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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 26 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 26 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 26 July 2019.
SOUTH AFRICAN EQUITY
Closer to home, local equity markets have largely been directed by the indecisive rand, which has been seen trying to navigate the turbulent oceans shrouded with treacherous siren songs in the form of the public protector saga, the voting-in of Boris Johnson - as U.K.’s next Prime Minister, the surprisingly strong US earnings season and the dragging effect created by the US China trade war, which has seemingly turned stale, in terms of progression or any form of conclusive agreement. With the above challenges veiling the last week, both the All Share index and Top 40 were seen moving fractionally higher, to the tune of around 0.35% respectively, for the last five trading days.
Last Friday, AB Inbev (ANH) agreed to sell their Australian operations, Carlton & United Breweries, to Japan’s Asahi for $11.3 billion. The disposal of ANH’s Australian operations will definitely assist the company in chipping away at its debt pile, albeit at a slower rate than a successful IPO would have achieved. The fact that ANH’s debt burden is now topping the $100 billion mark, coupled with the recent cancellation of its Asian IPO, means that the sale of its Australian business is definitely a step in the right direction. Although one might think that the entire proceeds from the sale would be directed towards alleviating the company’s debt burden, there is a greater possibility of the proceeds being split between repaying its debt and targeting strategic buyouts and expansions within emerging markets, namely the buoyant Asia-Pacific region.
On Tuesday, Kumba Iron Ore (KIO) was seen reporting some extremely good, yet murky sim-month results, which saw the stock actually take a tumble on the day by around 2.93%. Once could say that investor expectations were potentially too high going into earnings. What one saw on the day, was simply the effect of an over-reaction cooling off. Some of their numbers were as follows:
Mondi Ltd (MND) have announced that they will be delisting their local version of the stock, while flipping its primary listing over to their London’s Mondi PLC (MNP) listing. Shareholders holding MND previously will now have their shares converted into the secondary listed MNP on the JSE. On MND’s final day of trading, around R6.7 billion in JSE daily volume was pushed through the stock alone.
If any investor held MND, and is uncertain about the way forward, here’s the conversion timelines advised by the company:
Read the full article here
JSE Trading Statistics for the week ending 26 July 2019
Number of trades:
Number of trades (2019): 1 491 420
Number of trades (2018): 1 007 416
% change year on year: 48.04%
Volume traded:
Volume traded (2019):1 380 979 000
Volume of traded (2018): 1 401 073000
% change year on year: -1.43%
Value of trades:
Value of trades (2019): R94 084 428 000
Value of trades (2018): R80 302 743 000
% change year on year: 17.16%
Foreign purchase/selling:
Net sales/Purchases (2019): -R5 902 269 000
Net sales/Purchases (2018): -R674 087 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R39.02 billion
Net sales/Purchases (2018): R14.28 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R14.28 billion for the YTD while this year they have been net sellers to the tune of -R39.02 billion in the year to date (YTD). That is a R53.3 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
JSE total market capitalisation:
Market Cap (2019): R16.467 trillion
Market Cap (2018): R14.582 trillion
% change year on year: 12.93%
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
Closer to home, local equity markets have largely been directed by the indecisive rand, which has been seen trying to navigate the turbulent oceans shrouded with treacherous siren songs in the form of the public protector saga, the voting-in of Boris Johnson - as U.K.’s next Prime Minister, the surprisingly strong US earnings season and the dragging effect created by the US China trade war, which has seemingly turned stale, in terms of progression or any form of conclusive agreement. With the above challenges veiling the last week, both the All Share index and Top 40 were seen moving fractionally higher, to the tune of around 0.35% respectively, for the last five trading days.
Last Friday, AB Inbev (ANH) agreed to sell their Australian operations, Carlton & United Breweries, to Japan’s Asahi for $11.3 billion. The disposal of ANH’s Australian operations will definitely assist the company in chipping away at its debt pile, albeit at a slower rate than a successful IPO would have achieved. The fact that ANH’s debt burden is now topping the $100 billion mark, coupled with the recent cancellation of its Asian IPO, means that the sale of its Australian business is definitely a step in the right direction. Although one might think that the entire proceeds from the sale would be directed towards alleviating the company’s debt burden, there is a greater possibility of the proceeds being split between repaying its debt and targeting strategic buyouts and expansions within emerging markets, namely the buoyant Asia-Pacific region.
On Tuesday, Kumba Iron Ore (KIO) was seen reporting some extremely good, yet murky sim-month results, which saw the stock actually take a tumble on the day by around 2.93%. Once could say that investor expectations were potentially too high going into earnings. What one saw on the day, was simply the effect of an over-reaction cooling off. Some of their numbers were as follows:
- EBITDA margin up to 58%
- Headline EPS was up 239% vs an expected 160% increase (due to iron ore’s 57% run in 2019)
- Interim dividend of R30.79 per share
- Revenue numbers up 77% for the period
Mondi Ltd (MND) have announced that they will be delisting their local version of the stock, while flipping its primary listing over to their London’s Mondi PLC (MNP) listing. Shareholders holding MND previously will now have their shares converted into the secondary listed MNP on the JSE. On MND’s final day of trading, around R6.7 billion in JSE daily volume was pushed through the stock alone.
If any investor held MND, and is uncertain about the way forward, here’s the conversion timelines advised by the company:
- Last day to trade in MND: Tuesday, 23 July
- Listing of MND suspended from: Wednesday, 24 July
- Response deadline for elections: Wednesday, 24 July
- Scheme record date: Friday, 26 July
- Scheme pay date: Monday, 29 July
- Listing of MND terminated on: Monday, 29 July
- Impala Platinum: up 102.07%
- Kumba Iron Ore: up 68.78%
- Sibanye Gold: up 85.03%
- Rebosis Property Fund: down 78.07%
- Omnia: down 59.61%
- Brait: down 48.30%
Read the full article here
JSE Trading Statistics for the week ending 26 July 2019
Number of trades:
Number of trades (2019): 1 491 420
Number of trades (2018): 1 007 416
% change year on year: 48.04%
Volume traded:
Volume traded (2019):1 380 979 000
Volume of traded (2018): 1 401 073000
% change year on year: -1.43%
Value of trades:
Value of trades (2019): R94 084 428 000
Value of trades (2018): R80 302 743 000
% change year on year: 17.16%
Foreign purchase/selling:
Net sales/Purchases (2019): -R5 902 269 000
Net sales/Purchases (2018): -R674 087 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R39.02 billion
Net sales/Purchases (2018): R14.28 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R14.28 billion for the YTD while this year they have been net sellers to the tune of -R39.02 billion in the year to date (YTD). That is a R53.3 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
JSE total market capitalisation:
Market Cap (2019): R16.467 trillion
Market Cap (2018): R14.582 trillion
% change year on year: 12.93%
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)
- 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
- 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.