The biggest South African companies in 2018 so far have experienced mixed reviews on the JSE. According to a report, of the top 50, only 21 have seen their share values increase over the past six months. The report is based on share price data captured on 2 January 2018 and 12 June 2018, from Bloomberg markets at 17h00. These are the best and worst performing companies on the JSE for 2018 so far.
The top performing companies on the JSE:
- BHP Billition
- Anglo American
- Mondi PLC
- Mondi LTD
- Steinhoff African Retail
The worst performing companies on the JSE:
- Group Five
- Steinhoff International
- Fortress REIT Ltd Class B
- Resilient RBT
- Niveus Investments
In general, the South African economy has seen slow growth, high levels of unemployment and inequality, on top of political concerns like land reform and abuse at SOEs. In addition, many companies have been experiencing internal struggles. Examples include Capitec and the embattled Steinhoff. Capitec lost share value after short-seller Viceroy released a report in early January calling the group a loan shark. Steinhoff International has been in the South African news for month as the company has faced mass allegations of corporate fraud since the end of 2017. The company has been experiencing what some have called South Africa’s biggest corporate meltdown, and its value on the JSE reflects that, coming in as third on the list of the worst performing companies for 2018 so far. Since the beginning of the year, the company has lost 75% of its share value.
Deputy chairman at Sasfin Securities, David Shapiro, argues that the slowing South African economy has been evident in company financials, with many ‘hot stocks’ showing up on the list. This includes the likes of PSG, Discovery, Capitec, Coronation and Sasfin, as well as Blue Label, DisChem, EOH, Curro and Stadio.
What do you think? Let us know in the comments below!