Oil hits highest level in 13 months

15 February 2021

Oil hits highest level in 13 months

Daily Investment Update

Market commentary

	South Africa The JSE was mostly flat as market participants digested President Cyril Ramaphosa’s State of the Nation Address and what it meant for investors. At the closing bell, the All Share gained 0.38%.
	United States Wall Street struggled for direction on Friday as energy stocks declined, while investors booked profits following a rally fuelled by hopes of a hefty stimulus package. At 20h00, the Nasdaq gained 0.50%.
	Europe European markets opened lower on Friday as investors awaited further developments on more US fiscal aid.
	Hong Kong Markets were closed due to a public holiday.
	Japan Japan’s stock benchmark snapped a four-day winning streak on Friday amid profit-taking after hitting a fresh high since August 1990 in the previous session.
	Rand At the closing bell, the rand was little changed trading at R14.61/$ after Ramaphosa promised to accelerate reforms and support the poor by extending social grants.
	Precious metals Platinum was on track for its best week in over two months after a rebound in industrial demand boded well for the precious metal.
	Oil Oil hit its highest level in 13 months on Friday amid a decline in US stockpiles while OPEC and Saudi Arabia announced further supply cuts. At 20h15, Brent crude gained 3.02%.

Market indicators

Local markets (R)
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
ALSI	66 132.24	0.38	4.14	16.26	16.44	17.72
Gold mining	3 751.46	-3.22	-5.35	-12.17	-32.88	40.07
Basic minerals	45 467.68	-0.48	-2.04	23.58	8.96	35.16
Industrial index	94 763.31	0.42	8.13	13.00	19.15	21.47
Financial	32 072.90	1.90	5.50	10.78	24.89	-12.24
Fin + Ind 30	8 188.03	0.81	7.41	12.42	20.69	9.95
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)	31 458.40	0.09	1.42	8.77	13.64	8.94
S&P 500 PR (USD)	3 934.83	0.47	3.64	11.69	17.37	18.56
NASDAQ (USD)	14 095.47	0.50	7.88	20.59	28.48	46.18
FT-100 (GBP)	6 589.79	0.94	-2.41	4.28	6.28	-9.71
Hang Seng (HKD)	30 173.57	0.45	8.12	15.13	22.10	12.88
Nikkei 225 (JPY)	29 520.07	-0.14	4.82	15.82	30.27	26.11
MSCI World (USD)	8 400.39	0.42	3.16	12.63	18.61	17.63
Frankfurt (EUR)	6 063.93	0.06	0.90	7.64	7.59	2.18
Other markets
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
Gold ($)	1 822.31	- 0.11	-2.36	-2.68	-5.89	16.04
Platinum ($)	1 280.46	1.92	15.32	40.55	30.81	27.02
Brent Oil ($)	63.56	1.81	9.85	39.59	37.39	13.20
Rand/USD	14.50	1.14	5.01	5.91	16.35	2.96
Rand/GBP	20.14	0.47	2.66	1.21	12.18	- 3.40
Rand/EUR	17.59	0.77	4.49	3.79	14.93	- 8.68
ALBI (R)	779.39	0.02	2.77	5.29	10.09	9.99

