Back to top
SEARCH PSG

To search, just start typing...

SEARCH RESULTS

LOGIN

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


Stricter restrictions weigh on sentiment

18 November 2020

Stricter restrictions weigh on sentiment

Daily Investment Update

banner

Market commentary

SA flag Icon
South Africa

The JSE closed 0.37% lower on Tuesday, tracking most global markets as the rising number of global COVID-19 infections forced more European countries and US states to reimplement stricter lockdown measures.

US flag Icon
United States

Wall Street opened lower on Tuesday after more US states announced stricter lockdown measures to curb the increasing number of COVID-19 infections. At 17h50, the Dow Jones had lost 0.92%.

EU flag Icon
Europe

European markets pulled back from Monday’s vaccine rally as more COVID-19 restrictions were implemented across the continent. The STOXX 600 ended the day 0.24% lower.

HK flag Icon
Hong Kong

The Hang Seng ended Tuesday 0.13% higher at 26 414.45 points as energy share gains offset tech losses caused by US-China trade escalations fears.

Japan flag Icon
Japan

The Nikkei closed 0.41% in the green on Tuesday, boosted by optimistic sentiment that Moderna’s potential vaccine could lead to a quicker global economic recovery.

Rand Icon
Rand

The local currency traded lower as global risk-on trade softened and focus turned to the SARB’s upcoming interest rate decision and the series of credit rating announcements. At 17h50, the rand traded at R15.41/$.

Precious metals Icon
Precious metals

Gold prices edged down on Tuesday as the rising global COVID-19 cases and the weaker dollar overshadowed vaccine optimism. Gold traded at $1 885.84/oz at 17h50.

Oil Icon
Oil

Despite possible tighter OPEC+ supply policies, Brent crude fell to $43.31 a barrel on Tuesday because of fears around the impact of rising COVID-19 cases on oil demand.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 053.01 - 0.37 3.66 0.17 16.06 4.68
Gold mining 4 133.68 - 0.49 - 21.06 - 30.20 - 14.45 69.33
Basic minerals 37 285.58 - 1.29 - 4.52 - 12.49 17.42 16.44
Industrial index 83 512.81 - 0.22 5.16 5.83 11.63 14.67
Financial 29 037.36 0.93 17.86 14.15 26.81 - 25.38
Fin + Ind 30 7 267.59 0.10 8.39 8.01 15.43 - 0.26
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) 29 783.35 - 0.53 4.31 7.54 27.18 8.83
S&P 500 PR (USD) 3 609.53 - 0.46 3.76 7.18 27.15 17.85
NASDAQ (USD) 11 924.13 0.80 2.23 8.43 32.82 40.90
FT-100 (GBP) 6 365.33 - 0.87 7.81 4.53 11.44 - 10.00
Hang Seng (HKD) 26 415.09 0.13 8.37 4.88 14.16 3.58
Nikkei 225 (JPY) 26 014.62 0.41 11.15 13.40 30.85 13.85
MSCI World (USD) 7 605.91 - 0.11 4.95 7.26 28.32 13.91
Frankfurt (EUR) 5 683.82 - 0.04 1.74 1.65 25.50 - 0.82
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 885.40 - 0.38 - 1.19 - 3.31 8.68 28.64
Platinum ($) 926.00 2.09 7.30 - 3.04 19.64 5.71
Brent Oil ($) 43.75 - 0.16 1.91 - 3.57 34.62 - 30.88
Rand/USD 15.39 0.11 6.91 10.91 12.94 - 3.75
Rand/GBP 20.41 - 0.08 4.51 9.79 5.41 - 6.22
Rand/EUR 18.26 0.10 5.62 10.76 5.44 - 11.17
ALBI (R) 740.35 - 0.33 3.46 4.60 8.49 7.26
  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. Retail sales SEP
  2. SACCI Business Confidence OCT
  1. UK: Inflation rate OCT
  2. EU: ECB Non-Monetary Policy Meeting

