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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ended 20 March 2020 and compare the numbers to that of a year ago.
As 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 20 March 2020. The markets saw wild swings in both directions during the last trading week |
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Our highlight over the last week
Earlier today we launched our Coronavirus update page for South Africa, which will track the total number of infections as well as the number of infections per province in South Africa over time. Below a short extract from the Coronavirus update page.
The line chart below shows the number of confirmed Coronavirus cases in South Africa over time. Since the first official case was reported in South Africa the spread of Coronavirus has increased steadily to the current 274 confirmed cases. And the number is expected to increase substantially as more and more people get tested for the Coronavirus
Read the full article here.
The line chart below shows the number of confirmed Coronavirus cases in South Africa over time. Since the first official case was reported in South Africa the spread of Coronavirus has increased steadily to the current 274 confirmed cases. And the number is expected to increase substantially as more and more people get tested for the Coronavirus
Read the full article here.
JSE Trading Statistics for the week ending 20 March 2020
Number of trades:
Number of trades (2020): 3 670 898
Number of trades (2019): 1 275 117
% change year on year: 187.89%
Volume traded:
Volume traded (2020): 4 245 422 000
Volume of traded (2019): 1 401 167 000
% change year on year: 202.99%
Value of trades:
Value of trades (2020): R231 920 373 000
Value of trades (2019): R115 869 492 000
% change year on year: 100..16%
Foreign purchase/selling:
Net sales/Purchases (2020): -R6 856 781 000
Net sales/Purchases (2019): R1 336 018 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2020): -R27.040 billion
Net sales/Purchases (2019): -R26.112 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R26.112 billion for the YTD while this year they have been net sellers to the tune of -R27.040 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. These type of measures are being implemented by the South Africa government to and the measures are becoming more and more restrictive.
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): R13.221 trillion (down a whopping R659.58 billion compared to last week)
Market Cap (2019): R16.074 trillion
% change year on year: -17.75%
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): 3 670 898
Number of trades (2019): 1 275 117
% change year on year: 187.89%
Volume traded:
Volume traded (2020): 4 245 422 000
Volume of traded (2019): 1 401 167 000
% change year on year: 202.99%
Value of trades:
Value of trades (2020): R231 920 373 000
Value of trades (2019): R115 869 492 000
% change year on year: 100..16%
Foreign purchase/selling:
Net sales/Purchases (2020): -R6 856 781 000
Net sales/Purchases (2019): R1 336 018 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2020): -R27.040 billion
Net sales/Purchases (2019): -R26.112 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R26.112 billion for the YTD while this year they have been net sellers to the tune of -R27.040 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. These type of measures are being implemented by the South Africa government to and the measures are becoming more and more restrictive.
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): R13.221 trillion (down a whopping R659.58 billion compared to last week)
Market Cap (2019): R16.074 trillion
% change year on year: -17.75%
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