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Palladium reaches record high

18 December 2019

Palladium reaches record high

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The local bourse followed Asian markets’ lead on Tuesday on the back of news that China and the US have reached a preliminary trade deal over the past weekend. At the closing bell, the JSE Top 40 gained 1.02%.

US flag Icon
United States

Although the S&P 500 and the Nasdaq opened slightly higher on Tuesday, the Dow Jones took a knock because of the 737 MAX jet crisis at Boeing intensifying. Shortly after the JSE closed, the Dow was flat at 0.16%.

EU flag Icon
Europe

On Tuesday investor fears, fuelled by a sales warning from Unilever and concerns that the UK will take a “hard line on the Brexit transition,” weighed European indices down. The pan-European STOXX 600 Index lost 0.68%.

HK flag Icon
Hong Kong

Asian markets were boosted by positive sentiment thanks to optimism around the interim US-China trade deal, with Hong Kong shares reaching a five-week high at the close of trade. The Hang Seng gained 1.22%.

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Japan

Japan’s leading index closed up on Tuesday, reaching a 52-week high; it was lifted by strong performances in paper and pulp, railway and bus, and real estate as well as the yen losing ground to the dollar. The Nikkei closed 0.47% higher.

Rand Icon
Rand

After rallying at close to 3.50% last week and reaching levels last seen on 1 August 2019, the rand lost some momentum on Tuesday due to “offshore risks building and volumes relatively light heading into Christmas holidays”. At 17h55, the dollar was trading at R14.40.

Precious metals Icon
Precious metals

Palladium prices reached a new high on Tuesday, trading briefly above $2 000 per ounce. The price surge was ascribed to stricter emissions rules spurring demand and supply struggling to keep up.

Oil Icon
Oil

Optimism that the two largest economies in the world reached a preliminary trade deal, which could increase oil demand in 2020, led to the oil price growing over 1% on Tuesday. At 17h55, a barrel of Brent crude traded at $66.21.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 326.18 1.02 2.45 1.56 0.35 15.06
Gold mining 2 595.27 - 0.03 5.20 19.85 35.98 100.36
Basic minerals 35 896.09 1.04 8.13 13.72 8.84 34.20
Industrial index 74 675.67 1.51 1.06 - 4.67 - 3.76 10.44
Financial 39 835.54 0.15 - 1.60 - 0.21 - 2.34 3.93
Fin + Ind 30 7 449.03 1.01 0.07 - 3.07 - 3.13 8.34
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) 28 267.16 0.11 1.23 4.90 9.59 22.76
S&P 500 PR (USD) 3 192.52 0.03 2.49 6.73 11.56 27.95
NASDAQ (USD) 8 823.36 0.91 3.31 8.39 13.65 28.95
FT-100 (GBP) 7 525.28 0.08 3.22 3.60 4.44 16.28
Hang Seng (HKD) 27 843.71 1.22 5.84 4.25 4.22 10.62
Nikkei 225 (JPY) 24 066.12 0.47 3.28 10.20 15.14 14.31
MSCI World (USD) 6 842.18 - 0.03 2.47 6.55 10.54 24.49
Frankfurt (EUR) 5 927.01 - 0.89 0.35 7.40 9.95 23.35
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 478.40 0.07 0.87 - 1.39 10.89 19.31
Platinum ($) 930.00 - 0.21 6.16 - 0.21 16.40 18.62
Brent Oil ($) 65.34 0.18 3.22 - 5.33 5.37 8.39
Rand/USD 14.41 - 0.36 1.95 2.11 - 0.53 - 0.48
Rand/GBP 18.88 1.12 0.61 - 2.78 - 3.67 - 4.25
Rand/EUR 16.05 - 0.24 1.29 1.27 0.91 1.37
ALBI (R) 691.76 0.11 0.22 0.68 3.62 12.24

  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. UK: Inflation rate NOV
  2. JPN: BoJ interest rate decision (Thursday 05h00)

