FTSE/JSE All-Share Index Sees Best Year in a Decade

The FTSE/JSE All-Share Index has just wrapped up its best year in a decade. This impressive milestone marks a significant shift in the market's performance.

The index's growth can be attributed to several factors, including the country's economic recovery and the resilience of its companies.

Investors have taken notice of this trend, with many seeking to capitalize on the opportunities presented by the index's growth.

The FTSE/JSE All-Share Index has had its fair share of ups and downs over the years. In 2021, the SA equity market had its best year since 2009, driven by an easing of Covid-19-related restrictions and a rebounding jobs market.

The index has seen significant growth since 1975, with the highest annual return being 57.31% in 1999. The lowest annual return was a decline of 25.72% in 2008.

The index has also experienced some notable fluctuations, with the largest decline being a 12.44% drop in 1998. Mining shares have been a significant contributor to the index's growth, with a 2.4% increase in February 2023 being a notable example.

The FTSE/JSE All-Share Index has seen its fair share of ups and downs over the years. The index closed at 226.30 in 1975.

The biggest gain in a single year was in 1989, when the index jumped by 986.00 points, or 49.55%. This was a significant increase, and it's worth noting that the index has experienced several large gains throughout its history.

One notable year was 1985, when the index rose by 338.60 points, or 34.40%. This was a significant increase, and it's interesting to see how the index has performed in the decades since.

Here's a breakdown of the top 5 years with the largest gains:

The index has also experienced significant losses in certain years. The biggest loss was in 2008, when the index dropped by 7,448.77 points, or 25.72%. This was a challenging time for the market, but the index has since recovered.

The SA equity market had its best year since 2009, with a 24.07% increase in 2021. This was driven by a rebounding jobs market, an easing of Covid-19-related restrictions, and an ultra-accommodative monetary and fiscal policy stance.

The FTSE/JSE All-Share Index has seen significant fluctuations over the years. Let's take a look at the annual returns since 1975.

Here's a breakdown of the annual development of the FTSE/JSE All-Share Index since 1975:

The All Share Index still reflects investor appetite driven by commodities and global easing bets. The Top 40's rejection at resistance levels suggests caution in the short term.

The FTSE/JSE All-Share Index is driven by investor appetite for commodities and global easing bets.

Strong local data is key to supporting equities, while weak numbers will add to the downside.

The Top 40's rejection at resistance levels suggests caution in the short term.

The All Share Index has been driven higher by mining sector stocks, up 2.4% in February and 3.2% so far this year.

The JSE Top 40 Index has pulled back from its recent high, forming a bearish rejection candle at 94,954. This suggests caution in the short term.

Investor appetite remains strong, driven by commodities and global easing bets, with the All Share Index reflecting this trend. However, local data will be key in determining the market's direction.

A break below 94,250 could see a retest of 93,650-93,490 and potentially 92,800 if the trendline fails. This highlights the importance of monitoring key technical levels.

Market watchers believe that strong local data will support equities, while weak numbers will add to the downside. This means that South African investors need to stay informed about the latest economic indicators.

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South Africa's capital markets are currently considered cheap, but this could be a sign that the situation is about to get worse.

The MSCI World Index had its worst start to the year since 2016, falling 5.3% month-on-month, due to concerns over inflation and interest rates.

Any action that could lead to a further downgrade in South Africa's credit rating and higher 10-year government bond yields is a serious concern.

Investors are taking profits from the rand, which recently rallied, causing the currency to slip on Monday.

The rand's volatility is expected to continue as local data is released this week, including business cycle indicators, producer inflation, credit trends, and trade balances.

Global monetary shifts are expected to support the rand in the medium term, but for now, it's best to be cautious.

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The FTSE/JSE All-Share Index has a rich history dating back to 1960, with daily prices available from that year. Its predecessor, the JSE Actuaries Overall Index, was first published on October 2, 1978.

The index was initially calculated with a base value of 264.30 points. By October 19, 1987, the index had risen by a staggering 960.9% to a closing level of 2,804 points.

After Black Monday, the JSE Actuaries fell again, but it didn't take long for the index to bounce back. On December 10, 2001, it closed above the 10,000-point mark for the first time at 10,030.17 points.

The index has undergone significant changes over the years, including a name change in 2002. The JSE Actuaries Overall Index was renamed the FTSE/JSE All-Share Index after the FTSE Group took over its calculation on June 24, 2002.

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The African indices have been showing some interesting trends lately. BRVM-CI led the pack with a 0.65% increase on August 10th.

Ghana's stock market, BSE DCI, was a notable exception, with no change recorded on July 10th. This could be due to various factors such as economic conditions or global market fluctuations.

On the other hand, South Africa's JSE ASI saw a significant jump of 1.39% on September 9th. This is a promising sign for investors looking to diversify their portfolios.

Here's a snapshot of the top-performing African indices:

Egypt's EGX 30, on the other hand, saw a meager 0.01% increase on July 7th. This could be a sign that the market is stabilizing after a period of volatility.

It's worth noting that some indices, like the MASE ASI, saw a decline of 0.53% on July 7th. This is a reminder that the market can be unpredictable and that investors should always do their research before making any decisions.

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