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Languid pre-Christmas trade leads to flat markets

20 December 2019

Languid pre-Christmas trade leads to flat markets

Daily Investment Update

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Special announcement

Thank you for all your support throughout 2019. We wish you a joyous holiday season and a prosperous New Year. We’ll be back again on 13 January 2020.


Market commentary

SA flag Icon
South Africa

Although the JSE closed down on Thursday due to weak performances by banks, financials and the platinum index, it reached its best close since mid-September 2019. At the closing bell, the JSE Top 40 was 0.36% lower.

US flag Icon
United States

Investors were unconcerned by US President Donald Trump being impeached, expecting him to remain in office; however, Wall Street opened slightly higher on Thursday as it was boosted by a drop in weekly jobless claims. Shortly after the JSE closed, the Dow was up 0.25%.

EU flag Icon
Europe

Thursday was an uneventful day for European markets, and some experts noted, “it’s very much a period of digestion of news, and maybe thoughts for 2020, rather than anybody looking to do much before the year-end.” The pan-European STOXX 600 Index gained 0.17%.

HK flag Icon
Hong Kong

On Thursday, the Hong Kong benchmark index logged a 5.50% rise in December, but as investors cashed in on gains, it recorded a loss for the trading day. The Hang Seng fell 0.30%.

Japan flag Icon
Japan

Japanese markets took a slight knock on Thursday due to profit-taking setting in after the recent rally that lifted the index to a 14-month high. The Nikkei closed 0.29% lower.

Rand Icon
Rand

The local currency rose for the third day in a row on Thursday due to Fitch not lowering SA’s credit rating on Wednesday and a high carry yield. At 17h55, the dollar was trading at R14.25, the pound at R18.54 and the euro at R15.84.

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Precious metals

Gold prices inched up on Thursday as investors awaited more details regarding the US-China trade negotiations. Spot gold traded at $1 476.22 at 17h55.

Oil Icon
Oil

Despite thin pre-Christmas trade overshadowing markets on Thursday, oil prices reached a three-month high, lifted by Wednesday’s reports of lower US inventories and a possible trade deal being reached between the US and China. At 17h55, a barrel of Brent crude traded at $66.72.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 558.92 - 0.36 0.52 3.18 0.07 15.51
Gold mining 2 614.41 1.72 4.99 19.65 43.93 93.91
Basic minerals 35 563.66 - 0.38 4.85 13.34 9.21 32.20
Industrial index 75 670.25 0.00 - 0.77 - 1.27 - 3.34 12.33
Financial 40 013.77 - 0.97 - 2.17 - 0.07 - 4.25 4.19
Fin + Ind 30 7 524.19 - 0.35 - 1.29 - 0.73 - 3.51 9.63
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) 28 376.96 0.49 1.88 5.37 8.39 24.66
S&P 500 PR (USD) 3 205.37 0.45 2.92 7.13 10.62 30.46
NASDAQ (USD) 8 827.73 0.05 3.36 8.24 11.57 31.54
FT-100 (GBP) 7 573.82 0.45 3.60 3.76 4.46 17.17
Hang Seng (HKD) 27 800.49 - 0.30 2.69 5.35 0.38 11.40
Nikkei 225 (JPY) 23 864.85 - 0.29 2.46 9.06 13.04 16.16
MSCI World (USD) 6 854.58 0.32 2.55 6.59 9.16 26.13
Frankfurt (EUR) 5 893.16 - 0.08 - 0.07 6.05 7.34 22.72
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 474.40 - 0.30 0.65 - 1.60 9.83 18.08
Platinum ($) 927.00 - 0.32 3.58 - 0.11 15.88 17.19
Brent Oil ($) 66.17 0.11 5.97 4.04 6.49 17.61
Rand/USD 14.22 0.57 3.77 4.63 0.81 1.03
Rand/GBP 18.53 1.00 2.91 0.46 - 1.72 - 2.11
Rand/EUR 15.81 0.66 3.38 3.81 2.38 3.32
ALBI (R) 694.58 0.30 0.61 0.62 2.85 11.66
  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. DE: GfK consumer confidence JAN
  2. UK: GDP growth rate final Q3
  3. US: GDP growth rate final Q3

