Financial Mail - Investors Monthly - - Contents - GARTH MACKEN­ZIE www.trader­

A few large com­pa­nies have sig­nif­i­cant pull on the per­for­mance of the JSE top 40 in­dex

un­der­per­formed, the Sa­trix 40 ETF would likely un­der­per­form the Core­Shares equally weighted top 40 ETF.

This talks to mar­ket breadth. What it’s telling us is that the gains that have been wit­nessed on the JSE this year have not been broad based. Rather, they have been lim­ited to a few

* Free float means shares that are freely avail­able for trade on the open mar­ket. Shares in hold­ing com­pany struc­tures are ex­cluded as they are not avail­able for trade on the open mar­ket. An ex­am­ple of this is be­tween An­glo Amer­i­can Plc and An­glo Plat­inum. The former is a hold­ing com­pany that owns roughly three­quar­ters of the shares in the lat­ter. So the ac­tual free float mar­ket cap­i­tal­i­sa­tion weight of shares in An­glo Plat­inum ap­plies only to about onequar­ter of the is­sued shares avail­able for trade on the open mar­ket. It is that free float por­tion of the shares that is used in the cal­cu­la­tion of the stock’s weight on the JSE in­dices.

stocks with heavy weight­ings that hap­pen to have per­formed well for the year to date.

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