Back to top
SEARCH PSG

To search, just start typing...

SEARCH RESULTS

LOGIN

Please select which division you would like to log in to.


US tech rout weighs on global markets

07 September 2020

US tech rout weighs on global markets

Daily Investment Update

banner

Market commentary

SA flag Icon
South Africa

Rand hedges pulled the JSE lower on Friday as the local currency logged its second consecutive day of gains while investors digested US non-farm payrolls for August. At the close of business, the All Share lost 1.18%.

US flag Icon
United States

The Nasdaq lost 1.26% on Friday after investors discarded heavyweight technology stocks due to apprehensions over high valuations and a sketchy economic recovery.

EU flag Icon
Europe

A US technology rout drove European markets downhill on Friday while merger dialogues between two major Spanish lenders capped losses. The FTSE 100 lost 0.88%.

HK flag Icon
Hong Kong

Wall Street’s overnight selloff weighed on the Hong Kong stock market on Friday, prompting the market’s sharpest weekly decline in over three months. At the close of trade, the Hang Seng Index was down 1.24%.

Japan flag Icon
Japan

Japanese stocks were not spared from a global slump on Friday driven by a US technology stock rout, although for the week, Tokyo markets ended in the green. The Nikkei lost 1.11%.

Rand Icon
Rand

The rand strengthened along with its emerging market peers on Friday as currency traders anticipated new catalysts in the form of US non-farm payrolls data. At 18h00, the rand traded at R16.58.

Precious metals Icon
Precious metals

Gold lost 1.04% at 18h00 on Friday after better-than-expected US unemployment data, coupled with a firmer dollar weighed on demand for the safe-haven metal.

Oil Icon
Oil

On Friday the oil price was on track for its biggest weekly decline since June as the “volume of crude arriving in China is set to slow” this month amid lacklustre demand.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 53 878.95 - 1.18 - 3.76 1.86 3.63 1.41
Gold mining 5 306.86 - 1.77 - 14.66 34.53 66.59 111.70
Basic minerals 39 112.42 0.32 - 4.16 13.33 25.67 30.91
Industrial index 76 221.28 - 2.70 - 3.28 - 0.28 4.97 0.95
Financial 24 302.88 - 0.08 - 4.21 - 12.88 - 27.41 - 31.57
Fin + Ind 30 6 480.84 - 2.04 - 3.52 - 3.87 - 6.01 - 10.37
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) 28 133.31 - 0.56 5.24 7.64 5.15 9.32
S&P 500 PR (USD) 3 426.96 - 0.81 3.85 10.58 10.57 18.94
NASDAQ (USD) 11 313.13 - 1.26 3.52 17.89 26.06 43.24
FT-100 (GBP) 5 799.08 - 0.88 - 3.24 - 7.59 - 13.43 - 17.80
Hang Seng (HKD) 24 695.45 - 1.24 - 0.69 3.03 - 3.51 - 3.71
Nikkei 225 (JPY) 23 205.43 - 1.11 2.84 2.41 11.18 14.74
MSCI World (USD) 7 114.62 - 1.08 2.86 8.56 7.99 13.54
Frankfurt (EUR) 5 563.70 - 1.65 1.92 3.32 5.90 6.80
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 937.60 0.18 - 1.76 13.55 17.80 25.92
Platinum ($) 905.00 - 0.88 - 1.95 8.64 3.19 - 6.51
Brent Oil ($) 42.66 - 3.20 - 3.98 6.68 - 16.57 - 29.72
Rand/USD 16.59 0.81 5.87 0.89 - 3.95 - 11.54
Rand/GBP 21.95 1.19 4.83 - 3.22 - 6.42 - 19.72
Rand/EUR 19.63 0.95 5.20 - 3.91 - 8.52 - 19.63
ALBI (R) 715.90 0.03 1.57 0.93 1.18 3.90
  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 AUG
  2. JP: Leading Economic Index JUL

