Back to top
SEARCH PSG

To search, just start typing...

SEARCH RESULTS

LOGIN

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


Rand weakens as markets await new catalysts

16 May 2019

Rand weakens as markets await new catalysts

banner

Market commentary

SA flag Icon
South Africa

The JSE continued on a downward spiral on Wednesday afternoon as the release of disappointing economic data dragged local equities into negative territory. Shortly after the closing bell, the All Share had lost over 0.30%.

US flag Icon
United States

Shares in the US traded higher on Wednesday after the release of a report which made claims that US President Donald Trump may delay a decision to impose auto tariffs by up to six months, easing apprehensions over slowing global growth. At 18h00, the Dow Jones had gained 0.51%.

EU flag Icon
Europe

European shares traded higher on Wednesday after news broke that Trump plans to delay tariffs on auto imports, reversing losses incurred in the opening session and easing pressure on government bond yields triggered by poor US economic data. At 18h15, the pan-European Stoxx 600 had gained 0.46%.

HK flag Icon
Hong Kong

Shares in Hong Kong rallied on Wednesday following the release of poor economic data from China while a minor softening in rhetoric from Trump somewhat lessened trade apprehensions. At 18h20, the Hang-Seng had gained 0.52%.

Japan flag Icon
Japan

Japan’s Nikkei broke free from a seven-day losing streak to end higher on Wednesday as optimism that China may implement additional stimulus to aid a slowing economy lifted shares. At 18h25, the Nikkei gained 0.58%.

Rand Icon
Rand

The rand weakened against major global currencies on Wednesday afternoon as investors became cautious and kept a close watch on new developments in the US-China trade war. At 18h30, the rand traded at R14.20 against the dollar.

Precious metals Icon
Precious metals

Gold prices were steady on Wednesday following a retreat in world markets, indicating a reduction in risk appetite as investors anticipated the latest developments from the US-Sino trade war that has continued to wreak havoc on global markets. At 18h50, Spot gold was up trading at $1 295.04 an ounce

Oil Icon
Oil

Oil prices slipped on Wednesday amid fresh consumption concerns as threats to production and exports persist. At 18h40, a barrel of Brent crude was trading at $72.13.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 56 043.21 - 0.33 - 3.73 3.94 9.28 0.06
Gold mining 1 387.83 1.35 - 4.92 - 8.95 25.59 33.93
Basic minerals 30 896.66 0.06 - 8.78 0.00 14.01 14.71
Industrial index 75 578.73 - 0.43 - 2.88 6.19 9.86 - 6.46
Financial 42 615.69 - 0.53 0.09 3.95 4.08 0.60
Fin + Ind 30 7 669.43 - 0.46 - 1.89 5.39 7.79 - 4.17
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) 25 648.02 0.47 - 2.57 - 0.41 2.58 6.25
S&P 500 PR (USD) 2 834.41 0.81 - 2.37 3.72 6.00 5.92
NASDAQ (USD) 7 822.15 1.15 - 3.04 4.42 8.95 5.51
FT-100 (GBP) 7 296.95 0.76 - 1.55 2.30 5.85 - 1.49
Hang Seng (HKD) 28 268.71 0.52 - 5.16 1.72 8.83 - 6.22
Nikkei 225 (JPY) 21 188.56 0.58 - 4.42 2.27 - 1.76 - 5.19
Paris CAC (EUR) 5 374.26 0.62 - 1.63 5.38 8.14 - 0.95
Frankfurt (EUR) 5 410.66 0.90 0.66 7.08 6.57 - 6.71
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 297.60 1.14 0.11 - 0.62 8.00 - 1.75
Platinum ($) 855.00 0.23 - 4.89 9.06 2.64 - 7.67
Brent Oil ($) 71.24 1.44 - 0.43 10.33 7.74 - 8.94
Rand/USD 14.25 -0.05 -1.34 -0.76 -1.53 -13.50
Rand/GBP 18.31 0.42 0.52 -1.16 -1.68 -8.01
Rand/EUR 15.98 -0.08 -0.49 -0.07 0.18 -7.54
ALBI (R) 669.96 0.61 0.73 4.62 8.54 8.46

  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. ZA: No economic data scheduled for release
  1. JP: PPI APR
  2. EA: Balance of Trade MAR

