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Trade optimism boosts global markets

05 November 2019

Trade optimism boosts global markets

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The JSE closed higher on Monday as investors digested a Moody’s reprieve and talks of Washington and Beijing possibly signing a trade deal later this month. At the closing bell, the JSE All Share gained 0.49%.

US flag Icon
United States

Wall Street’s main indices surged on Monday thanks to a stellar performance by energy and technology stocks on the back of optimism over a possible trade deal between the US and China. Shortly after the JSE closed, the Dow was up by 0.41% while the S&P 500 and the Nasdaq gained 0.46% and 0.65% respectively.

EU flag Icon
Europe

Tariff-exposed European miners boosted the pan-European STOXX 600 index on Monday following reports of a possible trade deal that could be ratified as early as this month. Shortly after the JSE closed, France’s CAC 40 index gained 1.08% while Germany’s DAX rose by 1.35%.

HK flag Icon
Hong Kong

Optimism over a partial deal that could halt the infamous trade dispute between Washington and Beijing lifted the Hong Kong stock market to a 3-month high on Monday. The Hang Seng closed 1.65% in the green.

Japan flag Icon
Japan

Japanese markets were closed for a public holiday on Monday.

Rand Icon
Rand

The rand strengthened against the dollar on Monday as investors welcomed the time given to government to get its house in order before the February 2020 budget speech. At 21h50, a dollar traded at R14.79.

Precious metals Icon
Precious metals

Gold prices fell on Monday as investors cheered fading slowing growth concerns following positive jobs data from the US and the prospect of a trade deal between two of the world’s largest economies. An ounce of spot gold traded at $1 507.39 at 21h55.

Oil Icon
Oil

An improved outlook for crude demand boosted the price of oil on Monday after improved US jobs growth data lessened apprehensions over slowing global growth. At 22h00, a barrel of Brent crude traded at $62.65.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 56 928.87 0.49 5.55 2.65 - 2.33 8.58
Gold mining 2 621.37 - 2.90 11.11 19.09 86.98 132.54
Basic minerals 33 821.39 - 0.05 10.22 10.54 5.85 21.93
Industrial index 75 920.17 0.18 3.13 - 3.35 - 5.50 6.00
Financial 40 437.13 1.68 4.72 6.13 - 5.30 0.02
Fin + Ind 30 7 568.92 0.72 3.70 - 0.26 - 5.29 4.07
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) 27 462.11 0.42 3.41 4.31 4.90 11.33
S&P 500 PR (USD) 3 078.27 0.37 4.38 5.50 5.55 15.37
NASDAQ (USD) 8 386.40 1.13 6.08 3.67 4.76 14.07
FT-100 (GBP) 7 369.69 0.92 3.19 0.93 2.20 8.75
Hang Seng (HKD) 27 547.30 1.65 6.86 3.33 - 5.61 7.80
Nikkei 225 (JPY) 22 850.77 - 0.32 4.42 6.95 3.75 7.65
MSCI World (USD) 6 581.34 0.83 4.43 6.13 4.82 12.57
Frankfurt (EUR) 5 861.81 1.35 9.35 10.65 5.83 14.04
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 509.85 0.23 2.98 7.36 17.79 23.43
Platinum ($) 954.00 2.36 7.92 12.90 11.84 10.29
Brent Oil ($) 61.69 2.42 4.75 1.97 - 14.53 - 15.37
Rand/USD 14.79 0.33 2.19 1.23 - 2.78 - 3.13
Rand/GBP 19.05 0.80 - 2.12 - 4.60 - 1.77 - 2.26
Rand/EUR 16.45 0.77 0.85 2.03 - 2.15 - 0.73
ALBI (R) 688.18 1.02 - 0.86 1.59 3.87 11.93
  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. No economic data set to be released.
  1. CN: Caixin Services PMI OCT
  2. US: ISM Non-Manufacturing PMI OCT

