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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 5 July 2019 and compare the numbers to that of a year ago.
So how has the South African Stock Market 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 12 July 2019
Below a short summary of SA equities from Peregrine Treasury Services before we look at the JSE trading statistics for the week ending 12 July 2019.
SOUTH AFRICAN EQUITY
With the local political landscape having had a relatively calm two weeks, all eyes were, once again, focused on the Fed’s testimony which was delivered on Wednesday afternoon. In essence, the ebb and flow of the US dollar, vs the local rand, has been the major driver of South African listed stocks. Where resources had a great run last week, this week saw the precious metal sector cooling off by just over one percent. Most other sectors were seen climbing little more than 0.50% in the last five trading days - an extremely tricky trail to navigate.
ArcelorMittal (ACL) were seen releasing a gloomy six-month trading update on Wednesday which stated that the company had been hampered by rigidly high costs which lie outside of the company’s control, including the likes of raw materials, electricity, and rail and port costs. The company is also likely to face additional headwinds, as it navigates the formal consultation process, which will assess the feasibility and impact of the 2,000 job losses potentially being considered as part of the firm’s cost-cutting strategy. ACL were seen closing 15.80% down on the day of the release of this news, closing at a market price of R2.93 per share on Wednesday. Thursday morning saw the stock touching lows of around R2.71 per share. ACL opened Friday’s trading day at R2.90 per share.
Woolworths (WHL) finally caught a much-needed break after having spent most of 2019 under the R50.00 a share mark, due to unfavourable news coming out from its David Jones clothing business in Australia earlier in the year. Thursday morning saw WHL releasing a surprisingly positive trading update for the 53 weeks ending 30 June 2019. Key figures that influenced Woolworths’ stronger-than-expected performance:
Here’s some of the bigger movers on the JSE for the 2019 year so far, painting a relatively clear picture that investors are tending to lean toward the, historically-defined, safer haven segment:
Read the full article here
JSE Trading Statistics for the week ending 12 July 2019
Number of trades:
Number of trades (2019): 1 357 079
Number of trades (2018): 923 042
% change year on year: 47.02%
Volume traded:
Volume traded (2019): 1 137 916 000
Volume of traded (2018): 1 569 960 000
% change year on year: -27.52%
Value of trades:
Value of trades (2019): R76 907 457 000
Value of trades (2018): R82 986 108 000
% change year on year: -7.32%
Foreign purchase/selling:
Net sales/Purchases (2019): -R2 712 590 000
Net sales/Purchases (2018): -R603 843 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R35.278 billion
Net sales/Purchases (2018): R16.034 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R16.034 billion for the YTD while this year they have been net sellers to the tune of -R35.278 billion in the year to date (YTD). That is a massive R51.3 billion swing in fortunes 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.
JSE total market capitalisation:
Market Cap (2019): R16.086 trillion
Market Cap (2018): R14.458 trillion
% change year on year: 11.26%
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 is off to a pretty shaky start with the JSE All share ending down about -1.6% for the first two trading weeks of the second half of the year
See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2019 will be:
SOUTH AFRICAN EQUITY
With the local political landscape having had a relatively calm two weeks, all eyes were, once again, focused on the Fed’s testimony which was delivered on Wednesday afternoon. In essence, the ebb and flow of the US dollar, vs the local rand, has been the major driver of South African listed stocks. Where resources had a great run last week, this week saw the precious metal sector cooling off by just over one percent. Most other sectors were seen climbing little more than 0.50% in the last five trading days - an extremely tricky trail to navigate.
ArcelorMittal (ACL) were seen releasing a gloomy six-month trading update on Wednesday which stated that the company had been hampered by rigidly high costs which lie outside of the company’s control, including the likes of raw materials, electricity, and rail and port costs. The company is also likely to face additional headwinds, as it navigates the formal consultation process, which will assess the feasibility and impact of the 2,000 job losses potentially being considered as part of the firm’s cost-cutting strategy. ACL were seen closing 15.80% down on the day of the release of this news, closing at a market price of R2.93 per share on Wednesday. Thursday morning saw the stock touching lows of around R2.71 per share. ACL opened Friday’s trading day at R2.90 per share.
Woolworths (WHL) finally caught a much-needed break after having spent most of 2019 under the R50.00 a share mark, due to unfavourable news coming out from its David Jones clothing business in Australia earlier in the year. Thursday morning saw WHL releasing a surprisingly positive trading update for the 53 weeks ending 30 June 2019. Key figures that influenced Woolworths’ stronger-than-expected performance:
- Sales for the year-ending 30 June: up 5.90%
- Food sales growth: up 9.80%, for the 52 weeks (maybe the firm should focus more on this business? Imagine an even higher-end Whole Foods-like division, to the already-loved WHL fresh fruit, veg and meat selection. With the robust brand they’ve created, would a risk in venturing into a brand new pioneering segment (within South Africa) be fruitless? Definitely something to think about)
- General sales prices were up by 1.80% for the year
- Clothing segment, David Jones, continued to add its adverse drag: one percent increase in local (Australian) sales, for the period
Here’s some of the bigger movers on the JSE for the 2019 year so far, painting a relatively clear picture that investors are tending to lean toward the, historically-defined, safer haven segment:
- Impala Platinum: up 102.29%
- Kumba Iron Ore: up 66.57%
- Sibanye Gold: up 66.67%
- Rebosis Property Fund: down 71.75%
- Omnia: down 64.50%
- Brait: down 39.33%
Read the full article here
JSE Trading Statistics for the week ending 12 July 2019
Number of trades:
Number of trades (2019): 1 357 079
Number of trades (2018): 923 042
% change year on year: 47.02%
Volume traded:
Volume traded (2019): 1 137 916 000
Volume of traded (2018): 1 569 960 000
% change year on year: -27.52%
Value of trades:
Value of trades (2019): R76 907 457 000
Value of trades (2018): R82 986 108 000
% change year on year: -7.32%
Foreign purchase/selling:
Net sales/Purchases (2019): -R2 712 590 000
Net sales/Purchases (2018): -R603 843 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R35.278 billion
Net sales/Purchases (2018): R16.034 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R16.034 billion for the YTD while this year they have been net sellers to the tune of -R35.278 billion in the year to date (YTD). That is a massive R51.3 billion swing in fortunes 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.
JSE total market capitalisation:
Market Cap (2019): R16.086 trillion
Market Cap (2018): R14.458 trillion
% change year on year: 11.26%
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 is off to a pretty shaky start with the JSE All share ending down about -1.6% for the first two trading weeks of the second half of the year
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)
- Potential interest rate cut in Thursday the 18th could see the Rand which has been very strong recently weaken a bit. This ties in with our expectation below of more expansionary monetary policy coming soon to boost the economy.
- 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)
- 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.