- Last week saw around a third of the 164 companies of the JSE dropping to their lowest levels this year
- Schalk Louw, portfolio manager at PSG Wealth, says this is a frightening statistic for SA
- However, there is a silver lining for those who wish to take advantage of the low trading rates
45 of the companies listed on the JSE plunged to their lowest points this year with 27% of the listed companies taking a knock.
Schalk Louw explained that this was due to a number of factors, some company-specific, but for the most part suffering at the hands of political infighting, a weak economy and issues at Eskom.
Jean Pierre Verster, portfolio manager at Protea Capital Management, says that Moody's seemingly inevitable downgrade of South Africa to junk status is also reflecting on the Rand.
Talks of a possible IMF bailout have also put pressure on balking national assets. With only a 5% chance of obtaining the funds, the market has taken note that there is indeed a probability that it will be granted, reports Business Insider.
Foreign investors have pulled a further R47 billion shares out of the country, more than what they have put in this year, Briefly.co.za gathered.
This has left the domestic market at the cheapest rate in years, but this has left an opportunity open to those with capital floating around, according to Alwyn van der Merwe from Sanlam:
“When we analyse individual companies, we can see quite significant upsides on some of these. In our view, cautiously adding to such assets when value is apparent will – as it normally does – pay off over the longer term.”
The list of companies that are now trading at new lows include:
- Arcelormittal SA, the largest local steel producer
- AVI, owner of I&J and Spitz
- The hotel group City Lodge
- Curro, the largest for-profit school group in Africa
- The pharmacy giant Dis-Chem
- FirstRand, owner of FNB
- The Foschini Group, which also owns brands like @home and Totalsports
- HCI, owner of eTV
- The industrial company Hudaco, which focuses on automotive and electrical products
- Hyprop, owner of the Hyde Park, Canal Walk, Rosebank Mall and CapeGate shopping centres
- Italtile, which also owns CTM
- JSE, manager of Africa’s largest stock exchange
- Mondi, the global paper company with operations in 30 countries
- Mr Price
- Nampak, Africa's largest diversified packaging manufacturer
- Netcare, SA’s second-biggest hospital group
- Old Mutual
- Pick n Pay
- The paper group Sappi, world's largest producer of dissolving wood pulp
- Sasol, the world's biggest maker of fuel from coal
- Super Group
- Tsogo Sun, owner of Montecasino, Sandton Sun and other hotels
Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!