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Gold hits record high

28 July 2020

Gold hits record high

Daily Investment Update

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Market commentary

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South Africa

The JSE closed 1.22% higher on Monday benefitting from gains in gold, resources and the financial sector.

US flag Icon
United States

Wall Street rebounded on Monday as investors shrugged off surging COVID-19 cases and US-China tensions, betting instead on more stimulus to revive a battered domestic economy ahead of a week packed with quarterly earnings reports.

EU flag Icon
Europe

European shares slipped on Monday with travel stocks leading the declines after Britain imposed a quarantine on travellers returning from Spain, where cases of the novel coronavirus have surged in the last few weeks. The pan-European STOXX 600 was down 0.20%.

HK flag Icon
Hong Kong

The Hang Seng fell 0.41% on Monday due to rising Sino-US tensions and a jump in COVID-19 cases in the city weighing on investor sentiment.

Japan flag Icon
Japan

The Nikkei dropped 0.16% on Monday as worries over worsening ties between China and the United States soured investor mood, and a firmer yen weighed on exporters.

Rand Icon
Rand

The local currency strengthened against the US dollar at 18h00 on Monday, firming by 1.43% to R16.42/$.

Precious metals Icon
Precious metals

Gold prices hit an all-time high of $1 945 per ounce on Monday amid a plunge in the US dollar and as concerns about the global economic outlook and rising tensions between US-China boosted demand for a safe-haven metal.

Oil Icon
Oil

Oil prices dropped nearly 2% on Monday despite a weaker US dollar, as rising COVID-19 cases and tensions between the United States and China clouded the outlook for oil demand’s recovery.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 56 326.20 1.22 5.05 13.87 2.45 1.29
Gold mining 6 662.47 8.73 41.80 35.05 136.46 220.86
Basic minerals 41 326.26 3.10 14.96 29.23 23.88 31.37
Industrial index 77 774.81 - 0.01 - 1.19 5.44 3.70 - 0.26
Financial 26 538.55 0.55 3.09 9.07 - 26.86 - 29.83
Fin + Ind 30 6 733.25 0.14 - 0.06 6.40 - 7.00 - 10.69
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) 26 584.77 0.43 6.39 10.83 - 5.67 0.19
S&P 500 PR (USD) 3 239.41 0.74 7.78 13.07 0.86 9.19
NASDAQ (USD) 10 536.27 1.67 8.02 20.96 15.86 27.78
FT-100 (GBP) 6 104.88 - 0.31 - 0.68 5.14 - 16.17 - 15.99
Hang Seng (HKD) 24 603.26 - 0.41 1.06 3.71 - 9.66 - 10.24
Nikkei 225 (JPY) 22 715.85 - 0.16 1.04 14.97 - 1.58 7.13
MSCI World (USD) 6 841.14 0.88 7.27 14.78 - 0.95 6.17
Frankfurt (EUR) 5 576.10 0.00 6.20 20.44 - 2.77 3.37
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 940.55 2.47 10.13 13.00 22.55 36.83
Platinum ($) 941.00 2.62 17.33 23.01 - 5.24 9.04
Brent Oil ($) 43.34 0.07 7.52 102.15 - 28.59 - 31.40
Rand/USD 16.46 0.68 3.91 11.24 - 12.42 - 15.09
Rand/GBP 21.16 0.50 0.63 8.53 - 11.04 - 19.64
Rand/EUR 19.31 0.43 - 0.44 4.03 - 19.73 - 21.34
ALBI (R) 711.05 0.43 0.98 10.94 1.36 5.28
  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 ecobnomic data scheduled for release
  1. US: CB Consumer Confidence JUL
  2. US: Richmond Fed Manufacturing Index JUL

