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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 7 June 2019 and compare the numbers to that of a year ago.
So how has the JSE been performing over the last week in terms of number of trades, volume of trades or value traded? And has seller been buying or selling locally listed shares? |
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Trading statistics for the week ended 7 June 2019
Below a short summary of SA equities from Peregrine Treasury Services before we look at the JSE trading statistics for the week ending 7 June 2019.
SOUTH AFRICAN EQUITY
Still trapped under the sombre veil of the recent elections and reshuffles within the greater parliament, the JSE Top 40 and All Share indices surprisingly clawed back just under 4.00% over the last five trading days. The catch however, was that the primary catalyst for this move was the weaker rand against the US dollar. With over 60.00% of the overall revenue’s generated by JSE listed companies being primarily denominated in US dollars, the weaker rand actually saw the larger dual listed-companies and miners push the indices higher. The drastic sell-off witnessed at the end of May has now started to present fairly attractive levels to re-enter the market again, albeit companies with US dollar exposure taking heavy preference.
Having said this, the banking sector, as well as retail sector, was seen remaining relatively flat for the week, while the resource sector had a very positive week. The industrial index rose more than 4.00%, off the back of robust moves from dual-listed stocks such as Naspers, Richemont, British American Tobacco and MTN.
A cautionary announcement was released by Spur Corporation on Monday evening pointing toward the possibility of Grand Parade Investments (GPI) continuing to sell down on their 17.50% ownership stake in Spur. This follows GPI’s disastrous venture into two dessert chain stores, namely Dunkin’ Donut’s and Baskin Robbins. The initial American fast-food brand-hype ultimately proved short-lived, due to poor local adoption by consumers. In addition, the arrival of both brands, on South African shores, saw relatively expensive franchise fees impacting GPI’s cash flow negatively.
The Burger King business, on the other hand, has proved to be a home run for GPI. It roughly owns the rights to 91.10% of the burger chain’s South African dealings. The rapid roll out of roughly 69 stores and the positive buy-in from the South African public has resulted in reasonable success for GPI. The high-speed growth of the business has increased its role as a competitor to Spur. Burger King’s expanding business is beginning to bring up questions of possible ‘conflicts of interest’, when comparing GPI’s investment position in both companies.
The negative impact of the confectionary businesses, coupled with the potential to expand Burger King even more, has given GPI the perfect opportunity to either trim or sell down entirely on its holdings in Spur, in order to create a source of strategic cash flow for the business - be it settling debts or focusing on other strategic investments. The likelihood of a full withdrawal isn’t high, but one could reasonably expect GPI to trim its ownership in Spur down to initial investment levels of around 10.00%. At that sort of level it would still provide Spur with the benefit of the BEE partnership with Grand Parade Investments. Spur opened up Friday’s trading day at R22.20 per share
Although bitter-sweet, Sibanye Gold saw their share price rising by more than 10.00% following news that their restructuring process would only see around 3,450 jobs being lost versus an initially expected 5,870. Due to various mining operations within the firm operating as loss making entities since 2017, a carefully designed restructuring plan was needed – one that would create as little impact as possible on employment numbers. Opening the week around levels of R13.37, Sibanye opened Friday’s trading day at Rxxx per share.
Here’s some of the bigger movers on the JSE for the 2019 year so far, as at Friday morning:
Read the full article here.
JSE Trading Statistics for the week ending 7 June 2019
Number of trades:
Number of trades (2019): 1 505 338
Number of trades (2018): 1 438 043
% change year on year: 4.68%
Volume traded:
Volume traded (2019): 1 460 682 000
Volume of traded (2018): 1 722 297 000
% change year on year: -15.19%
Value of trades:
Value of trades (2019): R102 416 120 000
Value of trades (2018): R98 951 653 000
% change year on year: 3.50%
Foreign purchase/selling:
Net sales/Purchases (2019): R7 684 063 000
Net sales/Purchases (2018): -R632 114 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R28.182 billion
Net sales/Purchases (2018): R11.714 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R11.714 billion for the YTD while this year they have been net sellers to the tune of -R28.182 billion in the year to date (YTD). That is a R39.897 billion swing (an improvement from R47.692 billion last week) in fortunes of foreigners being net buyers or sellers over the course of the last 12 months.
And sadly for South Africans and South African investors the foreigners are dumping South African listed shares instead of buying. But this trend was bucked last week with foreigners being net buyers of over R7.6 billion worth of SA listed share. Probably piling into the Rand hedge shares listed on the JSE, taking advantage of Rand weakness and expecting strong gains from the Rand hedges due to Rand weakness.
JSE total market capitalisation:
Market Cap (2019): R16.391 trillion
Market Cap (2018): R14.577 trillion
% change year on year: 12.44%
So as shown in the JSE total market capitalisation above, the overall stock market of South Africa has increased substantially over the course of the last 12 months (and it would have been even higher if it wasn't for the tariff war between the USA and China). The markets had a particularly positive start to the year, with all four months of the year ending in positive territory and it looks like the months of May is off to a flyer . See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2019 will be:
SOUTH AFRICAN EQUITY
Still trapped under the sombre veil of the recent elections and reshuffles within the greater parliament, the JSE Top 40 and All Share indices surprisingly clawed back just under 4.00% over the last five trading days. The catch however, was that the primary catalyst for this move was the weaker rand against the US dollar. With over 60.00% of the overall revenue’s generated by JSE listed companies being primarily denominated in US dollars, the weaker rand actually saw the larger dual listed-companies and miners push the indices higher. The drastic sell-off witnessed at the end of May has now started to present fairly attractive levels to re-enter the market again, albeit companies with US dollar exposure taking heavy preference.
