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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 16 August 2019 and compare the numbers to that of a year ago.
Foreigners sold R49.4 billion worth of SA listed shares so far during 2019 the numbers show. |
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Trading statistics for the week ended 16 August 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
SA equities haven’t enjoyed the best of months so far, within the turmoil of the global political chess game being played. With the risk-off environment being witnessed, it’s been tough to find any one company that’s been able to hold themselves together, especially where business operations utilize rands. For the month of August, let’s have a look at some of the carnage that’s been happening:
ABSA bank reported a three percent increase in headline earnings to R8.3 billion for the six months to end June. These are promising and positive results for the bank, especially considering the current pressured economic climate, and the rollout of the companywide reorganization strategy seems to have been successfully managed so far. Although ABSA still has a way to go before achieving its long-term growth strategies, it appears to be heading in the right direction. ABSA opened Friday’s trading day at R152.10 per share
Gaining support, through a handful of financing arrangements, Steinhoff have managed to keep their heartbeat going until at least 2021. The heavily debt-laden company, due to one of the biggest South African corporate scandals ever, will now focus wholly on becoming a holding company focusing on retail businesses vs an actual operating retail business. For the foreseeable future, Steinhoff will continue selling off assets in order to claw its way out of its hairy debt situation, as underlying revenues from their current business operations aren’t enough to make a dent. Steinhoff opened Friday’s Trading day at R1.18 per share.
Year-to-date, the JSE All Share index is up 2.09% and the Top 40 up 2.98%. Sector-wise, industrials have now returned 9.06%, resources 3.56% and financials -9.92% for the 2019 year so far.
Read the full weekly market wrap here.
SOUTH AFRICAN EQUITY
SA equities haven’t enjoyed the best of months so far, within the turmoil of the global political chess game being played. With the risk-off environment being witnessed, it’s been tough to find any one company that’s been able to hold themselves together, especially where business operations utilize rands. For the month of August, let’s have a look at some of the carnage that’s been happening:
- All Share and Top 40 indices: down around 5.47%
- Resources: down 5.86%
- Industrials: down 4.17% (Naspers: down 4.42%)
- Financials: down 6.64%
ABSA bank reported a three percent increase in headline earnings to R8.3 billion for the six months to end June. These are promising and positive results for the bank, especially considering the current pressured economic climate, and the rollout of the companywide reorganization strategy seems to have been successfully managed so far. Although ABSA still has a way to go before achieving its long-term growth strategies, it appears to be heading in the right direction. ABSA opened Friday’s trading day at R152.10 per share
Gaining support, through a handful of financing arrangements, Steinhoff have managed to keep their heartbeat going until at least 2021. The heavily debt-laden company, due to one of the biggest South African corporate scandals ever, will now focus wholly on becoming a holding company focusing on retail businesses vs an actual operating retail business. For the foreseeable future, Steinhoff will continue selling off assets in order to claw its way out of its hairy debt situation, as underlying revenues from their current business operations aren’t enough to make a dent. Steinhoff opened Friday’s Trading day at R1.18 per share.
Year-to-date, the JSE All Share index is up 2.09% and the Top 40 up 2.98%. Sector-wise, industrials have now returned 9.06%, resources 3.56% and financials -9.92% for the 2019 year so far.
Read the full weekly market wrap here.
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JSE Trading Statistics for the week ending 16 August 2019
Number of trades:
Number of trades (2019): 1 815 372
Number of trades (2018): 1 458 704
% change year on year: 25.45%
Volume traded:
Volume traded (2019): 1 709 116 000
Volume of traded (2018): 1 473 056 000
% change year on year: 16.03%
Value of trades:
Value of trades (2019): R115 690 677 000
Value of trades (2018): R114 342 043 000
% change year on year: 1.18%
Foreign purchase/selling:
Net sales/Purchases (2019): -R2 956 650 000
Net sales/Purchases (2018): -R1 083 195 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R49.42 billion
Net sales/Purchases (2018): R7.12 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R7.12 billion for the YTD while this year they have been net sellers to the tune of -R49.42 billion in the year to date (YTD). That is a R56.54 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): R15,788 trillion
Market Cap (2018): R14.873 trillion
% change year on year: 6.15%
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. And so far August looks like it will be a negative trading month too with the stock market down substantially so far during August 2019. The inverted yield curves in the USA fueling market worries of a potential global recession coming soon.
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): 1 815 372
Number of trades (2018): 1 458 704
% change year on year: 25.45%
Volume traded:
Volume traded (2019): 1 709 116 000
Volume of traded (2018): 1 473 056 000
% change year on year: 16.03%
Value of trades:
Value of trades (2019): R115 690 677 000
Value of trades (2018): R114 342 043 000
% change year on year: 1.18%
Foreign purchase/selling:
Net sales/Purchases (2019): -R2 956 650 000
Net sales/Purchases (2018): -R1 083 195 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R49.42 billion
Net sales/Purchases (2018): R7.12 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R7.12 billion for the YTD while this year they have been net sellers to the tune of -R49.42 billion in the year to date (YTD). That is a R56.54 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): R15,788 trillion
Market Cap (2018): R14.873 trillion
% change year on year: 6.15%
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. And so far August looks like it will be a negative trading month too with the stock market down substantially so far during August 2019. The inverted yield curves in the USA fueling market worries of a potential global recession coming soon.
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.