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Introduction: Relative Price Strength (RPS) is a critical technical indicator used by traders and investors to assess the performance of an equity relative to the broader market or its industry peers. By understanding RPS and incorporating it into their investment strategies, individuals can gain valuable insights into an equity's potential for future price movement. We will delve into the concept of RPS, how it is calculated, and its significance in share trading. What is Relative Price Strength (RPS)? Relative Price Strength, also known as Relative Strength, is a momentum-based metric that evaluates an equity's performance relative to a benchmark index or a group of peers. It is used to identify equities that have outperformed or underperformed in their market or sector over a specified period. RPS Calculation: To calculate RPS, we compare the price performance of a particular share to the performance of a designated benchmark index or a group of shares. The RPS calculation typically involves comparing the price change over a specific time frame, depending on the preference of the trader or investor. The formula for calculating RPS is as follows: RPS = (Share's Price at date x / Share's Price at date y) / (Benchmark's Price at date x / Benchmark's Price at date y) date x = most recent price of the share or benchmark date y = price of the share or benchmark x periods ago Understanding RPS Values: The RPS value is represented as a ratio, and it indicates the stock's relative strength compared to the benchmark or peer group. A value above 1 suggests that the share has outperformed the benchmark or peers, while a value below 1 indicates underperformance. Significance of RPS in Share Trading: Identifying Strong Performers: RPS helps traders and investors identify shares that have demonstrated significant price strength compared to the overall market or their sector. These shares are often considered strong performers and may continue to exhibit positive price movement. Trend Confirmation: RPS can help confirm the prevailing trends in the market or sector. Shares with high RPS values are more likely to be in uptrends, while those with low RPS values might be in downtrends. Share Selection: Traders can use RPS to filter and prioritise their share selection process. A higher RPS value could make a share more appealing for trading or investment opportunities. Divergence Detection: RPS can also help identify potential divergences between a share and the broader market or sector. Divergences occur when an equity's price moves in the opposite direction to its RPS, which might signal a potential trend reversal or correction. Limitations of RPS: While RPS can be a valuable tool for assessing relative performance, it has some limitations that traders and investors should be aware of: Short-Term Focus: RPS is primarily a short to medium-term indicator. It might not accurately reflect a share's long-term potential or fundamental strength. Benchmark Selection: The choice of benchmark or peer group can significantly impact the RPS calculation. Different benchmarks can lead to different RPS values for the same share. Conclusion: Relative Price Strength (RPS) is a valuable technical indicator that provides insights into an equity's relative performance compared to a benchmark index or its peers. By understanding RPS, traders and investors can make more informed decisions, identify strong performers, and validate existing trends in the market or sector. However, like any single metric, RPS should be used in conjunction with other indicators and fundamental analysis to make well-rounded investment decisions. JSE All Share headline indices RPS: In the financial markets, certain headline indices have showcased remarkable outperformance, suggesting a notable influx of capital. This surge in capital inflow signals growing trader and investor confidence and interest in these headline indices. Whereas traders and investors seem to be reallocating their investments away from headline indices where there is an outflow of capital. Capital Inflow headline indices (in ranking order): Financials Capital outflow headline indices (in ranking order): Industrials Resources JSE All Share share RPS: Understanding the performance of individual shares in comparison to the broader market is crucial for traders and investors seeking to capitalise on market trends. The table below highlights the top 20 and bottom 20 shares based on RPS, with a lookback period of the last 10 days, indicated by their ranking changes since the previous update. The table is updated daily. The Top 20 RPS Leaders: These are the shares that have exhibited the strongest relative price performance within the JSE All Share index over the past 10 days. The Bottom 20 RPS Laggards: These shares have shown the weakest relative price performance within the JSE All Share index over the same 10-day period. JSE All Share sector RPS: In this analysis, we will examine the top 10 and bottom 10 sectors based on RPS, considering the lookback period of the last 10 days. The table is also updated daily. The Top 10 RPS Leading Sectors These sectors have demonstrated the strongest relative price performance within the JSE All Share index during the 10-day lookback period. The Bottom 10 RPS Lagging Sectors Conversely, these sectors have exhibited the weakest relative price performance within the JSE All Share index over the same 10-day period. https://www.unum.capital/research-disclaimer

