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Global stocks hit fresh highs on upbeat data

07 April 2021

Global stocks hit fresh highs on upbeat data

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The ALSI rose to 68 063.89 points on Tuesday, its highest level in more than three weeks on robust economic data from the US and signals from China indicating a firmer global economic recovery.

US flag Icon
United States

Wall Street remained flat in profit-taking on Tuesday after the S&P 500 and the Dow reached fresh highs in the previous session and as investors waited for new catalysts from the US Federal Reserve Bank (Fed) regarding its economic outlook.

EU flag Icon
Europe

The pan-European STOXX 600 index gained 0.73% yesterday after a better-than-expected US jobs report drove more optimism over the US economic recovery, while China’s services sector also gained momentum.

HK flag Icon
Hong Kong

Led by a decline in healthcare and consumer discretionary firms, Chinese stocks fell on Tuesday as upbeat economic data accelerated fears of policy tightening.

Japan flag Icon
Japan

Japanese stocks retreated on Tuesday in profit-taking following Monday’s rally, while fears of a likely fourth wave of Covid-19 infections weighed on sentiment. The Nikkei lost 1.30%.

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Rand

At 17h30, the rand strengthened to R14.52/$, R20.21/£ and weakened to R17.21/€ as currency and bond markets paused for a breather after last month’s rally in US Treasury yields and greenback.

Precious metals Icon
Precious metals

Gold went up to $1 744.78/oz and platinum rose to $1 237.59 at 17h30 on Tuesday mainly due to a weaker dollar and lower US Treasury yields.

Oil Icon
Oil

Brent crude futures rose to $62.98 a barrel while US crude rose to $59.56 a barrel at 18h00 on Tuesday, lifted by improved activity in the US services sector.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 68 063.89 1.23 0.36 11.24 27.27 51.00
Gold mining 3 732.98 0.82 12.17 - 2.33 - 29.04 63.95
Basic minerals 49 434.38 2.37 - 1.49 10.55 34.29 85.11
Industrial index 95 759.80 0.56 2.83 13.28 23.50 37.42
Financial 31 221.45 0.77 - 2.42 6.99 23.67 33.11
Fin + Ind 30 8 196.02 0.64 1.42 11.58 23.61 36.34
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) 33 430.24 - 0.29 6.29 8.97 21.57 50.58
S&P 500 PR (USD) 4 073.94 - 0.10 6.26 9.83 20.57 66.64
NASDAQ (USD) 13 698.38 - 0.05 6.09 7.70 23.23 74.47
FT-100 (GBP) 6 823.55 1.28 3.30 0.77 16.54 26.30
Hang Seng (HKD) 28 938.74 1.97 - 1.43 6.61 23.93 29.21
Nikkei 225 (JPY) 29 696.63 - 1.30 3.51 10.48 27.75 62.39
MSCI World (USD) 8 597.21 0.12 5.60 6.96 21.53 55.18
Frankfurt (EUR) 6 544.93 0.70 9.28 9.51 17.87 50.99
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 739.12 - 0.24 2.06 - 11.55 - 9.49 5.77
Platinum ($) 1 244.43 0.30 7.77 9.04 35.66 64.75
Brent Oil ($) 63.04 0.48 - 10.40 15.95 50.52 82.20
Rand/USD 14.52 0.42 5.46 3.64 12.18 22.31
Rand/GBP 20.09 0.94 5.37 1.98 6.21 12.50
Rand/EUR 17.24 - 0.12 5.70 7.03 11.45 14.80
ALBI (R) 749.79 0.73 - 0.74 - 1.34 6.40 19.98
  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. IHS Markit PMI MAR
  1. EA: Markit Services PMI Final MAR
  2. UK: Markit/CIPS Composite PMI Final MAR

