Renewed lockdowns weigh on global markets

25 March 2021

Renewed lockdowns weigh on global markets

Daily Investment Update

Market commentary

	South Africa The JSE fell on Wednesday as increasing numbers of virus infections in Europe, coupled with slow vaccine rollout programmes, sparked concerns over a delay in the global economic recovery.
	United States Wall Street opened firmer after multinational tech giant Intel announced its plans to spend $20 billion on new chip plants but markets soon reversed course as concerns about the cost of infrastructure spending and possible tax increases to fund the $1.9 trillion relief bill took centre stage.
	Europe European stocks fell on Wednesday as reinforced lockdown restriction across the continent and slow Covid-19 vaccine rollout programmes weighed on sentiment. At the close of business, the FTSE 100 lost 0.25%.
	Hong Kong Apprehensions over possible inflation rate hikes and policy tightening weighed on the Hong Kong stock market on Wednesday with the Hang Seng reaching its lowest in two months at 27 918.14 points.
	Japan The Nikkei ended Wednesday 2.04% lower with energy counters leading the decline as oil prices continued to fall amid new lockdown restrictions across Europe.
	Rand The rand weakened against major global currencies on Wednesday as the world braced for a third wave of Covid-19 infections. At 19h30, the local currency traded at R14.98/$, R20.41/£ and R17.70/€.
	Precious metals Spot gold traded at $1 733.90 an ounce at 19h30 on Wednesday as higher US Treasury yields and a firmer dollar continued to weigh on demand.
	Oil Brent crude jumped over 6% trading at $64.34 a barrel at 19h45 on Wednesday “after a ship ran aground in the Suez Canal, raising supply concerns”.

Market indicators

Local markets (R)
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
ALSI	65 257.09	- 0.09	- 0.47	11.41	21.91	63.50
Gold mining	3 732.98	0.82	12.17	- 2.33	- 29.04	63.95
Basic minerals	46 774.85	0.83	- 0.41	16.40	24.77	105.49
Industrial index	92 143.98	- 0.71	0.17	12.15	18.52	46.89
Financial	30 366.93	- 1.50	- 2.61	0.10	25.33	43.98
Fin + Ind 30	7 909.75	- 0.45	- 0.52	8.75	20.37	46.25
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)	32 420.06	- 0.01	1.64	7.87	22.10	60.00
S&P 500 PR (USD)	3 889.14	- 0.55	- 0.79	5.42	20.74	61.65
NASDAQ (USD)	12 961.89	- 2.01	- 4.62	1.39	21.88	76.14
FT-100 (GBP)	6 712.89	0.20	1.50	4.18	17.10	26.98
Hang Seng (HKD)	27 918.14	- 2.02	- 5.76	6.14	20.35	27.00
Nikkei 225 (JPY)	28 405.52	- 2.03	- 4.23	6.70	24.02	59.99
MSCI World (USD)	8 262.24	- 0.74	- 1.11	4.39	21.09	61.24
Frankfurt (EUR)	6 301.81	- 0.35	4.54	7.53	15.90	50.61
Other markets
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
Gold ($)	1 734.05	- 0.30	- 4.05	- 7.40	- 6.31	8.41
Platinum ($)	1 172.53	- 0.04	- 6.25	16.77	41.12	74.37
Brent Oil ($)	63.51	- 1.40	- 7.01	18.73	45.54	124.90
Rand/USD	14.94	- 0.28	- 2.05	- 2.52	12.48	14.99
Rand/GBP	20.47	- 0.13	0.66	- 3.48	6.13	1.31
Rand/EUR	17.66	- 0.07	0.85	0.92	11.07	6.99
ALBI (R)	745.72	- 0.43	- 3.29	- 1.79	5.13	27.58

^{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
ZA: PPI FEB	US: GDP Growth Rate Final Q4 JP: Foreign Bond Investment 20/MAR

