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A rise in local COVID-19 cases weighs on sentiment

26 November 2020

A rise in local COVID-19 cases weighs on sentiment

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

On Wednesday, the All Share closed 0.03% lower, due to a rise in COVID-19 cases and higher local inflation data.

US flag Icon
United States

A surprise rise in jobless claims and a growing number of COVID-19 infections weighed on US markets on Wednesday. At 18h00, the Dow Jones had fallen by 0.43%.

EU flag Icon
Europe

European shares fell slightly on the back of relaxed COVID-19 restrictions and hopes of a vaccine in the near future. The STOXX 600 ended the day 0.08% lower.

HK flag Icon
Hong Kong

The Hang Seng traded 0.24% higher on Wednesday due to global risk-on sentiment; however, gains were capped by a sell-off in tech shares.

Japan flag Icon
Japan

The Nikkei closed up 0.50% on Wednesday boosted by optimism around the COVID-19 vaccine, an overnight rally by the Dow and easing US election concerns.

Rand Icon
Rand

The local currency lost little ground against major global currencies on Wednesday after inflation rose above expectations. At 18h00, the rand traded at R15.25/$, R20.38/£ and R18.13/€.

Precious metals Icon
Precious metals

Gold prices rose slightly on Wednesday after US initial jobless claims climbed unexpectedly, sending investors to safe-haven assets. Gold traded at $1 810.81/oz at 18h00.

Oil Icon
Oil

On Wednesday, oil rose to $48.10 a barrel at 18h00, up almost 2% for the day due to both COVID-19 vaccine optimism and lower US crude inventories.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 742.19 - 0.03 4.40 3.63 16.45 4.64
Gold mining 3 555.42 1.21 - 24.90 - 33.85 - 16.13 51.23
Basic minerals 37 845.17 0.24 - 0.30 - 3.76 16.66 16.28
Industrial index 84 574.50 - 0.29 6.71 6.95 14.13 13.28
Financial 29 183.17 0.13 7.68 10.17 22.80 - 23.99
Fin + Ind 30 7 344.49 - 0.12 6.97 7.82 16.37 - 0.27
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) 29 872.47 - 0.58 5.66 6.28 23.42 8.93
S&P 500 PR (USD) 3 629.65 - 0.16 4.92 5.84 23.87 18.01
NASDAQ (USD) 12 094.40 0.48 4.34 5.99 29.62 42.58
FT-100 (GBP) 6 391.09 - 0.64 9.32 6.40 8.23 - 10.81
Hang Seng (HKD) 26 669.75 0.31 7.11 5.32 19.10 2.00
Nikkei 225 (JPY) 26 296.86 0.50 11.85 13.65 27.80 15.13
MSCI World (USD) 7 693.22 0.10 6.56 7.41 25.75 15.64
Frankfurt (EUR) 5 751.59 - 0.02 5.09 1.75 16.67 0.33
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 818.10 - 2.45 - 4.84 - 6.65 4.94 23.57
Platinum ($) 964.00 2.88 8.07 4.56 16.28 7.95
Brent Oil ($) 48.61 1.57 16.38 6.00 36.81 - 23.63
Rand/USD 15.12 0.54 6.49 10.88 13.31 - 2.09
Rand/GBP 20.24 0.31 3.97 9.97 6.26 - 6.32
Rand/EUR 18.03 0.38 5.70 10.46 7.16 - 10.55
ALBI (R) 746.04 0.07 3.36 4.95 5.57 9.08
  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. PPI OCT
  1. DE: GfK Consumer Confidence DEC
  2. EU: ECB Monetary Policy Meeting Accounts

