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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ended 13 March 2020 and compare the numbers to that of a year ago.
And Coronavirus fears and general market sell off saw a massive spike in the volume, number and overall value of stocks traded for the week ended 13 March 2020 |
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Our highlight over the last week
The image below shows the returns provided by the Dow Jones, S&P 500 and the Nasdaq over the last 12 months. And from the image below it is pretty clear that all the gains made by these indices in the last 12 months has been all but wiped out in the last couple of weeks as fears surrounding the Coronavirus grips world markets and the oil price plummeted as Saudi Arabia started a oil price war due to Russia not wanting to agree to cut production to support oil prices. The Saudi's are now looking to strong arm the Russians into agreement of cutting production by forcing prices down and economically hurting the Russians who's base cost for crude extraction is far higher than that of Saudi Arabia, basically Saudi Arabia can survive with lower oil prices a lot easier than Russia. Now these events sent markets into free fall and the graphic above and image below is proof of this
The summary below shows the returns provided by the Dow Jones, S&P 500 and the Nasdaq over the last 12 months:
- Dow Jones: -7.73%
- S&P 500: -2.69%
- Nasdaq: 3.41%
JSE Trading Statistics for the week ending 13 March 2020
Number of trades:
Number of trades (2020): 3 275 462
Number of trades (2019): 1 579 229
% change year on year: 107.4%
Volume traded:
Volume traded (2020): 2 997 932 000
Volume of traded (2019): 1 809 382 000
% change year on year: 65.70%
Value of trades:
Value of trades (2020): R181 036 168 000
Value of trades (2019): R122 758 890 000
% change year on year: 47.47%
Foreign purchase/selling:
Net sales/Purchases (2020): -R5 439 345 000
Net sales/Purchases (2019): -R5 508 578 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2020): -R20.455 billion
Net sales/Purchases (2019): -R27. 448 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R27.448 billion for the YTD while this year they have been net sellers to the tune of -R20.455 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.
There are now massive fears regarding the Coronavirus and its impact on global economic growth, particularly the impact on China's growth and the impact it will have an South Africa's economic growth, since we supply loads of basic commodities too China, the world's second largest economy. We have seen in recent weeks many countries going into lockdown, and closing their borders, implementing travel restrictions, banning large crowd gatherings and sporting events, all in an effort to curb the spread of the virus.
The data above still shows 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): R13.880 trillion
Market Cap (2019): R16.012 trillion
% change year on year: -13.31%
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 decreased significantly over the course of the last 12 months as the recent market sell off has seen the JSE All Share Index lose over 30% since the start of the year. See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2020 will be:
Number of trades (2020): 3 275 462
Number of trades (2019): 1 579 229
% change year on year: 107.4%
Volume traded:
Volume traded (2020): 2 997 932 000
Volume of traded (2019): 1 809 382 000
% change year on year: 65.70%
Value of trades:
Value of trades (2020): R181 036 168 000
Value of trades (2019): R122 758 890 000
% change year on year: 47.47%
Foreign purchase/selling:
Net sales/Purchases (2020): -R5 439 345 000
Net sales/Purchases (2019): -R5 508 578 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2020): -R20.455 billion
Net sales/Purchases (2019): -R27. 448 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R27.448 billion for the YTD while this year they have been net sellers to the tune of -R20.455 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.
There are now massive fears regarding the Coronavirus and its impact on global economic growth, particularly the impact on China's growth and the impact it will have an South Africa's economic growth, since we supply loads of basic commodities too China, the world's second largest economy. We have seen in recent weeks many countries going into lockdown, and closing their borders, implementing travel restrictions, banning large crowd gatherings and sporting events, all in an effort to curb the spread of the virus.
The data above still shows 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): R13.880 trillion
Market Cap (2019): R16.012 trillion
% change year on year: -13.31%
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 decreased significantly over the course of the last 12 months as the recent market sell off has seen the JSE All Share Index lose over 30% since the start of the year. 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)
- Coronavirus and the impact it will have on not just Chinese demand for resources from South African commodity firms but the impact it will have on global trade, tourism, supply chains and ultimately global economic growth
- The pressure is starting to mount on the South African Reserve Bank with central banks across the world cutting rates in order to try and fight off the negative effects the Coronavirus has and will have on global demand and growth
- 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