“When buying shares, ask yourself, would you buy the whole company?”Rene Rivkin
ALSI & Top40
ALSI & Top40
Following last week’s brief overview of the markets for 2017,
we decided to shed more light today on the return of the JSE all-share index (ALSI) and the Top 40 shares.
Let’s hope everyone who started work last week survived the first full workweek of 2018. This week sees the reopening of schools and a return to a normal daily routine.
Following last week’s brief overview of the markets for 2017, we decided to shed more light today on the return of the JSE all-share index (ALSI) and the Top 40 shares. To recap on last week, the ALSI retuned 20.95% for 2017, a performance driven by the stellar performance of Naspers, the largest counter on the JSE. Naspers, which represents 20.5% of the ALSI and 24.5% of the Top 20 Index, grew in value by 71.8% for the year. The Index return without Naspers would have been 11.5%, indicating the impact of the Naspers dominance on the return.
Only 17 counters on the Top 40 Index outperformed the aggregate market return, while 12 counters yielded a negative return. Steinhoff was the worst performer with a return of minus 95% for 2017.
Another major influence on returns for the past year was the strengthening of the local currency, despite prevailing political uncertainties. The strong rand also neutralised some of the returns on international markets. Although the MSCI all-world index retuned 24% in USD terms for the year, the stronger local currency diluted some of those gains to a 12.2% return in rand value. It would seem that the international economy is on the mend and a strong performance of counters in the various economies could be expected for 2018.
All market participants should be back at work this week and as usual, our next newsletter will carry the latest economic news affecting financial markets locally and abroad.
– Wealth Management
“When buying shares, ask yourself, would you buy the whole company?”
- Rene Rivkin