South Africa's best-performing stocks this year
Recent research from investment firm Nedgroup offered investment insights into South Africa's best-performing equities, with some exceeding a 50% rise by 2022. Nedgroup Investments is a South African asset management firm with about R350 billion in assets. According to the organisation, major global central banks have begun one of the most rapid monetary policy tightening
South Africa's best-performing stocks this year
Recent research from investment firm Nedgroup offered investment insights into South Africa’s best-performing equities, with some exceeding a 50% rise by 2022.
Nedgroup Investments is a South African asset management firm with about R350 billion in assets. According to the organisation, major global central banks have begun one of the most rapid monetary policy tightening cycles in recent history this year.
“As a result, the rise in long-term interest rates has been both broad and steep,” said Nedgroup.
Global political unrest, along with rising inflation and interest rates, as well as supply chain interruptions and local rolling blackouts, has made 2022 an insecure year for investors, with few opportunities to foresee market changes and many investors playing it cautiously.
According to Nedgroup’s latest Pulse Report, Absa Group, the parent company of Absa Bank, was the highest performing stock in 2022, with a 53.1% gain, followed by Glencore at 51.2% and energy giant Exxaro in third with a 48.8% rise.
Absa is a favoured stock among South African banks, according to the financial newspaper DailyInvestor, because of its strong position in the local market, lower price-to-earnings ratios, a history of paying out attractive dividends, and a new CEO.
When compared to other corporations, banks have managed to navigate global financial turmoil, according to DailyInvestor.
“Higher interest rates benefit banks as their main source of revenue – interest payments on loans – is advanced and profit margins bolstered. Since 2021, all listed South African banks have experienced an increase in earnings per share. It is in contrast to lows in 2020 due to the low-interest rates at the time. ”
Nedgroup reported the following performance based on the Shareholder Weighted Index Top 40 JSE listed equities (SWIX 40) as of 30 November 2022:
Yearly shares
Top 10 shares over 2022
| Company | Percentage change |
| Absa Group | 53.1% |
| Glencore | 51.2% |
| Exxaro | 48.8% |
| Investec Plc | 39.6% |
| Standard Bank | 38.8% |
| Nedbank | 38.3% |
| Investec Ltd | 37.1% |
| Bidvest | 28.4% |
| Woolworths | 28.3% |
| Shoprite | 27.9% |
Bottom 10 shares in 2022
| Company | Percentage change |
| Aspen | -40.5% |
| Mr Price | -15.0% |
| Prosus | -14.8% |
| Mondi | -14.5% |
| MTN | -12.9% |
| Northam | -11.7% |
| Anglo gold | -10.7% |
| Old Mutual | -8.6% |
| Sibanye | -7.5% |
| Richemont | -6.5% |
Monthly change
Top shares over 1 month
| Company | Percentage change |
| Prosus | 39.0% |
| Naspers | 38.7% |
| Anglo gold | 27.7% |
| Goldfields | 26.9% |
| Anglo | 23.7% |
| Richemont | 22.4% |
| BHP Group | 19.1% |
| Amplats | 17.5% |
| Investec Ltd | 14.8% |
| Investec Plc | 14.0% |
Bottom shares over 1 month
| Company | Percentage change |
| Aspen | -6.2% |
| Clicks | -5.2% |
| British American Tobacco | -4.7% |
| Mr Price | -4.3% |
| Sasol | -3.2% |
| Mc Group | -0.9% |
| Mondi | 0.3% |
| Vodacom | 0.4% |
| Absa Group | 2.7% |
| Reinet | 3.3% |
