Trading SA 40

[Darrenm]

Hi,

There was an article on the SA40, can't find it again,

any comments, views, considerations on trading the SA40?

[MongiIG]

1 hour ago, Darrenm said:

Hi,

There was an article on the SA40, can't find it again,

any comments, views, considerations on trading the SA40?

Hi @Darrenm,

JSE slipped amid weak Chinese data and fresh virus outbreaks. Despite a weaker start to the week for the all share, banks, retailers and financials rose on the day.

The JSE was weaker on Monday morning, with its global peers mixed as sluggish Chinese economic data and renewed Covid-19 outbreaks weighed on sentiment.

Chinese July retail sales and industrial production figures fell more than was forecast — a trend that analysts fear might worsen as the world’s second-largest economy grapples with the spread of the highly infectious Delta strain.

Have a look at this article by our senior market analyst: How to trade South Africa 40 Index

 

All the best - MongiIG

[Darrenm]

Any other SA traders trading the SA40, 
Any views?

[MongiIG]

Hi @Darrenm

See below this could be of interest for you and other traders who follow SA Top40 cash index.

South Africa’s JSE TOP40 Cash Index Rebalancing

 

Key points

• The JSE Top40 Index has been rebalanced as of the 20^th of September 2021
• The shares which make up the index have not changed in this quarter
• Prosus and Reinet are the only two securities to see their weightings reduced in the index
• The BHP Group is the largest weighting in the index
• Naspers and Prosus have a combined weighting of nearly 13% in the index
• The 10 largest constituents of the JSE Top40 Index account for nearly 65% thereof

 

South Africa’s JSE Top40 Index constituents rebalanced

The JSE Top40 Cash Index (J200) has as of Monday the 20^th of September, undergone its quarterly rebalancing. The below table highlights the constituent weightings before and after the change.

Company	Previous Top40 Weighting	New Top40 Weighting	Weighting Difference
ABSA Group	1.53%	1.59%	0.06%
Anglo American Plc	10.57%	10.97%	0.39%
Anglo American Platinum	1.21%	1.26%	0.05%
ANgloGold Ashanti	1.35%	1.40%	0.05%
Aspen Pharmacare	1.26%	1.30%	0.05%
BHP Group	12.47%	12.93%	0.47%
Bidcorp	1.52%	1.57%	0.06%
British American Tobacco	2.03%	2.04%	0.01%
Bidvest	0.95%	0.99%	0.04%
Compagnie Richemont	11.56%	11.99%	0.43%
Clicks Group	1.06%	1.10%	0.04%
Capitec Bank	2.28%	2.36%	0.08%
Discovery Ltd	0.77%	0.80%	0.03%
Exxaro Resources	0.69%	0.70%	0.01%
Firstrand	4.36%	4.52%	0.16%
Goldfields	1.59%	1.65%	0.06%
Glencore	0.85%	0.95%	0.09%
Growthpoint Properties	0.70%	0.73%	0.03%
Impala Platinum	2.08%	2.22%	0.14%
Investec Ltd	0.24%	0.24%	0.01%
Investec Plc	0.54%	0.56%	0.02%
Multichoice Group	0.66%	0.69%	0.02%
Mondi Group	2.74%	2.84%	0.10%
Mr Price Group	0.75%	0.78%	0.03%
MTN Group	3.32%	3.44%	0.12%
Nedbank	0.90%	0.93%	0.03%
Northam Platinum	0.88%	0.91%	0.03%
Naspers	7.15%	7.42%	0.27%
Nepi Rockastle	0.64%	0.66%	0.02%
Old Mutual Group	1.07%	1.11%	0.04%
Prosus	8.71%	5.33%	-3.38%
Remgro Ltd	0.88%	0.92%	0.03%
Reinet	0.58%	0.56%	-0.03%
Standard Bank Group	2.68%	2.78%	0.10%
Shoprite Holdings	1.28%	1.33%	0.05%
Sanlam	1.60%	1.66%	0.06%
Sasol	1.98%	2.05%	0.07%
Spar Group	0.56%	0.59%	0.02%
Sibanye Stillwater	2.05%	2.10%	0.05%
Vodacom	1.20%	1.24%	0.04%
Woolworths Holdings	0.75%	0.78%	0.03%

 

While the vast majority of shares within the index have seen a marginal weighting increase, Prosus and Reinet are the securities whose weightings have been dimished.

There have been no changes to the securities making up the JSE Top40 Index for this quarter.

Top 10 weightings in the JSE TOP40 Index

Traders of the South Africa 40 Cash Index will note that the 10 largest constituents of the JSE Top40 Index are The BHP Group, Richemont, Anglo American Plc, Naspers, Prosus, Firstrand, MTN, Standard Bank and Capitec Bank.

The ten largest companies on the Top40 index account for roughly a 65% weighting in the index.

 

 

By Shaun Murison, IG Senior Market Analyst