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We take a look at the Johannesburg Stock Exchange (JSE) trading statistics for the week ending 6 September 2019 and compare the numbers to that of a year ago.
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Trading statistics for the week ended 6 September 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
Closer to home, South African markets edged up slightly, supported by a stronger local currency, off the back of stronger economic growth numbers released earlier in the week. Some key takeaways came from the likes of Firstrand Bank who saw their normalized earnings jumping 6% to R27.9 billion, for the year ended 30 June 2019. RMB saw once-off hits coming from their private equity division during the year, while Wesbank also suffered slightly, due to the pressured economic climate that South African’s find themselves in. Firstrand Bank, up over 3.3% for the week, opened Friday’s trading day at R61.00 per share.
Behemoth, Discovery, also released their numbers for the year ending 30 June 2019. One can see how they’ve allocated a material amount of money into new ventures, which will hopefully create even more value for shareholders in the future. Some of their numbers were as follows:
The economic road ahead will definitely put some strain on Discovery, as citizens and clients become more aware of their spending habits. Having said this, Discovery are laying the foundations to quite an interesting and diversified investment opportunity for the general investor. On the mining front, DRD Gold was seen increasing their revenue by 11 percent to R2.76 billion. Operating profit was up 5% to R371.8 million, while production output, from their major Ergo mine, was down 4% for the period in question.
For September, so far:
Year-to-date, the JSE All Share index is up 5.19% and the Top 40 up 6.15%. Sector-wise, industrials have now returned 12.57%, resources 5.22% and financials -5.67% for the 2019 year so far.
Read the full weekly market wrap here.
SOUTH AFRICAN EQUITY
Closer to home, South African markets edged up slightly, supported by a stronger local currency, off the back of stronger economic growth numbers released earlier in the week. Some key takeaways came from the likes of Firstrand Bank who saw their normalized earnings jumping 6% to R27.9 billion, for the year ended 30 June 2019. RMB saw once-off hits coming from their private equity division during the year, while Wesbank also suffered slightly, due to the pressured economic climate that South African’s find themselves in. Firstrand Bank, up over 3.3% for the week, opened Friday’s trading day at R61.00 per share.
Behemoth, Discovery, also released their numbers for the year ending 30 June 2019. One can see how they’ve allocated a material amount of money into new ventures, which will hopefully create even more value for shareholders in the future. Some of their numbers were as follows:
- Normalized profit down 3% to R7.74 billion
- Headline earnings down 11% to R5.14 billion
- Normalized headline earnings down 7% to R5.03 billion
- Discovery Health’s normalized operating profit increased by 10% to R3.04 billion
- Discovery Life’s normalized operating profit decreased by 9% to R3.23 billion, due to high claims
- Confirmed that more than 22,000 clients using Discovery Bank within the first two months
- New business/venture spending increased to R1.31 billion (21% of group earnings)
The economic road ahead will definitely put some strain on Discovery, as citizens and clients become more aware of their spending habits. Having said this, Discovery are laying the foundations to quite an interesting and diversified investment opportunity for the general investor. On the mining front, DRD Gold was seen increasing their revenue by 11 percent to R2.76 billion. Operating profit was up 5% to R371.8 million, while production output, from their major Ergo mine, was down 4% for the period in question.
For September, so far:
- All Share and Top 40 indices: up around 1.10%
- Resources: down around 2.55%
- Industrials: up around 1.53% (Naspers: up 4.14%)
- Financials: up around 3.13%
Year-to-date, the JSE All Share index is up 5.19% and the Top 40 up 6.15%. Sector-wise, industrials have now returned 12.57%, resources 5.22% and financials -5.67% for the 2019 year so far.
Read the full weekly market wrap here.
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JSE Trading Statistics for the week ending 6 September 2019
Number of trades:
Number of trades (2019): 1 456 225
Number of trades (2018): 1 603 448
% change year on year: -9.18%
Volume traded:
Volume traded (2019): 1 592 502 000
Volume of traded (2018): 1 921 929 000
% change year on year: -17.14%
Value of trades:
Value of trades (2019): R95 730 763 000
Value of trades (2018): R127 220 842 000
% change year on year: -24.75%
Foreign purchase/selling:
Net sales/Purchases (2019): -R1 102 964 000
Net sales/Purchases (2018): -R6 147 568 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R64.185 billion
Net sales/Purchases (2018): -R5.715 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R5.715 billion for the YTD while this year they have been net sellers to the tune of -R64.185 billion in the year to date (YTD). That is a R58.47 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. 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): R16.013 trillion
Market Cap (2018): R14.680 trillion
% change year on year: 9.08%
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. August become the third negative trading month of the year. But so far for September 2019 the All Share Index is positive.
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): 1 456 225
Number of trades (2018): 1 603 448
% change year on year: -9.18%
Volume traded:
Volume traded (2019): 1 592 502 000
Volume of traded (2018): 1 921 929 000
% change year on year: -17.14%
Value of trades:
Value of trades (2019): R95 730 763 000
Value of trades (2018): R127 220 842 000
% change year on year: -24.75%
Foreign purchase/selling:
Net sales/Purchases (2019): -R1 102 964 000
Net sales/Purchases (2018): -R6 147 568 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R64.185 billion
Net sales/Purchases (2018): -R5.715 billion
So a year ago foreigners were net sellers of SA listed shares to the value of -R5.715 billion for the YTD while this year they have been net sellers to the tune of -R64.185 billion in the year to date (YTD). That is a R58.47 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. 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): R16.013 trillion
Market Cap (2018): R14.680 trillion
% change year on year: 9.08%
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. August become the third negative trading month of the year. But so far for September 2019 the All Share Index is positive.
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.