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Rand surged on possible US rate cut

07 October 2019

Rand surged on possible US rate cut

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Market commentary

SA flag Icon
South Africa

The JSE ended higher on Friday but was on track for a third weekly drop following the release of poor economic data. At the closing bell, the JSE All Share gained 0.50%.

US flag Icon
United States

Wall Street indices rose on Friday following the release of nonfarm payroll data that pointed to moderate jobs growth in September. At 19h30 on Sunday, the S&P 500 and Nasdaq gained 1.42% and 1.40% respectively.

EU flag Icon
Europe

European markets surged on Friday as data showing moderate jobs growth in the US eased fears of a global recession. Shortly after the JSE closed, France’s CAC 40 gained 0.38%.

HK flag Icon
Hong Kong

Hong Kong stocks dropped on Friday as investors continued to digest Washington’s latest threat to impose tariffs on over $7 billion worth of European Union imports. The Hang Seng ended 1.09% lower.

Japan flag Icon
Japan

Notwithstanding a poor performance by financials, Japanese stocks remained steady as investors sought new catalysts from US jobs data on Friday. At 20h00 on Sunday, the Nikkei had gained 0.32%.

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Rand

The rand made solid gains on Friday and was set for a weekly gain as investors unravelled the ANC's latest strategy to boost the domestic economy. At 20h15 on Sunday, a dollar traded at R15.04.

Precious metals Icon
Precious metals

Gold prices went up for a fourth consecutive session on Friday after positive US jobs growth data boosted investors’ appetite for the safe-haven metal. An ounce of spot gold traded at $1 504.76 at 20h15 on Sunday.

Oil Icon
Oil

The price of oil rose on Friday but was set for a weekly decline as investors feared that slowing global growth might impact energy demand. At 20h30 on Sunday, a barrel of Brent crude traded at $59.03.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 53 993.87 0.50 - 0.96 - 5.31 - 4.52 1.50
Gold mining 2 359.34 - 2.36 - 6.55 20.82 55.80 126.67
Basic minerals 30 720.33 - 0.22 - 0.61 - 6.37 - 7.48 2.60
Industrial index 73 639.52 0.55 - 3.67 - 5.01 - 2.83 1.98
Financial 38 705.31 1.19 4.25 - 5.12 - 4.97 - 0.73
Fin + Ind 30 7 306.23 0.78 - 1.12 - 4.95 - 3.45 1.17
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) 26 573.72 1.42 0.94 - 0.83 1.96 2.23
S&P 500 PR (USD) 2 952.01 1.42 0.65 - 0.97 3.55 3.83
NASDAQ (USD) 7 982.47 1.40 0.17 - 2.04 1.70 2.44
FT-100 (GBP) 7 155.38 1.10 - 1.85 - 4.67 - 0.92 0.96
Hang Seng (HKD) 25 821.03 - 1.11 - 2.36 - 9.61 - 11.22 0.50
Nikkei 225 (JPY) 21 410.20 0.32 4.44 - 0.54 - 0.41 - 8.69
MSCI World (USD) 6 289.64 1.05 0.38 - 5.12 1.60 1.47
Frankfurt (EUR) 5 360.49 0.73 - 0.10 - 4.89 0.21 - 1.89
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 504.00 1.34 - 1.86 5.54 16.42 24.97
Platinum ($) 884.00 - 0.67 - 8.68 5.74 0.23 7.67
Brent Oil ($) 57.71 0.03 - 0.94 - 9.57 - 16.74 - 33.12
Rand/USD 15.07 0.33 - 1.89 - 6.16 - 7.10 - 1.42
Rand/GBP 18.58 0.40 - 2.30 - 4.59 - 1.08 3.89
Rand/EUR 16.55 0.24 - 1.45 - 3.92 - 4.44 3.21
ALBI (R) 694.12 0.45 0.41 1.28 4.93 14.07
  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 for release
  1. CN: Balance of Trade SEP
  2. EA: Industrial Production 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 3.91 8.01 7.96 8.05 7.98 7.73
PSG Wealth Income FoF D 3.93 7.89 7.61 7.95 8.12 8.17
PSG Wealth Preserver FoF D 1.05 3.14 4.02 5.47 6.04 6.72
PSG Wealth Moderate FoF D - 2.02 - 0.79 1.75 4.24 5.01 5.82
PSG Wealth Creator FoF D - 5.91 - 3.88 - 0.74 2.64 3.74 3.81
PSG Wealth Global Moderate FF D 7.42 6.24 6.54 8.06 7.02 8.51
PSG Wealth Global Creator FF D 8.71 7.61 12.40 14.60 12.68 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 0.02 0.48 1.19 4.06 4.51 2.34
PSG Wealth Global Creator FoF D 0.43 0.82 6.09 9.77 9.78 7.38
PSG Wealth Global Preserver FoF (USD) D 1.46 3.98 2.34 3.39 5.50 3.64
PSG Wealth Global Flexible FoF (USD) D - 0.26 1.39 5.35 8.70 9.91 6.65
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 6.29 7.30 4.89 4.61 9.21 7.41
PSG Wealth Global Flexible FoF (GBP) D 6.14 5.92 8.15 9.84 14.01 11.64
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.59 7.30 7.31 7.42 7.35 7.16
PSG Income A 4.00 8.41 8.22 8.33 8.28 7.94
PSG Diversified Income 3.13 6.57 7.00 7.56 7.77 7.71
PSG Stable A - 1.79 - 1.92 2.50 4.37 5.68 5.97
PSG Balanced A - 6.24 - 10.95 - 2.33 1.60 3.92 4.71
PSG Flexible A - 6.32 - 10.00 - 1.68 2.33 4.91 5.67
PSG SA Equity D - 12.65 - 19.50 - 9.58 - 3.86 - -
PSG Equity A - 10.53 - 17.01 - 6.08 - 0.10 3.10 2.31
PSG Global Flexible FF A - 3.82 - 9.43 - 0.72 5.00 6.53 -
PSG Global Equity FF A - 5.64 - 12.51 - 1.29 5.44 7.12 6.52
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 10.96 - 14.12 - 5.58 1.52 4.32 1.06
PSG Global Equity USD - 12.45 - 16.65 - 6.00 2.01 4.82 0.83
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 3.40 7.12 7.18 7.45 7.50 7.28
PSG Direct Low Equity - 2.13 - 2.94 1.77 3.86 5.20 5.54
PSG Direct Managed - 6.47 - 11.11 - 2.61 1.32 3.70 4.48
PSG Direct Aggressive - 7.19 - 12.22 - 3.04 1.85 4.46 -
PSG Direct Global Managed - 4.04 - 9.85 - 1.18 4.53 6.04 -
PSG Direct Global Aggressive - 5.18 - 11.77 - 1.52 4.81 6.42 -
  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 - 11.29 - 10.74 - 3.77 - 0.50 2.13 -
PSG Wealth SA Property Equity Portfolio - 7.61 - 9.95 - 9.23 - 5.17 - -
PSG Wealth SA Dividend Income Equity Portfolio - 9.65 - 10.18 - 1.24 1.47 - -
PSG Wealth Offshore Equity Portfolio (USD) 1.45 2.86 8.76 12.47 12.86 -
PSG Wealth Managed Volatility Equity Portfolio - 9.89 - 15.24 - 8.43 - 5.35 - -
  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 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.


