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Coronavirus concerns discourage big moves

04 February 2020

Coronavirus concerns discourage big moves

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The local bourse closed lower on Monday after a steep sell-off on Chinese indices overnight, putting pressure on commodity prices. The JSE All Share closed down by 0.45%.

US flag Icon
United States

Wall Street’s main indexes opened higher on Monday, following losses last week due to growth concerns stemming from the coronavirus epidemic. At 17h51, the Nasdaq was up by 1.48%.

EU flag Icon
Europe

European shares inched up on Monday, recovering from their worst week in nearly seven months as jitters remained over the economic fallout from a virus outbreak in China. The FTSE 100 traded 0.89% in the green at 17h51.

HK flag Icon
Hong Kong

Investors erased $393 billion from China’s benchmark stock index on Monday, sold the yuan and dumped commodities as fears about the spreading coronavirus and its economic impact drove selling on the first day of trade in China since the Lunar New Year. The Shanghai Composite closed down 7.72%.

Japan flag Icon
Japan

Japanese shares closed lower on Monday, tracking a sharp sell-off in Chinese equities, on rising worries over the economic impact from the coronavirus outbreak in China. The Nikkei index ended 1.01% lower.

Rand Icon
Rand

The local currency made up some losses on Monday, trading 0.77% higher than last week Friday. At 18h00, a dollar traded at R14.89.

Precious metals Icon
Precious metals

Gold fell on Monday as the dollar firmed and investors opted for riskier assets after China took steps to relieve pressure on its economy from the impact of the coronavirus epidemic. An ounce of spot gold traded at $1 574.09 at 17h56.

Oil Icon
Oil

Oil prices fell on Monday, dragged down by concern over demand in China after the coronavirus breakout, though the possibility of deeper crude output cuts by OPEC and its allies offered some price support. A barrel of Brent crude traded at $56.41 at 17h56.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 55 828.49 - 0.45 - 3.36 - 1.11 1.01 7.11
Gold mining 2 810.09 - 2.52 - 5.06 4.11 27.68 89.98
Basic minerals 33 807.38 - 1.39 - 6.64 - 0.09 10.50 18.01
Industrial index 76 252.51 0.20 0.34 1.07 - 2.49 10.91
Financial 37 102.55 - 0.49 - 5.87 - 6.19 - 2.08 - 10.14
Fin + Ind 30 7 362.14 - 0.04 - 1.89 - 1.55 - 2.51 3.17
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) 28 399.81 0.51 - 0.76 4.48 8.53 16.08
S&P 500 PR (USD) 3 248.93 0.73 0.54 6.45 11.90 22.44
NASDAQ (USD) 9 150.94 - 1.59 2.03 10.64 12.53 27.03
FT-100 (GBP) 7 326.31 0.55 - 3.85 0.93 0.94 9.21
Hang Seng (HKD) 26 356.98 0.20 - 7.33 - 2.59 - 0.98 - 2.19
Nikkei 225 (JPY) 22 971.94 - 1.01 - 2.89 0.71 10.02 12.86
MSCI World (USD) 6 893.86 0.38 - 0.44 4.75 10.24 18.11
Frankfurt (EUR) 5 818.74 0.49 - 1.32 0.65 9.88 16.68
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 578.85 - 0.13 2.03 4.57 9.94 19.54
Platinum ($) 952.00 - 2.26 - 3.64 2.15 12.66 15.82
Brent Oil ($) 58.16 - 0.22 - 11.88 - 3.44 - 10.76 - 6.03
Rand/USD 14.83 1.17 - 3.37 - 0.56 1.07 - 10.93
Rand/GBP 19.29 2.33 - 2.90 - 1.58 - 5.81 - 10.36
Rand/EUR 16.40 1.36 - 2.72 - 0.45 2.40 - 7.20
ALBI (R) 709.26 0.30 1.52 4.11 4.73 8.88
  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 economic data scheduled for release
  1. UK: Construction PMI
  2. US: Factory orders