^{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
ZA: Manufacturing production DEC	JP: Industrial production Final DEC EA: Balance of trade DEC RU: Industrial production 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 FoF D	2.11	5.26	6.58	7.05	7.30	7.46
PSG Wealth Income FoF D	4.30	5.94	6.88	7.20	7.36	7.78
PSG Wealth Preserver FoF D	6.94	7.52	7.46	6.63	6.32	6.70
PSG Wealth Moderate FoF D	10.96	10.41	9.37	6.87	6.45	7.37
PSG Wealth Creator FoF D	18.63	17.12	12.17	7.56	6.75	9.20
PSG Wealth Global Preserver FF D	-10.06	3.99	10.21	-	-	-
PSG Wealth Global Moderate FF D	-5.30	10.60	15.52	13.67	10.16	7.22
PSG Wealth Global Flexible FF D	-3.91	17.43	20.69	-	-	-
PSG Wealth Global Creator FF D	-1.13	18.08	25.55	21.58	18.30	14.36
PSG Wealth Solutions ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Moderate FoF D	13.39	12.27	12.06	7.12	7.61	9.14
PSG Wealth Global Creator FoF D USD	18.39	19.90	21.85	15.10	15.47	16.49
PSG Wealth Global Preserver FoF (USD) D	7.24	4.86	6.39	4.72	4.58	6.48
PSG Wealth Global Flexible FoF (USD) D	15.00	19.14	17.45	12.94	13.17	14.50
PSG Wealth Solutions (£)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Preserver FoF (GBP) D	2.84	-0.62	3.13	4.23	2.65	6.83
PSG Wealth Global Flexible FoF (GBP) D	9.36	12.32	13.88	12.49	10.23	14.83
PSG Asset Management
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Money Market A	1.73	4.65	5.92	6.38	6.67	6.82
PSG Income A	3.85	9.36	8.71	8.52	8.55	8.55
PSG Diversified Income	6.21	9.33	8.09	7.64	7.77	8.00
PSG Stable A	12.61	6.82	3.80	3.63	4.43	5.97
PSG Balanced A	21.17	11.21	3.06	1.88	2.80	5.99
PSG Flexible A	21.83	7.84	1.36	0.90	1.74	6.07
PSG SA Equity D	26.17	9.17	-5.95	-7.11	-	-
PSG Equity A	24.18	9.83	-0.70	-1.86	-0.76	6.05
PSG Global Flexible FF A	8.97	15.23	9.39	8.80	6.23	-
PSG Global Equity FF A	12.79	11.03	6.64	6.85	5.27	7.41
PSG Asset Management ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Global Flexible USD A	29.13	16.40	6.33	2.40	4.03	9.91
PSG Global Equity USD	32.74	13.44	4.39	1.07	3.48	10.21

^{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	13.19	4.83	1.47	- 1.01	0.79	4.77
PSG Wealth SA Property Equity Portfolio	16.45	- 26.86	- 21.76	- 16.71	- 12.53	- 9.62
PSG Wealth Dividend Income Equity Portfolio	12.93	- 5.41	- 6.04	- 6.77	- 1.54	-
PSG Wealth Offshore Equity Portfolio (USD)	16.64	14.92	20.28	15.07	17.49	17.80

^{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

Apple’s valuation has increased since our last report and seems stretched at current levels, trading at a premium to its peers and its historical average.
Although Apple has sound cash generation and a solid balance sheet, we expect it to come under pressure as global demand for iPhone and wearables weaken as markets become increasingly saturated.
As the installed base matures, we expect revenue from services to slow while revenue from other product divisions should normalise after the Covid-19 surge.
We maintain our underweight recommendation in the counter.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

The balance sheet of LVMH remains strong, which is essential to protect the equity value in the current environment.
The group is trading at a forward PE of approximately 25 times, which is 17.6% above its five-year average.
Although there is still some uncertainty pertaining to the pandemic, we believe the group is well-positioned for a reopening of the economy if the rollout of vaccines is successful.
As a result, we maintain our neutral view on the counter.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

Coronation has a decent record of growing assets under management (AUM) over the past 17 years; however, AUM growth has been subdued over the past seven years, with funds up only 1.14% since September 2014.
This shows that the group has been heavily impacted by the subdued local economic environment, which has translated into share price underperformance relative to the benchmark over the past five years (Coronation down 7.7% versus Capped SWIX up 11.1%).
Based on the valuations and investment performance, we feel that the share is fairly valued and recommend a neutral exposure to Coronation.
For more information about this counter, please contact your PSG Wealth adviser.

Corporate actions

Date	Company	Share code	Expectation
17 February 2021	FirstRand Limited Non-Cumulative Non-Redeemable B Preference Shares	FSRP	Cash Dividend
17 February 2021	Hudaco Industries Limited	HDC	Cash Dividend
17 February 2021	Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference Shares	IMRP3	Cash Dividend
17 February 2021	Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference Shares	IMRP6	Cash Dividend
17 February 2021	Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference Shares	IMRP7	Cash Dividend
17 February 2021	Mix Telematics Limited	MIX	Cash Dividend
17 February 2021	Octodec Investments Limited (REIT)	OCT	Cash Dividend

^{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.}

Oil hits highest level in 13 months

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15 February 2021