Back to top
SEARCH PSG

To search, just start typing...

SEARCH RESULTS

LOGIN

Please select which division you would like to log in to.


Global equities remain in negative territory

15 May 2020

Global equities remain in negative territory

Daily Investment Update

banner

Market commentary

SA flag Icon
South Africa

The local market recorded its worst day in ten on Thursday as investors acted with caution in fear of a possible slow global economic recovery. The All Share fell 2.07% on Thursday.

US flag Icon
United States

Wall Street opened lower on Thursday as investors digested US Federal Reserve Bank Chair Jerome Powell’s warnings about a possible prolonged recession and renewed US-China trade tensions. Shortly after the JSE closed, the Dow was 0.43% lower.

EU flag Icon
Europe

European markets were hit by a wave of selling on Thursday driving European banks to an all-time low. The STOXX 600 Index closed at -2.17%.

HK flag Icon
Hong Kong

Asian indices had a hard Thursday amid risk aversion due to poor sentiment and grim economic forecasts. The Hang Seng closed 1.45% in the red.

Japan flag Icon
Japan

Japanese markets fell on Thursday on the back of Powell’s warning that the recession could take longer to recuperate and be worse than expected. The Nikkei traded 1.74% down.

Rand Icon
Rand

The local currency extended losses on Thursday amid global uncertainty. At 17h50, the rand traded R18.60/$, R22.66/£ and R20.07/€.

Precious metals Icon
Precious metals

Gold continued to climb on Thursday as investors searched for safe-haven assets due to rising US-China trade tensions and recession worries. An ounce of spot gold cost $1 731.44 at 17h50.

Oil Icon
Oil

After data from the International Energy Agency projected lower oil stockpiles for 2H20 on Thursday, the oil price rose about 3%. At 17h50, a barrel of Brent crude traded at $278.12.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 49 113.06 - 2.07 4.78 - 11.93 - 9.31 - 7.73
Gold mining 4 560.39 - 1.60 28.38 65.29 84.86 235.80
Basic minerals 30 965.37 - 1.74 5.18 - 9.84 - 6.03 4.44
Industrial index 77 903.82 0.93 9.16 - 1.29 5.84 4.45
Financial 23 815.62 - 1.49 - 6.97 - 35.22 - 38.90 - 40.70
Fin + Ind 30 6 554.31 0.31 4.62 - 12.85 - 10.71 - 12.18
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) 23 625.34 1.64 - 1.15 - 19.18 - 13.92 - 5.17
S&P 500 PR (USD) 2 852.50 1.17 0.38 - 15.18 - 6.96 2.68
NASDAQ (USD) 8 943.72 - 1.55 8.27 - 8.50 5.03 17.13
FT-100 (GBP) 5 904.05 - 1.51 1.35 - 20.00 - 18.29 - 14.20
Hang Seng (HKD) 23 829.74 - 1.45 - 2.35 - 14.13 - 9.16 - 12.31
Nikkei 225 (JPY) 19 914.78 - 1.74 1.41 - 15.08 - 12.93 - 3.34
MSCI World (USD) 5 901.32 0.09 - 0.17 - 17.27 - 10.93 - 2.96
Frankfurt (EUR) 4 551.65 - 1.95 - 3.36 - 24.79 - 21.57 - 13.80
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 699.85 - 0.21 2.25 7.93 16.15 32.50
Platinum ($) 765.00 0.66 - 0.39 - 21.30 - 12.57 - 10.53
Brent Oil ($) 29.19 - 2.64 - 8.03 - 48.19 - 53.20 - 58.44
Rand/USD 18.44 0.35 - 0.68 - 24.07 - 24.69 - 29.40
Rand/GBP 22.53 0.31 2.44 - 16.19 - 18.26 - 23.01
Rand/EUR 19.93 0.38 0.86 - 23.70 - 22.20 - 24.74
ALBI (R) 683.61 - 1.34 3.68 - 3.90 - 0.63 2.66
  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 QoQ 2nd Est Q1
  2. US: Retail Sales MoM APR

