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China's vow to retaliate dampens trade hopes

02 December 2019

China's vow to retaliate dampens trade hopes

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The local bourse ended lower on Friday on subdued trade as investors remained focussed on the trade dispute between Washington and Beijing. At the closing bell, the JSE All Share lost 0.63%.

US flag Icon
United States

Wall Street indices fell on Friday after a newly signed US bill that supports pro-democracy protestors in Hong Kong fuelled concerns over the US-China trade talks. Shortly after the JSE closed, the Dow fell by 0.40%.

EU flag Icon
Europe

A new legislation that backs pro-democracy protestors in Hong Kong weighed on European markets on Friday after investors described it as a “major setback in the US-Sino trade negotiations”. At 18h30, the pan-European STOXX 600 Index lost 0.44%.

HK flag Icon
Hong Kong

The US-China trade relationship took a strain and weighed on Hong Kong stocks on Friday after the government vowed to retaliate and expressed strong opposition to the newly signed US bill, saying it will “send the wrong signal to demonstrators”. The Hang Seng lost 2.03%.

Japan flag Icon
Japan

Japanese shares traded lower on Friday after investors became concerned that Hong Kong protesters could derail a prospective US-China trade deal. At market close, the Nikkei recorded a loss of 0.49%.

Rand Icon
Rand

The rand was steady on Friday as investors across the board were fixated on the US-China trade talk developments. At 18h15, the dollar was trading at R14.72.

Precious metals Icon
Precious metals

Gold prices were set to log their worst month in three years on Friday as trade deal optimism dampened appetite for riskier assets. An ounce of spot gold traded at $1 463.86 at 18h30.

Oil Icon
Oil

Oil prices dropped on Friday in thin trade following a US holiday, while oil traders await the outcome of this week’s OPEC+ meeting. At 18h40, a barrel of Brent crude fell by 4.04% and traded at $61.63.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 55 349.01 - 0.63 - 1.80 1.49 1.29 13.08
Gold mining 2 378.09 0.45 - 13.54 - 10.16 47.54 117.56
Basic minerals 33 208.33 - 1.37 - 0.89 5.25 9.68 35.22
Industrial index 73 496.82 - 0.51 - 2.58 - 2.99 - 1.16 8.94
Financial 39 160.71 0.02 - 1.47 5.67 - 3.61 0.51
Fin + Ind 30 7 328.30 - 0.32 - 2.18 - 0.13 - 1.83 6.13
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) 28 051.41 - 0.32 4.11 6.87 14.42 12.48
S&P 500 PR (USD) 3 140.98 - 0.38 3.63 7.86 15.26 16.11
NASDAQ (USD) 8 665.47 - 0.45 4.64 9.11 16.89 19.51
FT-100 (GBP) 7 346.53 - 0.94 1.81 2.87 4.89 10.16
Hang Seng (HKD) 26 346.49 - 2.03 - 1.98 3.14 - 0.05 3.01
Nikkei 225 (JPY) 23 293.91 - 0.49 1.61 13.34 14.27 6.47
MSCI World (USD) 6 708.68 - 0.40 2.79 5.67 12.95 14.53
Frankfurt (EUR) 5 906.48 - 0.07 2.87 10.86 12.87 17.58
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 456.35 - 0.08 - 3.32 - 4.60 12.37 19.33
Platinum ($) 895.00 0.34 - 3.35 - 4.28 12.86 10.49
Brent Oil ($) 62.43 - 2.25 3.65 3.31 - 3.19 6.34
Rand/USD 14.64 0.55 1.38 4.14 - 0.01 - 7.13
Rand/GBP 18.90 0.53 1.57 - 2.84 - 1.65 - 8.25
Rand/EUR 16.13 0.47 2.70 3.43 2.13 - 3.61
ALBI (R) 685.90 0.03 0.73 0.38 2.89 9.00
  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. ABSA Manufacturing PMI NOV
  1. EA: Markit Manufacturing PMI Final NOV
  2. UK: Markit/CIPS Manufacturing PMI Final NOV

