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Rand lower on SARB projections

20 November 2020

Rand lower on SARB projections

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The JSE closed down 0.99% on Thursday, falling across most sectors as sentiment was dampened by COVID-19 vaccine progress losing steam and the South African Reserve Bank (SARB) indicating that the next round of interest rates could be an increase.

US flag Icon
United States

Wall Street opened lower on Thursday in light of an unexpected rise in jobless claims and the surging number of COVID-19 cases rising concerns about the country’s economic revival.

EU flag Icon
Europe

European shares ended Thursday with sharp losses as the increase in COVID-19 infections, especially in the US, created fears around more shutdowns. The STOXX 600 ended the day 0.75% lower.

HK flag Icon
Hong Kong

The Hang Seng ended Thursday 0.68% lower at 26 357 points as the materials and property sectors struggled; however, losses were capped by consumer firms.

Japan flag Icon
Japan

The Nikkei closed 0.36% in the red on Thursday as Tokyo recorded a record number of 500 daily infections and issued a warning about behaviour changes.

Rand Icon
Rand

Although the local currency lost earlier gains on Thursday after the SARB signalled that interest rates could be increased at the next meeting, it made up ground by the close of the JSE. At 20h00, the rand traded at R15.45/$.

Precious metals Icon
Precious metals

Gold prices fell about 1% on Thursday due to a stronger dollar and COVID-19 vaccine optimism. Gold traded at $1 864.82/oz at 20h00.

Oil Icon
Oil

Despite vaccine optimism, oil prices fell on Thursday, trading at $43.78 a barrel at 20h00, as the increase in infections raised demand worries.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 56 753.49 - 0.99 2.91 1.24 10.29 1.74
Gold mining 3 890.24 - 2.96 - 25.10 - 31.16 - 19.51 57.87
Basic minerals 37 086.32 - 0.82 - 5.12 - 10.19 8.84 13.35
Industrial index 83 178.49 - 1.03 5.29 6.98 8.20 10.66
Financial 28 795.25 - 1.21 13.89 11.37 19.38 - 26.80
Fin + Ind 30 7 229.77 - 1.08 7.53 8.16 11.05 - 3.12
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) 29 438.42 0.15 3.12 6.53 21.03 7.48
S&P 500 PR (USD) 3 567.79 0.39 4.70 6.58 23.63 16.98
NASDAQ (USD) 11 801.60 0.87 1.21 5.51 28.36 39.35
FT-100 (GBP) 6 334.35 - 0.80 7.94 4.29 7.17 - 10.68
Hang Seng (HKD) 26 356.97 - 0.68 7.48 5.38 10.98 0.46
Nikkei 225 (JPY) 25 634.34 - 0.36 8.32 11.67 26.45 12.23
MSCI World (USD) 7 561.73 - 0.58 4.34 6.39 23.83 13.09
Frankfurt (EUR) 5 663.36 - 0.88 1.80 0.84 18.16 - 1.02
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 877.20 - 0.43 - 1.62 - 6.38 6.85 28.72
Platinum ($) 934.00 0.86 8.23 - 3.91 14.46 5.90
Brent Oil ($) 44.34 1.35 3.28 - 2.46 27.38 - 28.99
Rand/USD 15.41 0.73 6.32 10.01 12.83 - 4.31
Rand/GBP 20.44 0.45 4.24 8.77 5.24 - 7.06
Rand/EUR 18.30 0.44 6.07 9.36 5.23 - 11.89
ALBI (R) 743.53 0.20 3.54 4.98 7.50 7.70
  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 to be released.
  1. UK: Retail sales OCT
  2. EU: Consumer Confidence Flash NOV
  3. SA: G20 Summit Meeting (21 & 22 November 2020)

