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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 23 August 2019 and compare the numbers to that of a year ago.
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Trading statistics for the week ended 23 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
South African equities had yet another tough week, even as the rand made a slight comeback, against the US dollar. While the rand was seen strengthening around 0.50% against the US dollar this week, local equity indices also enjoyed a mild 40-50 basis-point move higher. 2019 hasn’t been a great year for the retail sector, with most market values being pressed down quite heavily. Pick n Pay, The Foschini Group and Spar have all fallen between 10% - 20% this year. Truworths, Mr. Price, Massmart and Shoprite have seen between 35% and 60% of their value being stripped from the market in 2019. The only retailer holding it together, albeit seven percent underwater, happens to be Woolworths who have managed to somehow stop the bleeding that they had experienced quite heavily over the last two years, thanks to its underachieving David Jones clothing-arm, based in Australia.
While the underlying consumer experiences the pinch on their pockets, during this tightening economy, it’s interesting to note that both British American Tobacco and Anheuser Busch Inbev are up 53% and 17%, respectively, for the year. Although both companies have experienced the release of some undesirable financial numbers this year, could one start assuming that these ‘all-weather investments’ are starting to come into their own? Even in times of economic depression, tobacco and alcohol continue to successfully sell, as economically-impacted consumers try find ways of brightening up or numbing the gloomy effects brought upon by a global economic slowdown.
For August, so far:
Should Sasol not act towards addressing the control weaknesses flagged in the report, and sooner rather than later, waning investor sentiment could begin to weigh more heavily on the firm. South African investors are well aware that other prominent companies in the recent past have fallen prey to questionable management decisions. This is not to say that Sasol falls among their ranks, but the memory of these fallen stocks is all too fresh in investors’ minds. Sasol did need to delay its results presentation owing to certain international accounting standards and practices that had to be met, and more specifically relating to the control weaknesses raised in the initial independent review which was presented on 14 August 2019.
Although Sasol managed to scrape back their 14% drop since last Friday, the share is still around 41% down, since 01 May 2019. Down around 20% for the month of August, a small ray of hope shone through the clouds for Exxaro’s shareholders, who saw the company releasing reasonable results, especially when looking at the dividends, for the six months ending 30 June 2019. Some of the numbers seen coming out for the period were are follows:
Read the full weekly market wrap here.
SOUTH AFRICAN EQUITY
South African equities had yet another tough week, even as the rand made a slight comeback, against the US dollar. While the rand was seen strengthening around 0.50% against the US dollar this week, local equity indices also enjoyed a mild 40-50 basis-point move higher. 2019 hasn’t been a great year for the retail sector, with most market values being pressed down quite heavily. Pick n Pay, The Foschini Group and Spar have all fallen between 10% - 20% this year. Truworths, Mr. Price, Massmart and Shoprite have seen between 35% and 60% of their value being stripped from the market in 2019. The only retailer holding it together, albeit seven percent underwater, happens to be Woolworths who have managed to somehow stop the bleeding that they had experienced quite heavily over the last two years, thanks to its underachieving David Jones clothing-arm, based in Australia.
While the underlying consumer experiences the pinch on their pockets, during this tightening economy, it’s interesting to note that both British American Tobacco and Anheuser Busch Inbev are up 53% and 17%, respectively, for the year. Although both companies have experienced the release of some undesirable financial numbers this year, could one start assuming that these ‘all-weather investments’ are starting to come into their own? Even in times of economic depression, tobacco and alcohol continue to successfully sell, as economically-impacted consumers try find ways of brightening up or numbing the gloomy effects brought upon by a global economic slowdown.
For August, so far:
- All Share and Top 40 indices: down around 4.70%
- Resources: down around 5.90%
- Industrials: down around 5.17% (Naspers: down 3.13%)
- Financials: down around 4.42%
Should Sasol not act towards addressing the control weaknesses flagged in the report, and sooner rather than later, waning investor sentiment could begin to weigh more heavily on the firm. South African investors are well aware that other prominent companies in the recent past have fallen prey to questionable management decisions. This is not to say that Sasol falls among their ranks, but the memory of these fallen stocks is all too fresh in investors’ minds. Sasol did need to delay its results presentation owing to certain international accounting standards and practices that had to be met, and more specifically relating to the control weaknesses raised in the initial independent review which was presented on 14 August 2019.
Although Sasol managed to scrape back their 14% drop since last Friday, the share is still around 41% down, since 01 May 2019. Down around 20% for the month of August, a small ray of hope shone through the clouds for Exxaro’s shareholders, who saw the company releasing reasonable results, especially when looking at the dividends, for the six months ending 30 June 2019. Some of the numbers seen coming out for the period were are follows:
- headline earnings per share, up 42%
- revenue, down 2%, to R12 billion
- net operating profit, down 24%, to R2.4 billion
- Interim dividend up to R8.64 per share from R3.34
- Special dividend of R8.97 per share
Read the full weekly market wrap here.
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JSE Trading Statistics for the week ending 23 August 2019
Number of trades:
Number of trades (2019): 1 466 730
Number of trades (2018): 1 306 243
% change year on year: 12.29%
Volume traded:
Volume traded (2019): 1 484 026 000
Volume of traded (2018): 1 367 220 000
% change year on year: 8.45%
Value of trades:
Value of trades (2019): R94 372 927 000
Value of trades (2018): R97 295 325 000
% change year on year: -3%
Foreign purchase/selling:
Net sales/Purchases (2019): -R4 217 896 000
Net sales/Purchases (2018): -R2 392 774 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R53.379 billion
Net sales/Purchases (2018): R4.730 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R4.730 billion for the YTD while this year they have been net sellers to the tune of -R53.379 billion in the year to date (YTD). That is a R58.109 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): R15.804 trillion
Market Cap (2018): R14.979 trillion
% change year on year: 5.15%
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): 1 466 730
Number of trades (2018): 1 306 243
% change year on year: 12.29%
Volume traded:
Volume traded (2019): 1 484 026 000
Volume of traded (2018): 1 367 220 000
% change year on year: 8.45%
Value of trades:
Value of trades (2019): R94 372 927 000
Value of trades (2018): R97 295 325 000
% change year on year: -3%
Foreign purchase/selling:
Net sales/Purchases (2019): -R4 217 896 000
Net sales/Purchases (2018): -R2 392 774 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R53.379 billion
Net sales/Purchases (2018): R4.730 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R4.730 billion for the YTD while this year they have been net sellers to the tune of -R53.379 billion in the year to date (YTD). That is a R58.109 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): R15.804 trillion
Market Cap (2018): R14.979 trillion
% change year on year: 5.15%
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.