Metals mask SA decline

JSE: PROSUS, GOLD, PLATINUM STOCKS HIDE SHOCKING PERFORMANCE

- Moneyweb

BAD NEWS. Companies whose earnings are directly linked to the SA economy have not done well.

(Picture: Shutterstock)

The tremendous outperformance of gold and platinum shares so far this year - boosted by Prosus/Naspers — has pushed the JSE All Share Index to record highs of over 110 000 points.

Had you invested in the Satrix Resi ETF at the start of the year, you’d have more than doubled your money (returns are over 122% year to date).

Of the 10 best-performing shares on the JSE between January and September, only one - Blu Label Unlimited - is not a mining company. All 10 have shown share price appreciation of more than 100%.

Shares of the top performer so far, Sibanye-Stillwater, are up 229% over that period with pure gold producers Gold Fields and DRDGold not much further back (at 195% and 191% respectively).

And of the top 20 performers over the first three quarters of the year, only two shares, Blu Label and Telkom, could be considered “SA Inc” stocks.

Blu Label has outperformed as it gets ready to separately list Cell C, which should unlock a tremendous amount of value.

The rest are companies with varying amounts of exposure to South Africa: MTN Group, Ninety One, BAT, Vodacom and Sasol.

The opposite side of the performance chart shows just how poorly companies whose earnings are directly linked to the South African economy have done.

These so-called “SA Inc” shares span all sectors, including retail and financial services.

Of the 10 worst performers between January and September, seven could be considered “SA Inc” stocks: