Back to top
SEARCH PSG

To search, just start typing...

SEARCH RESULTS

LOGIN

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


JSE higher on Friday despite COVID-19 concerns

16 November 2020

JSE higher on Friday despite COVID-19 concerns

Daily Investment Update

banner

Market commentary

SA flag Icon
South Africa

The JSE closed 0.27% higher on Friday boosted by strong performances from resource and industrial shares.

US flag Icon
United States

Buoyant earnings from Disney and Cisco boosted Wall Street on Friday despite the volatile week after the US continued to record high infection rates.

EU flag Icon
Europe

European shares were mixed on Friday as a rise of COVID-19 infections on the continent continued to dampen risk sentiment.

HK flag Icon
Hong Kong

The Hang Seng closed flat on Friday a “day after the Trump administration decided to ban US investments in firms linked to the Chinese military”.

Japan flag Icon
Japan

Japan’s Nikkei closed 0.53% in the red on Friday, as investor sentiment got knocked by concerns around resurging new cases of the novel coronavirus both at home and abroad.

Rand Icon
Rand

The rand weakened slightly on Friday evening after concerns about rising COVID-19 infections around the world continued to dampen risk appetite.

Precious metals Icon
Precious metals

Gold prices were slightly higher on Friday, as fears over the economic fallout from mounting cases of COVID-19 overshadowed hopes of a vaccine.

Oil Icon
Oil

Oil prices fell to $42.76 a barrel for Brent crude on Friday, as fears continued about a slow recovery in the global economy and fuel demand due to an accelerating rise in COVID-19 infections.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 182.60 0.27 3.90 0.42 15.11 4.39
Gold mining 4 307.76 0.78 - 18.43 - 24.35 - 5.18 75.29
Basic minerals 37 170.44 1.02 - 4.47 - 11.12 21.95 14.59
Industrial index 84 525.06 0.41 6.37 6.43 9.18 15.56
Financial 28 637.50 - 1.50 15.37 9.97 20.74 - 26.22
Fin + Ind 30 7 303.60 - 0.11 8.67 7.36 12.07 0.06
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) 29 479.81 1.41 2.95 6.22 28.23 8.62
S&P 500 PR (USD) 3 585.15 1.37 2.23 6.72 28.27 18.09
NASDAQ (USD) 11 829.29 1.03 - 0.23 7.35 34.04 40.78
FT-100 (GBP) 6 316.39 - 0.36 6.12 2.75 8.80 - 11.10
Hang Seng (HKD) 26 156.86 - 0.05 6.19 4.35 11.29 1.62
Nikkei 225 (JPY) 25 385.87 - 0.53 7.58 9.93 26.25 11.02
MSCI World (USD) 7 518.61 0.80 2.74 6.21 27.52 13.36
Frankfurt (EUR) 5 659.36 0.18 0.44 0.64 24.04 - 1.16
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 878.20 0.55 - 2.22 - 2.73 10.49 28.34
Platinum ($) 890.00 1.95 2.18 - 5.32 17.11 1.83
Brent Oil ($) 42.78 - 1.72 0.78 - 4.85 46.56 - 31.41
Rand/USD 15.47 1.19 7.19 11.63 15.46 - 4.57
Rand/GBP 20.46 0.37 4.78 11.01 8.81 - 7.39
Rand/EUR 18.33 0.76 6.01 11.91 8.42 - 12.42
ALBI (R) 740.23 - 0.45 3.90 4.56 6.83 7.72
  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. JP: GDP growth rate Q3
  2. CH: Retail sales OCT

