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Trade optimism boosts risk-on trade

06 September 2019

Trade optimism boosts risk-on trade

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Market commentary

SA flag Icon
South Africa

Despite weak economic results, the local market followed most global indices on trade-truce optimism and ended Thursday in the green. The JSE All Share closed up 1.04% at 55 476.36 points.

US flag Icon
United States

Wall Street surged on Thursday on expectations of a de-escalation in trade tensions after Washington and Beijing agreed to hold high-level talks next month, while strong US economic data eased fears of a domestic slowdown. Shortly after the JSE closed, the Dow had gained 1.69% and stood at 26 801.69 points.

EU flag Icon
Europe

Even though Brexit woes continued in the UK, European markets rose for the second day in a row after China confirmed that trade-war negotiations will recommence in October. The STOXX 600 closed 0.72% in the green.

HK flag Icon
Hong Kong

After Wednesday’s phenomenal surge, the Hang Seng closed flat on Thursday due to profit booking and subdued trade. At the closing bell, the Hang Seng was 0.03% in the red at 26 515.53 points.

Japan flag Icon
Japan

Japan’s Nikkei reached a one-month high on Thursday as news about the renewed trade negotiations, Brexit and the Hong Kong extradition bill lifted investor sentiment. The benchmark Nikkei ended up 2.12%.

Rand Icon
Rand

The rand began the day on a positive note, but lost momentum after data showed that the South African current account deficit widened by R60.5 billion in the second quarter. At 17h45, a dollar traded at R14.84.

Precious metals Icon
Precious metals

Bullion prices took a knock on Thursday after the optimism around the upcoming US-China trade negotiations spurred investors to riskier trade. At 17h45, an ounce of gold $1 519.62.

Oil Icon
Oil

Crude prices extended gains on Thursday as US oil inventories reported a loss across the board for the previous week. At 17h45, Brent crude traded at $62.54 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 55 476.36 1.04 1.56 - 1.96 1.65 0.50
Gold mining 2 453.33 - 2.85 4.45 35.72 62.47 141.55
Basic minerals 31 214.11 0.90 2.13 - 1.26 0.84 6.32
Industrial index 77 414.81 0.67 1.35 0.00 5.79 0.11
Financial 38 480.08 2.00 1.36 - 6.71 - 5.50 - 4.48
Fin + Ind 30 7 538.79 1.08 1.36 - 2.21 1.96 - 1.37
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) 26 728.15 1.41 4.37 5.31 4.90 5.40
S&P 500 PR (USD) 2 976.00 1.32 4.87 5.85 7.78 5.16
NASDAQ (USD) 8 116.83 1.77 5.23 7.44 7.74 2.66
FT-100 (GBP) 7 271.17 - 0.39 1.78 2.19 4.17 3.19
Hang Seng (HKD) 26 515.53 - 0.03 1.90 - 0.05 - 5.94 0.85
Nikkei 225 (JPY) 21 085.94 2.12 1.84 1.81 - 1.85 - 4.60
MSCI World (USD) 6 266.05 1.08 0.20 - 6.71 4.04 1.39
Frankfurt (EUR) 5 411.38 0.85 4.02 1.22 4.35 0.72
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 538.80 0.41 7.16 16.26 19.52 28.69
Platinum ($) 982.00 1.45 15.26 19.32 17.32 26.87
Brent Oil ($) 60.70 4.19 - 1.92 - 2.05 - 7.57 - 22.35
Rand/USD 14.87 - 0.78 0.68 0.65 - 2.46 3.44
Rand/GBP 18.33 - 1.48 - 0.66 3.68 3.57 7.85
Rand/EUR 16.41 - 0.84 2.26 3.59 - 0.98 8.42
ALBI (R) 691.32 0.49 2.05 3.75 6.56 14.49
  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. Foreign Exchange Reserves AUG
  1. EU: GDP Growth Rate 3rd Est Q2
  2. US: Non-Farm Payrolls AUG
  3. CN: Balance of Trade AUG (Sunday at 06h00)