Introduction In the world of technical analysis, traders and investors often use various tools and indicators to gain insights into market trends and potential price movements. One such tool is the Linear Regression Channel, which utilises statistical concepts like standard deviation to help identify the potential range of price action. Understanding how to interpret and use the Linear Regression Channel in conjunction with standard deviation can provide valuable information for traders to make informed decisions. What is Linear Regression Channel? The Linear Regression Channel is a technical analysis tool that plots a straight line based on the linear regression of the price data over a specific period. This line serves as the central axis of the channel, with two parallel lines drawn above and below it, representing the upper and lower ranges. The channel helps traders visualize the general direction of the trend and possible areas of support and resistance. Calculating the Linear Regression Channel involves fitting a linear regression line to the price data, usually based on the closing prices, over a defined look-back period. The resulting line represents the average or mean of the price data over that period. Understanding Standard Deviation Standard deviation is a measure of the dispersion or variability of the price data around the linear regression line. In the context of a Linear Regression Channel, standard deviation helps determine the width of the channel, which indicates the potential volatility or uncertainty of price movements. When the standard deviation is high, it means the price data is spread out widely from the regression line, indicating higher volatility. Conversely, a low standard deviation suggests that the price data is closely clustered around the regression line, indicating lower volatility. Using Scoring to Assess Proximity to the Linear Regression Channel The term "scoring" in this context refers to a numerical value representing the distance of the current price from the linear regression line. This score is typically normalised to a scale between 0 and 10, with 1 indicating the lowest proximity to the regression line and 10 indicating the highest proximity. The relationship between the scoring and the Linear Regression Channel is as follows: Scoring Close to 0: When the scoring is closer to 0, it suggests that the current price is near the lower range of the Linear Regression Channel. This indicates that the market is potentially oversold, and the price may be due for a correction or bounce towards the mean or central axis of the channel. Scoring Close to 10: Conversely, when the scoring is closer to 10, it suggests that the current price is near the upper range of the Linear Regression Channel. This indicates that the market is potentially overbought, and the price may be due for a correction or a bounce back towards the mean. Interpreting Linear Regression Channel and Standard Deviation Together Combining the Linear Regression Channel and standard deviation provides a more comprehensive picture of the market's behaviour. When the standard deviation is wider, the channel broadens, indicating higher volatility. In contrast, a narrower standard deviation results in a narrower channel, suggesting lower volatility. Traders can use this information to: Identify Potential Reversal Zones: When the price action reaches the upper or lower range of the channel, coupled with high standard deviation, it may indicate an overextended market and a potential reversal in the opposite direction. Recognize Trend Strength: If the price remains within a narrow channel and the standard deviation is relatively low, it suggests a stable and well-defined trend, while a wide channel with a high standard deviation indicates a more erratic or uncertain market. Conclusion The Linear Regression Channel and standard deviation are valuable tools for traders to gain insights into the potential range of price action and market volatility. When combined, they can provide a clearer understanding of trend direction, potential reversal points, and overall market sentiment. By using the scoring system to assess proximity to the channel, traders can make more informed decisions, enhancing their ability to navigate the dynamic world of financial markets. However, as with any technical analysis tool, it is essential to use these indicators in conjunction with other forms of analysis and risk management strategies to make well-rounded and informed trading decisions. Top 40 share scoring and selected markets The bar chart displayed below presents the constituents of the Top 40 index. This dynamic bar chart is updated weekly, providing valuable insights. https://www.unum.capital/research-disclaimer

The market overview serves as a comprehensive snapshot of the financial markets, providing a summary of various asset classes, sectors, and indices. Its primary purpose is to showcase the performance of different financial instruments over a specific period. https://www.unum.capital/research-disclaimer

