Indices - What are they?
Indices offer an easy way to determine the overall performance of the stock market, or a segment of the stock market, over a period of time.
What is the JSE Top 40?
Locally, the JSE has tied up with London FTSE to create the JSE/FTSE indices. The Top40 index is the largest of them all. The Top40 index comprises 40 of the largest listed companies on the JSE. The performance of these stocks provides an average return, which is published regularly (updating in real time during the course of the day).
While the Top40 index may have moved by, say, 4% during the month, some of the stocks in the index would have done better or worse. The 4% is an average for the basket of shares.
The JSE also has a number of sub-indices, such as the MidCap and Small Cap indices, and specialist indices such as the Indi25 (25 largest industrial stocks), Fini15 (15 largest financial stocks) and the Resi10 (10 largest resource stocks).