An index of the 40 biggest companies trading on the JSE. This index is weighted for the market capitalisation of the companies it includes and also their “free float”. It is one of five “headline” indexes together with the JSE Overall index, the mid-cap index, the small cap index and the fledgling index. Not all the securities listed on the JSE are incorporated into the All Share index, on the basis that movements in the share prices of the constituent companies can be said to represent the movement of the market as a whole. Companies selected for inclusion in the TOP 40 Index are the largest 40 companies in the All Share index by full market cap. The list of shares given below were included at the start of 2019 – but you should be aware that shares come and go from the index all the time (e.g. Steinhoff has been dropped). As an investor, you need to be aware that the index contains several commodity shares which can skew the index if commodity prices move drastically. It also includes a number of very large companies which have their primary listing overseas or which derive most of their income in a hard currency – such as Richemont and Naspers (Naspers alone accounts for 20% of the index). This means that the movement of local shares is often obscured or completely overwhelmed by the movement of rand-hedges. You may find it more useful to look at the JSE Fin30 which just contains the 30 largest financial and industrial shares. Share in the Alsi40 are:
Naspers (22,58%), BHP (10,3%), Richmont (8,23%), ABSA (2,15%), Firstrand (3,74%), MTN (2,66%), Standard Bank (4,13%), Sasol (4,03%), Anglo American (5.46%), Anglo Ashanti (1.24%), Aspen Pharmacare (0.91%), BidCorp (1.55%), British American Tobacco (1.98%), Bidvest (1.22%), Clicks (0.81%), Capitec (1.04%), Discovery (0.99%), Growthpoint (1.24%), Investec Ltd (0.44%), Investec PLC (0.96%), Life Healthcare (0.66%), Mondi Ltd (0.66%), Mondi PLC (2.04%), Mr Price (0.93%), Nedbank (1.94%), Nepi Rockcastle (0.69%), Netcare (0.67%), Old Mutual (1.9%), PSG (0.68%), Redefine Properties (0.91%), Remgro (1.84%), RMB (1.05%), Reinet (0.52%), Sappi (0.72%), Shoprite (1.53%), Sanlam (2.53%), Spar (0.68%), Tiger Brands (0.79%), Foschini (0.7%), Truworths (0.6%), Vodacom (1.46%), Woolworths (0.82%).
The full list can be seen at: https://www.intrepidcapital.co.za/Portals/0/JSE%20Top%2040%20_%20March%202017.pdfAll information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index