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 3.81 7.93 7.95 8.00 8.00 7.76
PSG Wealth Income FoF D 3.56 8.26 7.73 8.05 8.34 8.09
PSG Wealth Preserver FoF D 1.52 7.58 4.52 5.93 6.28 6.61
PSG Wealth Moderate FoF D 1.04 8.83 2.98 5.49 6.10 6.14
PSG Wealth Creator FoF D 1.32 10.67 1.87 4.90 6.47 5.14
PSG Wealth Global Moderate FF D 3.10 12.47 6.88 7.01 4.74 7.96
PSG Wealth Global Creator FF D 6.35 21.70 13.26 14.30 10.55 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 6.68 13.29 3.21 6.29 5.58 3.86
PSG Wealth Global Creator FoF D 10.50 23.30 9.65 13.70 11.34 9.77
PSG Wealth Global Preserver FoF (USD) D 3.54 9.29 3.53 4.78 5.81 4.21
PSG Wealth Global Flexible FoF (USD) D 7.50 16.63 7.71 11.55 10.62 8.26
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 0.90 4.20 3.34 3.18 8.12 6.37
PSG Wealth Global Flexible FoF (GBP) D 1.76 10.84 7.41 8.71 12.91 10.69
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.53 7.26 7.28 7.39 7.36 7.19
PSG Income A 3.77 8.19 8.38 8.38 8.36 7.96
PSG Diversified Income 2.98 7.15 7.08 7.43 7.66 7.65
PSG Stable A 0.62 1.78 2.78 4.30 5.83 5.99
PSG Balanced A - 1.03 - 2.57 - 1.48 1.53 4.97 4.85
PSG Flexible A - 1.42 - 2.06 - 1.25 1.38 6.10 5.74
PSG SA Equity D - 7.59 - 13.08 - 8.54 - 5.23 - -
PSG Equity A - 4.24 - 7.54 - 5.51 - 1.63 5.83 3.01
PSG Global Flexible FF A - 1.41 - 1.43 - 1.23 2.02 4.49 -
PSG Global Equity FF A - 1.31 - 2.10 - 2.01 2.52 5.32 6.07
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 3.98 0.94 - 3.95 2.08 6.12 2.76
PSG Global Equity USD 4.19 0.53 - 4.60 2.66 6.90 2.69
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 3.22 7.21 7.29 7.43 7.50 7.27
PSG Direct Low Equity 0.46 1.31 2.14 3.78 5.50 5.57
PSG Direct Managed - 1.35 - 2.88 - 1.87 1.03 4.77 4.60
PSG Direct Aggressive - 2.42 - 3.85 - 2.77 0.31 5.38 -
PSG Direct Global Managed - 1.64 - 1.88 - 1.68 1.55 4.01 -
PSG Direct Global Aggressive - 1.57 - 2.29 - 2.16 1.87 4.54 -

  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 - 4.59 - 0.89 - 1.33 1.49 4.85 -
PSG Wealth SA Property Equity Portfolio - 1.31 - 3.52 - 9.32 - 2.90 - 2.62 -
PSG Wealth SA Dividend Income Equity Portfolio - 5.64 - 1.17 - 2.89 2.69 - -
PSG Wealth Offshore Equity Portfolio (USD) 9.59 19.97 10.54 16.36 13.50 -
PSG Wealth Managed Volatility Equity Portfolio - 4.54 - 4.74 - 6.54 - 2.40 - -

  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.


company logo

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
18 December 2019 AEP Energy Africa Limited AEY Capital Distribution
18 December 2019 Arrowhead Properties Limited (REIT) AHA Cash Dividend
18 December 2019 Arrowhead Properties Limited (REIT) AHB Cash Dividend
18 December 2019 Delta Property Fund Limited (REIT) DLT Cash Dividend
18 December 2019 Gaia Infrastructure Capital Limited GAI Cash Dividend
18 December 2019 Oceanan Group Limited OCE Cash Dividend
18 December 2019 PBT Group Limited PBG Cash Distribution (Capital Reduction)
18 December 2019 Sirius Real Estate Limited SRE DVOP
Option 1 - (Cash Dividend) Gross - ZAR0.28508Less 20% tax - ZAR0.057016Net - ZAR0.228064
Option 2 (Capitalisation Shares)Ratio - 1 new share for every 51.95026 shares held
Default - Option 1 (Cash Dividend)
18 December 2019 Vukile Property Fund Limited (REIT) VKE 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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