Retail sales weigh on JSE

18 February 2021

Retail sales weigh on JSE

Daily Investment Update

Market commentary

	South Africa The JSE fell 0.17% on Wednesday following the release of data that showed a 1.30% decline in local retail sales for December 2020.
	United States Wall Street opened flat on Wednesday as investors anticipated minutes from the US Federal Reserve’s January meeting. At 17h15, the Nasdaq lost 0.81%.
	Europe European stocks traded lower on Wednesday amid concerns over an increase in inflation and a disappointing fourth-quarter performance by French conglomerate, Kering.
	Hong Kong Hong Kong stocks extended a bull run on Wednesday with sentiment lifted by prospects of a swift economic rebound. The Hang Seng gained 1.1%.
	Japan Japanese stocks were dragged down by profit-taking after hitting a 30-year high in the previous session. The Nikkei lost 0.58% with chip and electronic shares leading declines.
	Rand At 17h45, the rand had weakened against major global currencies trading at R14.73/$, R20.39/£ and R17.72/€.
	Precious metals Gold prices inched up on Thursday, recovering from a more than two-month low hit in the previous session as US Treasury yields retreated, although a stronger dollar kept bullion's gains in check.
	Oil At 17h50, Brent crude traded at $63.78 a barrel after a winter storm battered Texas in the US and halted supply.

Market indicators

Local markets (R)
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
ALSI	67 110.07	- 0.17	5.64	17.93	18.13	18.55
Gold mining	3 488.39	- 5.46	- 9.77	- 15.55	- 41.06	21.73
Basic minerals	47 685.43	- 0.09	3.56	27.90	11.93	39.34
Industrial index	95 251.53	0.36	7.44	14.49	21.17	21.54
Financial	31 365.76	- 1.85	4.61	8.47	23.82	- 14.30
Fin + Ind 30	8 170.20	- 0.23	6.68	12.86	21.90	9.32
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)	31 613.02	0.29	2.80	6.69	14.74	9.94
S&P 500 PR (USD)	3 931.33	- 0.03	4.47	9.35	17.21	18.41
NASDAQ (USD)	14 047.50	- 0.58	8.12	18.00	27.95	45.59
FT-100 (GBP)	6 710.90	- 0.56	- 0.36	5.75	10.54	- 7.01
Hang Seng (HKD)	31 084.94	1.10	8.79	17.76	23.51	14.73
Nikkei 225 (JPY)	30 292.19	- 0.58	6.22	16.60	32.22	31.27
MSCI World (USD)	8 393.43	- 0.42	3.81	10.35	18.36	17.70
Frankfurt (EUR)	6 003.45	- 1.10	0.88	5.91	7.65	0.91
Other markets
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
Gold ($)	1 783.04	0.39	- 3.51	- 5.12	- 8.26	13.20
Platinum ($)	1 276.20	1.69	12.15	32.61	28.59	26.86
Brent Oil ($)	65.12	1.21	16.77	47.06	41.81	11.57
Rand/USD	14.66	0.26	3.05	4.86	14.39	2.13
Rand/GBP	20.30	0.55	1.31	0.70	9.40	- 4.26
Rand/EUR	17.65	0.69	3.53	3.59	12.62	- 9.12
ALBI (R)	770.14	- 0.71	2.02	4.02	8.80	8.59

^{Some data may be delayed, the above table reflects the latest available information
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
No economic data scheduled for release	US: Initial Jobless Claims 13/FEB RU: GDP JAN KR: PPI JAN