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 3.02 6.86 7.48 7.62 7.77 7.74
PSG Wealth Income FoF D 2.06 5.37 6.39 6.94 7.32 7.58
PSG Wealth Preserver FoF D 2.81 4.22 2.40 4.44 4.75 5.59
PSG Wealth Moderate FoF D 3.80 3.66 - 0.27 2.81 3.51 4.65
PSG Wealth Creator FoF D 3.91 3.54 - 2.55 0.68 2.11 3.26
PSG Wealth Global Preserver FF D 9.60 14.37 9.81 - - -
PSG Wealth Global Moderate FF D 15.63 21.11 11.03 13.83 9.51 9.59
PSG Wealth Global Flexible FF D 23.14 30.06 16.15 - - -
PSG Wealth Global Creator FF D 26.27 33.03 17.85 22.46 17.29 16.82
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 6.83 9.10 4.53 4.07 5.29 4.91
PSG Wealth Global Creator FoF D 15.79 21.53 11.70 12.25 13.01 11.95
PSG Wealth Global Preserver FoF (USD) D 0.95 2.63 3.27 2.30 3.27 4.73
PSG Wealth Global Flexible FoF (USD) D 13.14 17.86 9.88 9.78 11.07 11.14
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 1.99 - 4.68 1.62 1.55 3.05 6.63
PSG Wealth Global Flexible FoF (GBP) D 9.60 7.87 8.56 8.51 10.34 13.16
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.68 6.21 6.76 6.95 7.13 7.11
PSG Income A 5.82 9.69 9.07 8.67 8.77 8.55
PSG Diversified Income 4.22 6.95 6.43 6.98 7.43 7.56
PSG Stable A - 1.19 - 1.70 - 3.03 0.79 2.47 3.62
PSG Balanced A - 2.09 - 5.61 - 9.99 - 3.93 - 0.73 1.06
PSG Flexible A - 5.79 - 11.52 - 12.20 - 5.52 - 1.85 0.58
PSG SA Equity D - 5.50 - 16.47 - 19.77 - 13.43 - -
PSG Equity A - 5.36 - 11.59 - 16.20 - 8.78 - 3.58 - 1.56
PSG Global Flexible FF A 9.82 10.02 - 2.74 4.40 4.08 -
PSG Global Equity FF A 4.32 3.46 - 7.38 1.87 2.65 4.81
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 1.78 - 1.04 - 8.45 - 4.63 0.15 1.55
PSG Global Equity USD - 2.31 - 5.88 - 12.15 - 6.49 - 0.88 0.70
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 4.67 7.82 7.36 7.37 7.60 7.54
PSG Direct Low Equity - 0.46 - 1.30 - 3.31 0.44 2.24 3.35
PSG Direct Managed - 3.23 - 7.53 - 10.95 - 4.75 - 1.45 0.49
PSG Direct Aggressive - 2.66 - 7.62 - 11.72 - 4.73 - 1.43 -
PSG Direct Global Managed 9.57 9.52 - 3.18 3.92 3.60 -
PSG Direct Global Aggressive 6.16 5.45 - 6.07 2.37 2.73 -
  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 - 5.16 - 7.84 - 11.77 - 5.60 - 2.68 - 0.16
PSG Wealth SA Property Equity Portfolio - 36.92 - 45.56 - 32.50 - 24.25 - 17.70 -
PSG Wealth Income Growth Equity Portfolio - 15.84 - 20.94 - 18.98 - 9.28 - 4.80 -
PSG Wealth Offshore Equity Portfolio (USD) 13.01 18.80 11.94 13.46 14.39 14.08
  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

  • We recommend an overweight position for N91 LN, Click here to read the full report on our secure site or log in to myBase.
  • Sixty per cent of group earnings comes from outside of SA, providing protection against idiosyncratic risks but does expose investors to exchange rate translation risks.
  • On a P/E basis, we estimate that the group is trading slightly ahead of its European peers and at a slight discount to Schroders, the only peer with a similar emerging market (EM) presence.
  • The group is trading at the lower end of its European peers in terms of market capital to assets under management (AUM).
  • Given its historically strong net client cash flow (NCCF), we feel the current valuation multiples do not fully capture the fundamentals of the group.


company logo

Highlights

  • We recommend an underweight position for BAM US, Click here to read the full report on our secure site or log in to myBase.
  • The group’s plan to significantly develop retail property and land comes at a time where the real estate sector has seen significant downside following the spread of COVID-19 as businesses are forced to close their doors and people to stay inside.
  • Real estate constitutes about 25% of our intrinsic value and around 35% of group operating income; thus, a slowdown in real estate will have a material impact on earnings for the group.
  • The current price appears undervalued; however, we feel that that the near-term downside risks from COVID-19 on the real estate operations outweigh any potential near-term rerating towards the implied value per share.


company logo

Highlights

  • We recommend a neutral position for both Naspers and Prosus. Click here to read the full report on our secure site or log in to myBase.
  • Despite the regulatory and political risks that come with investing in Chinese stocks, we acknowledge that, to a large extent, Prosus and Naspers provide an alternative risk and reward profile due to the exposure to structural growth trends, which are not available through alternative local counters.
  • Naspers and Prosus trade at discounts of 23% and 13% respectively.
  • Given that management is determined to reduce the discounts over time, we suspect there will eventually be large value unlock for shareholders.
  • The share price for both Naspers and Prosus moves with a fairly high correlation to the USD/ZAR exchange rate.


Corporate actions

Date Company Share code Expectation
09 September 2020 Gold Fields Limited GFI Cash Dividend
09 September 2020 MultiChoice South Africa Holdings Limited MCG Cash Dividend
09 September 2020 NEPI Rockcastle Plc NRP Capitalisation Issue
09 September 2020 Peregrine Holdings Limited PGR General Offer
09 September 2020 Royal Bafokeng Platinum Limited RBPCB Interest Payment
09 September 2020 South32 Limited S32 Cash Dividend
09 September 2020 Standard Bank Group Limited 6.5 percent Cumulative Preference Shares SBKP Cash Dividend
09 September 2020 Standard Bank Group Limited Non-Redeemable Non-Participating Second Preference Shares SBPP Cash Dividend
09 September 2020 Tradehold Limited Cumulative Redeemable "B" Preference Shares TDHBP Cash Dividend
09 September 2020 Tower Property Fund Limited (REIT) TWR Cash Dividend
09 September 2020 UBS Warrants UBGPAA Interest Payment
  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.

Recommended Articles

Europe claws back lost ground

Second wave grips Europe, effects felt across the globe

Rising infections overshadow market gains

Author
author

Adriaan Pask PhD

Chief Investment Officer


At PSG Wealth
Copyright © PSG Konsult Ltd (1998-2020), All Rights Reserved. FAIS affiliates of the PSG Konsult Group are authorised financial services providers.