New tradeable South African sector indices
Two new exclusive tradeable indices have been added to our local product suite, namely; the South Africa Resource Index and the South Africa Financial Index.
These new indices will follow a similar format to that of the popular South Africa 40, with no commission charges (spread will apply) and low margin requirements.
What is the South Africa Resource Index?
The South Africa Resource Index is made up of the ten largest resource companies by market capitalisation listed on the Johannesburg Stock Exchange (JSE). These constituents are predominantly exposed to the mining sector, while the inclusion of Mondi PLC and Sappi Ltd will enable traders to get exposure to the paper and packaging industry as well.
The index is comprised of:
| Name | Weighting |
| BHP Group PLC (SA) | 53.76% |
| Anglo American PLC (SA) | 14.08% |
| Sasol Ltd | 8.21% |
| Anglo American PLC (SA) | 6.55% |
| MND-ZA | 4.62% |
| Mondi PLC | 4.62% |
| AngloGold Ashanti Ltd (SA) | 2.49% |
| Exxaro Resources Ltd | 1.72% |
| Impala Platinum Holdings Ltd | 1.44% |
| Gold Fields Ltd | 1.42% |
| Sappi Ltd | 1.08% |
Why trade the South Africa Resource Index?
The South Africa Resource Index gives traders direct exposure to the largest locally listed resource counters.
Traders can use this index to speculate on the rise (long) or fall (short) of the resources industry, which will have direct links to movements in commodity prices and the rand. Since these companies derive a large portion of their earnings in foreign currency (mainly USD), trading it can also be considered a rand hedge play in the market.
Investors with long-term holdings in mining and resource shares might also consider using the index as a tool to hedge or protect their underlying portfolios by taking ‘short’ positions against their investments.
We’re offering mini lot sizes (at ZAR 2 a point), giving traders more flexibility in their position sizing.
What is the South Africa Financial Index?
The South Africa Financial Index is made up of the 15 largest financial companies by market capitalisation listed on the JSE. This index is made up of South Africa’s ‘big four’ banks, as well as other major financial institutions.
The index is comprised of:
| Name | Weighting |
| FirstRand Ltd | 17.22% |
| Standard Bank Group Ltd | 14.90% |
| Sanlam Ltd | 8.58% |
| Capitec Bank Holdings Ltd | 7.70% |
| Absa Group | 6.48% |
| Nedbank Group Ltd | 6.22% |
| Old Mutual Ltd | 5.45% |
| RMB Holdings Ltd | 5.18% |
| Discovery Ltd | 4.50% |
| Investec Ltd | 4.23% |
| Investec PLC (SA) | 4.23% |
| Growthpoint Properties Ltd | 3.62% |
| NEPI Rockcastle PLC | 3.55% |
| PSG Group Ltd | 2.95% |
| Redefine Properties Ltd | 2.78% |
| Reinet Investments SCA | 2.43% |
Why trade the South Africa Financial Index?
The South Africa Financial Index gives traders direct exposure to 15 of the largest locally listed financial counters.
Traders can use this index to speculate on the rise (long) or fall (short) of the finance industry. These constituents find their fortunes primarily linked to that of the South African economy, and will reflect the strength or weakness thereof.
Investors with long-term holdings in financial companies might consider using the index as a cost- effective way to hedge an underlying equity portfolio.
We’re offering mini lot sizes (at ZAR 2 a point), giving traders more flexibility in their position sizing.
Where can I find these indices?
Once you’ve logged in to the IG trading platform, you can find these indices by using the ‘search’ function at the top left of the page, or in the ‘Indices’ tab as highlighted below:
What are the trading hours of the new indices?
- 9am to 4:50pm, Monday to Friday (excluding public holidays)
The Resource Index will be tradeable up until the JSE equity auction at 4:50pm
- 4:50pm to 5pm
No trading of the index (including stops and limits) will take place as the underlying share constituents will go into auction
- 5pm
The Resource Index and Financial Index will adjust in accordance with the Bloomberg Resi20 Index influenced by auction closing prices of the indices’ share constituents
What are the contract details?
- Cost: 0.2% spread
- Lot size: ZAR 10 a point (standard contract) and ZAR 2 a point (mini contract)
- Minimum contract size: 0.5 lots (ZAR 5 a point standard contract, ZAR 1 a point mini contract)
- Margin requirement: 5% deposit
Ready to start trading South Africa Resource Index and South Africa Financial Index? Open an account with IG.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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