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JSE records worst month since October 2018

03 June 2019

JSE records worst month since October 2018

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Market commentary

SA flag Icon
South Africa

Tracking a global sell-off in financial markets, the JSE ended lower on Friday after the US vowed to impose trade tariffs on Mexico in response to illegal migration. Shortly after the closing bell, the All Share lost 0.09%.

US flag Icon
United States

US markets fell sharply on Friday as fears that President Donald Trump’s threat to impose tariffs on Mexico could push the world’s biggest economy into a recession. At 19h00 on Sunday, the Dow had lost 1.41%.

EU flag Icon
Europe

European shares traded lower on Friday as markets digested Washington’s vow to impose a 5% tariff on Mexico from 10 June, which would then gradually increase to 25% until illegal immigration from Mexico comes to a halt. At 19h15 on Sunday, the pan-European Stoxx 600 lost 0.81%.

HK flag Icon
Hong Kong

Hong Kong shares recorded their worst month since October 2018, plunging to a four-month low on Friday as yet another deadlock in the infamous trade talks between Washington and Beijing triggered concerns over a global economic slowdown. At 19h20 on Sunday, the Hang-Seng lost 0.79%.

Japan flag Icon
Japan

Japan’s Nikkei wasn’t spared from a global sell-off on Friday as the currency fell to a 3-month low after Trump’s announcement to impose tariffs on all goods from Mexico until illegal immigration is completely halted. At the closing bell, the Nikkei had lost 1.63%.

Rand Icon
Rand

Following a tough week which saw the rand plunging as low as R14.80/$, the local currency was somewhat better than most global currencies on Friday afternoon. At 19h30 on Sunday, the rand traded at R14.59 against the dollar.

Precious metals Icon
Precious metals

Gold prices went up on Friday on the back of increased demand for safer assets, after Trump’s announcement to impose tariffs on all Mexican imports fuelled fears of a global economic slowdown. At 19h40 on Sunday, spot gold was up trading at $1 305.62 an ounce.

Oil Icon
Oil

The price of oil slipped on Friday and was set for its biggest monthly decline in over six months after Trump’s tariff spree took its toll and dented demand. At 19h45 on Sunday, a barrel of Brent crude was trading at $61.93.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 55 650.41 - 0.09 - 4.84 0.73 11.64 2.43
Gold mining 1 614.96 7.79 12.72 - 0.54 47.45 61.47
Basic minerals 30 970.45 - 1.22 - 5.09 - 2.64 23.29 16.86
Industrial index 75 254.57 0.35 - 5.95 3.11 10.22 - 3.30
Financial 41 692.49 0.22 - 2.31 - 0.11 4.27 1.32
Fin + Ind 30 7 591.20 0.31 - 4.76 1.97 8.11 - 1.80
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) 24 815.04 - 1.37 - 6.32 - 3.66 - 1.70 4.05
S&P 500 PR (USD) 2 752.06 - 1.30 - 6.35 - 0.67 0.74 3.78
NASDAQ (USD) 7 453.15 - 1.51 - 7.79 - 0.77 2.25 1.23
FT-100 (GBP) 7 161.71 - 0.78 - 2.87 2.66 5.02 - 2.54
Hang Seng (HKD) 26 901.09 - 0.67 - 8.41 - 4.86 3.06 - 8.24
Nikkei 225 (JPY) 20 601.19 - 1.63 - 7.44 - 2.88 - 6.83 - 5.26
MSCI World (USD) 5 939.69 - 0.97 - 5.77 - 0.11 1.40 - 0.29
Frankfurt (EUR) 5 235.06 - 1.47 - 5.00 1.83 4.17 - 6.97
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 296.00 1.53 1.08 - 2.22 6.19 - 0.58
Platinum ($) 793.00 0.13 - 11.69 - 9.27 - 2.10 - 13.05
Brent Oil ($) 64.49 - 3.56 - 11.41 - 2.33 9.85 - 16.88
Rand/USD 14.56 1.78 - 0.53 - 2.45 - 5.15 - 14.68
Rand/GBP 18.41 1.52 3.14 1.55 - 4.68 - 9.31
Rand/EUR 16.27 1.36 - 0.39 - 1.07 - 3.74 - 9.74
ALBI (R) 666.45 0.23 0.64 2.74 5.93 7.75
  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. ZA: No economic data scheduled for release
  1. JP: Tokyo Core CPI MAY
  2. CN: NBS Manufacturing PMI MAY

