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Slowing coronavirus pace lifts market sentiment

12 February 2020

Slowing coronavirus pace lifts market sentiment

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

Taking the lead from global markets’ optimism as the number of infected coronavirus cases was slowing down, the JSE closed up on Tuesday. The All Share rose 0.23% for the day.

US flag Icon
United States

Wall Street opened higher on Tuesday due to optimism that the coronavirus might be slowing down and a federal judge approving the merger between Sprint and T-Mobile.

EU flag Icon
Europe

European shares reached record highs on Tuesday as China’s factories slowly started up again as the number of coronavirus cases slowed, easing fears around a global economic decline. The pan-European index closed up 0.97%.

HK flag Icon
Hong Kong

The Hang Seng made up some losses on Tuesday on the back of news that the pace of the coronavirus in mainland China has slowed. At the close of trade, the Hang Seng Index was up 1.26%.

Japan flag Icon
Japan

Japanese markets were closed due to a public holiday.

Rand Icon
Rand

The local currency firmed against the dollar on Tuesday as “investors loaded up on high-yielding currencies”. At 18h20, the rand traded R14.82 to the dollar.

Precious metals Icon
Precious metals

Gold prices eased on Tuesday in light of the slowing rate at which the Wuhan virus was spreading. Spot gold traded at $1 563.98/oz by 18h20.

Oil Icon
Oil

The oil price recovered somewhat from a 13-month low on Tuesday as optimism around the spread of the coronavirus calmed fears of a possible lengthy breakdown in oil demand. Brent crude traded at $54.77 a barrel at 18h20.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 56 981.20 0.23 - 0.83 1.78 4.45 10.39
Gold mining 2 742.70 - 2.13 - 0.69 16.44 14.57 88.47
Basic minerals 34 112.10 0.43 - 4.19 3.09 10.14 19.12
Industrial index 78 518.60 0.27 2.51 5.96 2.03 14.38
Financial 37 764.55 - 0.07 - 2.73 - 6.79 3.24 - 5.46
Fin + Ind 30 7 550.79 0.15 0.66 1.23 2.21 7.18
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) 29 276.82 0.62 1.71 6.34 12.67 19.39
S&P 500 PR (USD) 3 352.09 0.75 2.78 8.88 15.98 26.26
NASDAQ (USD) 9 628.39 1.14 4.96 13.89 21.60 33.34
FT-100 (GBP) 7 499.44 0.71 - 1.12 2.87 5.00 10.08
Hang Seng (HKD) 27 583.88 1.26 - 3.65 2.55 7.54 1.59
Nikkei 225 (JPY) 23 685.98 - 0.60 - 0.68 1.44 15.65 18.98
MSCI World (USD) 7 076.75 0.35 1.56 6.69 13.87 21.76
Frankfurt (EUR) 6 002.43 0.99 1.07 3.25 16.54 23.73
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 574.05 0.37 1.63 7.31 4.69 20.06
Platinum ($) 970.00 0.10 - 0.31 8.50 12.40 22.01
Brent Oil ($) 53.27 - 2.20 - 18.02 - 14.78 - 8.99 - 14.22
Rand/USD 14.79 1.14 - 3.27 0.95 2.90 - 7.23
Rand/GBP 19.16 0.79 - 2.66 0.04 - 4.07 - 8.02
Rand/EUR 16.14 1.10 - 1.27 1.77 4.53 - 3.76
ALBI (R) 708.40 0.32 1.21 3.42 4.82 10.00
  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. Retail sales DEC
  1. EU: Industrial production DEC
  2. JPN: PPI JAN (Thursday 01h50)

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 3.82 7.91 7.92 7.97 8.01 7.79
PSG Wealth Income FoF D 3.71 7.80 7.85 7.85 8.25 7.98
PSG Wealth Preserver FoF D 4.08 7.61 6.31 6.00 6.45 6.43
PSG Wealth Moderate FoF D 5.18 8.62 5.29 5.26 6.41 5.65
PSG Wealth Creator FoF D 6.28 7.62 3.10 3.52 6.74 3.87
PSG Wealth Global Moderate FF D 7.63 22.88 15.95 10.46 6.85 9.10
PSG Wealth Global Creator FF D 15.10 35.45 24.22 18.91 14.08 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 7.39 11.42 4.40 5.93 8.03 3.57
PSG Wealth Global Creator FoF D 13.21 23.25 12.45 13.81 15.14 9.93
PSG Wealth Global Preserver FoF (USD) D 4.28 7.72 4.57 4.43 6.46 4.22
PSG Wealth Global Flexible FoF (USD) D 9.80 15.24 9.70 11.08 12.58 8.81
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 0.98 7.56 6.78 3.78 8.53 6.46
PSG Wealth Global Flexible FoF (GBP) D 2.73 15.66 12.48 9.48 14.88 11.02
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.50 7.20 7.25 7.35 7.38 7.20
PSG Income A 3.90 8.07 8.08 8.27 8.35 8.01
PSG Diversified Income 3.50 6.74 6.82 7.26 7.65 7.62
PSG Stable A 2.47 0.93 2.23 3.75 5.70 5.48
PSG Balanced A 1.55 - 4.19 - 2.17 0.36 4.52 3.61
PSG Flexible A 0.72 - 4.22 - 2.00 0.06 5.37 4.32
PSG SA Equity D - 5.50 - 18.80 - 13.87 - 8.26 - -
PSG Equity A - 0.25 - 9.68 - 6.78 - 3.74 4.79 1.15
PSG Global Flexible FF A 3.45 5.57 6.39 3.82 5.89 -
PSG Global Equity FF A 3.91 4.04 5.51 3.86 6.99 6.47
PSG Asset Management ($)
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 3.47 6.99 7.03 7.31 7.49 7.29
PSG Direct Low Equity 2.23 0.36 1.61 3.16 5.32 4.99
PSG Direct Managed 1.11 - 4.63 - 2.56 - 0.17 4.26 3.32
PSG Direct Aggressive 0.82 - 4.19 - 2.01 - 0.59 5.01 -
PSG Direct Global Managed 3.22 5.09 5.90 3.35 5.41 -
PSG Direct Global Aggressive 3.51 4.13 5.36 3.38 6.10 -
  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 2.10 - 2.18 - 3.72 - 0.55 4.40 -
PSG Wealth SA Property Equity Portfolio - 4.51 - 16.12 - 10.53 - 6.80 - 4.44 -
PSG Wealth SA Dividend Income Equity Portfolio - 0.17 - 6.82 - 7.25 - 0.21 - -
PSG Wealth Offshore Equity Portfolio (USD) 14.76 23.31 13.65 17.02 17.05 -
PSG Wealth Managed Volatility Equity Portfolio 0.13 - 7.67 - 9.05 - 4.97 - -
  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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