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Tariff war concerns overshadow trading

06 August 2019

Tariff war concerns overshadow trading

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Market commentary

SA flag Icon
South Africa

The local bourse had a difficult start to the week after US President Donald Trump accused China of currency manipulation and threatened to impose 10% on $300 billion worth of Chinese imports on 1 September 2019. At the closing bell, the All Share was 2.31% in the red.

US flag Icon
United States

US markets started the week in the red due to the continued sell-off trade from last week fuelled by the lower Chinese yuan, weighing on tech shares, and the ever-present trade war between the US and China. At 17h30, the DJ Industrial Average was over 2% in the negative.

EU flag Icon
Europe

On Monday, European shares hit a two-month low on the back of global sell-off trade due to the increasing tensions around the US-Chinese tariff war that weighed down mining, luxury and technology shares. The STOXX 600 closed down 2.31%.

HK flag Icon
Hong Kong

The Chinese yuan dropped 1.40% on Monday, breaching the seven-per-dollar level for the first time in over 10 years, indicating that ”Beijing might be willing to tolerate more currency weakness that could further inflame a trade conflict.” The Hang Seng ended Monday 2.35% down.

Japan flag Icon
Japan

On Monday, continued friction between the US and China, as well as a stronger yen dragging down exporters such as Panasonic and Daikin, led to Japanese shares tumbling. At the closing bell, the Nikkei had lost 2.11%.

Rand Icon
Rand

The local currency flirted with the R15/$-threshold on Monday as investors avoided risky trades amid escalating US-Sino tariff tensions. At 17h30, the rand traded R14.89 against the dollar.

Precious metals Icon
Precious metals

Monday was a superb day for bullion prices as gold hit a six-year high after investors flocked to this safe haven asset amid trade war fears and a slowing global economy. At 17h30, an ounce of spot gold traded at $1 461.14.

Oil Icon
Oil

Oil lost about 3% on Monday as the trade tensions between the US and China heated up, which could limit demand from the world’s top crude buyers. At 17h30, Brent crude was trading at $60.73 per barrel.


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 14.81 0.32 -5.35 -3.04 -9.27 -11.00
Rand/GBP 18.00 0.29 -1.78 3.68 -2.73 -3.84
Rand/EUR 16.58 -0.33 -4.59 -3.10 -7.74 -7.56
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. No economic data scheduled to be released.
  1. JPN: Leading Economic Index Prel JUN
  2. DE: Construction PMI JUL
  3. US: IBD/TIPP Economic Optimism AUG

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 -2.12 -8.18 -1.32 1.56 - -
PSG Wealth SA Property Equity Portfolio -10.48 -11.25 -9.39 -5.26 - -
PSG Wealth SA Dividend Income Equity Portfolio -5.37 -10.26 0.32 1.99 - -
PSG Wealth Offshore Equity Portfolio (USD) 6.71 6.66 10.38 12.92 - -
PSG Wealth Managed Volatility Equity Portfolio -5.89 -14.29 -5.46 -3.62 - -
  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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