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 2.47 6.20 7.11 7.39 7.58 7.63
PSG Wealth Income FoF D 4.26 5.35 6.64 6.94 7.45 7.54
PSG Wealth Preserver FoF D 5.94 3.50 4.60 3.63 5.43 5.31
PSG Wealth Moderate FoF D 9.47 2.76 4.01 1.83 4.88 4.57
PSG Wealth Creator FoF D 17.81 3.91 4.64 0.41 4.56 4.08
PSG Wealth Global Preserver FF D - 5.69 9.68 9.89 - - -
PSG Wealth Global Moderate FF D 0.52 14.31 12.82 7.53 9.09 7.24
PSG Wealth Global Flexible FF D 2.27 21.84 17.69 - - -
PSG Wealth Global Creator FF D 7.15 24.86 20.83 15.09 17.22 13.74
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 16.47 7.44 8.09 4.32 6.43 5.16
PSG Wealth Global Creator FoF D 23.92 18.36 16.50 11.86 14.46 11.61
PSG Wealth Global Preserver FoF (USD) D 9.23 2.44 4.60 2.86 3.91 4.66
PSG Wealth Global Flexible FoF (USD) D 19.28 15.38 13.46 9.72 12.27 10.69
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 3.98 0.38 3.35 2.77 2.91 6.65
PSG Wealth Global Flexible FoF (GBP) D 12.01 13.40 12.44 9.54 10.43 12.83
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.11 5.62 6.44 6.73 6.95 7.00
PSG Income A 4.82 9.79 9.05 8.91 8.75 8.57
PSG Diversified Income 6.07 7.86 7.24 7.40 7.69 7.68
PSG Stable A 9.14 - 1.50 - 0.99 1.35 3.22 4.08
PSG Balanced A 15.58 - 5.28 - 6.20 - 3.13 0.37 2.09
PSG Flexible A 17.30 - 9.95 - 7.86 - 4.55 - 0.62 2.04
PSG SA Equity D 27.76 - 12.16 - 14.16 - 10.46 - -
PSG Equity A 19.49 - 10.08 - 11.23 - 7.67 - 2.71 0.65
PSG Global Flexible FF A 7.33 3.07 - 1.10 - 0.45 3.38 -
PSG Global Equity FF A 9.71 - 3.63 - 5.33 - 2.80 2.13 3.68
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 25.83 - 4.03 - 5.55 - 3.66 0.68 2.96
PSG Global Equity USD 27.47 - 9.30 - 8.94 - 5.54 - 0.23 2.25
  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

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 11.97 - 5.22 - 4.03 - 3.69 0.06 1.09
PSG Wealth SA Property Equity Portfolio 6.62 - 47.97 - 31.88 - 24.10 - 16.97 -
PSG Wealth Dividend Income Equity Portfolio 10.38 - 17.71 - 10.31 - 6.41 - 1.86 -
PSG Wealth Offshore Equity Portfolio (USD) 17.59 13.33 14.30 12.26 15.89 13.29
  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

  • Although the group is trading at a steep discount to itself and a 47% discount to our SOTP value, we believe that the market has mostly captured risks from UK operations due to Brexit, reinstated lockdowns, and volatility around African businesses.
  • As a result, we recommend an overweight position to investors with a high-risk tolerance only and stress that reversions toward long-term averages remain dependent on a medium-term recovery in profitability and normalisation in property fundamentals.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • The group is currently focussed on numerous initiatives to stabilise its operations, protect liquidity and strengthen its balance sheet.
  • We estimate that the local operations have access to sufficient liquidity to give it the flexibility to restructure its Australian operations.
  • However, the pandemic has resulted in a weak consumer environment, and the restructuring of the Australian operations has no easy solutions.
  • Currently, Woolworths is trading on a forward P/E multiple of 13.2 times relative to its five-year average of 14.3, which we feel fairly values the group.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • On an earnings basis, the group is trading at a forward P/E ratio of 11.5 times, which compares favourably with its long-term average of 13.7 times but trades in line with its historical premium to peers.
  • We feel that this fairly values the group, especially considering the increased pressure on the South African economy as well as the elevated debt levels.
  • Therefore, we maintain our neutral recommendation with regard to this counter.
  • For more information about this counter, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
18 November 2020 AH-Vest Limited AHL Cash Dividend
18 November 2020 Exemplar REITail Limited EXP Cash Dividend
18 November 2020 Investec Australia Property Fund Limited IAP Interest Distribution
18 November 2020 Investec Bank (Mauritius) Limited IMRP7 Cash Dividend
18 November 2020 London Finance and Investment Group Plc LNF Cash Dividend
18 November 2020 MIX Telematics Limited MIX Cash Dividend
18 November 2020 Newfunds Govi ETF Portfolio NFGOVI Cash Distribution
18 November 2020 Spear REIT Limited SEA DRIPOption 1 - (Cash Dividend) Gross - ZAR0.2934465Less 20% Withholding Tax - ZAR0.0586893 Net - ZAR0.2347572Option 2 (Reinvestment)Reinvestment Price - ZAR4.4565535Default - Option 1 (Cash)
18 November 2020 Vivo Energy Plc VVO 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.

Recommended Articles

Global markets lifted by COVID-19 vaccine hopes

Vaccine optimism boosts rand

SA downgraded further into junk

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.