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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 30 August 2019 and compare the numbers to that of a year ago.
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Trading statistics for the week ended 30 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
Considering the rough-ride markets have had this week, South Africa had one or two gems that managed to illumine the dreary economic landscape.
Adjusting to the choppy climate, Bid Corporation (BID), managed to raise earning by 12.5% per share for the six-months-ending 30 June 2019. Revenue was also seen rising by 9.8% to R129.3 billion. A large factor which did play into BID’s hands was the fact that north-of-95% of their revenue is generated offshore in generally-stronger currencies and geographies than that of South Africa and its rand. BID’s final dividend increased by 7.9% to R3.30 per share. Forward-looking guidance has been hinted at high single-figure numbers, albeit heavily influenced by a volatile rand. Over 5% stronger for the week, BID opened Friday’s trading day R319.20 per share
Dis-Chem (DCP) also managed to weather the storm, generating revenues of just under R10 billion, for the five-months-ending 31 July. Both retail and group revenue jumped between 12% and 13.5% for the period. So far, DCP has opened nine new stores this year, with another 13 planned before next year. Rising almost 10% on the back of the strong financial numbers, DCP settled ‘back at square-one’, opening Friday’s trading day flat for the week at R20.45 per share.
PPC Cement, Massmart and Steinhoff teased at some positive numbers this week, with only Steinhoff’s share price reacting positively, to the tune of around 28%. Both PPC and Massmart remained stagnant.
For August, so far:
Year-to-date, the JSE All Share index is up 3.18% and the Top 40 up 3.95%. Sector-wise, industrials have now returned 9.66%, resources 6.64% and financials -10.24% for the 2019 year so far.
Read the full weekly market wrap here.
SOUTH AFRICAN EQUITY
Considering the rough-ride markets have had this week, South Africa had one or two gems that managed to illumine the dreary economic landscape.
Adjusting to the choppy climate, Bid Corporation (BID), managed to raise earning by 12.5% per share for the six-months-ending 30 June 2019. Revenue was also seen rising by 9.8% to R129.3 billion. A large factor which did play into BID’s hands was the fact that north-of-95% of their revenue is generated offshore in generally-stronger currencies and geographies than that of South Africa and its rand. BID’s final dividend increased by 7.9% to R3.30 per share. Forward-looking guidance has been hinted at high single-figure numbers, albeit heavily influenced by a volatile rand. Over 5% stronger for the week, BID opened Friday’s trading day R319.20 per share
Dis-Chem (DCP) also managed to weather the storm, generating revenues of just under R10 billion, for the five-months-ending 31 July. Both retail and group revenue jumped between 12% and 13.5% for the period. So far, DCP has opened nine new stores this year, with another 13 planned before next year. Rising almost 10% on the back of the strong financial numbers, DCP settled ‘back at square-one’, opening Friday’s trading day flat for the week at R20.45 per share.
PPC Cement, Massmart and Steinhoff teased at some positive numbers this week, with only Steinhoff’s share price reacting positively, to the tune of around 28%. Both PPC and Massmart remained stagnant.
For August, so far:
- All Share and Top 40 indices: down around 4.25%
- Resources: down around 2.95%
- Industrials: down around 3.86% (Naspers: down 2.28%)
- Financials: down around 6.83%
Year-to-date, the JSE All Share index is up 3.18% and the Top 40 up 3.95%. Sector-wise, industrials have now returned 9.66%, resources 6.64% and financials -10.24% for the 2019 year so far.
Read the full weekly market wrap here.
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JSE Trading Statistics for the week ending 30 August 2019
Number of trades:
Number of trades (2019): 1 475 367
Number of trades (2018): 1 703 118
% change year on year: -13.37%
Volume traded:
Volume traded (2019): 1 731 408 000
Volume of traded (2018): 1 655 961 000
% change year on year: 4.56%
Value of trades:
Value of trades (2019): R101 948 185 000
Value of trades (2018): R113 871 554 000
% change year on year: -10.4%
Foreign purchase/selling:
Net sales/Purchases (2019): -R10 901 079 000
Net sales/Purchases (2018): -R4 298 697 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R63.521 billion
Net sales/Purchases (2018): R431 million
So a year ago foreigners were net buyers of SA listed shares to the value of R431 million for the YTD while this year they have been net sellers to the tune of -R63.521 billion in the year to date (YTD). That is a R63.9 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. 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): R16.036 trillion
Market Cap (2018): R14.936 trillion
% change year on year: 7.37%
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): 1 475 367
Number of trades (2018): 1 703 118
% change year on year: -13.37%
Volume traded:
Volume traded (2019): 1 731 408 000
Volume of traded (2018): 1 655 961 000
% change year on year: 4.56%
Value of trades:
Value of trades (2019): R101 948 185 000
Value of trades (2018): R113 871 554 000
% change year on year: -10.4%
Foreign purchase/selling:
Net sales/Purchases (2019): -R10 901 079 000
Net sales/Purchases (2018): -R4 298 697 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R63.521 billion
Net sales/Purchases (2018): R431 million
So a year ago foreigners were net buyers of SA listed shares to the value of R431 million for the YTD while this year they have been net sellers to the tune of -R63.521 billion in the year to date (YTD). That is a R63.9 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. 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): R16.036 trillion
Market Cap (2018): R14.936 trillion
% change year on year: 7.37%
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.
- Protests and violence in the major cities of South Africa is starting to affect investor confidence even more.