So how did the Satrix Top 40 ETF do?

Pink may have been the dominant colour at the movie theatres this last month, but at the JSE (and for our Franc equity fund holders), green reigned supreme. Needless to say, it was an impressive month for most of the top 40 companies.

As at the 31st of July, the Satrix 40 ETF closed at R73.53. That’s an increase of 3.2% over the past month (R71.27), and while it’s just not quite (K)enough to surpass that 10% mark, that means an impressive 9.3% increase from the beginning of the year (R67.28).

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Let’s look at the performance of the top- and bottom-performing Satrix Top 40 companies’ shares to understand the increase over this past month:

Top-Performing Satrix Top 40 ETF Companies

Everyone can agree that mining companies such as Sibanye Stillwater and Kumba Iron Ore have had a rough 2023 so far because of rail logistic issues. But July saw a great comeback for both of them: Kumba’s share price increased just over 10% this month, while Sibanye’s share price increased just under 17%. This was mainly due to half year profit expectations being in line with the decreased projections made earlier in the year. What’s more, plans to ramp up production levels in the second half of the year offered some hope for the derailed mining giants.

The banking sector soared into the second half of the year as Standard Bank (+7.9%), First Rand (+6%), Nedbank (+3.2), Absa (+10.3%) and Capitec (+14.9%) all experienced an impressive month. While consumers may be struggling with more expensive debt, the banking sector is benefitting from increased interest rates, bulking up profits nicely.

Bottom-Performing Satrix Top 40 ETF Companies

On the other side of things, Richemont (luxury goods company), which has been one of the best-performing stocks on the JSE this year, saw a bit of a drop in July (-10%). This was mainly due to a slump in sales in the US.

The same was experienced by AB InBev’s share price, which fell a further 3% this month as a result of the boycott of Bud Light (one of the company’s top selling beers) after the company’s flopped collaboration with a transgender influencer. Not such a great Bud Lightyear, to inclusion and beyond.

2023: Second half, here we go!

July’s performance meant the second half of the year started with an (atomic) bang for the Satrix Top 40 ETF. But remember, investing in the equity market is a long term practice and the longer you remain invested, the better your potential returns. The Satrix40 ETF could be your toKEN to secure your financial future. 😉