Huge sector performance disparity on JSE

2016-08-16 08:30

The J200:TOP40 put in a major bottom on 21 January 2016, after falling more than 15% from November 2015. It us up 10% since then. But an old rule-of-thumb for selecting a particular ETF after large corrections would have seen you gain a whopping 34% since January 21.

We thought it would be interesting to use our sector comparison tool provided for our PowerStocks Research clients to see how various ETF’s (Exchange Traded Funds) have performed versus the SATRIX-40 since the 21st January trough.

The chart below shows the SATRIX-40 (STX40, black line, top) has out-performed ETF’s representing China, Emerging Markets, Japan, USA, World and Europe. The STX40 has slightly outperformed the DBEMER representing all emerging markets.

So we can gather that the current risk-off trade since the large bottom on 21st January 2016  is favoring the emerging markets (in Rand terms), with South Africa above average at about 8.7% gain since then. Europe and the UK fared the worst, down 14.5% and 12% respectively.

If we dive into the JSE itself, there is an even bigger disparity among the various ETF's representing resources, financials, banking, listed property and so forth. Using an age-old rule-of-thumb we have used for clients for selecting a particular ETF coming out of a 10% or larger correction, would have seen you gain 32% since January 2016 versus the SATRIX-40 which gained 9%.

You can see what this simple rule-of-thumb for large corrections is by reading the balance of the article over here at SharenetVIEWS.

News24 Voices Terms & Conditions

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

AB praises selfless skipper

2010-11-21 18:15

Inside News24

 
/News
Traffic Alerts
Traffic

Jobs in Cape Town [change area]

Jobs in Western Cape region

SQL Reporter

Cape Town
Communicate Cape Town IT
R10 000.00 - R12 000.00 Per Month

Reporting Accountant

Cape Town
Network Finance Professional / Prudential
R310 000.00 - R360 000.00 Per Year

Cluster Financial Manager

Cape Town
Network Finance
R950 000.00 - R1 000 000.00 Per Year

Property [change area]

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.