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Wall Street record highs ahead of signing of trade deal

16 January 2020

Wall Street record highs ahead of signing of trade deal

Daily Investment Update

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Market commentary

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South Africa

The JSE recorded its fourth day of gains, with investor attention fixed firmly on events at the White House before the signing of the phase 1 trade deal between US and China. The JSE closed up by 0.17%.

US flag Icon
United States

Wall Street indexes set new record highs on Wednesday on a positive tone around trade talks with China from Trump administration officials ahead of the signing of an initial deal later in the day. During Trump’s speech at 19h30, the Dow was up by 0.57%.

EU flag Icon
Europe

European shares were flat on Wednesday ahead of the signing of an initial trade deal between Washington and Beijing, as comments from the US Treasury Secretary on China tariffs somewhat dimmed optimism. The DAX closed down by 0.18%.

HK flag Icon
Hong Kong

Hong Kong shares edged down on Wednesday after the US warned that tariffs on Chinese goods will remain in place until a phase 2 deal is signed, hours before the two sides prepared to seal a Phase 1 trade deal. At the close of trade, the Hang Seng index was down 0.39%.

Japan flag Icon
Japan

Japanese shares dropped on Wednesday, after a top US trade official said current tariffs on Chinese goods would stay for now albeit at lower rates, prompting investors to lock in profits from recent gains. The Nikkei share average fell 0.45%.

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Rand

The rand ended a four-day losing streak on Wednesday, trading slightly firmer by the JSE’s close, on optimism of the US-China deal, which could bode well for global growth prospects, and could raise demand for SA exports, such as commodities. At 19h40, the rand traded at R14.38/$.

Precious metals Icon
Precious metals

Gold prices rose on Wednesday on renewed worries about the US-China trade relations ahead of the signing of an initial deal. At 19h30, an ounce of spot gold traded at $1 552.59.

Oil Icon
Oil

Oil prices slipped on Wednesday on concerns that the phase 1 trade deal between the US and China, the world's biggest oil users, may not boost demand as the US intends to keep tariffs on Chinese goods until a second phase. A barrel of Brent crude traded at $64.75 at 19h30.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 58 063.59 0.17 2.42 4.82 2.76 12.24
Gold mining 2 709.17 1.07 4.35 13.35 36.66 102.50
Basic minerals 35 364.22 - 0.78 - 0.46 10.63 9.78 28.23
Industrial index 78 432.10 0.82 6.81 4.98 1.31 11.99
Financial 39 118.85 0.18 - 1.59 - 1.86 - 2.62 - 2.76
Fin + Ind 30 7 637.94 0.60 3.72 2.49 - 0.03 6.76
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) 29 030.22 0.31 3.24 8.07 7.40 23.58
S&P 500 PR (USD) 3 289.29 0.19 3.94 10.34 10.21 28.56
NASDAQ (USD) 9 258.70 - 0.24 5.97 15.24 12.81 35.42
FT-100 (GBP) 7 642.80 0.27 4.04 6.65 3.57 16.00
Hang Seng (HKD) 28 773.59 - 0.39 3.92 8.71 1.87 11.15
Nikkei 225 (JPY) 23 916.58 - 0.45 - 0.28 7.89 11.38 18.84
MSCI World (USD) 7 000.34 0.02 3.06 10.17 8.81 25.02
Frankfurt (EUR) 5 991.41 - 0.18 1.13 6.35 8.44 23.33
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 544.95 - 0.35 5.06 3.40 9.91 19.42
Platinum ($) 998.00 3.10 6.40 11.88 18.95 24.59
Brent Oil ($) 64.49 0.45 - 1.12 8.66 - 3.34 9.32
Rand/USD 14.38 0.14 - 0.14 3.16 - 3.20 - 4.54
Rand/GBP 18.77 - 0.03 1.71 1.63 - 7.74 - 6.13
Rand/EUR 16.04 - 0.04 - 0.18 2.90 - 2.62 - 2.22
ALBI (R) 698.50 - 0.02 1.09 0.66 1.74 9.12
  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. Mining production NOV
  2. Interest rate decision
  1. EU: ECB monetary policy meeting
  2. US: Import and export prices DEC