Having said this, the banking sector, as well as retail sector, was seen remaining relatively flat for the week, while the resource sector had a very positive week. The industrial index rose more than 4.00%, off the back of robust moves from dual-listed stocks such as Naspers, Richemont, British American Tobacco and MTN.
A cautionary announcement was released by Spur Corporation on Monday evening pointing toward the possibility of Grand Parade Investments (GPI) continuing to sell down on their 17.50% ownership stake in Spur. This follows GPI’s disastrous venture into two dessert chain stores, namely Dunkin’ Donut’s and Baskin Robbins. The initial American fast-food brand-hype ultimately proved short-lived, due to poor local adoption by consumers. In addition, the arrival of both brands, on South African shores, saw relatively expensive franchise fees impacting GPI’s cash flow negatively.
The Burger King business, on the other hand, has proved to be a home run for GPI. It roughly owns the rights to 91.10% of the burger chain’s South African dealings. The rapid roll out of roughly 69 stores and the positive buy-in from the South African public has resulted in reasonable success for GPI. The high-speed growth of the business has increased its role as a competitor to Spur. Burger King’s expanding business is beginning to bring up questions of possible ‘conflicts of interest’, when comparing GPI’s investment position in both companies.
The negative impact of the confectionary businesses, coupled with the potential to expand Burger King even more, has given GPI the perfect opportunity to either trim or sell down entirely on its holdings in Spur, in order to create a source of strategic cash flow for the business - be it settling debts or focusing on other strategic investments. The likelihood of a full withdrawal isn’t high, but one could reasonably expect GPI to trim its ownership in Spur down to initial investment levels of around 10.00%. At that sort of level it would still provide Spur with the benefit of the BEE partnership with Grand Parade Investments. Spur opened up Friday’s trading day at R22.20 per share
Although bitter-sweet, Sibanye Gold saw their share price rising by more than 10.00% following news that their restructuring process would only see around 3,450 jobs being lost versus an initially expected 5,870. Due to various mining operations within the firm operating as loss making entities since 2017, a carefully designed restructuring plan was needed – one that would create as little impact as possible on employment numbers. Opening the week around levels of R13.37, Sibanye opened Friday’s trading day at Rxxx per share.
Here’s some of the bigger movers on the JSE for the 2019 year so far, as at Friday morning:
- Impala Platinum: up 68.62%
- Kumba Iron Ore: up 55.13%
- Lonmin: up 75.33% (up over 15.00% in the last week)
- Tongaat Hulett: down 71.66%
- Rebosis Property Fund: down 68.03%
- Delta Property Fund: down 53.33%
Read the full article here.
JSE Trading Statistics for the week ending 7 June 2019
Number of trades:
Number of trades (2019): 1 505 338
Number of trades (2018): 1 438 043
% change year on year: 4.68%
Volume traded:
Volume traded (2019): 1 460 682 000
Volume of traded (2018): 1 722 297 000
% change year on year: -15.19%
Value of trades:
Value of trades (2019): R102 416 120 000
Value of trades (2018): R98 951 653 000
% change year on year: 3.50%
Foreign purchase/selling:
Net sales/Purchases (2019): R7 684 063 000
Net sales/Purchases (2018): -R632 114 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R28.182 billion
Net sales/Purchases (2018): R11.714 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R11.714 billion for the YTD while this year they have been net sellers to the tune of -R28.182 billion in the year to date (YTD). That is a R39.897 billion swing (an improvement from R47.692 billion last week) in fortunes of foreigners being net buyers or sellers over the course of the last 12 months.
And sadly for South Africans and South African investors the foreigners are dumping South African listed shares instead of buying. But this trend was bucked last week with foreigners being net buyers of over R7.6 billion worth of SA listed share. Probably piling into the Rand hedge shares listed on the JSE, taking advantage of Rand weakness and expecting strong gains from the Rand hedges due to Rand weakness.
JSE total market capitalisation:
Market Cap (2019): R16.391 trillion
Market Cap (2018): R14.577 trillion
% change year on year: 12.44%
So as shown in the JSE total market capitalisation above, the overall stock market of South Africa has increased substantially over the course of the last 12 months (and it would have been even higher if it wasn't for the tariff war between the USA and China). The markets had a particularly positive start to the year, with all four months of the year ending in positive territory and it looks like the months of May is off to a flyer . See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2019 will be:
- Exchange Rate (seems to be see sawing a lot. See our exchange rate page)
- Elections now done and dusted its time to see what policy changes if any will be implemented
- Crude Oil prices which has remained above the $70 levels for a while now
- Expropriation of land without compensation (EWC)
- Sluggish economic growth. SA's latest GDP can be found here: SA GDP page
- Extremely High levels of unemployment and
- Tax increases 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.