Since our JSE market warning regarding net foreign sales of SA shares and bonds on 27 September 2018 (A major leading indicator for the JSE just tanked), the JSE has fallen over 10%.
The numbers are in for September and a further R20Bn left our shores, bringing total foreign outflows to a staggering R392 Bn:
The continued outflows do not augur well for future JSE returns and it should be no surprise if further volatility and/or drawdowns occur and rallies in the All-Share remain one-day affairs.
The below chart shows how annual changes to foreign purchases are correlated to annual changes to the JSE:
This brings to a close our full September reading for our “under the hood” JSE Health Index and apart from brave attempts at recovery from the percentage of shares increasing earnings or dividends, everything else remains one-way traffic down:
Dwaine van Vuuren
RecessionAlert, Sharenet Analytics
Dwaine van Vuuren is a full-time trader, global investor and stock-market researcher. His passion for numbers and keen research & analytic ability has helped grow RecessionALERT.com (US based) and PowerStocks Research (now Sharenet Analytics) into companies used by hundreds of hedge funds, brokerage firms, financial advisers and private investors around the world. An enthusiastic educator, he will have you trading and investing with confidence & discipline.