What are the characteristics that define a mid-cap company on the JSE?
Mid-cap companies on the Johannesburg Stock Exchange (JSE) are generally described as those with a market capitalisation between 85% and 96% of the full market value of all qualifying listed ordinary securities, excluding the impact of any investability weightings.
How does the performance of mid-cap indices compare to the JSE Top 40?
Mid-cap indices typically exhibit different performance characteristics compared to the JSE Top 40, as the latter consists of the 40 largest companies by market cap and is often driven by larger multinational corporations. In contrast, mid-cap indices may provide a more diversified exposure to domestic growth.
What sectors predominantly compose the JSE Mid Cap Index?
The JSE Mid Cap Index is composed of a diverse range of sectors. Historically, this has included sectors such as retail, industrial, and financial services, reflecting a cross-section of the South African economic landscape.
Can mid-cap indices offer a balance of growth and stability for investors?
Mid-cap indices have the potential to offer investors a balance of growth and stability. They usually involve companies that have surpassed the volatile growth stages typical of small caps while still offering potential for expansion compared to larger, more established corporations.
How often are the companies within the mid-cap index re-evaluated for market capitalisation?
Companies within the JSE Mid Cap Index are re-evaluated periodically to assess their market capitalisation and ensure they meet the index’s criteria. The frequency of this re-evaluation can vary, but is typically conducted on a semi-annual or annual basis.
What are the historical performance trends of the JSE Mid Cap Index?
Historical performance trends of the JSE Mid Cap Index have shown variability with periods of both growth and decline. The index’s performance is influenced by a multitude of factors, including economic conditions, sector performance, and investor sentiment.