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 4.01 8.05 7.99 8.08 7.97 7.70
PSG Wealth Income FoF D 4.02 7.51 7.70 7.98 8.13 8.10
PSG Wealth Preserver FoF D 0.94 0.39 4.40 4.85 5.87 6.42
PSG Wealth Moderate FoF D - 1.08 - 4.36 2.31 3.39 4.94 5.38
PSG Wealth Creator FoF D - 4.75 - 7.76 - 0.50 1.68 3.57 2.75
PSG Wealth Global Moderate FF D 5.92 - 1.91 8.97 5.25 6.13 8.49
PSG Wealth Global Creator FF D 9.74 0.52 15.78 11.78 12.10 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 2.05 1.09 1.98 4.24 4.25 1.55
PSG Wealth Global Creator FoF D 4.55 2.93 7.86 10.30 9.94 6.76
PSG Wealth Global Preserver FoF (USD) D 2.77 4.41 2.29 3.58 5.33 3.05
PSG Wealth Global Flexible FoF (USD) D 2.25 2.81 6.07 8.97 9.58 5.79
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 8.77 7.90 4.51 5.61 9.54 7.18
PSG Wealth Global Flexible FoF (GBP) D 10.16 8.12 8.51 10.91 14.32 11.38
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.63 7.31 7.33 7.44 7.33 7.15
PSG Income A 4.12 8.54 8.15 8.47 8.27 7.91
PSG Diversified Income 3.26 6.15 7.00 7.60 7.71 7.65
PSG Stable A - 3.84 - 4.33 2.00 3.82 4.98 5.61
PSG Balanced A - 9.52 - 14.32 - 3.16 0.84 2.79 4.16
PSG Flexible A - 9.46 - 13.05 - 2.43 1.50 3.85 5.21
PSG SA Equity D - 16.79 - 22.08 - 11.60 - 3.71 - -
PSG Equity A - 14.96 - 20.73 - 7.40 - 0.90 1.15 1.33
PSG Global Flexible FF A - 9.61 - 17.39 0.18 1.44 3.97 -
PSG Global Equity FF A - 12.11 - 20.36 - 0.49 1.62 4.16 5.32
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 12.32 - 13.36 - 5.68 0.96 3.02 - 0.19
PSG Global Equity USD - 14.28 - 15.97 - 6.04 1.29 3.33 - 0.75
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 3.51 7.03 7.14 7.54 7.47 7.24
PSG Direct Low Equity - 4.10 - 5.26 1.27 3.37 4.52 5.20
PSG Direct Managed - 9.71 - 14.39 - 3.42 0.55 2.59 3.95
PSG Direct Aggressive - 11.24 - 16.49 - 3.61 0.48 2.84 -
PSG Direct Global Managed - 9.82 - 17.77 - 0.27 0.98 3.50 -
PSG Direct Global Aggressive - 11.39 - 19.63 - 0.68 1.10 3.63 -
  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 - 9.19 - 12.79 - 3.72 - 0.65 3.00 -
PSG Wealth SA Property Equity Portfolio - 10.56 - 14.66 - 9.82 - 5.90 - -
PSG Wealth SA Dividend Income Equity Portfolio - 10.28 - 13.99 - 2.18 1.42 - -
PSG Wealth Offshore Equity Portfolio (USD) 4.99 6.09 10.61 12.57 12.95 -
PSG Wealth Managed Volatility Equity Portfolio - 12.53 - 19.43 - 7.91 - 5.38 - -
  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 NKE US is underweight; click here to read the full report on our secure site.
  • NIKE is a quality retailer, which continuously exhibits broad-based and strong top-line growth.
  • NIKE is a well-run company with a growing market share in a structural growth market and plans to enhance margins even further. We do, however, feel that these attractive growth prospects are fully reflected in the current valuation.


company logo

Highlights

  • Our recommendation for ATT SJ is overweight; click here to read the full report on our secure site.
  • Attacq's direct property portfolio is diversified across sectors.
  • While domestic property fundamentals are under pressure, we believe the share is undervalued, trading at a 44% discount to its NAV of 2 365.80 cents per share, with risks mentioned in our report reflected in the price.


company logo

Highlights

  • Our recommendation for AVI SJ is neutral; click here to read the full report on our secure site.
  • AVI is a high-quality food producer with a strong balance sheet and sound cash generation.
  • Earnings and operating margins have come under pressure lately due to sales volume weakness due to constrained consumer spending and consumers trading down on premium products.


Corporate actions

Date Company Share code Expectation
11 September 2019 ABSA Group Limited ABG Cash Dividend
11 September 2019 ABSA Bank Non-Cumulative Non-Redeemable Preference Shares ABSP Cash Dividend
11 September 2019 Cartrack Holdings Limited CTK Tender Offer
11 September 2019 Distell Group Holdings Limited DGH Cash Dividend
11 September 2019 Ecsponent Ltd Class G Preference Shares ECSG4 Cash Dividend
11 September 2019 Grindrod Limited GND Cash Dividend
11 September 2019 Grindrod Limited Cumulative Non-Redeemable Non-Participating Non-Convertible Preference Shares GNDP Cash Dividend
11 September 2019 Italtile Limited ITE Cash Dividend
11 September 2019 Italtile Limited ITE Special Cash Dividend
11 September 2019 Nedbank Group Limited NED Cash Dividend
11 September 2019 Naspers Limited NPN Cash Dividend
11 September 2019 Naspers Limited NPN Capitalisation Issue
11 September 2019 Novus Holdings Limited NVS Cash Dividend
11 September 2019 Royal Bafokeng Platinum Limited RBPCB Interest Payment
11 September 2019 Sout32 Limited S32 Cash Dividend
11 September 2019 Standard Bank Group Limited SBK Cash Dividend
11 September 2019 Tradehold Limited Cumulative Redeemable "B" Preference Shares TDHBP Cash Dividend
11 September 2019 Transpaco Limited TPC Cash Dividend
11 September 2019 Truworths International Limited TRU 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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