The Week That Was Equities in the US closed with a mixed performance on the final trading day of the September quarter. Investor sentiment was impacted by concerns about a possible US government shutdown and persistently high-interest rates at levels not seen in decades. The Dow Jones Industrial Average concluded the day with a decline of 157 points, with notable underperformers including Walmart, down 1.6%, and Chevron, down 1.1%. The S&P 500 experienced a modest 0.3% drop, while the Nasdaq managed a slight gain of 0.1%. This marked the worst month of the year for both the S&P 500 and the Nasdaq. In corporate news, Carnival's stock took a significant hit, plummeting by 4.9% due to disappointing earnings projections. Conversely, Nvidia and Tesla saw their stock prices rise by 0.9% and 1.6%, respectively, following favourable buy ratings. Meanwhile, Nike experienced a notable surge of 6.7% following an encouraging earnings report. For the month of September, the Dow recorded a 3.2% decline, while it posted a 2.4% decrease for the entire quarter. The S&P 500 finished the month down by 4.8%, and the quarter ended with a 3.5% dip. The Nasdaq also faced a challenging month, losing 4.9%, and closing the quarter with a 2.9% decline. The JSE All Share Index concluded the final trading day of September at 72 383, closing slightly lower after a turbulent session. This decline was primarily driven by losses in the financial sector, down 0.7%, and resource-linked sectors, which dipped 0.3%. However, investors found some relief in indications of easing inflationary pressures both in the US and the Eurozone. Notably, the US Fed's preferred inflation measure reached its lowest level since September 2021, reinforcing the belief that the current monetary policy stance remains appropriate. Turning to domestic economic data, South Africa reported a budget deficit of ZAR 47.33 billion in August 2023, surpassing the ZAR 42.67 billion deficit from the same month the previous year. Meanwhile, the trade surplus narrowed to ZAR 13.3 billion, down from ZAR 15.4 billion in July. For the week, the JSE recorded a loss of 1.4%, and over the course of the month, it endured a 3.4% decline. The Week Ahead The upcoming first week of October holds several key events and data releases that will be closely monitored by investors and analysts across the globe. In the US, all eyes are on the highly anticipated US jobs report for September. It is expected that nonfarm payrolls increased by a modest 150 thousand, marking the slowest growth in three months. This reinforces the signs of a labour market that is gradually losing momentum. Additionally, the unemployment rate is anticipated to have improved slightly to 3.7%, while wage growth is projected to remain steady at 4.1%. Alongside this, speeches by several Fed officials, JOLTs job openings data, factory orders, foreign trade figures, and PMI surveys from both the ISM and S&P Global will be under scrutiny. The ISM PMIs are likely to indicate continued contraction in the US manufacturing sector and a softer increase in service sector activity. Turning to Europe, data is expected to reveal a decline in retail sales in the Euro Area for the second consecutive month in August. In the UK, housing prices reported by Nationwide and Halifax will be on investors' radar. In Asia, China's PMIs will provide insights into the impact of Beijing's support measures and the potential risks posed by property developers as the third quarter draws to a close. Japan awaits the release of the 3rd quarter Tankan Large Manufacturers Index and the Summary of Opinions document from the Bank of Japan. These events and data releases collectively shape the economic landscape for the first week of October, providing valuable insights for global markets and investors. Key Themes for the Week Ahead US Data In the US, the critical data can be categorised into two primary groups: employment and business surveys. S&P Global has recently issued their final revisions of the Purchasing Managers' Index (PMIs), and all indications point towards a downward trajectory, signalling a softer economy. Notably, both the Composite PMI and the Services PMI are on the verge of dipping below the pivotal 50-point mark, which signifies a potential contraction. This trend stands in contrast to the findings from the ISM (Institute for Supply Management) surveys. While the ISM Services survey reflects an expansion at its swiftest pace in six months, suggesting a robust services sector, the ISM Manufacturing survey reveals a slower pace of contraction and even hints at improvement in the manufacturing sector. This disparity between the two surveys prompts the question: which one provides the most accurate depiction of the current economic situation? In addition to the business surveys, the employment landscape in the US is also sending slightly mixed signals. Non-Farm Payrolls (NFP) job growth is on a downward trajectory but still remains at a healthy, "expansive" level. Furthermore, although unemployment has edged higher, it is important to note that it remains historically low at 3.8%. Job openings, while experiencing a decline to a 48-month low, are significantly elevated compared to their long-term average. Additionally, while layoffs have increased by over 50 000 in the past month, this figure still pales in comparison to the peak of the Covid-19 pandemic. In summary, the employment situation in the US remains tight but exhibits a slightly softer trend. To challenge the prevailing "higher for longer" narrative, we would need to witness surprisingly weak figures. Furthermore, if employment remains robust while business surveys show signs of improvement, it could potentially amplify the ongoing bond market turbulence, leading to higher yields and a stronger US dollar. Powell Comments On Monday, Jay Powell and Philadelphia Fed President