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 3.87 7.96 7.96 8.03 8.01 7.75
PSG Wealth Income FoF D 3.75 8.16 7.76 8.03 8.04 8.09
PSG Wealth Preserver FoF D 3.03 6.85 3.97 6.00 5.63 6.57
PSG Wealth Moderate FoF D 3.14 7.11 1.67 5.49 4.89 5.84
PSG Wealth Creator FoF D 3.58 6.89 - 1.55 4.22 3.86 3.91
PSG Wealth Global Moderate FF D 7.67 16.74 6.53 8.41 5.44 8.86
PSG Wealth Global Creator FF D 12.00 26.47 13.26 16.07 11.29 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 6.64 9.94 2.69 6.28 4.61 2.76
PSG Wealth Global Creator FoF D 11.00 19.25 9.28 13.77 10.35 8.40
PSG Wealth Global Preserver FoF (USD) D 3.46 7.61 3.13 4.72 5.23 3.72
PSG Wealth Global Flexible FoF (USD) D 7.18 14.10 7.14 11.54 9.82 7.36
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 1.91 6.66 4.27 3.97 8.07 6.39
PSG Wealth Global Flexible FoF (GBP) D 5.31 12.81 8.34 9.67 12.78 10.59
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.58 7.27 7.29 7.40 7.35 7.06
PSG Income A 3.82 8.19 8.35 8.35 8.28 7.92
PSG Diversified Income 2.94 6.59 6.96 7.40 7.53 7.61
PSG Stable A 0.50 0.15 2.49 4.35 5.31 5.95
PSG Balanced A - 0.99 - 5.39 - 2.09 1.63 3.72 4.65
PSG Flexible A 0.02 - 4.29 - 1.92 1.82 4.86 5.56
PSG SA Equity D - 7.89 - 15.22 - 9.93 - 4.79 - -
PSG Equity A - 3.56 - 10.38 - 6.32 - 1.15 3.35 2.20
PSG Global Flexible FF A 3.08 0.17 - 0.42 3.85 4.82 -
PSG Global Equity FF A 3.19 - 1.41 - 0.75 4.43 5.37 6.88
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 2.84 - 5.83 - 3.95 2.48 4.63 1.66
PSG Global Equity USD 2.98 - 7.19 - 4.31 3.13 5.16 1.41
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 3.23 7.01 7.23 7.40 7.41 7.22
PSG Direct Low Equity 0.39 - 0.41 1.81 3.83 4.89 5.50
PSG Direct Managed - 0.96 - 5.54 - 2.49 1.21 3.54 4.40
PSG Direct Aggressive - 0.58 - 5.49 - 3.17 1.05 4.14 -
PSG Direct Global Managed 2.84 - 0.29 - 0.87 3.38 4.35 -
PSG Direct Global Aggressive 2.92 - 1.27 - 1.07 3.75 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 - 1.65 - 3.75 - 3.69 1.11 2.80 -
PSG Wealth SA Property Equity Portfolio 2.75 - 4.96 - 6.78 - 2.24 - -
PSG Wealth SA Dividend Income Equity Portfolio - 2.81 - 4.43 - 3.05 2.43 - -
PSG Wealth Offshore Equity Portfolio (USD) 10.52 13.76 10.51 16.85 13.02 -
PSG Wealth Managed Volatility Equity Portfolio - 3.86 - 6.84 - 6.92 - 3.48 - -
  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 BHP AU is neutral; click here to read the full report on our secure site.
  • BHP’s revenue (c.70%) is geared to minerals whose performance is predominantly correlated to economic growth.
  • oAn economic downturn presents structural near-term headwinds for industrial metal prices as weak business and consumer confidence customarily dampens base metal commodity demand. We, therefore, expect steel demand to be under pressure going into FY20e.


company logo

Highlights

  • Our recommendation for MC FP is neutral; click here to read the full report on our secure site.
  • It has strong brand momentum in a growing industry, and we feel that that the current valuation fairly values the attractive quality characteristics
  • We do, however, remain wary of any potential deterioration in the economic cycle and its potential impact on the group.


company logo

Highlights

  • Our recommendation for INGA AMS is neutral; click here to read the full report on our secure site.
  • The group’s high dividend yield remains attractive and management is committed to maintaining a Return On Equity between 10% and 12%.
  • Adjusted earnings per share were up 3% to 66 cents and the group declared a flat interim dividend of 12 cents.


Corporate actions

Date Company Share code Expectation
04 December 2019 AECI Limited 5.5 percent Cumulative Preference Shares AFEP Cash Dividend
04 December 2019 Coronation Fund Managers Limited CML Cash Dividend
04 December 2019 Capital & Regional Plc CRP Partial Offer
04 December 2019 Capital Appreciation Limited CTA Cash Dividend
04 December 2019 CastleView Property Fund Limited (REIT) CVW DRIP
Option 1 - (Cash Dividend) Gross - ZAR0.1826Less 20% DWT - ZAR0.03652Net - ZAR0.14608
Option 2 (Reinvestment)Reinvestment Price - To be announced
Default - Option 1 (Cash Dividend)
04 December 2019 Famous Brands Limited FBR Cash Dividend
04 December 2019 Impala Platinum Holdimgs Limited Convertible Bonds IMCB22 Interest Payment
04 December 2019 Investec Limited INL Cash Dividend
04 December 2019 Investec Plc INP Cash Dividend
04 December 2019 Investec Plc Non-Redeemable Non-Cumulative Non-Participating Preference Shares INPP Cash Dividend
04 December 2019 Investec Plc Rand Denominated Non-Redeemable Non-Cumulative Non-Participating Perpetual Preference Shares INPPR Cash Dividend
04 December 2019 Invicta Holdings Ltd Preference Shares IVTP Cash Dividend
04 December 2019 MediClinic International Plc MEI Cash Dividend
04 December 2019 NVest Financial Holdings Limited NVE Cash Dividend
04 December 2019 Pick 'n Pay Stores Limited PIK Cash Dividend
04 December 2019 The Spar Group Limited SPP Cash Dividend
04 December 2019 Sor-Age Property REIT Limited SSS DRIP
Option 1 - (Cash Dividend) Gross - ZAR0.5489Less 20% DWT - ZAR0.10978Net - ZAR0.40648
Option 2 (Reinvestment)Reinvestment Price - To be announced
Default - Option 1 (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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