{"id":1406,"date":"2023-09-29T10:56:17","date_gmt":"2023-09-29T10:56:17","guid":{"rendered":"https:\/\/www.innov8fs.co.za\/blog\/?p=1406"},"modified":"2026-03-18T11:46:25","modified_gmt":"2026-03-18T11:46:25","slug":"jse-top-40-pain-for-investors","status":"publish","type":"post","link":"https:\/\/www.innov8fs.co.za\/blog\/2023\/09\/29\/jse-top-40-pain-for-investors\/","title":{"rendered":"JSE Top 40 pain for investors"},"content":{"rendered":"

\"\"<\/p>\n

The JSE Top 40 has dropped to a loss year-to-date on the back of tight monetary policy, South Africa\u2019s structural problems, and investors moving their money overseas.<\/p>\n

The South African market had a strong start at the beginning of the year. At the end of January, it had already delivered a 9.37% return.<\/p>\n

However, the rally was short-lived. Less than two months later, the JSE Top 40 index dipped 2% lower than where it started at the beginning of the year.<\/p>\n

From the end of January to mid-March, the JSE Top 40 experienced an 11.4% drawdown. Since then, it has been a roller coaster ride of ups and downs.<\/p>\n

In April, the index rallied again to a 7.8% year-to-date performance. Three months later, it had given back all its gains.<\/p>\n

The JSE Top 40 is on a downturn again and has fallen to its lowest year-to-date point recently. On Tuesday afternoon, the index closed at a year-to-date performance of -2.2%.<\/p>\n

A R1,000 investment in the index at the beginning of the year would, therefore, only be worth R978.02.<\/p>\n

One of the main reasons is the increasing interest rates, which have dominated monetary policy over the last two years.<\/p>\n

Interest rates have increased by 125 basis points since the beginning of the year and have significantly impacted the market.<\/p>\n

Historically, the South African equity market has always experienced a decline during an interest rate hiking cycle.<\/p>\n

The chart below shows the JSE Top 40\u2019s performance in 2023.<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

The JSE Top 40 has dropped to a loss year-to-date on the back of tight monetary policy, South Africa\u2019s structural problems, and investors moving their…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1406","post","type-post","status-publish","format-standard","hentry","category-innov8ions"],"_links":{"self":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/comments?post=1406"}],"version-history":[{"count":1,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1406\/revisions"}],"predecessor-version":[{"id":1409,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1406\/revisions\/1409"}],"wp:attachment":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media?parent=1406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/categories?post=1406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/tags?post=1406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}