Patrick Harker are slated to engage in a roundtable discussion alongside workers, small business owners, and community leaders. Recent data released on Friday showed signs of progress in controlling inflation, with annual underlying inflation dropping below the 4% mark for the first time in over two years. However, the surge in oil prices, which is pushing up gasoline prices at the pump, suggests that achieving the Fed's 2% inflation target could be a protracted journey. In their September meeting, the Fed opted to keep interest rates unchanged, but they conveyed their anticipation of one more rate hike before the year concludes, and a reduced number of cuts in the following year, compared to their earlier projections. Throughout this week, expect to see appearances from other prominent figures within the Fed, including Cleveland Fed President Loretta Mester, Atlanta Fed President Raphael Bostic, and San Francisco Fed President Mary Daly. Equity markets kick off Q4 The pivotal final quarter of the year has begun following a lacklustre third-quarter performance in the stock market. During the third quarter, the S&P 500 experienced a decline of approximately 3.6%, the Dow saw a loss of 2.6%, and the Nasdaq recorded a drop of 4.1%. September painted a similar picture with the S&P 500 falling by 4.9%, the Dow declining by 3.5%, and the Nasdaq decreasing by 5.8%. The surge in bond yields has sent tremors through the equity markets, leading some market participants to express concerns about the soaring valuations of major companies such as Apple, Microsoft, Alphabet, and Amazon, which could potentially be a vulnerability. Technology and growth-oriented companies, known for their projected substantial profit growth in the coming years, tend to suffer more significantly when yields rise due to the more rigorous discounting of their anticipated future earnings. As the fourth quarter commenced, another US earnings season looms on the horizon. While the AI sector continues to be of importance, lingering questions persist regarding the ultimate impact on profits. Lagarde speech On Wednesday, Europen Central Bank (ECB) President Christine Lagarde is scheduled to deliver a speech that has investors eagerly awaiting hints about the future trajectory of interest rates. This anticipation stems from the data released last Friday, which revealed that Eurozone inflation had dropped to its lowest point in the past two years. The data has heightened expectations that the ECB may have already raised interest rates sufficiently to steer inflation back towards its targeted 2%. Notably, inflation in the Eurozone briefly reached double digits last autumn, driven by a confluence of factors including surging energy costs, post-pandemic disruptions in supply chains, and substantial government spending. In response to these inflationary pressures, the ECB took the unprecedented step of raising interest rates from a record low of minus 0.5% to 4.0% in just over a year. This marked a significant shift after a decade of pursuing an ultra-loose monetary policy in an attempt to stimulate inflation. China’s PMIs The release of China's PMIs over the weekend takes on added significance as China will be on a public holiday for the entire next week. This data holds particular relevance for market sentiment beyond the region. As has been the pattern with most data coming out of China this year, any noteworthy impact is likely to necessitate an unexpectedly positive outcome for it to truly register as a surprise. South Africa News Rand Water has announced its intention to utilize water shifting as a strategic management tool to alleviate the strain on its systems in Gauteng. This decision comes in response to a directive from Minister of Water and Sanitation, Senzo Mchunu, who urged the utility to adopt this approach. Rand Water has provided assurances to the minister that it will engage in load-shifting from less congested water lines. Minister of Electricity, Kgosientsho Ramokgopa, has expressed optimism that the reactivation of Kusile's unit 3 marks the initial step toward alleviating the burden of load-shedding. During a media briefing on Sunday, the minister provided an update on the progress of the energy action plan. eMedia, the proprietor of Openview, has publicly disclosed its pursuit of legal recourse in a series of full-page advertisements published in prominent newspapers such as the Sunday Times, Rapport, and City Press. This action is in response to the ongoing dispute with MultiChoice concerning broadcasting rights for the Rugby World Cup. Economic Calendar In the upcoming economic calendar for this week, several significant events are scheduled to take place. source: investing.com https://www.unum.capital/research-disclaimer

