top of page

JSE Relative Sector Ratings: Strongest To Weakest

  • Writer: Lester Davids
    Lester Davids
  • 10 hours ago
  • 3 min read

Research Notes For 19 to 24 May > https://www.unum.capital/post/r1924may

Trade Local & Global Financial Markets with Unum Capital.

To get started, email tradingdesk@unum.co.za



Summary Ranking of Sectors (Preference based on weighted timeframes):


Considering the short term carries the most weight, followed by medium, then long term, here's a preference ranking:


  1. Luxury Goods VS TOP 40: (Short Term: High Bullish Momentum / Approaching Overbought, Medium Term: Strong)

  2. Insurers VS TOP 40: (Short Term: High Bullish Momentum / Approaching Overbought, Medium Term: Neutral)

  3. Technology VS TOP 40: (Short Term: Strong, Medium Term: Strong)

  4. Banks VS TOP 40: (Short Term: Strong, Medium Term: Strong)

  5. Consumer Disc. VS TOP 40: (Short Term: Strong, Medium Term: Strong)

  6. Telecoms VS TOP 40: (Short Term: Neutral, Medium Term: Neutral, Long Term: Strong)

  7. Gold Miners VS TOP 40: (Short Term: Weak, Medium Term: Neutral, Long Term: Strong)

  8. Chemicals VS TOP 40: (Short Term: Neutral, Medium Term: Weak, Long Term: Oversold)

  9. Coal Miners VS TOP 40: (Short Term: Weak, Medium Term: Oversold, Long Term: High Bearish Momentum / Approaching Oversold)

  10. Miners VS TOP 40: (Short Term: Weak, Medium Term: High Bearish Momentum / Approaching Oversold, Long Term: Oversold)

  11. Paper & Pulp VS TOP 40: (Short Term: Neutral, Medium Term: Weak, Long Term: High Bearish Momentum / Approaching Oversold)

  12. Consumer Staples VS TOP 40: (Short Term: Neutral, Medium Term: Neutral, Long Term: Neutral)

  13. Hospitals VS TOP 40: (Short Term: Neutral, Medium Term: Neutral, Long Term: Neutral)

  14. Healthcare VS TOP 40: (Short Term: Neutral, Medium Term: Weak, Long Term: Weak)

  15. Platinum Miners VS TOP 40: (Short Term: Weak, Medium Term: Weak, Long Term: Weak)


This ranking prioritizes sectors with strong short-term indicators, followed by medium-term strength, and then considers the long-term perspective.


Technology VS TOP 40

  • Short Term: Strong

  • Medium Term: Strong

  • Long Term: High Bullish Momentum / Approaching Overbought

  • Overall: Suggests continued strength, potentially nearing a point of decreased upward momentum in the long term.


Miners VS TOP 40

  • Short Term: Weak

  • Medium Term: High Bearish Momentum / Approaching Oversold

  • Long Term: Oversold

  • Overall: Indicates significant weakness in the medium term, although the long term suggests potential for a recovery. The short-term weakness adds to the negative outlook.


Banks VS TOP 40

  • Short Term: Strong

  • Medium Term: Strong

  • Long Term: Strong

  • Overall: Demonstrates consistent strength across all timeframes.


Insurers VS TOP 40

  • Short Term: High Bullish Momentum / Approaching Overbought

  • Medium Term: Neutral

  • Long Term: Neutral

  • Overall: Shows strong positive momentum in the short term, with a more neutral outlook for the medium and long term.


Gold Miners VS TOP 40

  • Short Term: Weak

  • Medium Term: Neutral

  • Long Term: Strong

  • Overall: The short-term weakness and neutral medium-term performance contrast with long-term strength, creating a mixed outlook.


Platinum Miners VS TOP 40

  • Short Term: Weak

  • Medium Term: Weak

  • Long Term: Weak

  • Overall: Suggests consistent underperformance across all timeframes.


Consumer Staples VS TOP 40

  • Short Term: Neutral

  • Medium Term: Neutral

  • Long Term: Neutral

  • Overall: Indicates performance generally in line with the broader market across all time horizons.


Consumer Disc. VS TOP 40

  • Short Term: Strong

  • Medium Term: Strong

  • Long Term: Neutral

  • Overall: Shows strength in the short and medium term, with a more neutral long-term perspective.


Healthcare VS TOP 40

  • Short Term: Neutral

  • Medium Term: Weak

  • Long Term: Weak

  • Overall: Suggests underperformance in the medium and long term, with a neutral short-term outlook.


Hospitals VS TOP 40

  • Short Term: Neutral

  • Medium Term: Neutral

  • Long Term: Neutral

  • Overall: Indicates performance generally in line with the broader market across all time horizons.


Coal Miners VS TOP 40

  • Short Term: Weak

  • Medium Term: Oversold

  • Long Term: High Bearish Momentum / Approaching Oversold

  • Overall: Points to significant weakness, particularly in the long and medium term, although the medium term being 'Oversold' suggests a potential for a short-term bounce.


Telecoms VS TOP 40

  • Short Term: Neutral

  • Medium Term: Neutral

  • Long Term: Strong

  • Overall: The short and medium terms are neutral, contrasting with long-term strength.


Paper & Pulp VS TOP 40

  • Short Term: Neutral

  • Medium Term: Weak

  • Long Term: High Bearish Momentum / Approaching Oversold

  • Overall: Suggests weakness, particularly in the long and medium term.


Chemicals VS TOP 40

  • Short Term: Neutral

  • Medium Term: Weak

  • Long Term: Oversold

  • Overall: Indicates weakness in the medium term, while the long term being 'Oversold' suggests potential for a recovery. The short term is neutral.


Luxury Goods VS TOP 40

  • Short Term: High Bullish Momentum / Approaching Overbought

  • Medium Term: Strong

  • Long Term: Neutral

  • Overall: Shows strong positive momentum in the short term and strength in the medium term, with a neutral long-term outlook.


Lester Davids

Senior Investment Analyst: Unum Capital

Comments

bottom of page