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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 13 September 2019 and compare the numbers to that of a year ago.
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Trading statistics for the week ended 13 September 2019
Last week Friday we covered the latest weekly world market wrap from Peregrine Treasury Services. Below an extract from the article pertaining to the latest in South African equities.
SOUTH AFRICAN EQUITY
Closer to home, SA equities experienced a relatively robust week, supported mainly by a stronger local currency and the small instance of hope emanating from the small good-will gestures made between US China within their trade war. Although global factors played a massive role in the moves seen within SA equity markets this week, there were definitely one or two interesting company movements that seemed to grab the spotlight.
On Wednesday morning, Naspers (NPN) was seen dropping around 32% upon open – this, however, only due to the unbundling and listing of its consumer internet company, Prosus (PRX), on Amsterdam’s Euronext stock exchange. PRX is now officially the largest listed consumer internet company in Europe, with operations and investments totaling more than $100 billion. The unbundling saw NPN closing Wednesday’s trading day at R2,465.00 per share (down from R3,513.00 on open). PRX closed its first trading day at R1,202.65. NPN, as a group, up around 4% on the day. NPN now only represents around 15% weight on the JSE All Share index, down from around 21.12% before the unbundling. NPN and PRX opened Friday’s trading day at R2,519.98 and R1,168.00 respectively.
After having had a relatively tough year so far, dropping 49% between January and August 2019, Aspen Pharmacare seems to be turning the corner, with major focus being placed on settling the large debt-pile the company has. The release of their results for the financial year ending 30 June 2019, saw investors definitely seeing the company in a more positive light. Some key figures were as follows:
Similarly to Aspen, Famous Brands has also found themselves in a tricky situation after their overvalued 2016 acquisition of the Gourmet Burger Kitchen (GBK), in the U.K., continues to create a financial drag on the company, as a whole. The group announced that system-wide sales numbers for the GBK business decreased by 12.5% for the six months ending 31 August 2019. Main reason for this sales drop was actually the closure of stores and not the actual burger sales, which actually increased for the period by 8.6%, where the same corresponding period in 2018 saw a 9.7% decrease in actual burger sales.
For September, so far:
Read the full weekly market wrap here.
SOUTH AFRICAN EQUITY
Closer to home, SA equities experienced a relatively robust week, supported mainly by a stronger local currency and the small instance of hope emanating from the small good-will gestures made between US China within their trade war. Although global factors played a massive role in the moves seen within SA equity markets this week, there were definitely one or two interesting company movements that seemed to grab the spotlight.
On Wednesday morning, Naspers (NPN) was seen dropping around 32% upon open – this, however, only due to the unbundling and listing of its consumer internet company, Prosus (PRX), on Amsterdam’s Euronext stock exchange. PRX is now officially the largest listed consumer internet company in Europe, with operations and investments totaling more than $100 billion. The unbundling saw NPN closing Wednesday’s trading day at R2,465.00 per share (down from R3,513.00 on open). PRX closed its first trading day at R1,202.65. NPN, as a group, up around 4% on the day. NPN now only represents around 15% weight on the JSE All Share index, down from around 21.12% before the unbundling. NPN and PRX opened Friday’s trading day at R2,519.98 and R1,168.00 respectively.
After having had a relatively tough year so far, dropping 49% between January and August 2019, Aspen Pharmacare seems to be turning the corner, with major focus being placed on settling the large debt-pile the company has. The release of their results for the financial year ending 30 June 2019, saw investors definitely seeing the company in a more positive light. Some key figures were as follows:
- Revenue from continuing operations increased by 1% to R38.9 billion
- Earnings per share from continued operations decreased by 52% to R5.95 per share
- normalised earnings before interest, tax, depreciation and amortisation (Ebitda) dipped by 2% to R10.8 billion
- earnings per share up 19% to R15.73 per share
- no dividend released, due to debt management
- debt burden decreased to R39 billion from R53.5 billion.
