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Definition

<p style="text-align: justify;">The JSE Banks Index is an actuarily <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">weighted</span> <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">average</span> of the prices of the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">listed</span> <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">bank</span>s trading on the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">JSE</span>. The major listed banks include Firstrand, ABSA, Nedbank, Standard, Investec and Capitec. The banks index took a hit as a result of <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">COVID-19</span>, but has since been on a recovery <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">trend</span>. Usually the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">index</span> trades on a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">dividend yield</span> (DY) of between 6% and 3,5%. Whenever the index is trading on a DY of 5% or more then the banks are relatively <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">cheap</span> and should be added to any <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">private investor</span> <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">portfolio</span>. </p>