE, it seems the overwhelming trend of foreigners selling more JSE listed shares than what they are buying is continuing with foreigners selling just over R1.06billion more in JSE listed shares than what they were buying. In the last 12 weeks, foreigners have been net sellers in 9 weeks, and net buyers in just 3 of them. Thus 75% of the trading weeks in the last 3 months have been negative in terms of foreign buying and selling.
While this does sound 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 024 095 132 000 (or R3.024 trillion) in shares traded on the JSE so far in 2018 (up from R2.685 trillion for the same time period of 2017). That is a 12.59% increase in the total value traded on the JSE compared to last year this time.
While this does sound 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: +R16.45 billion
- 2017: - R70.37 billion
In total there has been R3 024 095 132 000 (or R3.024 trillion) in shares traded on the JSE so far in 2018 (up from R2.685 trillion for the same time period of 2017). That is a 12.59% increase in the total value traded on the JSE compared to last year this time.