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Wall Street unfazed by political unrest

14 January 2021

Wall Street unfazed by political unrest

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

New COVID-19 vaccines compared to rising COVID-19 cases continued to dampen investor sentiment on Wednesday, with the All Share closing flat at -0.10%.

US flag Icon
United States

Wall Street was trading slightly higher at 20h15 on the hope of new US stimulus packages, with most investors unfazed by hearings on Capitol Hill regarding the Democrats second attempt to impeach President Donald Trump.

EU flag Icon
Europe

Gains in French Carrefour and Spain’s Telefonica offset concerns around rising COVID-19 cases on the continent, leaving European stocks to close slightly higher on Wednesday.

HK flag Icon
Hong Kong

Declines in consumer shares drove the Hang Seng to close 0.15% lower on Wednesday.

Japan flag Icon
Japan

Strong gains in the semiconductor sector boosted Japan’s Nikkei on Wednesday with the exchange closing up by 1.04%

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Rand

A weaker greenback environment boosted the local currency on Wednesday with the rand trading at R15.22 to the US dollar at 20h15.

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Precious metals

A weaker dollar boosted gold prices on Wednesday with an ounce of spot gold trading at $1 858.65 at 20h15.

Oil Icon
Oil

The price of Brent crude fell by more than 1% on Wednesday after the Energy Information Administration said that US crude oil stockpiles fell more than expected in the previous week.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 63 474.53 - 0.10 6.91 15.60 14.15 13.35
Gold mining 3 984.46 0.52 10.13 - 24.50 - 26.20 46.15
Basic minerals 46 681.22 0.57 14.41 19.99 23.41 35.03
Industrial index 87 362.78 - 0.38 3.53 10.32 8.89 15.43
Financial 30 219.03 - 0.67 1.89 22.17 10.90 - 18.12
Fin + Ind 30 7 593.36 - 0.44 3.09 13.37 9.46 3.65
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) 31 060.47 - 0.03 3.44 8.85 20.32 9.93
S&P 500 PR (USD) 3 809.84 0.23 4.13 8.92 21.75 17.99
NASDAQ (USD) 13 072.43 0.43 5.66 10.27 23.60 43.68
FT-100 (GBP) 6 745.52 - 0.13 3.19 13.64 10.81 - 8.56
Hang Seng (HKD) 28 235.60 - 0.15 6.53 14.71 10.35 0.66
Nikkei 225 (JPY) 28 456.59 1.04 6.90 20.75 25.87 21.62
MSCI World (USD) 8 159.30 0.20 4.59 11.50 22.36 16.57
Frankfurt (EUR) 6 030.80 0.11 6.29 7.07 8.90 3.63
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 852.40 - 0.51 1.02 - 3.56 2.45 19.48
Platinum ($) 1 075.00 1.03 5.19 23.42 28.28 11.05
Brent Oil ($) 56.06 - 0.92 12.19 32.06 31.23 - 12.68
Rand/USD 15.25 - 0.12 - 1.30 8.49 8.92 - 5.88
Rand/GBP 20.80 0.19 - 3.64 3.20 0.85 - 10.84
Rand/EUR 18.52 0.43 - 1.26 5.05 3.28 - 15.50
ALBI (R) 758.37 0.18 0.69 6.44 8.90 8.76
  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. SACCI Business Confidence DEC
  1. CH: Balance of trade DEC
  2. US: Initial jobless claims 9 Jan

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 2.19 5.61 6.74 7.15 7.38 7.53
PSG Wealth Income FoF D 4.68 5.83 6.90 6.96 7.34 7.73
PSG Wealth Preserver FoF D 8.26 6.77 7.09 5.22 6.12 6.07
PSG Wealth Moderate FoF D 12.65 8.28 8.61 4.54 6.05 6.37
PSG Wealth Creator FoF D 18.68 10.37 9.89 3.77 5.89 7.49
PSG Wealth Global Preserver FF D - 1.14 13.54 13.00 - - -
PSG Wealth Global Moderate FF D 5.37 19.59 18.38 13.08 11.12 6.31
PSG Wealth Global Flexible FF D 6.84 27.67 24.19 - - -
PSG Wealth Global Creator FF D 10.51 29.46 30.30 20.87 19.58 13.24
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 15.74 10.80 12.30 5.08 7.44 7.89
PSG Wealth Global Creator FoF D 20.87 18.86 23.03 11.95 15.36 14.70
PSG Wealth Global Preserver FoF (USD) D 8.61 4.29 6.62 3.51 4.47 5.76
PSG Wealth Global Flexible FoF (USD) D 16.93 17.93 17.80 10.18 13.19 12.99
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 2.53 0.51 3.90 3.22 2.42 6.54
PSG Wealth Global Flexible FoF (GBP) D 8.74 13.53 14.68 9.85 9.84 13.70
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 1.82 4.99 6.10 6.50 6.76 6.89
PSG Income A 3.90 9.44 8.74 8.54 8.56 8.59
PSG Diversified Income 6.88 8.34 7.41 7.15 7.53 7.73
PSG Stable A 13.04 2.94 1.89 2.14 3.83 5.16
PSG Balanced A 22.63 4.13 0.19 - 0.67 1.90 4.76
PSG Flexible A 24.22 0.36 - 1.37 - 1.96 0.89 4.87
PSG SA Equity D 22.88 - 3.95 - 10.13 - 9.90 - -
PSG Equity A 26.01 0.90 - 4.08 - 5.28 - 1.50 4.97
PSG Global Flexible FF A 23.95 19.81 11.56 7.35 7.39 -
PSG Global Equity FF A 28.14 13.56 8.54 4.69 6.33 6.35
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 35.97 11.77 6.26 0.02 4.23 8.65
PSG Global Equity USD 39.68 7.66 4.18 - 1.88 3.64 8.66
  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 15.15 4.36 - 1.10 - 3.19 0.32 3.56
PSG Wealth SA Property Equity Portfolio 4.86 - 36.46 - 26.80 - 20.79 - 14.90 - 11.70
PSG Wealth Dividend Income Equity Portfolio 13.89 - 6.52 - 9.11 - 8.70 - 2.01 -
PSG Wealth Offshore Equity Portfolio (USD) 14.62 14.89 18.78 11.20 17.18 15.79
  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
20 January 2021 Clicks Group Limited CLS Cash Dividend
20 January 2021 FirstRand Bank Ltd Class A Preference Shares FRBP01 Cash Dividend
20 January 2021 Hospitality Property Fund Limited HPB General Offer
20 January 2021 Hyprop Investments Limited HYP DRIPOption 1 - (Cash Dividend) Gross - ZAR3.75Less 20% DWT - ZAR0.75Net - ZAR3.00Option 2 (Reinvestment)Reinvestment Price - To be announcedDefault - Option 1 (Cash Dividend)
20 January 2021 Investec Bank Limited Redeemable Non-Participating Preference Shares IBRP1 Cash Dividend
20 January 2021 Investec Bank (Mauritius) Limited IMRP2 Cash Dividend
20 January 2021 Investec Bank (Mauritius) Limited IMRP5 Cash Dividend
20 January 2021 Lewis Group Limited LEW Cash Dividend
20 January 2021 Primeserve Group Limited PMV Cash Dividend
20 January 2021 RFG Holdings Limited RFG Cash Dividend
20 January 2021 Reunert Limited RLO Cash Dividend
20 January 2021 Stenprop Limited STP DVOPOption 1 - (Cash Dividend) Gross - To be announcedLess 20% DWT - To be announcedNet - To be announcedOption 2 (Scrip alternative)Share Ratio - To be announcedDefault - Option 1 (Cash)
  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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