Introduction When it comes to investing in shares, it's crucial to be armed with the right tools and knowledge to make informed decisions. One of the most important metrics that investors use to assess the risk and return potential of equities is beta. Beta is a numerical value that measures the sensitivity of a share's price movements relative to changes in the broader market. We will delve into the concept of beta and explore its significance for share investors. What is Beta? Beta, often denoted as "β," is a statistical measure used in finance to quantify the volatility or systematic risk of a share compared to the overall market. The market, in this context, is typically represented by an index, such as the Top 40 index. The beta value indicates how much a share's price is expected to move concerning the market's movements. It helps investors understand how closely the share's performance is tied to the market's fluctuations. Interpreting Beta Values β = 1: If a share has a beta of 1, it moves in perfect correlation with the market. Its price tends to rise or fall by the same percentage as the market index. Such shares are considered market-neutral in terms of volatility. β < 1: A share with a beta below 1 is less volatile than the market. In other words, it is expected to have smaller price swings than the overall market. These shares are often referred to as defensive equities and are perceived to offer a more stable investment option. β > 1: A share with a beta above 1 is more volatile than the market. It tends to experience larger price movements, both upward and downward, compared to the market index. These shares are considered aggressive or growth-oriented investments. Risk and Return Relationship Beta plays a crucial role in determining the risk and return profile of a share. Typically, higher beta shares offer the potential for greater returns but also come with higher risk. Conversely, lower beta shares may have more modest returns but tend to be less risky and more stable during market downturns. For example, if Share A has a beta of 1.5, and the market (represented by an index) increases by 10%, Share A might be expected to rise by 15% (1.5 times the market return). Conversely, if the market falls by 10%, Share A could be anticipated to decline by 15%. How to Use Beta in Investment Decisions Diversification: Beta can help investors build a diversified portfolio. By combining shares with different beta values, investors can offset the risk of high-beta shares with the stability of low-beta shares. Risk Management: Beta assists in assessing the level of risk an investor is willing to undertake. Conservative investors might opt for low-beta shares, while those seeking higher returns might favour high-beta shares. Market Timing: Understanding beta can help investors make better decisions about when to buy or sell a share. During a bullish market, high-beta shares may outperform, while during a bearish market, low-beta shares may hold up better. Limitations of Beta While beta is a valuable metric, it does have some limitations: Historical Data: Beta is based on historical price movements, and the past may not necessarily predict future performance accurately. Market Conditions: Beta assumes that market conditions will remain constant, which is often not the case. Single-factor Metric: Beta considers only market-related risk and does not account for other factors like company-specific events or changes in industry dynamics. Conclusion Beta is a useful tool for investors to gauge the volatility and risk associated with a particular share relative to the overall market. It aids in constructing a well-balanced portfolio and managing risk according to individual investment goals and risk tolerance. However, beta should not be the sole factor in investment decisions, as it's essential to consider other aspects of a company's fundamentals and the broader economic environment to make well-informed investment choices. As with any investment analysis, it's prudent to conduct thorough research. Top 40 share beta and selected markets: The heatmap displayed below presents the constituents of the Top 40 index alongside selected major markets. This dynamic heatmap is updated daily, providing valuable insights. For added convenience, you can download the corresponding data as an Excel file. Stay informed of the latest trends and changes in the market through this user-friendly visualisation. Download the Excel file here: https://www.unum.capital/research-disclaimer

Introduction In the world of share trading, understanding correlation is vital for making informed investment decisions and managing risk effectively. Correlation plays a crucial role in assessing how different shares or assets move in relation to each other, providing insights into portfolio diversification, risk management, and potential investment opportunities. We will explore the concept of correlation in share trading, its importance, and how traders and investors can leverage this knowledge to improve their strategies. What is Correlation in Share Trading? In share trading, correlation refers to the statistical relationship between the price movements of two or more shares or assets. When two shares have a positive correlation, they tend to move in the same direction – when one share's price increases, the other share's price also increases. On the other hand, a negative correlation indicates that two shares tend to move in opposite directions – when one share's price increases, the other share's price decreases. Finally, if two shares have a correlation close to zero, it suggests that their price movements are not significantly related. Measuring Correlation in Share Trading The most common method of measuring correlation between two shares is by using the Pearson correlation coefficient, just like in general statistics. The correlation coefficient ranges from -1 to 1, with the same interpretation as before: r = 1 indicates a perfect positive correlation, where the two shares move in complete harmony. r = -1 indicates a perfect negative correlation, where the two shares move in opposite directions. r ≈ 0 indicates little to no correlation, suggesting that the two