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Markets down on new COVID-19 diagnostic method

14 February 2020

Markets down on new COVID-19 diagnostic method

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

Strong mining production figures for December countered market losses on Thursday, lifting the local market into the green, albeit only marginally. The All Share rose 0.16% for the day.

US flag Icon
United States

Wall Street opened lower on Thursday due to the sharp increases in the number of coronavirus, named COVID-19, deaths and infections in China. At 18h30, the Dow Jones lost 0.27%.

EU flag Icon
Europe

Most European indices and sectors ended Thursday in the red on the back of the sharp increase in the recorded deaths and infections in Hubei province. The pan-European index closed 0.15% down.

HK flag Icon
Hong Kong

The Hang Seng lost ground on Thursday after “a new diagnostic method, suggested a much bigger crisis facing China and the world”. The school holidays have been extended to at least 16 March 2020, and major shopping mall landlords have offered rent cuts of as much as 60%. At the close of trade, the Hang Seng Index was 0.34% lower.

Japan flag Icon
Japan

The Asian market rally of the past few days ended on Thursday as new coronavirus deaths and infections dented hopes that the virus was slowing. The Nikkei closed down 0.14%.

Rand Icon
Rand

Although the local currency made up losses throughout Thursday, it lost steam ahead of President Cyril Ramaphosa’s State of the Nation Address. At 18h30, the rand traded R14.87 to the dollar.

Precious metals Icon
Precious metals

Bullion prices rose to a one-week high on Thursday as investors sought out safe-haven assets. Spot gold traded at $1 575.38/oz by 18h30.

