South Africa’s top 50 companies have had a mixed set of results in 2018 so far, with share prices on the JSE not reflecting the sweeping wave of positivity that has underpinned the first half of the year.
Looking at how the top JSE companies have performed since the start of 2018, it is clear that the market is not riding the wave of ‘Ramaphoria’ that has been echoed across headlines since president Cyril Ramaphosa came into power.
Of the top 50, only 21 have seen their share values increase over the past six months.
While this is reflective of the wider South African economy – which is still hampered by slow growth, high levels of unemployment and inequality, on top of political concerns like land reform and abuse at SOEs – many companies have also faced their own internal struggles.
Two good examples of this include Capitec, and Steinhoff.
Capitec breached the R1,000 per share level at the start of 2018, however, short-seller Viceroy released a report in early January calling the group a loan shark, which had the desired effect on the bank’s share price.
While Capitec has successfully rebutted the reports from the research group, and gained the support of SARB and credit regulators, the share price has not clawed back its losses.
Steinhoff – which now features on the biggest losers list below – has seen 75% of its share value wiped away since the start of the year, following further details relating to dodgy financials, which were originally uncovered towards the end of 2017.
The graph below shows how the top 50 shares (by market cap) have performed in 2018 so far, based on share price data captured on 2 January 2018 and 12 June 2018, from Bloomberg markets at 17h00.
JSE top 50 performance
The worst performers on the JSE
Deputy chairman at Sasfin Securities, David Shapiro, has published an overview of the worst performing stocks listed on the JSE.
Looking at the 50 worst performers so far, Shapiro said that the slowing South African economy has been evident in company financials, with many ‘hot stocks’ showing up on the list.
This includes the likes of PSG, Discovery, Capitec, Coronation and Sasfin, as well as Blue Label, DisChem, EOH, Curro and Stadio.
A stand-out, however, was the platinum sector which was in trouble, Shapiro said – while the construction sector he described as “a disaster”.