^{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 FoF D	1.98	4.85	6.37	6.88	7.18	7.39
PSG Wealth Income FoF D	3.33	10.05	6.29	6.64	6.96	7.45
PSG Wealth Preserver FoF D	8.16	28.33	6.15	6.15	6.17	5.81
PSG Wealth Moderate FoF D	14.71	47.38	7.38	6.79	6.61	5.85
PSG Wealth Creator FoF D	26.13	81.91	10.93	8.27	7.61	7.11
PSG Wealth Global Preserver FF D	- 6.51	5.65	7.27	12.68	-	-
PSG Wealth Global Moderate FF D	- 1.57	19.47	11.61	14.81	11.67	6.24
PSG Wealth Global Flexible FF D	- 0.90	23.47	15.89	-	-	-
PSG Wealth Global Creator FF D	4.73	38.70	20.56	23.05	19.75	13.55
PSG Wealth Solutions ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Moderate FoF D	13.03	44.79	9.81	6.37	6.81	6.84
PSG Wealth Global Creator FoF D USD	18.73	71.21	18.23	14.21	14.52	14.07
PSG Wealth Global Preserver FoF (USD) D	7.47	27.15	5.28	4.69	4.24	5.04
PSG Wealth Global Flexible FoF (USD) D	12.65	52.97	13.64	11.66	11.72	12.15
PSG Wealth Solutions (£)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Preserver FoF (GBP) D	1.32	10.92	3.28	4.92	2.28	5.36
PSG Wealth Global Flexible FoF (GBP) D	4.73	29.30	11.37	12.25	8.85	12.25
PSG Asset Management
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Money Market A	1.63	4.36	5.77	6.27	6.58	6.77
PSG Income A	2.63	9.70	8.10	8.04	8.15	8.34
PSG Diversified Income	4.69	16.30	7.19	6.83	7.16	7.52
PSG Stable A	14.23	35.14	3.68	3.28	4.15	5.11
PSG Balanced A	27.24	65.02	4.46	2.71	3.24	4.61
PSG Flexible A	29.58	70.26	2.60	2.01	2.54	4.32
PSG SA Equity D	30.62	77.14	- 3.00	- 6.80	-	-
PSG Equity A	31.97	75.81	1.04	- 0.70	- 0.08	3.53
PSG Global Flexible FF A	24.79	64.38	10.18	12.78	9.89	-
PSG Global Equity FF A	31.88	78.92	8.08	11.27	9.17	7.17
PSG Asset Management ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Global Flexible USD A	41.28	98.18	7.77	3.63	4.72	7.66
PSG Global Equity USD	49.27	113.61	6.50	2.81	4.37	8.04

^{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	16.43	45.39	- 0.57	- 1.82	0.87	2.00
PSG Wealth SA Property Equity Portfolio	37.23	50.53	- 19.93	- 16.30	- 12.71	- 11.33
PSG Wealth Dividend Income Equity Portfolio	17.90	44.23	- 6.44	- 7.83	- 2.52	-
PSG Wealth Offshore Equity Portfolio (USD)	19.45	65.66	18.17	15.18	16.25	15.67

^{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

Highlights

We believe BTI can consistently grow earnings over the long-term despite volume declines in the combustible segment.
We feel that medium-term earnings are likely to be supported by continuous investments in next generation products as these mature and improve profitability.
Regardless of a growth outlook that mirrors the broader staple market, the group is trading at a significant discount to staple counters.
Thus, we maintain an overweight position for the counter.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

On a PB basis, the group is currently trading at an 8.6% discount to its peers.
The group's balance sheet is strong relative to other real estate companies, as seen in the very comfortable LTV ratio of 20.5%, which is well below its covenant of 40%.
We feel the group is well-positioned, given the effect of the pandemic on the real estate sector.
Liberty's discount to its five-year historical average has improved since it released 1H20 results; it now trades at a 16.8% discount to its historical average.
Accordingly, we maintain our neutral guidance for portfolios with a property only mandate.
For more information about this counter, please contact your PSG Wealth adviser.

Highlights

We estimate that the local operations have access to sufficient liquidity to give the group the flexibility to restructure its Australian operations.
Additionally, the Australian properties' sale has eliminated the cross guarantee between DJ and CRG, giving it more flexibility.
But the pandemic has resulted in a weak consumer environment, and the Australian operation's restructuring has no easy solutions.
We feel that the share is fairly valued at current levels and would recommend a neutral portfolio positioning.
For more information about this counter, please contact your PSG Wealth adviser.

Corporate actions

Date	Company	Share code	Expectation
30 March 2021	FirstRand Limited	FSR	Cash Dividend
30 March 2021	Metrofile Holdings Limited	MFL	Cash Dividend
30 March 2021	Putprop Limited	PPR	Cash Dividend
30 March 2021	Royal Bafokeng Platinum Limited	RBP	Cash Dividend
30 March 2021	South Ocean Holdings Limited	SOH	Cash Dividend
30 March 2021	Trellidor Holdings Limited	TRL	Cash Dividend
31 March 2021	Hammerson plc	HMN	DVOPOption 1 - (Cash Dividend) PID Gross Rate - TBA Less 20% UK Tax - TBA Net - TBAOption 2 (Enhanced Scrip Dividend Alternative) Ratio - TBADefault - Option 1 (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.}

Renewed lockdowns weigh on global markets

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25 March 2021