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Nikkei records a 30-year high

13 January 2021

Nikkei records a 30-year high

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

Although the JSE still traded at record highs on Tuesday, concern about increasing global COVID-19 cases and President Cyril Ramaphosa extending level 3 lockdown and closing select borders weighed on investor sentiment. The All Share closed 0.35% in the red.

US flag Icon
United States

Wall Street edged up at its open on Tuesday as investors waited for the start of earnings season to gauge the health of the US's corporate sector and economy.

EU flag Icon
Europe

European markets were mostly flat on Tuesday as investors awaited the start of earnings season and more clarity around the US fiscal spending plans under President Joe Biden. The STOXX 600 closed flat at 0.05%.

HK flag Icon
Hong Kong

The Hang Seng ended Tuesday 1.32% higher as inflows from mainland China boosted the index to an almost one-year high.

Japan flag Icon
Japan

On Tuesday the Nikkei closed flat at 0.09%, but reached a 30-year high, boosted by drug makers on news that Chugai Pharmaceutical’s drug effectively treated COVID-19 patients.

Rand Icon
Rand

Although the rand made up ground on Tuesday in early sessions, it eased slightly towards the end of trade due to the global spike in COIVD-19 infections and “a rise in US yields on expectations of more debt issuance in the country”. At 20h30, the local currency traded at R15.31/$.

Precious metals Icon
Precious metals

After choppy trade on Tuesday, gold fell about 1% “as a surge in US Treasury yields outweighed support from bets on higher inflation as Washington rolls out more stimulus”. Spot gold traded at $1 845.72/oz at 20h30 on Tuesday.

Oil Icon
Oil

Brent crude reached an almost 11-month high on Tuesday thanks to tighter supply and a widely anticipated drop in US inventories. At 20h15, Brent crude had gained 1.37% to $56.35/barrel.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 63 535.10 - 0.35 7.00 14.65 15.85 13.61
Gold mining 3 963.66 - 1.00 9.55 - 26.67 - 26.24 45.14
Basic minerals 46 415.00 - 0.95 13.76 17.64 24.81 35.16
Industrial index 87 699.77 - 0.19 3.90 10.73 10.37 16.23
Financial 30 421.77 0.41 2.57 20.00 13.80 - 18.26
Fin + Ind 30 7 628.58 - 0.03 3.55 13.17 11.32 4.02
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) 31 068.69 0.19 3.47 8.28 20.40 10.27
S&P 500 PR (USD) 3 801.19 0.04 3.89 7.99 20.34 18.54
NASDAQ (USD) 13 036.43 0.28 5.37 12.78 23.26 43.28
FT-100 (GBP) 6 754.11 - 0.65 3.32 13.19 12.43 - 8.08
Hang Seng (HKD) 28 276.75 1.32 6.68 14.88 10.71 1.92
Nikkei 225 (JPY) 28 164.34 0.09 5.80 19.73 27.34 20.37
MSCI World (USD) 8 142.94 0.16 4.38 10.66 21.80 16.86
Frankfurt (EUR) 6 024.46 - 0.08 6.18 5.99 10.22 3.28
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 859.42 0.12 1.54 - 3.02 3.11 20.21
Platinum ($) 1 077.01 0.77 4.11 19.82 26.37 9.35
Brent Oil ($) 56.72 1.65 11.39 29.89 28.72 - 14.34
Rand/USD 15.23 2.33 - 0.98 8.06 8.92 - 5.88
Rand/GBP 20.84 1.16 - 3.70 3.37 0.84 - 11.47
Rand/EUR 18.60 1.77 - 1.63 4.46 2.32 - 16.10
ALBI (R) 757.04 0.23 0.54 6.33 9.03 8.13
  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 NOV
  1. EU: ECB President Lagarde Speech
  2. US: Inflation Rate YoY DEC
  3. JP: Balance of Trade DEC (Thursday 05h00)