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 2.39 6.11 7.02 7.33 7.53 7.61
PSG Wealth Income FoF D 4.18 5.46 6.75 7.00 7.38 7.52
PSG Wealth Preserver FoF D 6.60 3.67 5.68 3.87 5.39 5.36
PSG Wealth Moderate FoF D 11.06 3.15 5.97 2.19 4.92 4.73
PSG Wealth Creator FoF D 19.47 4.16 7.18 0.58 4.43 4.25
PSG Wealth Global Preserver FF D - 4.80 9.22 11.73 - - -
PSG Wealth Global Moderate FF D 1.22 13.89 15.22 7.90 8.89 7.25
PSG Wealth Global Flexible FF D 2.72 21.48 20.73 - - -
PSG Wealth Global Creator FF D 6.12 22.77 24.70 15.17 16.72 13.54
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 17.49 9.29 9.77 4.63 6.87 5.40
PSG Wealth Global Creator FoF D 23.04 18.21 18.77 11.63 14.53 11.65
PSG Wealth Global Preserver FoF (USD) D 9.72 3.95 5.73 3.30 4.42 4.94
PSG Wealth Global Flexible FoF (USD) D 19.25 16.62 15.25 9.78 12.45 11.00
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 2.31 0.35 3.68 3.00 3.07 6.69
PSG Wealth Global Flexible FoF (GBP) D 9.13 12.48 12.91 9.50 10.19 12.91
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.11 5.62 6.44 6.73 6.95 7.00
PSG Income A 4.59 9.70 8.92 8.84 8.69 8.55
PSG Diversified Income 5.99 8.03 7.34 7.42 7.59 7.66
PSG Stable A 12.02 0.45 0.52 1.93 3.32 4.35
PSG Balanced A 21.93 - 1.94 - 3.17 - 1.94 0.67 2.65
PSG Flexible A 23.72 - 7.23 - 5.06 - 3.56 - 0.52 2.49
PSG SA Equity D 31.41 - 11.90 - 12.47 - 9.87 - -
PSG Equity A 26.87 - 7.32 - 7.92 - 6.45 - 2.73 1.25
PSG Global Flexible FF A 14.92 8.70 3.96 1.15 3.95 -
PSG Global Equity FF A 18.52 2.86 0.30 - 1.04 2.88 4.80
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 38.82 6.38 0.36 - 0.85 2.94 4.64
PSG Global Equity USD 42.46 2.16 - 2.25 - 2.38 2.34 4.18
  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 14.26 - 4.87 - 2.17 - 3.30 - 0.05 1.18
PSG Wealth SA Property Equity Portfolio 8.76 - 45.33 - 28.59 - 22.21 - 15.45 -
PSG Wealth Dividend Income Equity Portfolio 11.78 - 17.64 - 8.70 - 6.89 - 2.20 -
PSG Wealth Offshore Equity Portfolio (USD) 17.83 14.04 16.15 12.15 16.46 13.73
  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

  • On a forward P/E basis, the share now trades at 10.6 times, a 22.3% discount to its historical average, and a 41.5% discount to its FactSet peers.
  • The group offers an attractive dividend yield of 5.2%, which, according to management, is sustainable despite possible tax reforms.
  • At current prices, we feel the share is undervalued.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • The balance sheet is strong and is reinforced by the company’s robust cash position.
  • The group currently offers a free cash flow yield of 4.2% with free cash expected to compound by high-single digits over the next four years.
  • Given the advances observed from some of the new technologies that the group is exposed to, we believe that the expected growth could be conservative.
  • We feel that the current valuation is fair, especially considering the elevated valuations elsewhere in the information technology sector.
  • For more information about this counter, please contact your PSG Wealth adviser.


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 sector, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
02 December 2020 Growthpoint Properties Limited GRT DRIPOption 1 - (Cash Dividend) Gross - ZAR0.40Less 20% Withholding Tax - ZAR0.08 Net - ZAR0.32Option 2 (Reinvestment)Reinvestment Price - To be announcedDefault - Option 1 (Cash)
02 December 2020 Growthpoint Properties Limited Turbo Share Instalment GRTSTA Cash Dividend
02 December 2020 Impala Platinum Holdings Limited Convertible Bonds IMCB22 Interest Payment
02 December 2020 ISA Holdings Limited ISA Cash Dividend
02 December 2020 Oasis Crescent Property Fund Limited OAS DRIPOption 1 - (Cash Dividend) Gross - ZAR0.438019292Less 20% Withholding Tax - ZAR0.087603859Net - ZAR0.350415433Option 2 (Reinvestment)Reinvestment Price - ZAR21.86Default - Option 2 (Re-Invest)
02 December 2020 Pan African Resources Plc PAN Cash Dividend
02 December 2020 Pick n' Pay Stores Limited PIK Cash Dividend (Interim)
02 December 2020 Pick n' Pay Stores Limited PIK Cash Dividend (Final)
02 December 2020 Raubex Group Limited RBX Cash Dividend
02 December 2020 RDI REIT Plc RPL Cash Dividend
02 December 2020 Sabvest Capital Limited SBP Cash Dividend
02 December 2020 Stor-Age Property REIT Limited SSS DRIPOption 1 - (Cash Dividend) Gross - ZAR0.52Less 20% Withholding Tax - ZAR0.104Net - ZAR0.416Option 2 (Reinvestment)Reinvestment Price - To be announcedDefault - Option 1 (Cash dividend)
02 December 2020 Tradehold Limited TDH Cash Dividend
02 December 2020 Vodaphone Group Limited VOD 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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