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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 8 August 2019 and compare the numbers to that of a year ago.
Foreigners were net sellers once again, but this time being net sellers of R3.2 billion in the four trading days of last week. |
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Trading statistics for the week ended 8 August 2019
Due to last week being a shorter trading week (with Friday the 9th being a public holiday) no weekly markets wrap was forthcoming from Peregrine Treasury Services. Instead we take a look at a report by UNCTAD that states that South Africa stands to gain about $3.1 billion of there is a no deal Brexit. While Brexit is a messy and ugly affair for the UK and EU to deal with, South Africa stands to gain should a no deal Brexit take place.
Read the full article here
JSE Trading Statistics for the week ending 8 August 2019
Number of trades:
Number of trades (2019): 1 358 833
Number of trades (2018): 914 326
% change year on year: 48.62%
Volume traded:
Volume traded (2019): 1 778 500 000
Volume of traded (2018): 997 644 000
% change year on year: 78.27%
Value of trades:
Value of trades (2019): R90 568 898 000
Value of trades (2018): R68 157 740 000
% change year on year: 32%
Foreign purchase/selling:
Net sales/Purchases (2019): -R3 221 212 000
Net sales/Purchases (2018): -R2 285 532 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R46.65 billion
Net sales/Purchases (2018): R8.2 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R8.2 billion for the YTD while this year they have been net sellers to the tune of -R46.65 billion in the year to date (YTD). That is a R54.82 billion swing in the value of foreigners being net buyers or sellers over the course of the last 12 months. A clear sign that foreign capital is still leaving South African equities in vast amounts. Even with the Ramaphosa presidency trying to win back investor confidence. ESKOM's financial woes are scaring the markets and foreign investors. And with expected exchange rate weakness due to ESKOM's problems foreigners are selling their Rand holdings in order to protect against Rand weakness
JSE total market capitalisation:
Market Cap (2019): R16.127trillion
Market Cap (2018): R14.783 trillion
% change year on year: 9.09%
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. While May ended the month strongly in the negative. June fought back and ended the months 4.55% in the green. But July spoiled the party by becoming the second negative month of the trading year. And so far August looks like it will be a negative trading month too with the stock market being down 1.99% so far in August
See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2019 will be:
Read the full article here
JSE Trading Statistics for the week ending 8 August 2019
Number of trades:
Number of trades (2019): 1 358 833
Number of trades (2018): 914 326
% change year on year: 48.62%
Volume traded:
Volume traded (2019): 1 778 500 000
Volume of traded (2018): 997 644 000
% change year on year: 78.27%
Value of trades:
Value of trades (2019): R90 568 898 000
Value of trades (2018): R68 157 740 000
% change year on year: 32%
Foreign purchase/selling:
Net sales/Purchases (2019): -R3 221 212 000
Net sales/Purchases (2018): -R2 285 532 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R46.65 billion
Net sales/Purchases (2018): R8.2 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R8.2 billion for the YTD while this year they have been net sellers to the tune of -R46.65 billion in the year to date (YTD). That is a R54.82 billion swing in the value of foreigners being net buyers or sellers over the course of the last 12 months. A clear sign that foreign capital is still leaving South African equities in vast amounts. Even with the Ramaphosa presidency trying to win back investor confidence. ESKOM's financial woes are scaring the markets and foreign investors. And with expected exchange rate weakness due to ESKOM's problems foreigners are selling their Rand holdings in order to protect against Rand weakness
JSE total market capitalisation:
Market Cap (2019): R16.127trillion
Market Cap (2018): R14.783 trillion
% change year on year: 9.09%
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. While May ended the month strongly in the negative. June fought back and ended the months 4.55% in the green. But July spoiled the party by becoming the second negative month of the trading year. And so far August looks like it will be a negative trading month too with the stock market being down 1.99% so far in August
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)
- The impact of the 25 bp cut announced by the South African Reserve Bank (SARB) monetary policy committee and the impact will have on the Rand as well as the South African economy on the medium to long term
- ESKOM's financial woes 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)
- 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
- 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.