^{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 FoF D	2.09	5.25	6.56	7.01	7.28	7.45
PSG Wealth Income FoF D	4.07	5.76	6.80	7.07	7.28	7.71
PSG Wealth Preserver FoF D	7.50	7.77	7.40	6.43	6.50	6.59
PSG Wealth Moderate FoF D	12.38	11.02	9.34	6.44	6.82	7.12
PSG Wealth Creator FoF D	21.91	17.83	12.50	6.68	7.39	8.76
PSG Wealth Global Preserver FF D	- 10.01	3.56	8.45	-	-	-
PSG Wealth Global Moderate FF D	- 5.10	10.34	13.67	14.64	10.82	7.39
PSG Wealth Global Flexible FF D	- 3.30	17.17	18.84	-	-	-
PSG Wealth Global Creator FF D	- 1.24	17.71	23.29	22.84	18.98	14.71
PSG Wealth Solutions ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Moderate FoF D	13.58	12.53	11.76	6.35	7.56	8.86
PSG Wealth Global Creator FoF D USD	18.66	20.59	21.46	13.75	15.42	16.19
PSG Wealth Global Preserver FoF (USD) D	7.68	4.90	6.26	4.43	4.51	6.54
PSG Wealth Global Flexible FoF (USD) D	15.89	19.83	17.24	11.68	13.15	14.75
PSG Wealth Solutions (£)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Preserver FoF (GBP) D	2.75	- 0.62	2.79	4.14	2.37	6.76
PSG Wealth Global Flexible FoF (GBP) D	9.58	12.97	13.15	11.93	9.85	14.92
PSG Asset Management
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Money Market A	1.73	4.65	5.92	6.38	6.67	6.82
PSG Income A	3.65	9.19	8.62	8.37	8.47	8.51
PSG Diversified Income	5.96	9.17	8.10	7.35	7.69	7.92
PSG Stable A	13.29	7.56	4.12	3.15	4.48	5.86
PSG Balanced A	23.35	13.26	3.84	1.48	3.08	5.77
PSG Flexible A	25.12	10.53	2.00	0.63	2.23	5.93
PSG SA Equity D	29.50	11.61	- 4.46	- 8.05	-	-
PSG Equity A	27.51	12.64	0.08	- 2.50	- 0.33	5.64
PSG Global Flexible FF A	9.61	17.45	8.64	9.96	7.24	-
PSG Global Equity FF A	13.62	13.71	6.09	7.89	6.30	7.82
PSG Asset Management ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Global Flexible USD A	32.30	20.94	6.89	2.13	4.36	9.39
PSG Global Equity USD	37.02	18.76	5.10	0.76	3.85	9.75

^{The PSG Wealth Solutions are exclusively available through registered PSG planners and/or advisers
The above information reflects the latest available data at time of distribution, as such product performance data reflects T-2 numbers
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	16.10	6.33	1.85	- 2.29	1.28	4.12
PSG Wealth SA Property Equity Portfolio	19.08	- 25.62	- 20.50	- 16.29	- 12.58	- 10.01
PSG Wealth Dividend Income Equity Portfolio	14.95	- 4.12	- 6.29	- 8.10	- 1.54	-
PSG Wealth Offshore Equity Portfolio (USD)	15.99	15.04	19.21	13.75	17.07	17.15

^{The PSG Wealth equity portfolios are exclusively available through registered PSG planners and/or advisers
PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs
PSG Wealth SA and Offshore Equity Portfolio Inception date: 30 August 2015
PSG Wealth SA Listed Property Portfolio Inception date: 1 December 2015
PSG Wealth Dividend Income Equity Portfolio Inception date: 29 April 2016
PSG Wealth Managed Volatility Equity Portfolio Inception date: 28 July 2016
PSG Wealth Funds are exclusively available through registered PSG planners and/or advisers}

Recent Investment Ideas

Highlights

Apple’s valuation has increased since our last report and seems stretched at current levels, trading at a premium to its peers and its historical average.
Although Apple has sound cash generation and a solid balance sheet, we expect it to come under pressure as global demand for iPhone and wearables weaken as markets become increasingly saturated.
As the installed base matures, we expect revenue from services to slow while revenue from other product divisions should normalise after the Covid-19 surge.
We maintain our underweight recommendation in the counter.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

The balance sheet of LVMH remains strong, which is essential to protect the equity value in the current environment.
The group is trading at a forward PE of approximately 25 times, which is 17.6% above its five-year average.
Although there is still some uncertainty pertaining to the pandemic, we believe the group is well-positioned for a reopening of the economy if the rollout of vaccines is successful.
As a result, we maintain our neutral view on the counter.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

Coronation has a decent record of growing assets under management (AUM) over the past 17 years; however, AUM growth has been subdued over the past seven years, with funds up only 1.14% since September 2014.
This shows that the group has been heavily impacted by the subdued local economic environment, which has translated into share price underperformance relative to the benchmark over the past five years (Coronation down 7.7% versus Capped SWIX up 11.1%).
Based on the valuations and investment performance, we feel that the share is fairly valued and recommend a neutral exposure to Coronation.
For more information about this counter, please contact your PSG Wealth adviser.

Corporate actions

Date	Company	Share code	Expectation
24 February 2021	Investec Bank (Mauritius) Limited Redeemable Cumulative Non-Participating No Par Value Preference Shares	IMRP1	Cash Dividend
24 February 2021	Tharisa Plc	THA	Cash Dividend

^{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.
This document only contains general information and not the opinion of the distributor.}

Retail sales weigh on JSE

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18 February 2021