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 3.86 7.94 7.97 8.00 8.02 7.78
PSG Wealth Income FoF D 3.48 8.10 7.60 7.86 8.26 8.04
PSG Wealth Preserver FoF D 3.29 7.93 4.68 5.99 6.12 6.70
PSG Wealth Moderate FoF D 4.08 9.83 3.03 5.45 6.28 6.33
PSG Wealth Creator FoF D 5.33 10.23 0.79 4.52 7.33 5.11
PSG Wealth Global Moderate FF D 9.26 18.44 10.79 8.84 3.85 8.76
PSG Wealth Global Creator FF D 13.26 32.51 17.79 16.96 10.02 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 5.86 14.25 2.44 6.36 7.41 4.07
PSG Wealth Global Creator FoF D 9.65 28.18 8.84 14.25 14.18 10.25
PSG Wealth Global Preserver FoF (USD) D 3.34 9.24 3.21 4.60 6.61 4.37
PSG Wealth Global Flexible FoF (USD) D 7.09 18.64 6.71 11.80 12.77 8.93
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 0.49 8.09 4.83 3.20 8.38 6.40
PSG Wealth Global Flexible FoF (GBP) D 3.40 17.50 8.44 8.89 14.58 11.06
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.52 7.23 7.27 7.36 7.37 7.19
PSG Income A 3.78 8.06 8.14 8.28 8.38 7.96
PSG Diversified Income 2.77 6.66 6.62 7.26 7.63 7.67
PSG Stable A 1.51 1.30 1.89 4.15 5.90 6.04
PSG Balanced A 0.79 - 2.88 - 2.74 1.24 5.24 4.91
PSG Flexible A 1.24 - 2.22 - 2.75 1.23 6.41 5.86
PSG SA Equity D - 5.63 - 15.61 - 12.55 - 6.10 - -
PSG Equity A - 0.99 - 8.00 - 7.90 - 2.12 6.52 3.13
PSG Global Flexible FF A 6.24 5.03 2.31 3.88 4.17 -
PSG Global Equity FF A 6.69 4.90 1.20 4.36 5.34 6.90
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 2.39 1.67 - 5.17 1.77 8.07 3.10
PSG Global Equity USD 2.56 1.53 - 6.11 2.25 9.12 3.14
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 3.14 6.96 6.99 7.31 7.50 7.28
PSG Direct Low Equity 1.36 0.87 1.24 3.60 5.60 5.62
PSG Direct Managed 0.67 - 3.15 - 3.18 0.78 5.06 4.67
PSG Direct Aggressive 1.43 - 2.78 - 3.52 0.48 5.66 -
PSG Direct Global Managed 6.00 4.55 1.84 3.41 3.70 -
PSG Direct Global Aggressive 6.29 4.48 1.16 3.72 4.44 -
  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 - 1.23 - 3.12 - 3.76 0.20 5.84 -
PSG Wealth SA Property Equity Portfolio - 4.15 - 4.88 - 9.35 - 5.00 - 3.04 -
PSG Wealth SA Dividend Income Equity Portfolio - 3.73 - 5.72 - 5.04 0.81 - -
PSG Wealth Offshore Equity Portfolio (USD) 9.89 24.55 9.70 16.57 15.79 -
PSG Wealth Managed Volatility Equity Portfolio - 1.52 - 6.00 - 7.61 - 3.24 - -
  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

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Highlights

  • Our recommendation for PFE US is overweight; click here to read the full report on our secure site.
  • The group has been able to protect its gross profit margins despite the challenging trading environment because of its scale and defensive nature.
  • We believe Pfizer is a high-quality company with a high ROE and an attractive and sustainable operating margin.


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Highlights

  • Our recommendation for MCG SJ is overweight; click here to read the full report on our secure site.
  • Having only listed on the JSE in February 2019, MultiChoice has already seen its shares grow by approximately 17% to R125.
  • At these levels, and trading at a forward P/E of 15 times, we believe that MultiChoice is still undervalued and is well-positioned to benefit from mass-market growth in both South and Southern Africa.


company logo

Highlights

  • Our recommendation for SOL SJ is underweight; click here to read the full report on our secure site.
  • Sasol is currently facing an increased risk profile through the decline in chemical product prices, a severely constrained balance sheet and slowing global economic backdrop.
  • The group’s chemicals business is also facing growing competition from additional ethylene capacity/supply into the market.


Corporate actions

Date Company Share code Expectation
15 January 2020 Astral Foods Limited ARL Cash Dividend
15 January 2020 AYO Technology Solutions Limited AYO Cash Dividend
15 January 2020 Primeserve Group Limited PMV Cash Dividend
15 January 2020 CoreShares PrefTrax ETF PREFTX Distribution
15 January 2020 Quantum Foods Holdings Ltd QFH Cash Dividend
15 January 2020 Quantum Foods Holdings Ltd QFH Special Cash Dividend
15 January 2020 Rhodes Food Group Limited RFG Cash Dividend
15 January 2020 Reunert Limited RLO Cash Dividend
15 January 2020 CoreShares SciBeta Multifactor ETF SMART Distribution
15 January 2020 SATRIX 40 Portfolio STX40 Distribution
15 January 2020 SATRIX Dividend Plus Portfolio STXDIV Distribution
15 January 2020 SATRIX FINI Portfolio STXFIN Distribution
15 January 2020 SATRIX ILBI Portfolio STXILB Distribution (Reinvested)
15 January 2020 SATRIX INDI Portfolio STXIND Distribution
15 January 2020 SATRIX Property Portfolio STXPRO Distribution
15 January 2020 SATRIX Quality Portfolio STXQUA Distribution
15 January 2020 Satrix RAFI 40 STXRAF Cash Distribution
15 January 2020 Satrix RESI Portfolio STXRES Distribution
15 January 2020 SATRIX SWIX Top 40 Portfolio STXSWX Distribution
15 January 2020 Value Group Limited VLE Cash Dividend
  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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