JSE Chemicals Sector Improving Relative To Broader Market

Research Notes For 26 to 30 May > https://www.unum.capital/post/r2630may

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JSE Chemicals Sector (Equally-Weighted) vs JSE Top 40 Index: Improving candle structure at the multi-year swing lows. This is technical setup reflects the sector attempting to make a long term recovery following several years of underperformance.

*The equally-weighted basket = SOL, OMN and AFE

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Previous Post: This is a follow-up to the post on 02 February which highlighted the group trading at a 20-year low versus the broader market, but more importantly the swing low.

Note the monthly candle

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Previous Post (02 February): JSE Chemicals: 20-Year Relative Low

Portfolio View

I have no special fundamental insight into this sector, however, it may be worth noting that it trades at a +20-year low relative to the Top 40 Index - possibly worth investigating.

Lester Davids

Analyst: Unum Capital