CEIC News@lert: Enhancement on South African Financial Market Data
CEIC News@lert - Global Database - January 8, 2016 The CEIC database team is pleased to announce the expansion of the Financial Market Sector in the South Africa Database. The Johannesburg Stock Exchange (JSE) data have been expanded to include indices by industry, sector and sub-sector according to the Industry Classification Benchmark. The total number of South African indices reported by CEIC now add up to 86, including the headline All Share Index, Top 40 Index and several major industry indices. The expansion also includes new datasets of Total Return Indices, Market Capitalization by Index, Dividend Yield and Price-Earnings Ratio. These will provide users with more information on the performance of the largest stock exchange in Africa. HIGHLIGHTS The All Share Index represents 99% of the full market capitalization of all ordinary shares listed on the Main Board of the JSE, while the Top 40 Index constitutes the forty largest companies of the All Share Index and accounts for 80-90% of its market capitalization. Since 2004, there has been a steeper increase in market capitalization for both indices as foreign companies have been allowed to list on the stock exchange. This move was in tandem with the JSE’s aim to offer a wider range of securities to accommodate local and international investors’ demands. The fall in value in 2008 reflects the global financial crisis initiated by the US sub-prime mortgage crisis in late 2007. SPOTLIGHT ON DIVIDEND YIELD Dividend yield has been recognized as one of the ways to determine the rate of return from the investment in stocks. This dataset allows users to identify and compare the returns across indices in different industries, including its sub-sectors.
The chart above compares dividend yield across four selected sectors. Further analysis could be carried out for sub-sectors.
SPOTLIGHT ON PE RATIO
Another indicator would be the price-to-earnings ratio. This dataset comes in handy for users in estimating a standardized expected investment amount required per earnings from the various sector indices that they are interested in. This is especially useful given that the expected price for a dollar earned varies wildly from sector to sector.
A high PE ratio normally suggests that higher earnings growth is to be expected in the future. By taking into account other influential factors, the availability of these datasets can facilitate users in making investment decisions.
By Suzanne Wong - CEIC Analyst
Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription.
Back to Blog