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JSE lower on escalating US-Sino trade tensions

05 August 2019

JSE lower on escalating US-Sino trade tensions

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Market commentary

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South Africa

The JSE closed lower on Friday after US President Donald Trump threatened to impose additional tariffs on $300 billion worth of Chinese goods from 1 September. Shortly after the closing bell, the All Share was down 1.66%.

US flag Icon
United States

Following a renewed sense of fear over a slowing global economy, shares on Wall Street fell on Friday after Trump fuelled trade tensions with China while investors kept a close watch on employment figures. At 19h00, the S&P 500 was trading 0.73% in the red.

EU flag Icon
Europe

European shares slid into negative territory on Friday, losing over 2% as Trump’s latest tariff threat on China pushed trade-sensitive sectors into a nose-dive. At 19h25, the FTSE 100 was 2.34% in the red.

HK flag Icon
Hong Kong

Hong Kong shares fell on Friday as a lack of progress in the US-Sino trade negotiations prompted what Bloomberg economists called a “harsh” response from Trump which had a negative ripple effect on Asian markets. At 19h40, the Hang Seng lost 2.35%.

Japan flag Icon
Japan

Japan’s Nikkei ended at a six-week low on Friday after Trump threatened to impose a 10% tariff on $300 billion worth of Chinese goods from 1 September, with the likelihood of imposing further tariffs if China continues to drag the bilateral talks. At the closing bell, the Nikkei had lost 2.11%.

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Rand

The local currency lost its footing against the dollar on Friday after employment figures in the US for July were in line with market expectations. At 19h45, the rand traded R14.97 against the dollar.

Precious metals Icon
Precious metals

Gaining over 1.30%, gold was on track for a good week but prices slipped on Friday in a broad-based sell-off in commodities after Trump’s latest threat shook global markets. At 19h50, spot gold was trading in the green at $1 440.88 an ounce.