shares have independent price movements. Importance of Correlation in Share Trading Understanding the correlation between different shares is crucial for several reasons: Diversification: Correlation helps traders identify assets that have low or negative correlations with each other. Diversifying a portfolio with assets that are not highly correlated can help reduce overall risk. When some assets decrease in value, others might increase, which can mitigate losses. Risk Management: High correlations among shares can increase the overall risk in a portfolio. If all shares in a portfolio are positively correlated, they are more likely to experience simultaneous declines during market downturns. By knowing the correlation between holdings, traders can optimise their portfolios to manage risk more effectively. Identifying Investment Opportunities: Traders can use correlation analysis to identify potential investment opportunities. For example, if they notice a positive correlation between two shares, they might consider one as a proxy for the other. If the correlation is negative, they may see a hedging opportunity to protect against price declines. Sector Analysis: Correlation analysis can help traders understand the broader movements within specific sectors or industries. For example, in a technology-heavy sector, many shares might be positively correlated, and understanding this can influence investment decisions within that sector. Limitations of Correlation in Share Trading While correlation is a valuable tool, it has its limitations: Changing Market Conditions: Correlations between shares can change over time due to shifts in market dynamics, economic conditions, or company-specific events. Traders need to monitor correlations regularly and be prepared for them to evolve. Limited to Linear Relationships: Correlation measures linear relationships between variables. Some shares may have non-linear relationships, making it important to consider other forms of analysis alongside correlation. Causation Concerns: As always, it's essential to remember that correlation does not imply causation. Just because two shares are correlated does not necessarily mean that one share causes the price movement of the other. Conclusion In share trading, understanding correlation is a powerful tool for making informed decisions, managing risk, and optimising investment portfolios. By analysing the relationship between different shares, traders can diversify their portfolios effectively, identify hedging opportunities, and navigate changing market conditions more intelligently. However, correlation should always be used in combination with other forms of analysis, and traders must be cautious about drawing causal conclusions solely based on correlation. With a solid understanding of correlation, traders can navigate the dynamic world of share trading with greater confidence and success. Top 40 share correlation and selected markets The heatmap displayed below presents the constituents of the Top 40 index alongside selected major markets. This dynamic heatmap is updated daily, providing valuable insights. For added convenience, you can download the corresponding data as an Excel file. Stay informed of the latest trends and changes in the market through this user-friendly visualisation. Download the Excel file here: https://www.unum.capital/research-disclaimer

The market overview serves as a comprehensive snapshot of the financial markets, providing a summary of various asset classes, sectors, and indices. Its primary purpose is to showcase the performance of different financial instruments over a specific period. https://www.unum.capital/research-disclaimer

Introduction In the world of equity market analysis, traders and investors often seek to identify promising investment opportunities by evaluating the performance of various shares. One valuable tool that aids in this analysis is the Relative Rotational Graph (RRG). RRG is a graphical representation that helps investors understand the relative strength and momentum of different shares within a given market or sector. What is a Relative Rotational Graph (RRG)? A Relative Rotational Graph is a visual representation of the relative performance of shares in comparison to a benchmark index or a specific group of shares. The graph plots individual shares as data points and illustrates their movement over time, relative to the benchmark. The positioning of each share on the graph provides crucial insights into its relative strength, momentum, and potential investment opportunities. How RRG Works: The Four Quadrants The RRG chart is divided into four quadrants, each representing different stages of relative performance: Leading (Leading Quadrant): Shares in this quadrant are exhibiting strong relative strength and positive momentum compared to the benchmark. They are outperforming the broader market or sector and are considered leaders in terms of price performance. These shares are regarded as potential Profit takes or Holds candidates. Weakening (Weakening Quadrant): Shares in this quadrant are experiencing a decline in relative strength compared to the benchmark. While they might still be in an uptrend, their momentum is slowing down, and they may be losing some of their leadership positions. These shares are classified as potential Deteriorating candidates or short-selling. Lagging (Lagging Quadrant): Shares in this quadrant are underperforming the benchmark. They are experiencing weak