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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 4 October 2019 and compare the numbers to that of a year ago. Foreigners sold a whopping R11.8 billion in SA listed shares last week.
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Trading statistics for the week ended 4 October 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 for the South African Rand
Rand stronger ... for now
Much of the same is to be expected in the coming week, with more signs of a slowing economy being recognised through economic data releases. For now, patience is key as the greater market slowly reaches a point where conviction needs to be more understandable and directional. After being largely dictated by the US dollar’s rapid strengthening this week, the rand saw some relief on Thursday as the US released weaker-than-expected non-manufacturing data. After flying through two general trading ranges, the rand pulled back into the R15.09 to R15.25 range against the USD. Although the brief relief was well received by the local ZAR, the likelihood of this being long lived is questionable. Risk is currently to the downside (weakness) of the ZAR against major developed market currencies, especially the USD.
The rand started the day trading at R15.13/$, R16.59/€ and R18.67/£.
Read the full weekly market wrap here.
Rand stronger ... for now
Much of the same is to be expected in the coming week, with more signs of a slowing economy being recognised through economic data releases. For now, patience is key as the greater market slowly reaches a point where conviction needs to be more understandable and directional. After being largely dictated by the US dollar’s rapid strengthening this week, the rand saw some relief on Thursday as the US released weaker-than-expected non-manufacturing data. After flying through two general trading ranges, the rand pulled back into the R15.09 to R15.25 range against the USD. Although the brief relief was well received by the local ZAR, the likelihood of this being long lived is questionable. Risk is currently to the downside (weakness) of the ZAR against major developed market currencies, especially the USD.
The rand started the day trading at R15.13/$, R16.59/€ and R18.67/£.
Read the full weekly market wrap here.
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JSE Trading Statistics for the week ending 4 October 2019
Number of trades:
Number of trades (2019): 1 846 818
Number of trades (2018): 1 656 018
% change year on year: 11.52%
Volume traded:
Volume traded (2019): 1 734 577 000
Volume of traded (2018): 2 407 587 000
% change year on year: -27.95%
Value of trades:
Value of trades (2019): R111 612 696 000
Value of trades (2018): R100 467 847 000
% change year on year: 11.09%
Foreign purchase/selling:
Net sales/Purchases (2019): -R11 803 333 000
Net sales/Purchases (2018): R1 614 114 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R81.502 billion
Net sales/Purchases (2018): -R13.028 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R13.028 billion for the YTD while this year they have been net sellers to the tune of -R81.502 billion in the year to date (YTD). That is a R68.473 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. This while the South African government continues to try and convince investors that South Africa is open for business. But the large scale corruption, poor government service delivery, slow economic growth, restrictive labour laws, worries about property rights, crime and general public disorder in the forms of strikes and looting are keeping potential investors away from South Africa.
JSE total market capitalisation:
Market Cap (2019): R17.057 trillion
Market Cap (2018): R14. 137 trillion
% change year on year: 20.65%
So as shown in the JSE total market capitalisation above, the value of the overall market capitalisation of the stocks listed on the JSE has increased significantly 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. However since then there has been a few negative months. Including September 2019 in which the JSE All Share Index ended down roughly 2%
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): 1 846 818
Number of trades (2018): 1 656 018
% change year on year: 11.52%
Volume traded:
Volume traded (2019): 1 734 577 000
Volume of traded (2018): 2 407 587 000
% change year on year: -27.95%
Value of trades:
Value of trades (2019): R111 612 696 000
Value of trades (2018): R100 467 847 000
% change year on year: 11.09%
Foreign purchase/selling:
Net sales/Purchases (2019): -R11 803 333 000
Net sales/Purchases (2018): R1 614 114 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R81.502 billion
Net sales/Purchases (2018): -R13.028 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R13.028 billion for the YTD while this year they have been net sellers to the tune of -R81.502 billion in the year to date (YTD). That is a R68.473 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. This while the South African government continues to try and convince investors that South Africa is open for business. But the large scale corruption, poor government service delivery, slow economic growth, restrictive labour laws, worries about property rights, crime and general public disorder in the forms of strikes and looting are keeping potential investors away from South Africa.
JSE total market capitalisation:
Market Cap (2019): R17.057 trillion
Market Cap (2018): R14. 137 trillion
% change year on year: 20.65%
So as shown in the JSE total market capitalisation above, the value of the overall market capitalisation of the stocks listed on the JSE has increased significantly 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. However since then there has been a few negative months. Including September 2019 in which the JSE All Share Index ended down roughly 2%
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. Crude price shot up but since then has declined back to levels before the attacks