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 2.18 5.60 6.74 7.15 7.39 7.53
PSG Wealth Income FoF D 4.66 5.80 6.89 6.96 7.35 7.75
PSG Wealth Preserver FoF D 8.46 6.97 7.19 5.32 6.12 6.14
PSG Wealth Moderate FoF D 12.91 8.53 8.74 4.69 6.09 6.47
PSG Wealth Creator FoF D 19.00 10.67 10.03 4.00 6.02 7.69
PSG Wealth Global Preserver FF D - 0.46 14.32 13.39 - - -
PSG Wealth Global Moderate FF D 6.15 20.48 18.82 13.27 10.73 6.41
PSG Wealth Global Flexible FF D 7.18 28.07 24.39 - - -
PSG Wealth Global Creator FF D 10.65 29.63 30.39 20.78 18.98 13.10
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 15.52 10.59 12.19 5.19 7.40 7.83
PSG Wealth Global Creator FoF D 21.62 19.61 23.41 12.42 15.57 14.87
PSG Wealth Global Preserver FoF (USD) D 8.59 4.28 6.61 3.53 4.53 5.75
PSG Wealth Global Flexible FoF (USD) D 17.19 18.19 17.93 10.48 13.45 13.04
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 3.07 1.04 4.18 3.20 2.79 6.65
PSG Wealth Global Flexible FoF (GBP) D 9.82 14.66 15.25 10.12 10.54 13.92
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 1.82 4.99 6.10 6.50 6.76 6.89
PSG Income A 3.84 9.38 8.71 8.53 8.57 8.58
PSG Diversified Income 6.85 8.32 7.40 7.17 7.54 7.75
PSG Stable A 13.19 3.08 1.96 2.28 3.85 5.25
PSG Balanced A 23.09 4.52 0.37 - 0.41 1.98 4.93
PSG Flexible A 24.78 0.81 - 1.14 - 1.65 0.96 5.04
PSG SA Equity D 22.94 - 3.91 - 10.12 - 9.72 - -
PSG Equity A 26.55 1.33 - 3.87 - 4.91 - 1.37 5.07
PSG Global Flexible FF A 26.24 22.02 12.59 7.91 7.37 -
PSG Global Equity FF A 30.63 15.76 9.59 5.28 6.37 6.82
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 34.26 10.36 5.59 - 0.23 3.91 8.48
PSG Global Equity USD 37.74 6.16 3.45 - 2.15 3.28 8.47
  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

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 15.83 4.98 - 0.81 - 3.00 0.47 3.69
PSG Wealth SA Property Equity Portfolio 3.91 - 37.04 - 27.17 - 21.05 - 15.10 - 11.87
PSG Wealth Dividend Income Equity Portfolio 14.31 - 6.17 - 8.95 - 8.59 - 1.92 -
PSG Wealth Offshore Equity Portfolio (USD) 15.28 15.54 19.15 11.43 17.36 15.93
  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

company logo

Highlights

  • The counter does not share the high compounding and growth characteristics that we prefer for select portfolios.
  • It seems attractively priced on a forward P:E of 4.0 times, a 37.6% discount to its historical average, and a 69.9% discount to its peers compared with its 55% historical discount.
  • We will continue to monitor the market with the intension to exit the position at a price closer to fair value.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • The company estimates that it needs only around 40% of its non-risk-adjusted projected pipeline revenue to accomplish its 6% annual growth objective, which provides some comfort even if there are clinical trial setbacks. However, with another major patent expiration cycle around FY25, we see Pfizer's share upside tied to pipeline success.
  • Several early trials will guide to the extent to which it needs to replenish its pipeline with mergers and acquisitions.
  • On a forward P:E basis, the share now trades at 15.1 times, a 13.3% premium to its historical average, and a 16.9% premium to its FactSet peers.
  • At current prices, we feel the share is fairly valued.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • We believe Mr Price is well-positioned in the retail sector, being a budget retailer and its high proportion of cash sales in the anticipated deteriorating credit landscape.
  • Earnings recovery will likely be aided by real space growth through the acquisition of Power Fashion.
  • On a P/E basis, the group trades at a slight premium to its historical multiple and a discount to its peers.
  • Mr Price remains our preferred clothing retail counter, but we feel that the share is fairly valued at current levels and maintain our neutral recommendation.
  • For more information about this counter, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
13 January 2021 Deneb Investments Limited DNB Cash Distribution (Capital Reduction)
13 January 2021 Texton Property Fund Limited TEX Tender Offer
13 January 2021 Hospitality Property Fund Limited HPB General Offer
13 January 2021 African Oxygen Limited AFX Special Cash Dividend
13 January 2021 Tiger Brands Limited TBS Special Cash Dividend
13 January 2021 Tiger Brands Limited TBS Cash Dividend
13 January 2021 Astral Foods Limited ARL Cash Dividend
13 January 2021 Quantum Foods Holdings Limited QFH Cash Dividend
13 January 2021 Marshall Monteagle Plc MMP 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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