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Markets flat ahead of Trumpeachment

19 December 2019

Markets flat ahead of Trumpeachment

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

On Wednesday, the local bourse recorded a five-month high as investors kept their eyes on the impeachment proceedings against US President Donald Trump. At the closing bell, the JSE Top 40 gained 0.77%.

US flag Icon
United States

Wall Street opened flat on Wednesday as investors kept a close watch on the Trumpeachment proceedings and after FedEx Corp “cut its annual profit forecast for the second time this year”. Shortly after the JSE closed, the Dow was flat at 0.07%.

EU flag Icon
Europe

On Wednesday, the marginal downward trend of European shares on the back of fears of a potential “hard Brexit” was capped by gains in defensive shares. The pan-European STOXX 600 Index lost 0.13%.

HK flag Icon
Hong Kong

Although reaching the highest level since late June, Hong Kong stocks remained relatively flat on Wednesday as White House officials claimed a trade deal is “absolutely completed” while Chinese officials sound cautious. The Hang Seng gained 0.55%.

Japan flag Icon
Japan

Disappointing Japanese export data released on Wednesday, showing a contraction for the twelfth month in a row, weighed heavily on Japanese markets. The Nikkei closed 0.55% lower.

Rand Icon
Rand

The local currency reached a four-month high on Wednesday, boosted by US-China trade optimism and ratings agency Fitch announcing, late in the trading session, that it will keep SA at BB+ with a negative outlook. At 17h55, the dollar was trading at R14.29, the pound R18.69 and the euro R15.90.

Precious metals Icon
Precious metals

A stronger dollar and optimism around a possible US-China trade deal lured investors away from safe-haven metals on Wednesday. Spot gold traded at $1 477.24 at 17h55.

Oil Icon
Oil

Oil prices rose slightly on Wednesday because of a possible trade deal being reached between the US and China and reports showing a decline in US crude inventories. At 17h55, a barrel of Brent crude traded at $66.43.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 767.81 0.77 2.50 3.37 0.39 16.70
Gold mining 2 570.11 - 0.97 3.88 18.12 41.20 94.51
Basic minerals 35 698.13 - 0.55 6.83 13.52 8.88 33.16
Industrial index 75 669.25 1.34 1.04 - 1.45 - 3.57 12.69
Financial 40 407.29 1.50 0.10 0.81 - 2.27 6.95
Fin + Ind 30 7 550.99 1.40 0.69 - 0.53 - 2.98 10.87
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) 28 239.28 - 0.10 1.02 4.66 8.03 22.21
S&P 500 PR (USD) 3 191.14 - 0.03 2.41 6.65 10.45 27.88
NASDAQ (USD) 8 823.36 0.10 3.42 8.07 13.07 32.08
FT-100 (GBP) 7 540.75 0.21 3.37 3.90 3.45 17.77
Hang Seng (HKD) 27 884.21 0.15 4.59 4.54 3.29 11.95
Nikkei 225 (JPY) 23 934.43 - 0.55 2.21 9.80 15.33 15.80
MSCI World (USD) 6 832.71 - 0.14 2.19 6.44 9.36 24.71
Frankfurt (EUR) 5 897.72 - 0.49 0.11 6.72 7.22 23.10
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 478.90 0.03 1.41 - 1.55 9.99 18.43
Platinum ($) 930.00 0.30 5.44 - 0.85 16.54 17.42
Brent Oil ($) 66.10 1.16 4.42 2.40 8.47 10.89
Rand/USD 14.30 0.77 3.57 3.13 0.04 0.08
Rand/GBP 18.71 0.89 2.60 - 0.98 - 2.57 - 3.15
Rand/EUR 15.92 0.83 3.11 2.51 2.24 2.36
ALBI (R) 692.52 0.11 0.68 0.44 3.18 11.67
  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: BoE interest rate decision
  2. JPN: Inflation rate NOV (Friday 01h30)
  3. CN: Loan prime rate 1Y (Friday 03h30)

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 3.84 7.96 7.97 8.01 8.00 7.76
PSG Wealth Income FoF D 3.64 8.35 7.77 8.08 8.25 8.09
PSG Wealth Preserver FoF D 2.04 8.14 4.79 6.11 6.09 6.76
PSG Wealth Moderate FoF D 2.06 9.93 3.50 5.84 5.89 6.43
PSG Wealth Creator FoF D 2.95 12.45 2.68 5.46 6.15 5.56
PSG Wealth Global Moderate FF D 3.73 13.15 7.20 7.23 4.68 8.35
PSG Wealth Global Creator FF D 7.39 22.90 13.81 14.67 10.44 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 6.77 14.12 3.22 6.30 5.54 3.82
PSG Wealth Global Creator FoF D 11.14 25.84 9.86 13.85 11.26 9.84
PSG Wealth Global Preserver FoF (USD) D 3.66 9.65 3.58 4.81 5.76 4.23
PSG Wealth Global Flexible FoF (USD) D 7.66 17.73 7.70 11.54 10.61 8.25
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 0.11 6.03 3.97 3.60 7.98 6.62
PSG Wealth Global Flexible FoF (GBP) D 3.11 13.72 8.22 9.25 12.93 11.03
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.53 7.26 7.28 7.39 7.36 7.19
PSG Income A 3.86 8.29 8.43 8.41 8.35 7.98
PSG Diversified Income 3.06 7.24 7.13 7.46 7.60 7.68
PSG Stable A 0.82 1.98 2.88 4.37 5.64 6.04
PSG Balanced A - 0.59 - 2.13 - 1.26 1.68 4.67 4.97
PSG Flexible A - 0.67 - 1.32 - 0.88 1.63 5.86 5.92
PSG SA Equity D - 6.16 - 11.74 - 7.83 - 4.74 - -
PSG Equity A - 3.40 - 6.72 - 5.09 - 1.34 5.51 3.21
PSG Global Flexible FF A 0.11 0.10 - 0.47 2.54 4.63 -
PSG Global Equity FF A 0.43 - 0.38 - 1.16 3.11 5.49 6.64
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 3.12 0.44 - 4.19 1.91 5.90 2.45
PSG Global Equity USD 3.25 - 2.35 - 4.85 2.47 6.65 2.35
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 3.29 7.30 7.33 7.45 7.47 7.29
PSG Direct Low Equity 0.69 1.54 2.26 3.86 5.31 5.64
PSG Direct Managed - 0.83 - 2.37 - 1.61 1.21 4.49 4.73
PSG Direct Aggressive - 1.49 - 2.94 - 2.30 0.63 5.21 -
PSG Direct Global Managed - 0.12 - 0.36 - 0.93 2.07 4.16 -
PSG Direct Global Aggressive 0.09 - 0.65 - 1.34 2.44 4.70 -
  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 - 4.08 - 0.36 - 1.06 1.67 4.32 -
PSG Wealth SA Property Equity Portfolio - 2.10 - 4.29 - 9.68 - 3.15 - 3.35 -
PSG Wealth SA Dividend Income Equity Portfolio - 4.63 - 0.11 - 2.38 3.06 - -
PSG Wealth Offshore Equity Portfolio (USD) 9.68 21.39 10.41 16.27 13.50 -
PSG Wealth Managed Volatility Equity Portfolio - 3.78 - 3.98 - 6.17 - 2.14 - -
  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
19 December 2019 No corporate actions scheduled for today.
  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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