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 3.88 8.00 7.99 8.03 8.01 7.77
PSG Wealth Income FoF D 3.57 8.34 7.62 8.08 8.29 8.11
PSG Wealth Preserver FoF D 2.34 8.79 4.87 6.13 6.20 6.84
PSG Wealth Moderate FoF D 2.68 11.40 3.61 5.89 6.10 6.55
PSG Wealth Creator FoF D 3.45 13.90 2.59 5.57 6.62 5.69
PSG Wealth Global Moderate FF D 4.76 14.48 9.27 7.10 4.44 8.41
PSG Wealth Global Creator FF D 8.98 26.23 16.40 14.67 10.14 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 6.22 14.36 2.95 6.30 5.71 3.58
PSG Wealth Global Creator FoF D 10.45 26.93 9.31 13.81 11.59 9.42
PSG Wealth Global Preserver FoF (USD) D 3.29 9.82 3.45 4.80 5.75 4.37
PSG Wealth Global Flexible FoF (USD) D 7.32 18.78 7.44 11.59 10.64 8.53
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 0.01 6.61 4.17 3.68 8.05 6.77
PSG Wealth Global Flexible FoF (GBP) D 3.04 15.36 7.87 9.42 13.07 11.28
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.53 7.26 7.28 7.39 7.36 7.19
PSG Income A 3.78 8.19 8.30 8.41 8.35 7.97
PSG Diversified Income 3.04 7.34 6.93 7.48 7.65 7.65
PSG Stable A 1.08 2.86 2.57 4.42 5.82 5.95
PSG Balanced A - 0.19 - 0.57 - 1.60 1.72 5.01 4.73
PSG Flexible A - 0.18 0.11 - 1.18 1.69 6.27 5.66
PSG SA Equity D - 5.43 - 9.96 - 9.04 - 4.59 - -
PSG Equity A - 2.69 - 4.93 - 5.64 - 1.27 6.05 2.81
PSG Global Flexible FF A 0.77 0.36 1.16 2.23 4.20 -
PSG Global Equity FF A 1.11 - 0.03 0.35 2.79 5.02 6.40
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 2.71 3.12 - 4.29 2.19 6.55 2.30
PSG Global Equity USD 2.75 3.11 - 5.06 2.79 7.38 2.12
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 3.24 7.28 7.19 7.46 7.49 7.28
PSG Direct Low Equity 0.93 2.44 1.96 3.90 5.50 5.52
PSG Direct Managed - 0.42 - 0.85 - 1.94 1.26 4.85 4.49
PSG Direct Aggressive - 0.90 - 1.64 - 2.28 0.62 5.47 -
PSG Direct Global Managed 0.54 - 0.09 0.70 1.77 3.72 -
PSG Direct Global Aggressive 0.76 - 0.33 0.20 2.13 4.25 -
  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 - 3.97 1.64 - 1.38 1.96 5.11 -
PSG Wealth SA Property Equity Portfolio - 2.70 - 2.55 - 10.19 - 2.99 - 3.09 -
PSG Wealth SA Dividend Income Equity Portfolio - 4.32 2.27 - 3.04 3.47 - -
PSG Wealth Offshore Equity Portfolio (USD) 8.87 21.12 10.00 16.19 13.90 -
PSG Wealth Managed Volatility Equity Portfolio - 2.62 - 2.13 - 6.49 - 1.81 - -
  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
23 December 2019 British American Tobacco Plc BTI Cash Dividend
23 December 2019 British American Tobacco Plc Share Instalment BTISTH Cash Dividend
23 December 2019 FirstRand Bank Limited Dollar Custodial CERTS DCCUS2 Interest Payment
23 December 2019 Investec Bank (Mauritius) Limited IMRP4 Cash Dividend
23 December 2019 Sygnia Limited SYG 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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