Recent data from investment firm Nedgroup revealed investment insights into South Africa’s top-performing shares, with some surpassing a 50% increase over the period of 2022.
Nedgroup Investments is an asset management business based in South Africa with over R350 billion of assets. The group said that major global central banks have embarked on one of the fastest monetary policy tightening cycles in recent history this year.
“As a result, the rise in long-term interest rates has been both broad and steep,” said Nedgroup.
Global political instability, paired with rising inflation and interest rates alongside supply chain disruptions and domestic rolling blackouts, has made 2022 an unstable year for investors – with little opportunity to predict the market’s movements and many playing it cautious.
Nedgroup’s latest Pulse Report noted that Absa Group, the company behind Absa bank, was the top performing stock of 2022 with 53.1% change, followed by Glencore at 51.2% and energy firm Exxaro with 48.8% change in third.
According to the investment publication DailyInvestor, Absa is a preferred stock among South African banks due to its strong position in the local market, lower price-to-earnings ratios, a history of offering good dividends and a fresh leader as CEO.
Banks have managed to navigate global financial uncertainty within the sector when compared to other companies, said DailyInvestor.
“Higher interest rates benefit banks as their main source of revenue – interest payments on loans – is advanced and profit margins bolstered. Since 2021, all listed South African banks have experienced an increase in earnings per share. It is in contrast to lows in 2020 due to the low-interest rates at the time. ”
Based on the Shareholder Weighted Index Top 40 JSE listed stocks (SWIX 40) as of 30 November 2022, Nedgroup reported the following performances:
Yearly shares
| Company | Percentage change |
|---|---|
| Absa Group | 53.1% |
| Glencore | 51.2% |
| Exxaro | 48.8% |
| Investec Plc | 39.6% |
| Standard Bank | 38.8% |
| Nedbank | 38.3% |
| Investec Ltd | 37.1% |
| Bidvest | 28.4% |
| Woolworths | 28.3% |
| Shoprite | 27.9% |
Bottom 10 shares in 2022
| Company | Percentage change |
|---|---|
| Aspen | -40.5% |
| Mr Price | -15.0% |
| Prosus | -14.8% |
| Mondi | -14.5% |
| MTN | -12.9% |
| Northam | -11.7% |
| Anglo gold | -10.7% |
| Old Mutual | -8.6% |
| Sibanye | -7.5% |
| Richemont | -6.5% |
Monthly change
Top shares over 1 month
| Company | Percentage change |
|---|---|
| Prosus | 39.0% |
| Naspers | 38.7% |
| Anglo gold | 27.7% |
| Goldfields | 26.9% |
| Anglo | 23.7% |
| Richemont | 22.4% |
| BHP Group | 19.1% |
| Amplats | 17.5% |
| Investec Ltd | 14.8% |
| Investec Plc | 14.0% |
Bottom shares over 1 month
| Company | Percentage change |
|---|---|
| Aspen | -6.2% |
| Clicks | -5.2% |
| British American Tobacco | -4.7% |
| Mr Price | -4.3% |
| Sasol | -3.2% |
| Mc Group | -0.9% |
| Mondi | 0.3% |
| Vodacom | 0.4% |
| Absa Group | 2.7% |
| Reinet | 3.3% |