company logo

Highlights

  • Our recommendation for VKE SJ is neutral; click here to read the full report on our secure site.
  • The group declared a year-end dividend of 103.38 cents per share, reflecting a 7.50% growth on the prior year.
  • The group is focussing on strengthening the balance sheet by reducing debt. The group’s see-through LTV ratio is 38.80%.


company logo

Highlights

  • Our recommendation for HWDN LN is neutral; click here to read the full report on our secure site.
  • The share is trading in line with the market, and as a result, we feel the share price is currently fairly valued, trading at a forward P/E of 15 times, slightly ahead of its longer-term average of 13.66.
  • We believe Howden is a good quality company with attractive operating margins, a high ROE and consistently strong free cash flow generation.


Corporate actions

Date Company Share code Expectation
09 October 2019 Exxaro Resources Limited EXX Cash Dividend
09 October 2019 Exxaro Resources Limited EXX Special Cash Dividend
09 October 2019 Steinhoff International Holdings Limited Preference Shares SHFF Cash Dividend
09 October 2019 Hyprop Investments Limited (REIT) HYP Cash Dividend
09 October 2019 Wilson Bayly Holmes Ovcon Limited WBO Cash Dividend
09 October 2019 AVI Limited AVI Cash Dividend
09 October 2019 Mustel Limited MST Cash Dividend
09 October 2019 Heriot REIT Limited HET Cash Dividend
09 October 2019 Texton Property Fund Limited (REIT) TEX Cash Dividend
09 October 2019 Sasfin Holdings Limited SFN Cash Dividend
09 October 2019 Sasfin Holdings Limited Preference Shares SFNP Cash Dividend
09 October 2019 Metrofile Holdings Limited MFL DVOP
Option 1 - (Cash Dividend) Gross - ZAR0.05Less 20% Tax - ZAR0.01Net ZAR0.04
Option 2 (Capitalisation Shares)Ratio - To be announcedDefault - Option 2 (Capitalisation Shares)
09 October 2019 NEPI Rockcastle Plc NRP DVOP
Option 1 - (Cash Dividend) Gross - TBALess 20% Tax - TBANet - TBA
Option 2 (Scrip Distribution)Ratio - To be announcedDefault - Option 1
09 October 2019 MAS Real Estate Inc MSP Cash Dividend
09 October 2019 Ecsponent Limited Class A Preference Share ECSP4 Cash Dividend
09 October 2019 Ecsponent Limited Class A Preference Share ECSP7 Cash Dividend
09 October 2019 Ecsponent Limited Class A Preference Share ECSP10 Cash Dividend
09 October 2019 Ecsponent Limited Class A Preference Share ECSP13 Cash Dividend
09 October 2019 Ecsponent Limited Class C Preference Share ECSP6 Cash Dividend
09 October 2019 Ecsponent Limited Class C Preference Share 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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