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 3.66 7.70 7.85 7.90 7.98 7.83
PSG Wealth Income FoF D 0.90 4.73 6.21 6.80 7.34 7.43
PSG Wealth Preserver FoF D - 2.83 - 0.54 2.46 3.51 4.14 4.73
PSG Wealth Moderate FoF D - 6.75 - 5.28 - 0.94 1.16 2.47 2.85
PSG Wealth Creator FoF D - 12.41 - 11.62 - 6.02 - 2.09 0.79 - 0.28
PSG Wealth Global Moderate FF D 12.73 23.92 20.08 12.08 7.76 9.48
PSG Wealth Global Creator FF D 16.57 30.57 27.35 18.89 14.28 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D - 8.36 - 3.17 - 2.62 0.48 2.64 0.17
PSG Wealth Global Creator FoF D - 5.98 1.28 2.82 6.41 8.71 5.89
PSG Wealth Global Preserver FoF (USD) D - 6.34 - 3.38 - 0.41 0.57 2.36 1.98
PSG Wealth Global Flexible FoF (USD) D - 3.88 1.17 3.11 5.57 7.80 6.00
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 3.30 0.32 2.91 1.70 5.24 5.08
PSG Wealth Global Flexible FoF (GBP) D 0.93 7.17 8.36 6.74 11.37 9.62
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.45 7.14 7.21 7.30 7.37 7.23
PSG Income A 4.68 8.70 8.44 8.46 8.55 8.25
PSG Diversified Income 1.41 4.39 5.60 6.48 7.04 7.11
PSG Stable A - 10.55 - 11.19 - 4.72 - 0.59 1.67 2.30
PSG Balanced A - 19.22 - 22.16 - 12.70 - 6.35 - 2.24 - 1.70
PSG Flexible A - 24.38 - 26.55 - 15.01 - 7.99 - 3.24 - 2.25
PSG SA Equity D - 32.21 - 40.67 - 27.36 - 16.53 - -
PSG Equity A - 25.95 - 31.53 - 19.75 - 11.45 - 4.55 - 5.78
PSG Global Flexible FF A - 5.82 - 3.56 1.66 0.94 2.01 -
PSG Global Equity FF A - 14.23 - 12.58 - 4.03 - 2.15 0.53 1.68
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 24.75 - 25.80 - 18.59 - 10.01 - 2.94 - 5.25
PSG Global Equity USD - 30.07 - 31.24 - 22.24 - 12.12 - 3.82 - 6.89
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 3.11 6.46 6.77 7.12 7.38 7.23
PSG Direct Low Equity - 10.55 - 11.38 - 5.10 - 1.03 1.34 1.85
PSG Direct Managed - 20.70 - 23.61 - 13.66 - 7.18 - 2.92 - 2.28
PSG Direct Aggressive - 21.30 - 23.93 - 13.39 - 7.45 - 2.80 -
PSG Direct Global Managed - 6.04 - 4.00 1.19 0.48 1.54 -
PSG Direct Global Aggressive - 11.33 - 9.67 - 2.36 - 1.43 0.64 -
  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 - 16.08 - 20.44 - 13.16 - 6.03 - 2.08 -
PSG Wealth SA Property Equity Portfolio - 51.48 - 53.68 - 35.86 - 25.62 - 19.91 -
PSG Wealth Growth Income Equity Portfolio - 26.81 - 31.42 - 19.75 - 8.22 - 4.62 -
PSG Wealth Offshore Equity Portfolio (USD) - 5.46 3.76 5.32 9.92 11.44 -
  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

  • We recommend an overweight position in the PSG Wealth House View SA Equity Portfolio. Click here to read the full report on our secure site or log in to myBase.
  • OMU SJ has less than 10% of the unsecured lending market, which provides a significant opportunity to drive future growth.
  • Due to Old Mutual’s size, balance sheet strength, historically low discount to group equity value and the low relative price to group equity value or embedded value compared with peers, we feel that the group will be more resilient to economic challenges in 2020 and offer a better potential for upside relative to peers.


company logo

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.


company logo

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.


  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.

Recommended Articles

US response to China over new Hong Kong law rattles investors

Lockdown easing raises mood despite US-China rift

Hong Kong unrest puts pressure on global equities

Author
author

Adriaan Pask PhD

Chief Investment Officer


At PSG Wealth
Copyright © PSG Konsult Ltd (1998-2020), All Rights Reserved. FAIS affiliates of the PSG Konsult Group are authorised financial services providers.