Oil Icon
Oil

Rebounding from one of the biggest falls this year, oil prices clawed back on Friday as the current global economic slowdown continued to prompt weakened oil demand in the US. At 20h00, a barrel of Brent crude was trading at $61.36.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 56 273.92 - 1.66 - 3.07 - 3.89 6.04 2.99
Gold mining 2 205.53 5.89 14.58 59.37 48.79 106.83
Basic minerals 31 294.46 - 1.66 - 7.82 - 2.84 6.79 15.31
Industrial index 79 142.47 - 1.91 1.41 - 1.39 13.75 1.23
Financial 38 868.66 - 1.10 - 6.88 - 10.00 - 8.23 - 4.66
Fin + Ind 30 7 678.20 - 1.66 - 1.32 - 4.23 5.83 - 0.67
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) 26 485.01 - 0.37 - 1.00 1.31 6.95 7.06
S&P 500 PR (USD) 2 932.05 - 0.72 - 1.24 1.02 9.42 5.83
NASDAQ (USD) 8 004.07 - 1.32 - 1.26 - 0.13 10.80 3.71
FT-100 (GBP) 7 407.06 - 2.34 - 1.94 1.67 8.19 2.11
Hang Seng (HKD) 26 918.58 - 2.35 - 6.78 - 8.22 - 1.22 0.60
Nikkei 225 (JPY) 21 087.16 - 2.11 - 3.06 - 5.03 2.58 - 4.32
MSCI World (USD) 6 253.77 - 1.06 - 2.13 - 10.00 7.15 2.10
Frankfurt (EUR) 5 470.23 0.53 - 2.14 - 0.74 9.59 - 3.80
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 436.05 2.11 3.08 12.95 8.73 17.94
Platinum ($) 845.00 - 0.82 1.20 - 1.97 2.80 3.43
Brent Oil ($) 61.89 2.30 - 0.82 - 12.52 - 1.37 - 15.74
Rand/USD 14.85 -1.45 -4.60 -2.98 -10.81 -10.21
Rand/GBP 18.05 -1.90 -1.48 4.63 -3.95 -2.88
Rand/EUR 16.53 -1.94 -3.69 -2.22 -8.16 -5.80
ALBI (R) 677.09 0.17 - 0.27 2.74 3.96 8.93
  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: Standard Bank PMI JUL
  1. CN: Caixin Composite PMI JUL
  2. EA: Markit Composite PMI Final 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 3.94 8.05 8.00 8.08 7.95 7.62
PSG Wealth Income FoF D 3.91 7.75 7.69 7.94 8.05 8.04
PSG Wealth Preserver FoF D 3.73 3.92 4.89 5.36 5.96 6.67
PSG Wealth Moderate FoF D 4.13 1.13 3.32 4.22 4.97 5.78
PSG Wealth Creator FoF D 2.10 - 2.18 1.18 2.86 3.25 3.30
PSG Wealth Global Moderate FF D 13.96 11.03 7.27 6.32 6.29 8.31
PSG Wealth Global Creator FF D 22.15 17.10 14.19 13.22 12.28 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 4.34 0.98 2.32 4.73 2.50 1.97
PSG Wealth Global Creator FoF D 10.74 5.89 8.71 11.25 8.09 7.68
PSG Wealth Global Preserver FoF (USD) D 3.82 4.17 2.61 3.60 4.40 3.26
PSG Wealth Global Flexible FoF (USD) D 6.31 4.61 6.52 9.55 8.14 6.20
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 9.67 9.80 5.78 5.66 9.07 7.84
PSG Wealth Global Flexible FoF (GBP) D 14.35 12.62 10.23 11.60 13.28 12.52
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.96 6.66 7.02 7.23 7.16 7.00
PSG Income A 3.99 8.19 8.24 8.36 8.23 7.88
PSG Diversified Income 3.08 6.06 7.08 7.52 7.70 7.63
PSG Stable A - 1.02 - 0.93 3.31 4.63 5.31 6.04
PSG Balanced A - 4.61 - 7.75 - 0.69 2.40 3.35 4.94
PSG Flexible A - 4.68 - 7.08 - 0.63 2.77 4.06 5.62
PSG SA Equity D - 13.42 - 17.22 - 7.54 - 2.40 - -
PSG Equity A - 8.69 - 12.78 - 4.36 0.73 1.37 2.24
PSG Global Flexible FF A 2.85 - 0.90 1.46 5.35 5.35 -
PSG Global Equity FF A 1.69 - 3.03 1.45 6.15 5.38 6.69
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 6.52 - 10.32 - 3.35 3.88 1.74 1.06
PSG Global Equity USD - 7.49 - 12.00 - 3.34 4.72 1.71 0.76
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 6.74 7.19 7.43 7.43 7.21
PSG Direct Low Equity - 1.31 - 1.68 2.63 4.19 4.85 5.62
PSG Direct Managed - 4.84 - 8.00 - 1.13 2.03 3.06 4.64
PSG Direct Aggressive - 4.46 - 7.76 - 1.56 2.40 3.29 -
PSG Direct Global Managed 2.62 - 1.35 1.00 4.87 4.87 -
PSG Direct Global Aggressive 1.89 - 2.68 1.00 5.38 4.90 -
  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 -2.09 -7.22 -0.20 1.71 - -
PSG Wealth SA Property Equity Portfolio -10.52 -11.15 -8.51 -5.36 - -
PSG Wealth SA Dividend Income Equity Portfolio -6.15 -9.28 1.79 2.36 - -
PSG Wealth Offshore Equity Portfolio (USD) 7.51 7.96 11.04 12.91 - -
PSG Wealth Managed Volatility Equity Portfolio -5.89 -12.86 -4.78 -3.42 - -
  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

  • Our recommendation for HMN SJ is underweight; click here to read the full report on our secure site.
  • Hammerson’s direct property portfolio is not diversified across sectors as the portfolio consists of retail assets only. However, it is diversified geographically with flagship destinations in the UK, France and Ireland.
  • The group’s dividend yield is trading above its long-term average and is well above the yield offered by its peers.


company logo

Highlights

  • Our recommendation for ITU SJ is underweight; click here to read the full report on our secure site.
  • Intu’s direct property portfolio is undiversified across sectors as the portfolio consists of retail assets only and, geographically, the majority of the portfolio is held in the UK.
  • In 2018, the demand for prime shopping centres has significantly fallen due to the uncertainty of Brexit, the structural change in retail and the higher-than-normal level of administrations, and company-voluntary arrangements.


company logo

Highlights

  • Our recommendation for MND SJ is overweight; click here to read the full report on our secure site.
  • Mondi has shown robust operating performance and strong cost control.
  • Although macroeconomic uncertainties remain due to Brexit and the stability of the Eurozone, the group is focused on delivering accretive growth through its strong brand and good structural growth drivers.


Corporate actions

Date Company Share code Expectation
06 August 2019 Anglo American Platinum Limited AMS Cash Dividend
06 August 2019 Hudaco Industries Limited HDC Cash Dividend
06 August 2019 Telemasters Holdings Limited TLM 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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