|
Related Topics |
|
We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 17 January 2020 and compare the numbers to that of a year ago.
|
|
Our highlight over the last week
Earlier today Woolworths Holdings released a sales update and voluntary trading statement for the period ending December 201. Below part of their trading statement.
VOLUNTARY TRADING STATEMENT
This voluntary trading statement is issued in terms of Section 3.4 (b) of the JSE Listings Requirements. Shareholders are advised that earnings per share (‘EPS’), headline earnings per share (‘HEPS’) and adjusted diluted HEPS for the current period are impacted by the adoption of IFRS 16. EPS and HEPS are unlikely to differ by 20% or more than the previous corresponding period. The Group will be reporting on IFRS 16 for the first time in the interim financial results of the 2020 financial year on a modified retrospective approach, with no restatement of the reported comparative prior period results. Excluding the impact of IFRS 16, in both the current and prior periods, EPS, HEPS and adjusted diluted HEPS are expected to be within the ranges reflected in the table below:
December 2018 December 2019 December 2019
reported (cents) expected range (%) expected range (cents)
EPS 197.5 -7.5% to -12.5% 172.8 to 182.7
HEPS 200.4 -7.5% to -12.5% 175.4 to 185.4
Adjusted diluted HEPS 202.9 -9.0% to -14.0% 174.5 to 184.6
Including the impact of IFRS 16 in the current period, EPS, HEPS and adjusted diluted HEPS are expected to be within the ranges reflected in the table below:
December 2018 December 2019 December 2019
reported (cents) expected range (%) expected range (cents)
EPS 197.5 -15.0% to -20.0% 158.0 to 167.9
HEPS 200.4 -15.0% to -20.0% 160.3 to 170.3
Adjusted diluted HEPS 202.9 -17.5% to -22.5% 157.2 to 167.4
CONSTANT CURRENCY INFORMATION
The constant currency information contained in this announcement has been presented to illustrate the impact of changes in the Group’s major foreign currency, the Australian dollar. In determining the constant currency turnover and concession sales growth rate, turnover and concession sales denominated in Australian dollars for the current period have been adjusted by application of the aggregated monthly average Australian dollar exchange rate for the prior period. The foreign currency fluctuations of our rest of Africa operations are not considered material, and have therefore not been applied in determining the constant currency turnover and concession sales growth rate. The aggregated monthly average Australian dollar exchange rate is R10.05 for the current period and R10.26 for the prior period.
Read the full article here
VOLUNTARY TRADING STATEMENT
This voluntary trading statement is issued in terms of Section 3.4 (b) of the JSE Listings Requirements. Shareholders are advised that earnings per share (‘EPS’), headline earnings per share (‘HEPS’) and adjusted diluted HEPS for the current period are impacted by the adoption of IFRS 16. EPS and HEPS are unlikely to differ by 20% or more than the previous corresponding period. The Group will be reporting on IFRS 16 for the first time in the interim financial results of the 2020 financial year on a modified retrospective approach, with no restatement of the reported comparative prior period results. Excluding the impact of IFRS 16, in both the current and prior periods, EPS, HEPS and adjusted diluted HEPS are expected to be within the ranges reflected in the table below:
December 2018 December 2019 December 2019
reported (cents) expected range (%) expected range (cents)
EPS 197.5 -7.5% to -12.5% 172.8 to 182.7
HEPS 200.4 -7.5% to -12.5% 175.4 to 185.4
Adjusted diluted HEPS 202.9 -9.0% to -14.0% 174.5 to 184.6
Including the impact of IFRS 16 in the current period, EPS, HEPS and adjusted diluted HEPS are expected to be within the ranges reflected in the table below:
December 2018 December 2019 December 2019
reported (cents) expected range (%) expected range (cents)
EPS 197.5 -15.0% to -20.0% 158.0 to 167.9
HEPS 200.4 -15.0% to -20.0% 160.3 to 170.3
Adjusted diluted HEPS 202.9 -17.5% to -22.5% 157.2 to 167.4
CONSTANT CURRENCY INFORMATION
The constant currency information contained in this announcement has been presented to illustrate the impact of changes in the Group’s major foreign currency, the Australian dollar. In determining the constant currency turnover and concession sales growth rate, turnover and concession sales denominated in Australian dollars for the current period have been adjusted by application of the aggregated monthly average Australian dollar exchange rate for the prior period. The foreign currency fluctuations of our rest of Africa operations are not considered material, and have therefore not been applied in determining the constant currency turnover and concession sales growth rate. The aggregated monthly average Australian dollar exchange rate is R10.05 for the current period and R10.26 for the prior period.
