This week has seen an interesting shift in how stock prices are reacting. Instead of broad market swings driven by political factors like the Government of National Unity (GNU), stocks are now moving based on company-specific earnings releases.
From July to August, there was little variation among stocks within sectors. However, with the recent flood of first-half results, were finally seeing divergence in how individual companies share prices respond to earnings reports.
This trend is likely to continue, with top-down economic events shaping the broader market direction.
Pharmaceuticals
Aspen was the JSEs biggest loser this month, following the release of its disappointing earnings last week. The stock had performed well in recent months, benefiting from the overall positive sentiment in South Africa. However, the market had high expectations for the companys new manufacturing capacity, and the lower-than-expected earnings left investors unimpressed.