Similarly to Aspen, Famous Brands has also found themselves in a tricky situation after their overvalued 2016 acquisition of the Gourmet Burger Kitchen (GBK), in the U.K., continues to create a financial drag on the company, as a whole. The group announced that system-wide sales numbers for the GBK business decreased by 12.5% for the six months ending 31 August 2019. Main reason for this sales drop was actually the closure of stores and not the actual burger sales, which actually increased for the period by 8.6%, where the same corresponding period in 2018 saw a 9.7% decrease in actual burger sales.
- System-wide sales for Wimpy, Steers and Debonairs (SA operations) grew by 6%
- Like-for-like sales rose 4% for SA operations
- Niche-brands like Tashas and Vovo Telo grew system-wide sales gaining 14%
- Like-for-like sales in this niche category only rose 1.4%
For September, so far:
- All Share and Top 40 indices: up around 2.92% and 3.22% respectively
- Resources: down around 1.45%
- Industrials: up around 4.31%
- Financials: up around 6.20%
Read the full weekly market wrap here.
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JSE Trading Statistics for the week ending 6 September 2019
Number of trades:
Number of trades (2019): 1 664 243
Number of trades (2018): 1 418 675
% change year on year: 17.31%
Volume traded:
Volume traded (2019): 1 815 672 000
Volume of traded (2018): 1 808 908 000
% change year on year: 0.37%
Value of trades:
Value of trades (2019): R116 655 667 000
Value of trades (2018): R113 078 240 000
% change year on year: 3.16%
Foreign purchase/selling:
Net sales/Purchases (2019): R1 902 459 000
Net sales/Purchases (2018): -R2 976 648 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R62.248 billion
Net sales/Purchases (2018): -R8.692 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R8.692 billion for the YTD while this year they have been net sellers to the tune of -R62.248 billion in the year to date (YTD). That is a R53.556 billion difference between the net buying/selling position last year compared to this year as foreigners accelerate their selling of SA's listed stocks.
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. And who can blame them. The country is burning with protests and violence in all the major cities in South Africa on an almost daily basis.
JSE total market capitalisation:
Market Cap (2019): R16.013 trillion
Market Cap (2018): R14.680 trillion
% change year on year: 9.08%
So as shown in the JSE total market capitalisation above, the overall stock market of South Africa has increased moderately 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. August become the third negative trading month of the year. But so far for September 2019 the All Share Index is positive.
See our JSE Calendar tracker for more.
Key issues for the market and South Africa during 2019 will be:
Number of trades:
Number of trades (2019): 1 664 243
Number of trades (2018): 1 418 675
% change year on year: 17.31%
Volume traded:
Volume traded (2019): 1 815 672 000
Volume of traded (2018): 1 808 908 000
% change year on year: 0.37%
Value of trades:
Value of trades (2019): R116 655 667 000
Value of trades (2018): R113 078 240 000
% change year on year: 3.16%
Foreign purchase/selling:
Net sales/Purchases (2019): R1 902 459 000
Net sales/Purchases (2018): -R2 976 648 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R62.248 billion
Net sales/Purchases (2018): -R8.692 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R8.692 billion for the YTD while this year they have been net sellers to the tune of -R62.248 billion in the year to date (YTD). That is a R53.556 billion difference between the net buying/selling position last year compared to this year as foreigners accelerate their selling of SA's listed stocks.
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. And who can blame them. The country is burning with protests and violence in all the major cities in South Africa on an almost daily basis.
JSE total market capitalisation:
Market Cap (2019): R16.013 trillion
Market Cap (2018): R14.680 trillion
% change year on year: 9.08%
So as shown in the JSE total market capitalisation above, the overall stock market of South Africa has increased moderately 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. August become the third negative trading month of the year. But so far for September 2019 the All Share Index is positive.
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.
- Protests and violence in the major cities of South Africa is starting to affect investor confidence even more.
- Attacks on Saudi Arabian crude oil facilities and rising tensions in the Gulf region as the US blames Iran for these attacks.