Vaccine optimism boosts rand

24 November 2020

Vaccine optimism boosts rand

Daily Investment Update

Market commentary

	South Africa The JSE closed Monday 0.94% higher after strong half-year financial results from Naspers and optimism about a COVID-19 vaccine boosted risk-on trade.
	United States Most Wall Street indices opened stronger on Monday on the back of reports that in only a few weeks the first COVID-19 vaccine could be rolled out. At 18h00, the Dow Jones was 0.78% in the green.
	Europe Main European shares closed lower on Monday as concerns about economic restrictions on the continent to curb further waves of COVID-19 weighed on investor sentiment.
	Hong Kong The Hang Seng traded flat on Monday at a 0.13% increase and 26 486.20 points; although cyclical stocks performed well on the back of more positive COVID-19 vaccine reports, gains were capped by US-China trade tensions.
	Japan Japanese markets were closed on Monday for a public holiday.
	Rand The local currency shrugged off Friday’s ratings losses, strengthening to an almost two-week peak on Monday due to hopes that a COVID-19 vaccine could be rolled out soon.
	Precious metals Gold prices fell over 2% on Monday, reaching its lowest point in four months, due to “better-than-expected US business activity data and promising COVID-19 vaccine trials”. Gold traded at $1 836.97/oz at 18h00.
	Oil On Monday, oil climbed 2%, trading at $45.73 a barrel at 18h00, as optimistic COVID-19 vaccine reports increased traders’ hopes that oil demand will rise.

Market indicators

Local markets (R)
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
ALSI	57 147.31	0.94	3.28	2.83	15.04	3.50
Gold mining	3 732.43	- 5.38	- 21.16	- 32.95	- 14.93	57.13
Basic minerals	37 289.76	0.54	- 1.76	- 7.09	15.76	15.69
Industrial index	84 560.47	1.37	6.61	8.45	13.76	13.44
Financial	28 337.27	0.50	4.56	9.18	17.50	- 27.36
Fin + Ind 30	7 284.94	1.14	6.05	8.64	14.73	- 1.56
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)	29 591.27	1.14	4.66	6.51	22.26	8.66
S&P 500 PR (USD)	3 577.59	0.57	3.41	5.76	22.08	17.19
NASDAQ (USD)	11 854.97	- 0.42	3.04	5.45	26.95	40.31
FT-100 (GBP)	6 333.84	- 0.28	8.34	6.06	7.26	- 10.77
Hang Seng (HKD)	26 486.20	0.13	6.37	6.15	18.58	2.82
Nikkei 225 (JPY)	25 527.37	- 0.41	8.34	12.33	24.94	12.46
MSCI World (USD)	7 573.10	0.28	4.90	6.85	23.79	13.83
Frankfurt (EUR)	5 681.14	- 0.08	3.81	2.84	18.54	- 0.28
Other markets
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
Gold ($)	1 863.80	- 0.17	- 2.45	- 3.57	7.58	26.68
Platinum ($)	950.00	- 0.11	6.50	4.17	14.60	4.28
Brent Oil ($)	46.06	2.45	10.27	3.86	31.11	- 27.34
Rand/USD	15.38	0.04	5.41	8.53	11.42	- 4.69
Rand/GBP	20.50	- 0.10	3.17	7.15	3.62	- 8.66
Rand/EUR	18.22	0.23	5.30	8.22	4.65	- 12.57
ALBI (R)	744.54	- 0.22	3.20	4.74	6.23	8.24

^{Some data may be delayed, the above table reflects the latest available information
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
Leading Business Cycle Indicator m/m SEP	DE: GDP Growth Rate q/q Final Q3 EU: ECB President Lagarde Speech