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 3.24 7.17 7.61 7.73 7.86 7.78
PSG Wealth Income FoF D 1.25 4.75 6.33 6.80 7.25 7.42
PSG Wealth Preserver FoF D - 0.80 2.07 3.28 4.24 4.62 5.25
PSG Wealth Moderate FoF D - 3.02 0.05 1.17 2.73 3.40 4.08
PSG Wealth Creator FoF D - 4.73 - 1.64 - 0.50 1.30 2.42 2.48
PSG Wealth Global Preserver FF D 13.77 21.75 15.22 - - -
PSG Wealth Global Moderate FF D 13.66 24.53 15.12 12.34 9.10 8.70
PSG Wealth Global Flexible FF D 19.11 32.49 20.29 - - -
PSG Wealth Global Creator FF D 16.25 33.28 21.60 19.61 16.22 15.12
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D - 2.68 3.01 2.51 2.97 4.69 2.78
PSG Wealth Global Creator FoF D - 0.93 9.55 8.01 9.43 11.36 8.65
PSG Wealth Global Preserver FoF (USD) D - 3.03 0.18 2.61 2.06 2.96 3.56
PSG Wealth Global Flexible FoF (USD) D 1.83 9.75 7.48 8.00 10.03 8.56
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 1.78 - 2.05 3.10 2.32 3.30 6.30
PSG Wealth Global Flexible FoF (GBP) D 4.24 7.41 9.03 8.27 10.21 11.67
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.12 6.74 7.02 7.15 7.27 7.19
PSG Income A 5.52 9.45 8.90 8.65 8.70 8.48
PSG Diversified Income 2.06 4.80 5.81 6.53 7.04 7.20
PSG Stable A - 7.90 - 6.73 - 3.27 0.25 1.97 2.83
PSG Balanced A - 13.46 - 13.53 - 9.79 - 4.52 - 1.39 - 0.20
PSG Flexible A - 17.30 - 17.56 - 11.41 - 5.82 - 2.20 - 0.51
PSG SA Equity D - 19.23 - 25.53 - 19.52 - 12.64 - -
PSG Equity A - 17.93 - 19.56 - 15.03 - 8.75 - 4.02 - 3.13
PSG Global Flexible FF A - 0.54 4.44 0.46 2.33 3.87 -
PSG Global Equity FF A - 7.93 - 3.36 - 4.20 - 0.31 2.53 2.52
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 15.08 - 14.30 - 10.85 - 6.07 - 0.11 - 1.10
PSG Global Equity USD - 20.16 - 19.61 - 14.31 - 7.98 - 1.03 - 2.33
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 3.76 6.95 7.06 7.22 7.44 7.38
PSG Direct Low Equity - 7.46 - 6.53 - 3.51 - 0.09 1.72 2.53
PSG Direct Managed - 14.61 - 14.92 - 10.59 - 5.27 - 2.03 - 0.72
PSG Direct Aggressive - 14.24 - 14.16 - 10.35 - 5.28 - 1.77 -
PSG Direct Global Managed - 0.77 3.96 0.00 1.86 3.40 -
PSG Direct Global Aggressive - 5.39 - 0.91 - 2.90 0.24 2.58 -
  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 -0.12 -0.14 -0.09 -0.04 -0.02 -
PSG Wealth SA Property Equity Portfolio -0.38 -0.42 -0.28 -0.21 -0.15 -
PSG Wealth Income Growth Equity Portfolio -0.20 -0.25 -0.15 -0.07 -0.04 -
PSG Wealth Offshore Equity Portfolio (USD) -0.03 0.09 0.10 0.11 0.13 -
  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

  • We recommend a neutral position for both Naspers and Prosus. Click here to read the full report on our secure site or log in to myBase.
  • Despite the regulatory and political risks that come with investing in Chinese stocks, we acknowledge that, to a large extent, Prosus and Naspers provide an alternative risk and reward profile due to the exposure to structural growth trends, which are not available through alternative local counters.
  • Naspers and Prosus trade at discounts of 23% and 13% respectively.
  • Given that management is determined to reduce the discounts over time, we suspect there will eventually be large value unlock for shareholders.
  • The share price for both Naspers and Prosus moves with a fairly high correlation to the USD/ZAR exchange rate.


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Highlights

  • We recommend a neutral position in the PSG Wealth House View SA Equity Portfolio. Click here to read the full report on our secure site or log in to myBase.
  • CFR SJ is trading at a forward P/E of approximately 31 times, which is above its five-year average and its 10-year average of approximately 21 times and 19 times, respectively; it is largely in line with its peers.
  • Despite the COVID-19 headwinds, Richemont is well-positioned, with a strong brand momentum. It continuously shows broad-based and strong top-line growth, attractive operating margins and robust cash generation.


company logo

Highlights

  • We recommend an overweight position in the PSG Wealth House View SA Equity Portfolio. Click here to read the full report on our secure site or log in to myBase.
  • OMU SJ has less than 10% of the unsecured lending market, which provides a significant opportunity to drive future growth.
  • Due to Old Mutual’s size, balance sheet strength, historically low discount to group equity value and the low relative price to group equity value or embedded value compared with peers, we feel that the group will be more resilient to economic challenges in 2020 and offer a better potential for upside relative to peers.


Corporate actions

Date Company Share code Expectation
29 July 2020 Peregrine Holdings Limited PGR General Offer
29 July 2020 Safari Investments RSA Limited SAR 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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