TALKING TECHNICALS

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.