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 FoF D 1.98 4.75 6.25 6.82 7.15 7.35
PSG Wealth Income FoF D 3.41 9.04 6.13 6.59 7.01 7.43
PSG Wealth Preserver FoF D 8.78 19.76 6.03 6.16 5.93 5.98
PSG Wealth Moderate FoF D 15.48 33.02 7.30 7.05 6.27 6.24
PSG Wealth Creator FoF D 27.74 60.78 10.94 9.11 7.84 7.95
PSG Wealth Global Preserver FF D - 4.51 - 5.81 7.80 12.24 - -
PSG Wealth Global Moderate FF D - 0.32 5.34 11.86 14.11 8.66 6.39
PSG Wealth Global Flexible FF D - 1.08 8.75 15.63 - - -
PSG Wealth Global Creator FF D 3.60 22.59 20.28 22.94 16.41 13.44
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 12.16 36.70 9.65 6.51 7.01 7.13
PSG Wealth Global Creator FoF D USD 17.34 57.40 18.06 14.45 14.60 14.22
PSG Wealth Global Preserver FoF (USD) D 7.46 20.90 5.12 4.71 4.30 4.91
PSG Wealth Global Flexible FoF (USD) D 11.90 42.50 13.86 11.84 11.88 11.89
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 2.32 10.05 2.40 4.55 2.20 5.20
PSG Wealth Global Flexible FoF (GBP) D 5.41 26.93 10.82 12.27 8.78 12.10
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 1.33 3.70 5.45 6.05 6.41 6.64
PSG Income A 2.53 8.47 8.01 7.99 8.20 8.31
PSG Diversified Income 4.70 13.28 6.97 6.82 7.32 7.53
PSG Stable A 14.03 27.92 3.37 3.25 4.35 5.22
PSG Balanced A 25.76 51.09 3.97 2.63 3.25 4.84
PSG Flexible A 28.00 55.55 2.13 1.94 2.47 4.54
PSG SA Equity D 28.04 68.33 - 3.15 - 6.20 - -
PSG Equity A 29.89 61.86 0.39 - 0.65 0.01 4.01
PSG Global Flexible FF A 24.88 41.50 9.79 11.71 6.61 -
PSG Global Equity FF A 31.70 53.23 7.63 10.30 5.89 7.22
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 37.35 85.36 6.57 3.74 4.97 8.07
PSG Global Equity USD 44.29 97.91 5.07 2.84 4.60 8.49
  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

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 15.71 31.38 - 1.13 - 1.11 0.85 2.89
PSG Wealth SA Property Equity Portfolio 34.38 43.26 - 18.82 - 16.02 - 11.93 - 10.80
PSG Wealth Dividend Income Equity Portfolio 15.32 29.88 - 7.64 - 6.83 - 0.95 -
PSG Wealth Offshore Equity Portfolio (USD) 18.71 51.12 18.40 15.01 17.16 16.04
  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

  • The group is currently trading at a 40% discount to our SOTP calculation of 48 403 cents, compared with the historical discount of 35%.
  • Our positive assessment of the BATS investment proposition, the holding company discount at least reverting to the LT average, the positive momentum behind PICG, and its significant contribution to the NAV all contribute to our positive outlook for Reinet.
  • We recommend an overweight portfolio positioning in the PSG Wealth House View SA Equity Portfolio.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • In the absence of a recovery in earnings and despite the disruptions on Disney's business, its share price has doubled since the trough in March 2020 and is approximately 30% higher than pre-pandemic levels.
  • The divergence between price and earnings has resulted in the earnings multiple for Disney almost tripling pre-pandemic levels (approx. 22 times) to 65 times.
  • Mean EPS estimates for FY21 and FY22 have decreased over the past year by 67% and 25%, respectively.
  • Hence, we retain our neutral recommendation.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • In the current environment, we anticipate that cost management should remain imperative to mitigate subdued activity levels while more normalised results from Automotive and Financial Services operations should further aid the group's earnings recovery.
  • On an earnings basis, the group trades on a forward PE ratio of 13.2 times, in line with its long-term average of 13.5 times and at a significant premium to its peers.
  • We feel that this fairly values the group, especially when considering the increased pressure on the South African economy and elevated debt levels.
  • For more information about this counter, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
07 April 2021 AECI Limited AFE Cash Dividend
07 April 2021 Fairvest Property Holdings Limited (REIT) FVT DRIPOption 1 - (Cash Dividend) Gross - ZAR0.1059Less 20% DWT - ZAR0.02118Net - ZAR0.08472Option 2 (Reinvestment)Reinvestment Price - ZAR1.85082Default - Option 1 (Cash)
07 April 2021 Libstar Holdings Limited LBR Cash Dividend
07 April 2021 Mondi Plc MNP DRIPOption 1 - (Cash Dividend) Gross - ZAR7.3432845Less 20% DWT - ZAR1.4686569Net - ZAR5.8746276Option 2 (Reinvestment)Reinvestment Price - To be announcedDefault - Option 1 (Cash)
07 April 2021 Quilter Plc QLT Cash Dividend
07 April 2021 Rand Merchant Investment Holdings Limited RMI Cash Dividend
07 April 2021 Standard Bank Limited 6.5% First Cumulative Preference Shares SBKP Cash Dividend
07 April 2021 Standard Bank Limited Non-Redeemable, Non-Cumulative, Non-Participating Second Preference Shares SBPP Cash Dividend
07 April 2021 Sea Harvest Group Limited SHG Cash Dividend
07 April 2021 Shoprite Holdings Limited SHP Cash Dividend
07 April 2021 Sanlam Limited SLM 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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