Mon Oct 24 08:59:22 CAT 2016
Limpopo premier Stan Mathabatha with Zweli Mkhize and Thoko Didiza
ANC leadership begins candidate review

The African National Congress is starting its “dispute resolution process” in a bid to address the a.

JSE's all share hovers below 30000

By unknown | Sep 21, 2007 | COMMENTS [ 0 ]

Robert Laing

Robert Laing

The JSE's all share index - commonly known as the "alsi" - is hovering under 30000.

It's hard not to get enthralled by the odometer effect. Be it our age, Y2K, car mileage there's something both ominous and celebratory when a first digit clocks up followed by all zeros.

Alsis of major stock markets have become a fixture in news bulletins. But what do these numbers mean?

The first alsi was created by Charles Dow, the founder of the Wall Street Journal, whose Dow-Jones Index of the New York Stock Exchange lives on more than a century after his death.

The JSE's alsi is very different to the Dow-Jones Index.

Dow used his journalistic nose to select a range of shares he felt offered an overview of the New York Stock exchange. To this day, the editors of The Wall Street Journal select the components of the Dow Jones industrial average journalistically.

More modern stock market indeces are more scientific in that their components are computed from the market capitalisation of listed companies.

The JSE's indices are compiled by the chief rival of the corporation Dow founded, FTSE, which is a joint venture between the Financial Times and the London Stock Exchange.

The relevance of stock market indices has grown with the arrival of exchange traded funds. These are like unit trusts, but their basket of shares tracks an index instead of being selected by an analyst. While Dow-Jones was the first of these indices, it was among the last to be used as the basis for an exchange traded fund.

For 100 years, the Dow Jones Company used the courts to block anyone from selling investment funds based on its index.

This rule, which was aimed at ensuring the journalistic objectivity of the Dow Jones index, was relaxed in 1997.


Login OR Join up TO COMMENT