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JSE error shows foreigners carry on and sell SA equities

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Foreigners did not pile into nearly R100 billion importance of South African equities after a record streak of 36 consecutive trading days since May, but somewhat net sellers of securities into the tune greater than R30 billion.

The JSE said within a communication issued on Sunday, that your programming error caused the trading data for the period between May 31 and July 20 being?incorrectly calculated.

Moneyweb reported?with this apparent inflow of foreign capital and a lot of commentators attributed the inflow to foreign investors in search of high-yield securities in developing markets. Several commentators also suggested that it capital inflow was really a main reason why the rand strengthened against international currencies while in the period.

The JSE communication states:

“It is now to attention that a result of a programming error affecting the manner in which we extract statistical data in our core transactional systems, the non-resident (foreign trading) statistics for your?Equity Market?to the period 31 May to twenty July 2016, were incorrectly calculated.?

“The programming error was corrected on 21 July 2016 and daily reports received from 22 July 2016 are accurate along with the fundamental cause data.?

The correct non-resident statistics for any period are: May 2016 (net sales of R16.1 billion); June 2016 (net sales of R20.3 billion); July 2016 thus far (net purchases of R0.05 billion). This comes even close to the previously published non-resident statistics from the period: May 2016 (net purchases of R6.4 billion); June 2016 (net purchases of R63.8 billion); July 2016 so far (net purchases of R27.9 billion).

“Subscribers will receive corrected statistics on 25 July 2016 dating back to 23 May 2016.

“We’ve taken immediate steps to improve the stats and we are considering additional measures to prevent yourself from a reoccurrence. We recognise the importance of this data to all stakeholders and apologise for your miscalculation.”

Several commentators in addition have expressed their dismay on twitter:

This a large massive swing – why this take nearly A couple of months to gain??

– Theo Vorster (@sakegesprek) July 24, 2016

So foreign puchases for 31May to 20July were indicated as +R98.1. Nevertheless they were actually -R35.9b. A swing of -R134b. Big balls-up. #JSE

– Karin Richards (@Richards_Karin) July 24, 2016

JSE computer error massively overstated foreign buying over last 3 months.

– Stuart Theobald (@rationalhill) July 24, 2016


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