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Coronavirus death toll pushes markets down

10 February 2020

Coronavirus death toll pushes markets down

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The JSE closed down on Friday, as global markets continued to feel the effects of the coronavirus outbreak. The All Share weakened 0.44%.

US flag Icon
United States

Wall Street opened lower on Friday as investors assessed the US employment report for January that showed acceleration in jobs growth. At 18h30, the Dow Jones was down 0.32%.

EU flag Icon
Europe

European shares slipped slightly on Friday, as the rising death toll from the coronavirus outbreak and the pace of the spreading infection dulled sentiment. The pan-European stocks benchmark STOXX 600 fell 0.2%.

HK flag Icon
Hong Kong

Hong Kong’s stocks fell on Friday as the spreading coronavirus prompted local residents to hoard goods and an Airline to slash jobs. At the close of trade, the Hang Seng index was down 0.33%.

Japan flag Icon
Japan

Japanese shares ended lower on Friday as investors booked profit after China’s decision to halve tariffs on some US imports. The Nikkei average ended down 0.19%.

Rand Icon
Rand

The rand lost 1.06% to reach R15.06/$ at 19h30 on Friday after the coronavirus claimed more lives.

Precious metals Icon
Precious metals

Gold prices edged higher on Friday as fears over a rapidly spreading coronavirus outbreak and its economic affect fuelled safe-haven buying. Spot gold traded at $1 568.76/oz by 19h30.

Oil Icon
Oil

Oil prices edged higher on Friday on hopes that oil cartel OPEC and other producers led by Russia (OPEC+) may cut their output further amid falling demand for crude as China battles the coronavirus epidemic. Brent crude traded at $55.23 a barrel at 19h30.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 276.49 - 0.44 - 0.12 - 0.02 5.58 9.97
Gold mining 2 843.35 3.78 - 1.51 15.78 13.87 96.48
Basic minerals 34 375.83 - 0.45 - 4.25 0.95 12.08 18.55
Industrial index 78 699.27 - 0.16 3.65 3.39 3.23 14.01
Financial 38 051.09 - 0.97 - 1.75 - 7.04 3.22 - 5.84
Fin + Ind 30 7 581.82 - 0.44 1.73 - 0.44 3.05 6.80
International markets (Base currency)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Dow Jones (USD) 29 102.51 - 0.89 1.95 5.73 13.32 18.40
S&P 500 PR (USD) 3 327.71 - 0.52 2.93 8.37 16.55 25.45
NASDAQ (USD) 9 520.51 - 0.51 5.05 13.16 21.75 32.07
FT-100 (GBP) 7 466.70 - 0.51 - 1.37 1.34 5.86 10.15
Hang Seng (HKD) 27 404.27 - 0.33 - 3.21 - 1.44 6.60 1.48
Nikkei 225 (JPY) 23 827.98 - 0.19 1.08 2.31 17.30 17.28
MSCI World (USD) 7 051.80 - 0.48 1.87 6.42 14.67 20.96
Frankfurt (EUR) 6 011.25 - 0.45 2.17 1.69 16.00 22.61
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 564.75 0.81 - 0.77 5.12 7.04 19.14
Platinum ($) 969.00 - 0.72 0.31 3.97 13.47 20.37
Brent Oil ($) 54.93 - 0.63 - 20.29 - 11.03 - 6.80 - 12.38
Rand/USD 14.99 - 0.53 - 4.71 - 0.66 0.94 - 9.88
Rand/GBP 19.35 - 0.28 - 3.67 - 1.01 - 6.03 - 9.48
Rand/EUR 16.43 - 0.32 - 3.10 0.04 2.84 - 6.14
ALBI (R) 708.88 0.02 1.42 3.33 4.91 8.90
  1. Some data may be delayed, the above table reflects the latest available information
  2. Performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month


Economic calendar

Local International
  1. No economic data scheduled
  1. China: Inflation rate
  2. US: Consumer inflation expectations