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 3.93 7.99 8.01 8.10 7.89 7.55
PSG Wealth Income FoF D 4.28 7.68 7.75 8.11 8.10 8.05
PSG Wealth Preserver FoF D 4.37 5.27 5.13 4.75 5.92 6.89
PSG Wealth Moderate FoF D 5.01 3.72 3.73 3.37 4.66 6.14
PSG Wealth Creator FoF D 5.64 0.67 1.81 2.56 2.32 3.98
PSG Wealth Global Moderate FF D 8.30 14.69 7.39 1.31 5.82 8.19
PSG Wealth Global Creator FF D 11.65 20.16 13.50 7.53 11.61 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 1.72 - 1.50 1.60 3.77 0.97 1.16
PSG Wealth Global Creator FoF D 4.83 3.79 7.30 10.12 6.45 6.35
PSG Wealth Global Preserver FoF (USD) D 3.63 2.96 2.34 4.43 3.21 3.01
PSG Wealth Global Flexible FoF (USD) D 4.07 4.91 6.27 9.55 6.59 5.75
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 4.30 6.59 3.10 8.08 6.70 6.85
PSG Wealth Global Flexible FoF (GBP) D 5.36 9.96 6.34 13.73 10.19 10.96
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.97 7.27 7.38 7.45 7.12 6.95
PSG Income A 4.14 8.18 8.29 8.55 8.16 7.85
PSG Diversified Income 3.33 6.64 7.31 7.68 7.75 7.64
PSG Stable A - 0.36 1.37 4.46 5.14 5.60 6.45
PSG Balanced A - 4.04 - 3.47 1.55 3.29 3.70 5.76
PSG Flexible A - 3.46 - 3.21 1.52 3.51 4.41 6.44
PSG SA Equity D - 6.27 - 12.18 - 2.75 2.17 - -
PSG Equity A - 5.74 - 7.20 - 0.78 3.25 1.49 3.94
PSG Global Flexible FF A - 3.76 2.81 2.28 0.45 4.75 -
PSG Global Equity FF A - 5.71 0.41 2.19 1.36 4.35 6.44
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 8.55 - 12.20 - 2.69 3.58 0.52 0.58
PSG Global Equity USD - 9.98 - 13.89 - 2.59 4.63 0.17 0.17
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 3.48 7.02 7.34 7.61 7.40 7.18
PSG Direct Low Equity - 0.74 0.77 3.86 4.72 5.10 6.05
PSG Direct Managed - 4.11 - 3.84 1.08 2.88 3.41 5.45
PSG Direct Aggressive - 4.32 - 3.40 0.72 2.49 3.38 -
PSG Direct Global Managed - 3.98 2.35 1.82 - 0.01 4.27 -
PSG Direct Global Aggressive - 5.20 0.85 1.77 0.57 4.03 -
  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 2.24 - 4.12 0.95 1.53 - -
PSG Wealth SA Property Equity Portfolio - 3.57 - 12.25 - 6.64 - 6.31 - -
PSG Wealth SA Dividend Income Equity Portfolio 3.37 - 2.86 4.24 4.82 - -
PSG Wealth Offshore Equity Portfolio (USD) 1.90 7.84 10.58 12.28 - -
PSG Wealth Managed Volatility Equity Portfolio - 0.87 - 10.11 - 3.91 - - -
  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

  • We recommend a neutral positioning for GRT SJ; click here to read the full report on our secure site.
  • Although the current distribution yield of 8.84% is enticing (well ahead of its long-term average and is guided to grow by 4.50% in the current year), locally, property fundamentals are deteriorating.
  • We feel that weak property fundamentals are fairly reflected in the valuation and would recommend a neutral position relative to the benchmark.


company logo

Highlights

  • We recommend an overweight positioning for MMI SJ; click here to read the full report on our secure site.
  • Strong growth was seen in Momentum Life, which constitutes a third of the total earnings, due to management tightening expenses, improving productivity and enhancing the product offering.
  • The improved earnings are likely to support higher dividend payments, which are likely to underpin the share price.


company logo

Highlights

  • We recommend an underweight positioning for HEIA NA; click here to read the full report on our secure site.
  • New product innovations such as low and non-alcoholic extensions to the Heineken brand is a growth prospect, although the threat of it cannibalising other brands within the portfolio is present.
  • We believe the share is fully valued at current levels, trading at a forward P/E of 20.83 times, one standard deviation away from its average forward P/E of 19.47 times.


Corporate actions

Date Company Share code Expectation
05 June 2019 AECI Limited 5.5 percent Cumulative Preference Shares AFEP Cash Distribution
05 June 2019 Astral Foods Limited ARL Cash Dividend
05 June 2019 Barloworld Limited BAW Cash Dividend
05 June 2019 Coronation Fund Managers Limited CML Cash Dividend
05 June 2019 FirstRand Bank Limited Dollar Custodial CERTS DCCUSD Interest Payment
05 June 2019 Dis-Chem harmacies Limited DCP Cash Dividend
05 June 2019 Gemgrow Properties Limited "A" GPA Cash Dividend
05 June 2019 Gemgrow Properties Limited "B" GPB Cash Dividend
05 June 2019 Indluplace Properties Limited ILU Cash Dividend
05 June 2019 Investec Limited Non-Redeemable Non-Cumulative Non-Participating Preference Shares INLP Cash Dividend
05 June 2019 Investec Plc Non-Redeemable Non-Cumulative Non-Participating Preference Shares INPP Cash Dividend
05 June 2019 Kaap Agri Limited KAL Cash Dividend
05 June 2019 Oasis Crescent Property Fund (REIT) OAS DRIP
Option 1 - (Cash Dividend) Gross - ZAR0.57445479Less 20% DWT - ZAR0.114890958Net - ZAR0.459563832
Option 2 (Reinvestment) Reinvestment Price - ZAR21.98
Default - Option 2 (Reinvestment)
05 June 2019 Pick n' Pay Stores Limited PIK Cash Dividend
05 June 2019 RDI REIT Plc RPL Cash Dividend
05 June 2019 Spear REIT Limited SEA Cash Dividend
05 June 2019 The Spar Group Limited SPP Cash Dividend
05 June 2019 Transaction Capital Limited TCP Cash Dividend
05 June 2019 Tharisa Plc THA Cash Dividend
05 June 2019 Wilderness Holdings Ltd WIL Voluntary Offer
  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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