|
Related Topics |
|
We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ended 27 March 2020 and compare the numbers to that of a year ago.
In the trading week we will look at the president of South Africa announced the country will go into a 21 day lockdown. On a more positive note last weeks trading saw a few strong trading days. |
|
Our highlight over the last week
During last week the president of South Africa announced that South Africa will go into a 21 day lockdown period to stop the spread of the Coronavirus in South Africa, as a large portion of South Africa's population would be vulnerable considering poor immune systems due to poor diets and malnutricion , prevalence of AIDS and TB. The lockdown came into effect on Midnight 26 March 2020 and is set to last until 16 April 2020.
We have been tracking the number of confirmed Conoravirus cases in South Africa on our Coronavirus heat map page.
Visit the Coronavirus heat map page here.
We have been tracking the number of confirmed Conoravirus cases in South Africa on our Coronavirus heat map page.
Visit the Coronavirus heat map page here.
JSE Trading Statistics for the week ending 27 March 2020
Number of trades:
Number of trades (2020): 2 894 157
Number of trades (2019): 1 481 905
% change year on year: 95.30%
Volume traded:
Volume traded (2020): 3 517 875 000
Volume of traded (2019): 2 295 939 000
% change year on year: 53.22%
Value of trades:
Value of trades (2020): R161 460 911 000
Value of trades (2019): R103 145 339 000
% change year on year: 56.54%
Foreign purchase/selling:
Net sales/Purchases (2020): R355 309 000
Net sales/Purchases (2019): R1 448 609 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2020): -R25.028 billion
Net sales/Purchases (2019): -R24.664 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R24.664 billion for the YTD while this year they have been net sellers to the tune of -R25/028 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): R13.951 trillion
Market Cap (2019): R16.181 trillion
% change year on year: -13.78%
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): 2 894 157
Number of trades (2019): 1 481 905
% change year on year: 95.30%
Volume traded:
Volume traded (2020): 3 517 875 000
Volume of traded (2019): 2 295 939 000
% change year on year: 53.22%
Value of trades:
Value of trades (2020): R161 460 911 000
Value of trades (2019): R103 145 339 000
% change year on year: 56.54%
Foreign purchase/selling:
Net sales/Purchases (2020): R355 309 000
Net sales/Purchases (2019): R1 448 609 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2020): -R25.028 billion
Net sales/Purchases (2019): -R24.664 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R24.664 billion for the YTD while this year they have been net sellers to the tune of -R25/028 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): R13.951 trillion
Market Cap (2019): R16.181 trillion
% change year on year: -13.78%
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
- SA being downgrade to junk status by Moody's. All three major ratings agencies now rate South Africa's government bonds as "junk status" or sub investment grade