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 2.44 6.16 7.05 7.35 7.55 7.62
PSG Wealth Income FoF D 4.70 5.33 6.73 6.92 7.40 7.54
PSG Wealth Preserver FoF D 7.14 3.41 4.98 3.75 5.39 5.34
PSG Wealth Moderate FoF D 11.43 2.84 4.64 2.07 4.92 4.67
PSG Wealth Creator FoF D 20.24 4.48 5.52 0.95 4.76 4.42
PSG Wealth Global Preserver FF D - 8.33 8.14 9.61 - - -
PSG Wealth Global Moderate FF D - 0.88 13.06 13.05 7.36 8.60 6.95
PSG Wealth Global Flexible FF D 0.98 20.72 18.56 - - -
PSG Wealth Global Creator FF D 6.03 22.65 21.99 14.80 16.69 13.45
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 19.10 8.45 8.74 4.78 6.75 5.53
PSG Wealth Global Creator FoF D 27.78 18.52 17.38 12.24 14.71 12.11
PSG Wealth Global Preserver FoF (USD) D 10.51 3.04 5.07 3.19 4.08 4.79
PSG Wealth Global Flexible FoF (USD) D 22.40 16.15 14.28 10.19 12.49 10.86
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 3.59 0.80 3.49 2.93 2.96 6.69
PSG Wealth Global Flexible FoF (GBP) D 12.80 13.96 12.45 9.88 10.49 12.88
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.11 5.62 6.44 6.73 6.95 7.00
PSG Income A 5.13 9.77 9.02 8.89 8.73 8.58
PSG Diversified Income 7.01 7.76 7.32 7.40 7.62 7.70
PSG Stable A 12.02 - 1.43 - 0.58 1.53 3.11 4.19
PSG Balanced A 19.94 - 4.87 - 5.42 - 2.75 0.25 2.29
PSG Flexible A 21.13 - 9.89 - 7.26 - 4.21 - 0.84 2.14
PSG SA Equity D 30.93 - 13.24 - 13.99 - 10.08 - -
PSG Equity A 23.48 - 10.14 - 10.54 - 7.15 - 2.90 0.87
PSG Global Flexible FF A 8.76 2.53 - 0.69 - 0.67 2.61 -
PSG Global Equity FF A 12.62 - 3.93 - 4.74 - 2.91 1.39 3.71
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 36.19 0.62 - 3.18 - 2.14 1.90 4.03
PSG Global Equity USD 39.61 - 4.27 - 6.29 - 3.83 1.13 3.46
  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 15.18 - 4.68 - 3.51 - 3.21 0.18 1.39
PSG Wealth SA Property Equity Portfolio 11.37 - 47.67 - 30.35 - 23.79 - 16.63 -
PSG Wealth Dividend Income Equity Portfolio 14.53 - 17.96 - 10.14 - 6.21 - 2.01 -
PSG Wealth Offshore Equity Portfolio (USD) 21.07 15.03 15.15 12.96 16.76 14.24
  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

company logo

Highlights

  • 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 weakens as those 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.
  • Apple is the highest weighted stock in the Dow Jones Global Titans Index at 10.23%.
  • We retain our underweight recommendation in the counter.
  • For more information about this sector, please contact your PSG Wealth adviser.


company logo

Highlights

  • We feel that life assurers are likely to be under pressure from both the current macroeconomic environment and uncertainties about the impact of COVID-19 on operations.
  • Demand for insurance products will likely remain subdued and weak through 2021 with significant uncertainty around provisioning, credit quality, and the extent of relief provided by the insurance companies.
  • Due to large parts of life insurance assets being linked to the investment market, market movements remain the primary driver of investment returns; as most asset classes are currently under pressure, this has translated into lower valuations.
  • While the catalyst to unlock value is not yet evident, we believe that the already-low expectations currently priced into valuations translate into a potential return profile that is asymmetrical to the upside.
  • For more information about this sector, please contact your PSG Wealth adviser.


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.


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.