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 3.92 8.01 8.03 8.10 7.87 7.54
PSG Wealth Income FoF D 3.93 7.57 7.83 8.21 8.11 8.07
PSG Wealth Preserver FoF D 3.56 4.85 5.38 5.61 6.09 7.10
PSG Wealth Moderate FoF D 4.14 2.58 4.19 4.95 4.91 6.48
PSG Wealth Creator FoF D 5.93 - 0.61 2.88 5.18 2.62 4.53
PSG Wealth Global Moderate FF D 2.24 13.79 6.05 2.50 6.01 8.11
PSG Wealth Global Creator FF D 6.77 21.29 13.01 9.03 12.42 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 3.00 - 2.20 2.37 4.67 0.96 1.40
PSG Wealth Global Creator FoF D 6.60 2.70 8.41 10.85 6.68 6.65
PSG Wealth Global Preserver FoF (USD) D 3.68 2.59 2.61 4.35 3.35 3.16
PSG Wealth Global Flexible FoF (USD) D 6.30 4.29 7.48 9.86 6.89 6.20
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 3.65 5.84 2.48 7.00 6.93 6.76
PSG Wealth Global Flexible FoF (GBP) D 5.67 8.94 6.34 12.68 10.55 11.20
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.56 7.27 7.38 7.45 7.26 7.05
PSG Income A 4.27 8.13 8.36 8.51 8.14 7.84
PSG Diversified Income 3.49 6.56 7.48 7.90 7.77 7.67
PSG Stable A - 0.09 1.30 4.85 6.14 5.86 6.64
PSG Balanced A - 3.93 - 3.44 2.22 5.14 4.02 6.03
PSG Flexible A - 3.12 - 2.91 2.55 5.79 4.82 6.81
PSG SA Equity D - 3.70 - 12.18 - 1.28 5.09 - -
PSG Equity A - 5.39 - 7.47 0.18 6.26 1.90 4.31
PSG Global Flexible FF A - 7.34 3.87 2.16 3.19 5.29 -
PSG Global Equity FF A - 8.75 1.84 2.29 4.49 5.06 6.90
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 6.10 - 10.52 - 0.75 6.26 0.63 1.23
PSG Global Equity USD - 7.29 - 11.89 - 0.48 7.69 0.31 0.89
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 3.67 6.96 7.43 7.68 7.42 7.20
PSG Direct Low Equity - 0.53 0.71 4.27 5.77 5.33 6.22
PSG Direct Managed - 3.94 - 3.75 1.84 4.82 3.75 5.74
PSG Direct Aggressive - 4.80 - 3.11 1.49 5.07 3.82 -
PSG Direct Global Managed - 7.55 3.40 1.70 2.72 4.81 -
PSG Direct Global Aggressive - 8.43 2.13 1.79 3.54 4.68 -

  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 2.74 -5.42 1.82 4.62 - -
PSG Wealth SA Property Equity Portfolio -6.63 -12.22 -6.07 -3.98 - -
PSG Wealth SA Dividend Income Equity Portfolio 4.24 -6.74 5.60 6.01 - -
PSG Wealth Offshore Equity Portfolio (USD) 5.37 6.51 12.45 13.53 - -
PSG Wealth Managed Volatility Equity Portfolio -0.59 -11.02 -3.25 - - -

  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 underweight positioning for HEIA NA; click here to read the full report
  • New product innovations such as low and non-alcoholic extensions to the Heineken brand is a growth prospect, although the threat of it cannibalising other brands within the portfolio is present.
  • We believe the share is fully valued at current levels, trading at a forward P/E of 20.83 times, one standard deviation away from its average forward P/E of 19.47 times.


company logo

Highlights

  • We recommend an overweight positioning for DGE LN; click here to read the full report
  • The group has a strong portfolio of brands, a global footprint and structural growth tailwinds as it focuses on the premiumisation of its brands.
  • As such, the medium-term outlook for organic revenue growth remains positive.


company logo

Highlights

  • We recommend an overweight positioning for TRU SJ; click here to read the full report
  • Return on equity has been under pressure given top-line growth that has been muted given the challenging macro environment.
  • Stronger top-line growth remains the group’s greatest challenge and is largely influenced by economic activity and merchandise inflation.


Corporate actions

Date Company Share code Expectation
22 May 2019 Investec Australia Property Fund Limited IAP Final Interest Distribution
22 May 2019 Investec Australia Property Fund Limited IAP Special Interest Distribution
22 May 2019 Investec Bank (Mauritius) Limited IMRP3 Cash Dividend
22 May 2019 Investec Bank (Mauritius) Limited IMRP6 Cash Dividend
22 May 2019 Redefine Properties Limited (REIT) RDF DRIP
Option 1 - (Cash Dividend)Gross - ZAR0.4919Less 20% Tax - ZAR0.09838Net - ZAR0.39352
Option 2 (Reinvestment)Reinvestment Price - To be announced
Default - 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.

Recommended Articles

Easing inflation boosts the JSE

Oil prices steady amid easing trade tensions

Global markets rise on optimism over Chinese stimulus

Author
author

Adriaan Pask PhD

Chief Investment Officer


At PSG Wealth
Copyright © PSG Konsult Ltd (1998-2019), All Rights Reserved. FAIS affiliates of the PSG Konsult Group are authorised financial services providers.