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 8.01 7.96 8.03 8.00 7.75
PSG Wealth Income FoF D 3.70 8.06 7.60 8.05 8.05 8.14
PSG Wealth Preserver FoF D 1.33 6.24 3.88 6.23 5.73 7.00
PSG Wealth Moderate FoF D - 0.55 5.27 1.63 5.75 4.69 6.42
PSG Wealth Creator FoF D - 2.43 4.82 - 1.02 4.84 3.44 4.78
PSG Wealth Global Moderate FF D 8.17 12.24 5.94 9.60 6.41 9.60
PSG Wealth Global Creator FF D 9.83 19.86 12.16 17.18 12.00 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 2.54 8.41 2.38 5.67 4.08 2.73
PSG Wealth Global Creator FoF D 3.60 14.64 8.17 12.83 9.36 8.09
PSG Wealth Global Preserver FoF (USD) D 2.37 7.08 3.10 4.06 4.94 3.65
PSG Wealth Global Flexible FoF (USD) D 2.45 12.74 6.92 11.03 9.18 7.30
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 3.18 7.16 3.97 2.76 8.07 6.53
PSG Wealth Global Flexible FoF (GBP) D 3.46 11.12 7.52 8.46 12.41 10.91
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.99 6.66 6.98 7.20 7.20 7.05
PSG Income A 3.88 8.33 8.29 8.33 8.26 7.92
PSG Diversified Income 2.98 6.90 7.01 7.57 7.62 7.68
PSG Stable A - 1.17 0.48 2.72 4.89 5.36 6.17
PSG Balanced A - 4.70 - 6.22 - 2.01 2.54 3.48 5.03
PSG Flexible A - 4.11 - 5.35 - 1.46 3.23 4.69 5.99
PSG SA Equity D - 12.94 - 16.03 - 10.45 - 3.52 - -
PSG Equity A - 8.56 - 11.65 - 6.15 0.91 2.43 2.63
PSG Global Flexible FF A - 0.13 - 2.52 - 0.26 6.58 5.63 -
PSG Global Equity FF A - 1.35 - 4.12 - 0.55 7.20 6.08 7.86
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 3.87 - 6.55 - 3.03 3.53 4.07 1.86
PSG Global Equity USD - 4.64 - 8.00 - 3.17 4.28 4.54 1.70
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 3.21 7.13 7.18 7.44 7.42 7.25
PSG Direct Low Equity - 1.43 - 0.35 1.97 4.39 4.89 5.73
PSG Direct Managed - 4.77 - 6.43 - 2.31 2.25 3.31 4.79
PSG Direct Aggressive - 4.76 - 6.93 - 2.86 2.91 3.96 -
PSG Direct Global Managed - 0.35 - 2.96 - 0.72 6.10 5.15 -
PSG Direct Global Aggressive - 1.12 - 3.96 - 0.88 6.50 5.44 -
  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 - 9.10 - 6.00 - 3.35 1.66 1.82 -
PSG Wealth SA Property Equity Portfolio - 5.33 - 9.20 - 8.67 - 3.30 - -
PSG Wealth SA Dividend Income Equity Portfolio - 9.53 - 6.49 - 0.69 3.15 - -
PSG Wealth Offshore Equity Portfolio (USD) 4.07 13.34 9.73 15.81 12.06 -
PSG Wealth Managed Volatility Equity Portfolio - 8.68 - 10.53 - 7.13 - 3.31 - -
  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 MC FP is neutral; click here to read the full report on our secure site.
  • It has strong brand momentum in a growing industry, and we feel that that the current valuation fairly values the attractive quality characteristics
  • We do, however, remain wary of any potential deterioration in the economic cycle and its potential impact on the group.


company logo

Highlights

  • Our recommendation for INGA AMS is neutral; click here to read the full report on our secure site.
  • The group’s high dividend yield remains attractive and management is committed to maintaining a Return On Equity between 10% and 12%.
  • Adjusted earnings per share were up 3% to 66 cents and the group declared a flat interim dividend of 12 cents.


company logo

Highlights

  • Our recommendation for SPG SJ is overweight; click here to read the full report on our secure site.
  • Management believes that recent contract wins in the consumer-facing operations and the strong African commodities environment, combined with improved operational efficiencies, should support earnings.
  • Trading at a forward P/E of 7.19 times and an implied rump P/E of 6.15 times (i.e. excluding SG Fleet), we feel that the share offers value and would recommend an overweight exposure.


Corporate actions

Date Company Share code Expectation
06 November 2019 Atlantic Leaf Prperties Limited ALP Cash Dividend
06 November 2019 Ecsponent Limited Class A Preference Share ECSP10 Cash Dividend
06 November 2019 Ecsponent Limited Class C Preference Share ECSP12 Cash Dividend
06 November 2019 Ecsponent Limited Class A Preference Share ECSP13 Cash Dividend
06 November 2019 Ecsponent Limited Class C Preference Share ECSP15 Cash Dividend
06 November 2019 Ecsponent Limited Class C Preference Share ECSP18 Cash Dividend
06 November 2019 Ecsponent Limited Class C Preference Share ECSP21 Cash Dividend
06 November 2019 Ecsponent Limited Class C Preference Share ECSP24 Cash Dividend
06 November 2019 Ecsponent Limited Class A Preference Share ECSP4 Cash Dividend
06 November 2019 Ecsponent Limited Class C Preference Share ECSP6 Cash Dividend
06 November 2019 Ecsponent Limited Class A Preference Share ECSP7 Cash Dividend
06 November 2019 Ecsponent Limited Class C Preference Share ECSP9 Cash Dividend
06 November 2019 London Finance Investment Group Plc LNF Cash Dividend
06 November 2019 PSG Group Limited PSG Cash Dividend
06 November 2019 Spear REIT Limited SEA Cash Dividend
06 November 2019 Trencor Limited TRE Odd-Lot Offer
Option 1 - Sell Odd Lot holdings (less than 100 shares) at the Offer Price:Gross - TBALess 20% SA Tax - TBANet - TBA
Option 2 - Retain Odd lot holdings Default - Option 1
06 November 2019 Trencor Limited TRE Specific Repurchase Offer
Option 1 - Sell Specific Offer Shares (holdings from 100 to 635 shares) at the Offer Price:Gross - TBALess 20% SA Tax - TBANet - TBA
Option 2 - No Action Default - Opton 2
  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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