Source: Reuters, Business Day, Trading Economics


PSG Product Matrix

Fund matrix

PSG Wealth Solutions
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Enhanced Interest D 3.81 7.90 7.93 7.99 8.02 7.80
PSG Wealth Income FoF D 3.79 7.85 8.03 7.95 8.21 8.01
PSG Wealth Preserver FoF D 4.33 7.25 6.35 6.21 6.20 6.52
PSG Wealth Moderate FoF D 5.98 7.99 5.36 5.65 6.01 5.85
PSG Wealth Creator FoF D 7.89 6.76 3.51 4.23 6.21 4.16
PSG Wealth Global Moderate FF D 7.97 21.73 14.38 10.07 5.77 9.30
PSG Wealth Global Creator FF D 13.20 33.98 21.47 18.33 12.41 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 8.72 10.94 3.74 6.16 7.59 3.60
PSG Wealth Global Creator FoF D 15.57 21.98 11.20 14.08 14.35 9.87
PSG Wealth Global Preserver FoF (USD) D 4.82 7.58 4.15 4.80 6.49 4.24
PSG Wealth Global Flexible FoF (USD) D 11.35 14.33 8.42 11.49 12.61 8.84
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 0.12 7.39 6.69 4.23 8.52 6.45
PSG Wealth Global Flexible FoF (GBP) D 4.77 14.63 11.82 10.06 14.86 11.01
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.50 7.20 7.25 7.35 7.38 7.20
PSG Income A 3.88 8.05 8.11 8.31 8.35 8.01
PSG Diversified Income 3.65 6.74 6.97 7.42 7.65 7.68
PSG Stable A 3.15 0.95 2.73 4.19 5.63 5.68
PSG Balanced A 2.45 - 4.31 - 1.54 1.02 4.23 3.92
PSG Flexible A 2.03 - 4.46 - 1.43 0.78 5.10 4.68
PSG SA Equity D - 5.14 - 19.12 - 13.20 - 7.35 - -
PSG Equity A 0.99 - 10.15 - 6.19 - 2.84 4.23 1.48
PSG Global Flexible FF A 5.49 4.59 5.72 4.11 5.14 -
PSG Global Equity FF A 6.18 3.03 4.87 4.30 6.20 6.95
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 6.48 - 4.39 - 4.16 0.56 7.48 2.02
PSG Global Equity USD 7.02 - 5.64 - 4.81 0.81 8.48 1.89
PSG Direct Portfolios
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Direct Flexible Income 3.52 6.98 7.10 7.38 7.49 7.31
PSG Direct Low Equity 2.86 0.34 2.07 3.60 5.22 5.19
PSG Direct Managed 2.11 - 4.78 - 1.96 0.51 3.97 3.64
PSG Direct Aggressive 2.26 - 4.63 - 1.67 0.10 4.56 -
PSG Direct Global Managed 5.25 4.11 5.24 3.63 4.66 -
PSG Direct Global Aggressive 5.68 3.14 4.71 3.76 5.33 -
  1. The PSG Wealth Solutions are exclusively available through registered PSG planners and/or advisers
  2. The above information reflects the latest available data at time of distribution, as such product performance data reflects T-2 numbers
  3. Performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month
  4. The PSG Best Ideas Portfolios were renamed to the PSG Direct Portfolios in February 2018

Equity portfolio matrix

PSG Wealth House View Portfolios
Portfolio 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth SA Equity Portfolio 3.28 - 3.06 - 3.22 0.37 3.92 -
PSG Wealth SA Property Equity Portfolio - 2.92 - 15.47 - 7.83 - 5.82 - 4.50 -
PSG Wealth SA Dividend Income Equity Portfolio 0.64 - 8.27 - 6.11 1.08 - -
PSG Wealth Offshore Equity Portfolio (USD) 16.30 22.37 12.21 17.45 16.87 -
PSG Wealth Managed Volatility Equity Portfolio 1.58 - 7.78 - 8.42 - 4.05 - -
  1. The PSG Wealth equity portfolios are exclusively available through registered PSG planners and/or advisers
  2. PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs
  3. PSG Wealth SA and Offshore Equity Portfolio Inception date: 30 August 2015
  4. PSG Wealth SA Listed Property Portfolio Inception date: 1 December 2015
  5. PSG Wealth Dividend Income Equity Portfolio Inception date: 29 April 2016
  6. PSG Wealth Managed Volatility Equity Portfolio Inception date: 28 July 2016
  7. PSG Wealth Funds are exclusively available through registered PSG planners and/or advisers


Recent Investment Ideas

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Highlights

  • Our recommendation for BID SJ is Neutral; click here to read the full report on our secure site.
  • Bidcorp is well-diversified and highly cash generative business. It is the largest foodservice distributor outside of the USA, with the largest geographic footprint when compared with its global peers.
  • We do remain cautious given the macroeconomic headwinds taking place at present.
  • We believe Bidcorp is a good-quality company with a stable ROE and a sustainable operating margin, although further margin expansion from this higher base is going to be more difficult.


company logo

Highlights

  • Our recommendation for ANH SJ is overweight; click here to read the full report on our secure site.
  • We believe AB InBev is a good-quality company with an attractive and sustainable operating margin and a reliable cash conversion.
  • Operating margins across the group geographies are well ahead of peers, making further efficiency-enabled outperformance less likely.
  • Despite management believing that acquisitive growth and the extraction of synergies from acquisitions is a core competency of the group, balance sheet flexibility will likely limit such growth.


company logo

Highlights

  • Our recommendation for PFE US is overweight; click here to read the full report on our secure site.
  • The group has been able to protect its gross profit margins despite the challenging trading environment because of its scale and defensive nature.
  • We believe Pfizer is a high-quality company with a high ROE and an attractive and sustainable operating margin.


Corporate actions

Date Company Share code Expectation
12 February 2020 Kaap Agri Limited KAL Cash Dividend
12 February 2020 Nampak Limited 6.5 percent Cumulative Preference Shares NPP1 Cash Dividend
12 February 2020 Namk Limited 6 percent Cumulative Preference Shares NPKP Cash Dividend
12 February 2020 Tharisa Plc THA Cash Dividend
  1. The information above is to the best of our knowledge correct at the time of distribution but due to the nature thereof cannot be guaranteed.
  2. This document only contains general information and not the opinion of the distributor.

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Author
author

Adriaan Pask PhD

Chief Investment Officer


At PSG Wealth
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