relative strength and may be struggling compared to other shares or the broader market. These shares are classified as potential Avoid candidates. Improving (Improving Quadrant): Shares in this quadrant are showing signs of improvement in relative strength, indicating that they are gaining momentum and starting to outperform the benchmark. These shares are considered as potential Buy candidates. Interpreting RRG for Investment Insights When analysing a Relative Rotational Graph, traders and investors can draw several meaningful conclusions: Identifying Leaders and Laggards: RRG helps investors quickly identify which shares are leading the market's upward trends and which are lagging behind. Leading shares in the Leading Quadrant might be attractive investment candidates, while those in the Lagging Quadrant could warrant closer examination to understand potential weaknesses. Spotting Trend Reversals: A changing position of a share on the RRG can signal a potential trend reversal. For example, a share moving from the Weakening Quadrant to the Improving Quadrant may indicate a shift in momentum and an upcoming upward trend. Diversification Insights: RRG can assist in portfolio diversification by highlighting shares that exhibit a low correlation with the benchmark. Adding shares with diverse movement patterns can help reduce overall portfolio risk. Monitoring Sector Rotations: RRG is especially useful for sector rotation strategies, where investors rotate their investments based on the relative strength of sectors. It helps identify which sectors are currently leading or lagging in the market. Limitations of RRG While RRG is a valuable tool, it is essential to recognize its limitations: Historical Performance: RRG is based on past price data and may not always predict future movements accurately. Not a Standalone Indicator: RRG should be used in conjunction with other technical and fundamental analysis tools for comprehensive decision-making. Volatility Impact: Highly volatile shares may exhibit erratic movements on the RRG, making interpretation challenging. Conclusion Relative Rotational Graphs provide traders and investors with a powerful visual representation of the relative performance of shares compared to a benchmark index or a group of shares. By understanding the quadrants and interpreting the movements of individual shares, investors can gain valuable insights into market trends, identify potential investment opportunities, and optimise their portfolio allocations. As with any investment analysis tool, it should be used alongside other methods and within the context of a well-thought-out investment strategy. Top 40 constituent RRG chart: The updated RRG chart displayed below compares the individual constituents of the Top 40 index against the index itself. This chart undergoes daily updates, and to enhance clarity, various colour backgrounds are utilised for ease of reference. Leading (Leading Quadrant): Green background. These shares are regarded as potential Profit takes or Hold candidates. Weakening (Weakening Quadrant): Yellow background. These shares are classified as potential Deteriorating candidates or short-selling. Lagging (Lagging Quadrant): Red background. These shares are classified as potential Avoid candidates. Improving (Improving Quadrant): Blue background. These shares are considered potential Buy candidates. https://www.unum.capital/research-disclaimer

Introduction: Relative Price Strength (RPS) is a critical technical indicator used by traders and investors to assess the performance of an equity relative to the broader market or its industry peers. By understanding RPS and incorporating it into their investment strategies, individuals can gain valuable insights into an equity's potential for future price movement. We will delve into the concept of RPS, how it is calculated, and its significance in share trading. What is Relative Price Strength (RPS)? Relative Price Strength, also known as Relative Strength, is a momentum-based metric that evaluates an equity's performance relative to a benchmark index or a group of peers. It is used to identify equities that have outperformed or underperformed in their market or sector over a specified period. RPS Calculation: To calculate RPS, we compare the price performance of a particular share to the performance of a designated benchmark index or a group of shares. The RPS calculation typically involves comparing the price change over a specific time frame, depending on the preference of the trader or investor. The formula for calculating RPS is as follows: RPS = (Share's Price at date x / Share's Price at date y) / (Benchmark's Price at date x / Benchmark's Price at date y) date x = most recent price of the share or benchmark date y = price of the share or benchmark x periods ago Understanding RPS Values: The RPS value is represented as a ratio, and it indicates the stock's relative strength compared to the benchmark or peer group. A value above 1 suggests that the share has outperformed the benchmark or peers, while a value below 1 indicates underperformance. Significance of RPS in Share Trading: Identifying Strong Performers: RPS helps traders and investors identify shares that have demonstrated significant price strength compared to the overall market or their sector. These shares are often considered strong performers and may continue to exhibit positive price movement. Trend Confirmation: RPS can help confirm the prevailing trends in the market