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 6.17 7.07 7.36 7.55 7.62
PSG Wealth Income FoF D 4.43 5.36 6.77 6.96 7.38 7.54
PSG Wealth Preserver FoF D 6.75 3.62 5.17 3.95 5.33 5.43
PSG Wealth Moderate FoF D 10.90 3.14 4.96 2.32 4.83 4.82
PSG Wealth Creator FoF D 17.88 4.67 5.75 0.97 4.55 4.48
PSG Wealth Global Preserver FF D - 7.28 8.39 9.98 - - -
PSG Wealth Global Moderate FF D - 0.11 13.22 13.47 8.33 8.55 7.33
PSG Wealth Global Flexible FF D 2.53 21.22 18.99 - - -
PSG Wealth Global Creator FF D 7.60 24.07 22.99 16.20 16.77 14.00
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 17.25 8.41 8.82 4.75 6.78 5.37
PSG Wealth Global Creator FoF D 26.45 18.27 17.63 12.15 14.72 11.92
PSG Wealth Global Preserver FoF (USD) D 9.95 3.17 5.17 3.20 4.33 4.83
PSG Wealth Global Flexible FoF (USD) D 20.64 15.90 14.43 10.03 12.50 10.92
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 2.92 0.74 3.32 2.79 3.05 6.62
PSG Wealth Global Flexible FoF (GBP) D 10.99 13.42 12.22 9.55 10.49 12.79
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.11 5.62 6.44 6.73 6.95 7.00
PSG Income A 4.94 9.73 9.03 8.85 8.72 8.56
PSG Diversified Income 6.65 7.83 7.37 7.42 7.61 7.70
PSG Stable A 12.01 - 0.83 - 0.24 1.76 3.18 4.33
PSG Balanced A 20.14 - 3.91 - 4.84 - 2.31 0.42 2.56
PSG Flexible A 21.09 - 8.93 - 6.67 - 3.76 - 0.66 2.42
PSG SA Equity D 28.92 - 12.99 - 13.82 - 10.04 - -
PSG Equity A 23.42 - 9.05 - 9.91 - 6.69 - 2.76 1.28
PSG Global Flexible FF A 13.96 6.01 1.51 1.24 3.52 -
PSG Global Equity FF A 18.41 - 0.33 - 2.44 - 0.98 2.39 4.84
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 32.34 1.53 - 2.88 - 2.09 2.01 3.81
PSG Global Equity USD 34.75 - 3.31 - 5.99 - 3.82 1.23 3.20
  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 12.47 - 4.37 - 3.09 - 3.26 0.09 1.35
PSG Wealth SA Property Equity Portfolio 10.65 - 46.26 - 29.35 - 23.10 - 16.17 -
PSG Wealth Dividend Income Equity Portfolio 13.19 - 16.57 - 9.32 - 6.07 - 1.78 -
PSG Wealth Offshore Equity Portfolio (USD) 16.43 12.98 14.24 12.50 16.24 13.69
  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

  • Microsoft's operations benefitted from changing consumer behaviour, which is accelerating the rate of cloud adoption. However, we feel the group's attractive attributes are fully reflected in the current share price.
  • On an earnings basis, the share is currently trading at an 18% premium to its peers compared with its 10% historical discount over the past five years.
  • Microsoft's diverse and global operations, increasingly interlinked ecosystem, high margin, scalable operations and annuity-type revenue warrant a premium in our opinion.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • Microsoft's operations benefitted from changing consumer behaviour, which is accelerating the rate of cloud adoption. However, we feel the group's attractive attributes are fully reflected in the current share price.
  • On an earnings basis, the share is currently trading at an 18% premium to its peers compared with its 10% historical discount over the past five years.
  • Microsoft's diverse and global operations, increasingly interlinked ecosystem, high margin, scalable operations and annuity-type revenue warrant a premium in our opinion.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • The local property sector was already constrained by an oversupply of stock within the retail and office space before the COVID-19 pandemic hit.
  • Although Growthpoint completed an equity issue, they would not necessarily be forced into another one.
  • Growthpoint has multiple listed investments, which could be disposed of at a discount to its market value if needed before another rights issue.
  • While we recognise a difficult valuation cycle ahead, we feel the share offers value trading at a 47% discount to its NAV post the equity issue.
  • For more information about this sector, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
25 November 2020 Afrimat Limited AFT Cash Dividend
25 November 2020 Compagnie Financiere Richemont SA CFR Bonus Issue
25 November 2020 Cartrack Holdings Limited CTK Cash Dividend
25 November 2020 Investec Bank (Mauritius Limited Redeemable Cumulative Non-Participating No Par Value Preference Shares IMRP1 Cash Dividend
25 November 2020 Investec Bank (Mauritius Limited Redeemable Cumulative Non-Participating No Par Value Preference Shares IMRP3 Cash Dividend
25 November 2020 Investec Bank (Mauritius Limited Redeemable Cumulative Non-Participating No Par Value Preference Shares IMRP6 Cash Dividend
25 November 2020 Investec Holdings Limited Preference Shares IVTP Cash Dividend
25 November 2020 Naspers Limited NPN 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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