Oil Icon
Oil

Oil prices continued climbing on Thursday on hopes that OPEC+ might cut supply further. Brent crude traded at $56.57 a barrel at 18h30.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 835.69 0.16 0.50 2.98 6.68 9.71
Gold mining 2 777.35 2.54 0.74 11.84 20.44 86.58
Basic minerals 35 051.19 0.50 - 2.21 4.23 13.45 17.98
Industrial index 79 363.97 0.15 3.26 7.22 3.64 13.65
Financial 38 055.76 - 0.24 - 1.15 - 5.68 5.43 - 5.93
Fin + Ind 30 7 624.19 0.01 1.71 2.44 3.98 6.56
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) 29 423.31 - 0.33 2.03 6.59 13.35 18.05
S&P 500 PR (USD) 3 373.94 - 0.13 2.77 9.59 16.45 25.03
NASDAQ (USD) 9 725.96 0.90 6.03 14.90 24.33 32.58
FT-100 (GBP) 7 452.03 - 0.87 - 1.90 2.14 4.62 8.69
Hang Seng (HKD) 27 730.00 - 0.34 - 4.20 4.48 10.93 0.86
Nikkei 225 (JPY) 23 827.73 - 0.14 - 0.09 2.36 17.65 15.10
MSCI World (USD) 7 128.39 - 0.18 1.84 7.48 14.73 20.70
Frankfurt (EUR) 6 114.74 - 0.03 2.18 3.90 16.98 23.09
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 575.00 0.53 1.59 7.62 3.13 20.12
Platinum ($) 965.00 - 0.10 - 0.31 10.41 11.56 22.00
Brent Oil ($) 55.79 3.30 - 14.14 - 10.10 - 4.75 - 10.62
Rand/USD 14.94 - 0.20 - 3.71 - 1.61 1.92 - 6.34
Rand/GBP 19.48 - 0.92 - 3.83 - 2.55 - 5.81 - 7.82
Rand/EUR 16.18 0.11 - 0.93 0.46 4.25 - 2.16
ALBI (R) 709.10 0.10 1.28 3.27 5.59 10.28
  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 for release
  1. EU: GDP Growth Rate 2nd Est Q4
  2. US: Retail Sales JAN
  3. JP: GDP Growth Rate QoQ Prel Q4 (Monday 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 3.85 7.90 7.95 8.00 8.02 7.80
PSG Wealth Income FoF D 3.62 7.83 7.83 7.83 8.24 7.95
PSG Wealth Preserver FoF D 3.74 7.42 6.31 5.93 6.46 6.29
PSG Wealth Moderate FoF D 4.89 8.60 5.36 5.28 6.48 5.53
PSG Wealth Creator FoF D 7.57 8.33 3.37 3.86 7.03 3.99
PSG Wealth Global Moderate FF D 3.76 20.03 16.34 9.95 6.64 8.53
PSG Wealth Global Creator FF D 9.47 32.97 25.56 18.35 13.87 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 8.78 11.67 4.51 6.21 8.44 3.61
PSG Wealth Global Creator FoF D 14.99 23.61 12.39 14.14 15.70 9.99
PSG Wealth Global Preserver FoF (USD) D 4.85 7.95 4.63 4.55 6.94 4.27
PSG Wealth Global Flexible FoF (USD) D 10.97 15.63 9.66 11.36 13.45 8.77
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 0.71 7.19 6.74 3.79 8.80 6.54
PSG Wealth Global Flexible FoF (GBP) D 3.52 15.12 12.49 9.60 15.52 11.10
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.50 7.20 7.25 7.35 7.38 7.20
PSG Income A 3.88 8.05 8.05 8.29 8.35 8.01
PSG Diversified Income 3.54 6.91 6.72 7.25 7.65 7.57
PSG Stable A 2.40 0.95 1.90 3.62 5.70 5.30
PSG Balanced A 1.38 - 4.32 - 2.67 0.14 4.50 3.34
PSG Flexible A 0.26 - 4.56 - 2.48 - 0.18 5.42 4.02
PSG SA Equity D - 5.38 - 18.48 - 14.63 - 8.60 - -
PSG Equity A - 0.60 - 10.00 - 7.40 - 4.03 4.79 0.78
PSG Global Flexible FF A 1.19 4.09 6.72 3.45 6.02 -
PSG Global Equity FF A 1.90 2.81 5.85 3.53 7.19 6.07
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 7.24 - 3.43 - 4.33 0.30 7.80 1.70
PSG Global Equity USD 8.03 - 4.55 - 5.04 0.48 8.85 1.49
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 3.48 7.05 6.98 7.31 7.50 7.27
PSG Direct Low Equity 2.16 0.37 1.28 3.03 5.32 4.81
PSG Direct Managed 0.87 - 4.81 - 3.06 - 0.39 4.26 3.04
PSG Direct Aggressive 0.00 - 4.74 - 2.37 - 0.87 5.07 -
PSG Direct Global Managed 0.96 3.61 6.23 2.98 5.54 -
PSG Direct Global Aggressive 1.41 2.82 5.70 3.04 6.28 -
  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 3.80 - 1.30 - 3.61 - 0.24 4.57 -
PSG Wealth SA Property Equity Portfolio - 6.17 - 16.82 - 11.00 - 7.56 - 5.22 -
PSG Wealth SA Dividend Income Equity Portfolio 1.30 - 6.89 - 7.19 0.09 - -
PSG Wealth Offshore Equity Portfolio (USD) 15.85 22.39 13.27 17.13 17.04 -
PSG Wealth Managed Volatility Equity Portfolio 1.35 - 6.46 - 8.87 - 4.78 - -
  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.


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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
19 February 2020 Hudaco Industries Limited HDC Cash Dividend
19 February 2020 Firstrand Bank Limited Non-Cumulative Variable Rate Non-Redeemable B Preference Shares FSRP Cash Dividend
19 February 2020 Mix Telematics Limited MIX Cash Dividend
19 February 2020 Investec Bank (Mauritius) Limited IMRP3 Cash Dividend
19 February 2020 Investec Bank (Mauritius) Limited IMRP6 Cash Dividend
19 February 2020 Investec Bank (Mauritius) Limited IMRP7 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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