or sector. Shares with high RPS values are more likely to be in uptrends, while those with low RPS values might be in downtrends. Share Selection: Traders can use RPS to filter and prioritise their share selection process. A higher RPS value could make a share more appealing for trading or investment opportunities. Divergence Detection: RPS can also help identify potential divergences between a share and the broader market or sector. Divergences occur when an equity's price moves in the opposite direction to its RPS, which might signal a potential trend reversal or correction. Limitations of RPS: While RPS can be a valuable tool for assessing relative performance, it has some limitations that traders and investors should be aware of: Short-Term Focus: RPS is primarily a short to medium-term indicator. It might not accurately reflect a share's long-term potential or fundamental strength. Benchmark Selection: The choice of benchmark or peer group can significantly impact the RPS calculation. Different benchmarks can lead to different RPS values for the same share. Conclusion: Relative Price Strength (RPS) is a valuable technical indicator that provides insights into an equity's relative performance compared to a benchmark index or its peers. By understanding RPS, traders and investors can make more informed decisions, identify strong performers, and validate existing trends in the market or sector. However, like any single metric, RPS should be used in conjunction with other indicators and fundamental analysis to make well-rounded investment decisions. JSE All Share headline indices RPS: In the financial markets, certain headline indices have showcased remarkable outperformance, suggesting a notable influx of capital. This surge in capital inflow signals growing trader and investor confidence and interest in these headline indices. Whereas traders and investors seem to be reallocating their investments away from headline indices where there is an outflow of capital. Capital Inflow headline indices (in ranking order): Financials Resources Capital outflow headline indices (in ranking order): Industrials JSE All Share share RPS: Understanding the performance of individual shares in comparison to the broader market is crucial for traders and investors seeking to capitalise on market trends. The table below highlights the top 20 and bottom 20 shares based on RPS, with a lookback period of the last 10 days, indicated by their ranking changes since the previous update. The table is updated daily. The Top 20 RPS Leaders: These are the shares that have exhibited the strongest relative price performance within the JSE All Share index over the past 10 days. The Bottom 20 RPS Laggards: These shares have shown the weakest relative price performance within the JSE All Share index over the same 10-day period. JSE All Share sector RPS: In this analysis, we will examine the top 10 and bottom 10 sectors based on RPS, considering the lookback period of the last 10 days. The table is also updated daily. The Top 10 RPS Leading Sectors These sectors have demonstrated the strongest relative price performance within the JSE All Share index during the 10-day lookback period. The Bottom 10 RPS Lagging Sectors Conversely, these sectors have exhibited the weakest relative price performance within the JSE All Share index over the same 10-day period. https://www.unum.capital/research-disclaimer

VIEW RETAINED FOR THE PRICE ACTION TO TEST THE MEDIUM-TERM BEARISH TARGET LEVELS The general view of a W bear phase within the PQ consolidation has materialised. The expected downside to Q/S1 cluster support could have completed W. There is an increased chance of a medium-term bottom forming with an upside to R1 and R2. Further XY phases would eventually result in a re–emergence of the bull trend to T1 and T2. The pivotal level for the illustrated bullish bias remains at Q/S1* cluster support. A breach of this level will activate the downside to S2. R0 is the activation level for the X upside. Target and Re-assessment Levels: Important Levels: R0*/S1* Primary Trend and Target Levels: Gains to P, as part of PQ ranging Monthly Range: R1*/S1* Prevailing Trend and Target Levels: Gains off S1* to R1 and R2 Technical Rating: Medium https://www.unum.capital/research-disclaimer

VIEW RETAINED FOR THE PRICE ACTION TO CONTINUE TO TEST THE BEARISH TARGET LEVELS The general view of a 1, 2, 3, 4, 5 bull trend to R3/R4 on completion of the F*/K bear phase is retained. The long-held expectation of phase C downside within the F*K parameters to S0/S1*/K cluster support is testing the indicating target area. Confirmation of a maturing F*K trend is found in an oversold RSI (line D) and corrective type price action within the F*K lines. The current bear trend will remain valid until a definite break of line F* occurs. It is important that the market remains above S1* for the illustrated outlook to remain valid. Target and Re-assessment Levels: Important Levels: F* and S1* Primary Trend and Target Levels: Gains off Q/S1* to R3 Monthly Range: R0/S1* Prevailing Trend and Target Levels: Upside off S1* to F* Technical Rating: Medium https://www.unum.capital/research-disclaimer

The market overview serves as a comprehensive snapshot of the financial markets, providing a summary of various asset classes, sectors, and indices. Its primary purpose is to showcase the performance of different financial instruments over a specific period. https://www.unum.capital/research-disclaimer