@finweek finweek finweekmagazine finweek^ 24 October 2019^43
“The impact of the trade war on
Top 40 counters from a fund and
market price volatility perspective
is potentially significant,”
says Kwaku Koranteng, head
of institutional at Absa Multi
Management.
South Africa is a major
resources exporter and Chinese
economic growth matters, he says.
Chinese economic growth slowed
down to an annualised 6.2% during
the second quarter of this year. This
is the slowest growth rate in more
than 27 years, according to the
South China Morning Post, a Hong
Kong-based newspaper.
South African goods worth
R91.2bn, or 10.8% of all exports,
found their way to China during
the first eight months of this year,
according to trade statistics by the
South African Revenue Service
(Sars). Conversely, Chinese goods
worth R155.5bn were shipped
to SA, or 18.3% of all imports.
In 2018, SA exported R113.3bn
of goods to China and imported
almost double the value,
R226.5bn, in return. In 2017,
exports to China amounted to
R115.5bn and imports R202.95bn.
Koranteng says that a world
in which less trade is conducted
could impact the local economy,
as well as the ratings and earnings
of the country’s largest stocks.
Prosus, recently unbundled
from Naspers**, has, for example,
“major exposure to the fortunes
of China through its exposure
to Tencent, a technology and
internet-based stock”. ■How big is
SA’s trade
exposure
to China?
Rank COMPANY NAME Share price move
to October 2019
1 British American Tobacco -15.5%
2 SABMiller* -27.57%
3 Naspers** 304.4%
4 Compagnie Financiere Richemont 17.36%
5 BHP Billiton 5.26%
6 MTN Group -44.48%
7 Anglo American 40.26%
8 FirstRand 51.62%
9 Sasol -52.86%
10 Standard Bank Group 32.81%
11 Vodacom Group -6.73%
12 Aspen Pharmacare -72.3%
13 Old Mutual Plc*** 10.36%
14 Barclays Africa Group Ltd**** -5.34%
15 Sanlam 18.85%
16 Steinhoff International -98.06%
17 Nedbank 2.7%
18 Remgro -29.75%
19 Bidvest Group***** 90.9%
20 Shoprite -9.44%
21 Anglo American Platinum 185.67%
22 RMB Holdings 38.59%
23 Mediclinic International -33.65%
24 Intu Properties -88.2%
25 Woolworths -23.31%
26 Kumba Iron Ore 37.78%
27 Tiger Brands -34.18%
28 Mondi Plc 69.19%
29 Discovery 28.04%
30 Growthpoint -6.32%
31 Rand Merchant Insurance Holdings -15.6%
32 Investec PLC -19.84%
33 Mr Price Group -23.2%
34 Netcare -44.48%
35 Capital & Counties -28.05%
36 Reinet Investments 9.25%
37 Impala Platinum 16.62%
38 Life Healthcare Group -47.73%
39 AngloGold Ashanti 146.81%
40 Imperial -26.63%
41 Investec Ltd -19.39%
42 Mondi Ltd N/ARank COMPANY NAME Share price move
over past five years
1 Prosus* Didn’t exist five years ago
2 British American Tobacco -15.5%
3 Naspers* 304.4%
4 BHP 5.26%
5 Compagnie Financiere Richemont 17.36%
6 Anglo American 40.26%
7 FirstRand 51.62%
8 Standard Bank Group 32.81%
9 Anglo American Platinum 185.67%
10 Vodacom Group -6.73%
11 MTN Group -60.43%
12 Sanlam 18.85%
13 Sasol -52.86%
14 Capitec Bank 400%
15 Mondi Plc 69.19%
16 Absa Group -5.34%
17 AngloGold Ashanti 146.81%
18 Nedbank Group 2.7%
19 BidCorp** Didn’t exist five years ago
20 RMB Holdings 38.59%
21 Old Mutual Ltd*** 10.36%
22 Remgro -29.75%
23 NEPI Rockcastle -26.9%
24 Impala Platinum 16.62%
25 Discovery 28.04%
26 Shoprite -9.44%
27 Growthpoint Properties -6.32%
28 Bidvest Group** 90.9%
29 Gold Fields 95.35%
30 Woolworths -23.31%
31 Clicks Group 282.03%
32 Sibanye-Stillwater 2.13%
33 Investec PLC -19.84%
34 MultiChoice Group* Didn’t exist five years ago
35 Exxaro Resources -4.04%
36 Redefine Properties -18.09%
37 Mr Price Group -23.2%
38 Tiger Brands -34.18%
39 The Foschini Group 40.17%
40 The Spar Group 53.23%
41 Investec Ltd -19.39%HOW DID 2014’s TOP 40 INDEX
CONSTITUENTS PERFORM?HOW DID 2019’s TOP 40 INDEX
CONSTITUENTS PERFORM?SOURCE: EquityRT data as at 8 and 11 October 2019.
* Naspers unbundled Prosus and Multichoice. Capital growth refers to the current value of all three stocks compared with
holding one Naspers share five years ago.
** Bidvest unbundled BidCorp. Capital growth refers to the current value of both stocks compared with holding one Bidvest
share five years ago.
*** Old Mutual Plc unbundled Old Mutual Ltd, Quilter Plc and Nedbank. Capital growth refers to the current value of one Old
Mutual Ltd, 0.333 Quilter Plc and 0.032 Nedbank shares compared with holding one Old Mutual Plc share five years ago.SOURCE: EquityRT data as at 8 October 2019.
* Now listed as AB InBev.
** Now listed as Naspers, Prosus and Multichoice.
*** Old Mutual Plc separated into Old Mutual Ltd, Quilter Plc and Nedbank.
**** Now listed as Absa Group.
***** Now listed as Bidvest Group and BidCorp Ltd.cover story investment