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 3.82 7.91 7.94 8.00 8.04 7.80
PSG Wealth Income FoF D 3.84 7.88 7.72 7.94 8.23 7.96
PSG Wealth Preserver FoF D 3.70 7.33 5.03 5.98 6.15 6.35
PSG Wealth Moderate FoF D 3.88 8.01 2.99 5.19 5.93 5.64
PSG Wealth Creator FoF D 3.59 5.77 - 0.20 3.46 6.02 4.03
PSG Wealth Global Moderate FF D 10.21 24.99 13.80 9.80 5.70 9.03
PSG Wealth Global Creator FF D 14.54 40.30 20.42 18.04 12.33 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 4.67 9.81 1.18 5.76 7.14 3.59
PSG Wealth Global Creator FoF D 8.84 22.36 7.11 13.65 13.84 9.92
PSG Wealth Global Preserver FoF (USD) D 2.99 7.16 3.12 4.51 6.45 4.12
PSG Wealth Global Flexible FoF (USD) D 6.85 14.65 5.16 11.09 12.30 8.76
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 2.96 6.44 5.39 3.28 7.69 5.87
PSG Wealth Global Flexible FoF (GBP) D - 1.03 13.91 7.81 8.59 13.64 10.33
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.91 6.58 6.94 7.14 7.22 7.08
PSG Income A 3.82 7.97 8.07 8.31 8.36 7.99
PSG Diversified Income 3.34 6.56 6.64 7.39 7.63 7.65
PSG Stable A 1.88 0.67 1.56 4.03 5.67 5.66
PSG Balanced A 0.51 - 4.19 - 3.30 0.82 4.56 4.04
PSG Flexible A 0.16 - 4.37 - 3.33 0.53 5.48 4.77
PSG SA Equity D - 7.46 - 19.48 - 15.10 - 7.58 - -
PSG Equity A - 1.55 - 10.05 - 8.60 - 3.04 5.06 1.83
PSG Global Flexible FF A 5.68 8.41 4.87 4.04 5.53 -
PSG Global Equity FF A 5.31 6.98 3.35 4.20 6.59 7.08
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 0.10 - 5.62 - 6.95 0.34 7.13 2.35
PSG Global Equity USD - 0.65 - 6.99 - 8.16 0.56 7.98 2.31
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 3.31 6.81 6.92 7.35 7.48 7.27
PSG Direct Low Equity 1.62 0.17 0.92 3.46 5.31 5.20
PSG Direct Managed 0.19 - 4.67 - 3.75 0.30 4.32 3.75
PSG Direct Aggressive 0.62 - 3.83 - 3.51 - 0.10 5.07 -
PSG Direct Global Managed 5.44 7.92 4.40 3.56 5.05 -
PSG Direct Global Aggressive 5.21 7.03 3.45 3.67 5.72 -
  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 - 2.17 - 5.83 - 6.26 - 0.90 3.63 -
PSG Wealth SA Property Equity Portfolio - 3.72 - 13.99 - 10.60 - 5.71 - 3.77 -
PSG Wealth SA Dividend Income Equity Portfolio - 4.87 - 10.66 - 9.13 - 0.33 - -
PSG Wealth Offshore Equity Portfolio (USD) 10.07 19.66 8.11 16.46 14.90 -
PSG Wealth Managed Volatility Equity Portfolio - 2.97 - 9.34 - 11.28 - 4.94 - -
  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

  • Our recommendation for ANH SJ is overweight; click here to read the full report on our secure site.
  • We believe AB InBev is a good-quality company with an attractive and sustainable operating margin and a reliable cash conversion.
  • Operating margins across the group geographies are well ahead of peers, making further efficiency-enabled outperformance less likely.
  • Despite management believing that acquisitive growth and the extraction of synergies from acquisitions is a core competency of the group, balance sheet flexibility will likely limit such growth.


company logo

Highlights

  • Our recommendation for PFE US is overweight; click here to read the full report on our secure site.
  • The group has been able to protect its gross profit margins despite the challenging trading environment because of its scale and defensive nature.
  • We believe Pfizer is a high-quality company with a high ROE and an attractive and sustainable operating margin.


company logo

Highlights

  • Our recommendation for MCG SJ is overweight; click here to read the full report on our secure site.
  • Having only listed on the JSE in February 2019, MultiChoice has already seen its shares grow by approximately 17% to R125.
  • At these levels, and trading at a forward P/E of 15 times, we believe that MultiChoice is still undervalued and is well-positioned to benefit from mass-market growth in both South and Southern Africa.


Corporate actions

Date Company Share code Expectation
05 February 2020 Ecsponent Limited Preference Shares Class A Series 4 ECSP10 Cash Dividend
05 February 2020 Ecsponent Limited Preference Shares Class C Series 4 ECSP12 Cash Dividend
5 February 2020 Ecsponent Limited Preference Shares Class A Series 5 ECSP13 Cash Dividend
5 February 2020 Ecsponent Limited Preference Shares Class C Series 5 ECSP15 Cash Dividend
5 February 2020 Ecsponent Limited Preference Shares Class C Series 6 ECSP18 Cash Dividend
5 February 2020 Ecsponent Limited Preference Shares Class C Series 7 ECSP21 Cash Dividend
5 February 2020 Ecsponent Limited Preference Shares Class C Series 8 ECSP24 Cash Dividend
5 February 2020 Ecsponent Limited Preference Shares Class A Series 2 ECSP4 Cash Dividend
5 February 2020 Ecsponent Limited Preference Shares Class C Series 2 ECSP6 Cash Dividend
5 February 2020 Ecsponent Limited Preference Shares Class A Series 3 ECSP7 Cash Dividend
5 February 2020 Ecsponent Limited Preference Shares Class C Series 3 ECSP9 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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