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World markets rally as China measures ease virus fears

05 February 2020

World markets rally as China measures ease virus fears

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The JSE rose for a second consecutive day on Tuesday as global markets recovered despite the coronavirus death toll rising to more than 420. The All Share closed up by 1.77%.

US flag Icon
United States

Wall Street surged on Tuesday as fears of a heavy economic impact from the coronavirus epidemic tapered off after China’s central bank intervened for the second day. Shortly after the JSE closed, the Dow was up 1.52%.

EU flag Icon
Europe

European shares climbed higher on Tuesday, extending their recovery from a sharp sell-off last week that was driven by concerns over a virus outbreak in China. Just after the JSE closed, the FTSE 100 added 1.32%, France’s CAC 40 1.47% and Germany’s DAX 30 1.56%.

HK flag Icon
Hong Kong

Hong Kong stocks rose on Tuesday, as measures by China’s central bank eased concerns about the rapidly spreading coronavirus outbreak. The Hang Seng index closed up by 1.21%.

Japan flag Icon
Japan

Japanese stocks edged up on Tuesday, as Chinese shares steadied somewhat, but sentiment remained fragile as investors fretted over the growing economic and human costs of a virus outbreak. The Nikkei index ended up 0.49%.

Rand Icon
Rand

The rand entered its second day of gains and was the best-performing among emerging-market currencies on Tuesday. At 17h30pm, it had strengthened 0.75% to R14.75/$.

Precious metals Icon
Precious metals

Gold eased on Tuesday as investors booked profits, but concerns about a rapidly spreading virus outbreak in China and its economic impact underpinned the precious metal. An ounce of gold traded at $1 551.11 at 19h30.

Oil Icon
Oil

Oil prices bounced on Tuesday, edging up on hopes that more cuts in crude production from OPEC and its allies would offset demand destruction related to the coronavirus outbreak. A barrel of Brent crude traded at $55.59 at 19h30.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 56 817.03 1.77 - 1.65 0.14 2.80 10.11
Gold mining 2 778.97 - 1.11 - 6.11 6.03 26.26 95.30
Basic minerals 34 349.12 1.60 - 5.15 1.56 12.27 20.10
Industrial index 77 806.56 2.04 2.39 2.95 - 0.51 14.17
Financial 37 648.43 1.47 - 4.49 - 6.38 - 0.64 - 6.94
Fin + Ind 30 7 497.80 1.84 - 0.08 - 0.45 - 0.71 6.44
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) 28 807.63 1.44 0.67 5.54 10.09 16.93
S&P 500 PR (USD) 3 297.59 1.50 2.04 7.65 13.57 23.44
NASDAQ (USD) 9 273.40 1.34 2.83 10.86 16.47 29.05
FT-100 (GBP) 7 439.82 1.55 - 2.36 1.56 2.50 10.68
Hang Seng (HKD) 26 675.98 1.21 - 6.21 - 3.01 0.22 - 1.22
Nikkei 225 (JPY) 23 084.59 0.49 - 2.41 1.20 10.56 12.90
MSCI World (USD) 6 987.25 1.35 0.91 5.73 11.73 19.23
Frankfurt (EUR) 5 924.26 1.81 0.47 1.11 11.87 18.84
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 571.20 - 0.48 1.54 4.11 9.41 19.85
Platinum ($) 980.00 2.94 - 0.81 2.73 15.98 19.66
Brent Oil ($) 54.45 - 6.38 - 20.63 - 11.74 - 12.02 - 13.23
Rand/USD 14.83 - 0.05 - 3.49 0.05 2.71 - 10.69
Rand/GBP 19.31 - 0.11 - 2.97 - 1.34 - 5.24 - 10.55
Rand/EUR 16.37 0.19 - 2.28 0.27 4.21 - 6.84
ALBI (R) 709.45 0.03 1.52 3.09 4.73 9.23
  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. Standard Bank PMI JAN
  1. China: Caixin Composite PMI JAN
  2. EA: Retail Sales DEC
  3. US: Balance of Trade DEC

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 7.93 7.94 7.98 8.02 7.79
PSG Wealth Income FoF D 3.65 7.88 7.81 7.93 8.23 7.97
PSG Wealth Preserver FoF D 2.94 7.01 4.99 5.92 6.04 6.32
PSG Wealth Moderate FoF D 2.92 7.42 2.91 5.09 5.85 5.56
PSG Wealth Creator FoF D 3.47 5.46 - 0.17 3.29 6.13 3.83
PSG Wealth Global Moderate FF D 6.70 22.77 12.92 9.51 5.11 9.19
PSG Wealth Global Creator FF D 11.30 36.84 19.78 17.79 11.41 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 5.62 9.53 1.60 5.57 7.25 3.36
PSG Wealth Global Creator FoF D 9.54 20.37 7.13 13.20 13.58 9.59
PSG Wealth Global Preserver FoF (USD) D 3.35 7.08 3.28 4.54 6.44 4.11
PSG Wealth Global Flexible FoF (USD) D 6.80 12.94 4.98 10.71 12.03 8.55
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 1.96 7.30 6.06 3.83 7.98 6.10
PSG Wealth Global Flexible FoF (GBP) D - 0.13 13.57 8.69 9.09 13.79 10.44
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.91 6.58 6.94 7.14 7.22 7.08
PSG Income A 3.85 8.04 8.08 8.31 8.36 7.99
PSG Diversified Income 3.24 6.55 6.60 7.38 7.61 7.63
PSG Stable A 1.29 0.29 1.28 3.84 5.59 5.43
PSG Balanced A - 0.48 - 5.06 - 3.79 0.49 4.50 3.57
PSG Flexible A - 1.08 - 5.49 - 3.97 0.05 5.34 4.25
PSG SA Equity D - 7.54 - 20.06 - 15.63 - 8.03 - -
PSG Equity A - 2.58 - 11.19 - 9.27 - 3.61 5.04 1.06
PSG Global Flexible FF A 2.45 5.53 3.80 3.59 5.02 -
PSG Global Equity FF A 2.07 3.77 2.27 3.72 6.03 7.02
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 1.47 - 6.21 - 6.52 - 0.15 7.46 1.61
PSG Global Equity USD 1.14 - 7.66 - 7.59 - 0.02 8.37 1.39
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 3.29 6.84 6.92 7.35 7.47 7.27
PSG Direct Low Equity 1.03 - 0.25 0.64 3.27 5.25 4.95
PSG Direct Managed - 0.86 - 5.59 - 4.26 - 0.07 4.24 3.27
PSG Direct Aggressive - 0.96 - 5.29 - 4.24 - 0.60 4.89 -
PSG Direct Global Managed 2.21 5.05 3.33 3.12 4.54 -
PSG Direct Global Aggressive 1.98 3.95 2.37 3.21 5.18 -
  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
  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 - 2.19 - 5.48 - 6.16 - 0.77 3.96 -
PSG Wealth SA Property Equity Portfolio - 4.38 - 14.96 - 9.57 - 6.05 - 4.25 -
PSG Wealth SA Dividend Income Equity Portfolio - 4.33 - 11.21 - 9.06 - 0.09 - -
PSG Wealth Offshore Equity Portfolio (USD) 12.03 19.83 9.43 16.38 15.48 -
PSG Wealth Managed Volatility Equity Portfolio - 3.42 - 10.05 - 11.39 - 5.05 - -
  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 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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