Read the full article here
Advertisement
JSE Trading Statistics for the week ending 24 January 2020
Number of trades:
Number of trades (2020): 1 303 674
Number of trades (2019): 1 343 642
% change year on year: -2.97%
Volume traded:
Volume traded (2020): 1 477 212 000
Volume of traded (2019): 1 331 654 000
% change year on year: 10.93%
Value of trades:
Value of trades (2020): R87 699 413 000
Value of trades (2019): R88 162 021 000
% change year on year: -0.52%
Foreign purchase/selling:
Net sales/Purchases (2020): R1 966 681 000
Net sales/Purchases (2019): -R4 056 893
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2020): -R2.173 billion
Net sales/Purchases (2019): -R14.169 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R14.169 billion for the YTD while this year they have been net sellers to the tune of -R2.173 billion in the year to date (YTD). While the numbers for this is year is a lot better than the previous year the fact is that foreigners remain net sellers of SA listed stocks and they have been for most of 2019, 2018 and 2017.
A clear sign that foreign capital is still leaving South African equities in vast amounts. This while the South African government continues to try and convince investors that South Africa is open for business. But the large scale corruption, poor government service delivery, slow economic growth, restrictive labour laws, worries about property rights, crime and general public disorder in the forms of strikes and looting are keeping potential investors away from South Africa.
JSE total market capitalisation:
Market Cap (2020): R17.572 trillion
Market Cap (2019): R12.82 trillion
% change year on year: 36.73%
So as shown in the JSE total market capitalisation above, the value of the overall market capitalisation of the stocks listed on the JSE has increased significantly over the course of the last 12 months.
See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2020 will be:
Number of trades (2020): 1 303 674
Number of trades (2019): 1 343 642
% change year on year: -2.97%
Volume traded:
Volume traded (2020): 1 477 212 000
Volume of traded (2019): 1 331 654 000
% change year on year: 10.93%
Value of trades:
Value of trades (2020): R87 699 413 000
Value of trades (2019): R88 162 021 000
% change year on year: -0.52%
Foreign purchase/selling:
Net sales/Purchases (2020): R1 966 681 000
Net sales/Purchases (2019): -R4 056 893
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2020): -R2.173 billion
Net sales/Purchases (2019): -R14.169 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R14.169 billion for the YTD while this year they have been net sellers to the tune of -R2.173 billion in the year to date (YTD). While the numbers for this is year is a lot better than the previous year the fact is that foreigners remain net sellers of SA listed stocks and they have been for most of 2019, 2018 and 2017.
A clear sign that foreign capital is still leaving South African equities in vast amounts. This while the South African government continues to try and convince investors that South Africa is open for business. But the large scale corruption, poor government service delivery, slow economic growth, restrictive labour laws, worries about property rights, crime and general public disorder in the forms of strikes and looting are keeping potential investors away from South Africa.
JSE total market capitalisation:
Market Cap (2020): R17.572 trillion
Market Cap (2019): R12.82 trillion
% change year on year: 36.73%
So as shown in the JSE total market capitalisation above, the value of the overall market capitalisation of the stocks listed on the JSE has increased significantly over the course of the last 12 months.
See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2020 will be:
- Exchange Rate (seems to be see sawing a lot. See our exchange rate page)
- The impact of the 25 bp cut announced by the South African Reserve Bank (SARB) monetary policy committee towards the end of 2019 and the impact will have on the Rand as well as the South African economy on the medium to long term. Additional interest rate cuts are now being discussed considering the muted inflation numbers published by Statistics South Africa yesterday and discussed earlier in this article
- ESKOM's financial woes and continued loadshedding and weaker than expected tax collections is forcing government to borrow more money, which is negatively affecting the South African exchange rate, and potential credit rating cuts coming for South Africa's government which pushes up the cost of borrowing, and this at a time when government is borrowing more and more
- Expropriation of land without compensation (EWC) has gone quiet in recent months but we are sure the EFF will bring it up again soon to get some airtime
- Potential expansionary monetary policy coming considering the very weak economic growth numbers
- Sluggish economic growth. See our SA GDP page and high levels of unemployment
- Additional tax increases that will likely be announced in the budget speech and how it will affect South African consumers spending patterns and potentially increase inflation levels as taxes were increased by rates higher than inflation. In particular lack of bracket creep relief and higher sin taxes, fuel levies and road accident fund levies will hurt consumers.