Categories: Finance NewsNews
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2023-12-09 10:26 AM

South Africa’s Top & Bottom Performing Shares Revealed

  • Market Dynamics: Detailing the challenges faced by South African equities, including significant net outflows and non-resident investor sales, indicating a tough economic environment.
  • Top Performers: Notable companies defied the challenges, showcasing impressive growth, particularly Goldfields, Richemont, and Naspers, amidst a challenging market, experiencing substantial share price increases.
  • Struggles and Contrasts: Several companies, especially in the platinum group metal sector, faced downturns due to plummeting platinum and palladium prices. This contrasted sharply with the successes of other firms, highlighting the market's volatility and the disparities between top and bottom performers.
By Miriam Matoma

The past year has been a rollercoaster for South African equities, marked by both triumphs and challenges. Amidst market fluctuations and economic shifts, Nedgroup Investments’ recent report shed light on the standout performers and the struggles faced by various companies, offering a comprehensive view of the nation’s stock market.

Overview of South African Equities

According to data from the JSE (Johannesburg Stock Exchange), there was a substantial R116 billion in net outflows of equities from January to September. Additionally, the Institute of International Finance (IIF) reported that non-resident investors were net sellers of $0.8 billion (R14 billion) worth of equities by October. These figures reflect a challenging landscape for investments within South Africa.

Growth Amidst Adversity

Despite the overall economic challenges, certain companies defied the odds and witnessed remarkable growth in their share prices. The SWIX 40 index, utilized by Nedgroup Investments’ Pulse, highlighted significant performers in the market.

Leading the charge was Goldfields, a gold mining company, exhibiting an impressive 51.1% increase in share value by November 30, 2023, largely attributed to a robust gold price trend. Following closely were Richemont and Naspers, with growth rates of 45.7% and 31.8%, respectively.

Best-Performing Shares: Yearly and Monthly

The list of top performers revealed notable entities:

Best Yearly Performers:

  • Goldfields: 51.1%
  • Richemont: 45.7%
  • Naspers: 31.8%
  • Aspen: 30.5%
  • Bidcorp: 23.9%
  • Prosus: 23.7%
  • Sanlam: 20.9%
  • Ab Inbev: 19.5%
  • Anglogold: 18.2%
  • Investec Plc: 16.2%

Best Monthly Performers (November):

  • Amplats: 27.8%
  • Naspers: 19.4%
  • Prosus: 19.4%
  • Capitec Holdings: 18.5%
  • Investec Plc: 18.4%
  • Investec Ltd: 18.1%
  • NEPI-Rockcastle: 15.2%
  • Goldfields: 14.6%
  • Mr Price: 14.0%
  • MTN: 13.1%

Challenges in the Market

However, not all companies experienced growth. The tough local and global economic environment took its toll on several, particularly within the mining sector. Platinum and palladium prices dropping by around 10% and 40%, respectively, impacted the performance of various firms.

Worst Performers: Yearly and Monthly

Some of the entities faced substantial downturns:

Worst Yearly Performers:

  • Implats: -63.4%
  • Sibanye: -55.4%
  • Amplats: -53.6%
  • Mc Group: -43.1%
  • Northam: -38.0%
  • Sasol: -30.0%
  • MTN: -26.9%
  • Anglo: -25.8%
  • Growthpoint: -25.4%
  • Vodacom: -22.9%

Worst Monthly Performers (November):

  • Sibanye: -13.0%
  • Sasol: -11.3%
  • Bidvest: -10.6%
  • Vodacom: -4.4%
  • Mc Group: -3.1%
  • Old Mutual: -3.0%
  • Woolworths: -2.7%
  • Implats: -1.4%
  • Exxaro: 0.4%
  • Remgro: 0.8%

Understanding the Market Dynamics

The disparities between the best and worst performers underscore the volatility and complexity of South Africa’s equities market. While some companies thrived amidst challenges, others struggled, particularly within the PGM sector due to fluctuations in commodity prices.

As investors navigate through these fluctuations, understanding the underlying factors influencing these movements becomes crucial for informed decision-making.

The data compiled by Nedgroup Investments provides a comprehensive snapshot of South Africa’s equity landscape, offering valuable insights for investors seeking to comprehend the market’s dynamics and make strategic investment choices.

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Miriam Matoma

Miriam is a freelance writer, she covers economics and government news for Rateweb. You can contact her on: Email: miriam@rateweb.co.za Twitter: @MatomaMiriam