Wall Street unfazed by political unrest

14 January 2021

Wall Street unfazed by political unrest

Daily Investment Update

Market commentary

	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%.
	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.
	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.
	Hong Kong Declines in consumer shares drove the Hang Seng to close 0.15% lower on Wednesday.
	Japan Strong gains in the semiconductor sector boosted Japan’s Nikkei on Wednesday with the exchange closing up by 1.04%
	Rand A weaker greenback environment boosted the local currency on Wednesday with the rand trading at R15.22 to the US dollar at 20h15.
	Precious metals A weaker dollar boosted gold prices on Wednesday with an ounce of spot gold trading at $1 858.65 at 20h15.
	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

^{Some data may be delayed, the above table reflects the latest available information
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
SACCI Business Confidence DEC	CH: Balance of trade DEC 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

^{The PSG Wealth Solutions are exclusively available through registered PSG planners and/or advisers
The above information reflects the latest available data at time of distribution, as such product performance data reflects T-2 numbers
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

^{The PSG Wealth equity portfolios are exclusively available through registered PSG planners and/or advisers
PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs
PSG Wealth SA and Offshore Equity Portfolio Inception date: 30 August 2015
PSG Wealth SA Listed Property Portfolio Inception date: 1 December 2015
PSG Wealth Dividend Income Equity Portfolio Inception date: 29 April 2016
PSG Wealth Managed Volatility Equity Portfolio Inception date: 28 July 2016
PSG Wealth Funds are exclusively available through registered PSG planners and/or advisers}

Recent Investment Ideas

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.

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.

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)

^{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.
This document only contains general information and not the opinion of the distributor.}

Wall Street unfazed by political unrest

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14 January 2021