^{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	2.40	6.11	7.03	7.35	7.55	7.62
PSG Wealth Income FoF D	4.22	5.27	6.73	6.97	7.38	7.52
PSG Wealth Preserver FoF D	5.72	2.84	5.09	3.80	5.23	5.32
PSG Wealth Moderate FoF D	8.97	1.74	4.89	2.03	4.64	4.57
PSG Wealth Creator FoF D	14.66	2.50	5.49	0.39	4.21	3.94
PSG Wealth Global Preserver FF D	- 6.38	7.95	10.45	-	-	-
PSG Wealth Global Moderate FF D	- 0.04	12.48	13.74	8.03	8.52	7.44
PSG Wealth Global Flexible FF D	1.71	19.82	18.92	-	-	-
PSG Wealth Global Creator FF D	5.30	21.72	22.52	15.42	16.51	13.91
PSG Wealth Solutions ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Moderate FoF D	16.05	8.34	9.36	4.70	6.74	5.19
PSG Wealth Global Creator FoF D	23.21	17.37	18.51	11.94	14.55	11.51
PSG Wealth Global Preserver FoF (USD) D	9.28	3.24	5.42	3.20	4.33	4.81
PSG Wealth Global Flexible FoF (USD) D	19.05	16.10	14.94	10.01	12.50	10.99
PSG Wealth Solutions (£)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Preserver FoF (GBP) D	2.66	0.60	3.52	2.86	3.06	6.65
PSG Wealth Global Flexible FoF (GBP) D	9.98	13.31	13.00	9.67	10.50	13.00
PSG Asset Management
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Money Market A	2.11	5.62	6.44	6.73	6.95	7.00
PSG Income A	4.74	9.71	9.00	8.87	8.73	8.56
PSG Diversified Income	6.14	7.76	7.34	7.42	7.61	7.67
PSG Stable A	10.83	- 0.93	- 0.18	1.72	3.14	4.22
PSG Balanced A	18.53	- 4.33	- 4.65	- 2.40	0.34	2.33
PSG Flexible A	19.06	- 9.75	- 6.69	- 4.06	- 0.85	2.11
PSG SA Equity D	26.59	- 14.61	- 14.14	- 10.20	-	-
PSG Equity A	21.63	- 9.88	- 9.84	- 6.93	- 2.93	0.85
PSG Global Flexible FF A	11.03	5.54	1.85	0.72	3.37	-
PSG Global Equity FF A	14.26	- 0.68	- 2.03	- 1.55	2.22	4.52
PSG Asset Management ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Global Flexible USD A	30.58	2.75	- 1.54	- 2.20	1.93	3.59
PSG Global Equity USD	32.69	- 1.96	- 4.44	- 3.95	1.15	2.97

^{The PSG Wealth Solutions are exclusively available through registered PSG planners and/or advisers
The above information reflects the latest available data at time of distribution, as such product performance data reflects T-2 numbers
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	9.02	- 7.79	- 3.40	- 3.93	- 0.45	0.59
PSG Wealth SA Property Equity Portfolio	7.53	- 47.95	- 30.32	- 23.36	- 16.59	-
PSG Wealth Dividend Income Equity Portfolio	9.03	- 20.03	- 9.81	- 6.99	- 2.46	-
PSG Wealth Offshore Equity Portfolio (USD)	14.75	12.47	15.05	12.00	16.00	13.19

^{The PSG Wealth equity portfolios are exclusively available through registered PSG planners and/or advisers
PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs
PSG Wealth SA and Offshore Equity Portfolio Inception date: 30 August 2015
PSG Wealth SA Listed Property Portfolio Inception date: 1 December 2015
PSG Wealth Dividend Income Equity Portfolio Inception date: 29 April 2016
PSG Wealth Managed Volatility Equity Portfolio Inception date: 28 July 2016
PSG Wealth Funds are exclusively available through registered PSG planners and/or advisers}

Recent Investment Ideas

company logo

Highlights

There is a high level of uncertainty surrounding the resumption of economies and the impact on tourism in the future.
The balance sheet remains strong, which is essential to protect equity value during current events.
LVMH is trading at a forward P/E of approximately 36 times, which is nearly 60% above its five-year average.
The FCF yield also contracted to 2.6% and is now at a discount to peers compared with its historical 23% premium.
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

^{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.
This document only contains general information and not the opinion of the distributor.}

Vaccine optimism boosts rand

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24 November 2020