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Naspers and Prosus shares weigh on ALSI

08 April 2021

Naspers and Prosus shares weigh on ALSI

Daily Investment Update

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Market commentary

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South Africa

A decline in Naspers and Prosus shares weighed on the JSE on Wednesday afternoon, after the latter said it planned to sell 2% of its stake in Chinese internet giant Tencent Holdings to support growth ventures.

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United States

Wall Street dipped in choppy trade on Wednesday as investors anticipated minutes from the last Federal Reserve (Fed) meeting that could clarify the bank’s stance on inflation and its economic outlook.

EU flag Icon
Europe

European markets retreated on Wednesday as investors exercised caution amid a deceleration in vaccine distribution across Europe and rising infections in several countries.

HK flag Icon
Hong Kong

Led by a decline in financials, consumer staples and a selloff in A-shares, Chinese stocks continued on their downward trend as upbeat economic data accelerated fears of policy tightening. The Hang Seng closed at 28 674.80 points.

Japan flag Icon
Japan

Japanese stocks closed higher on Wednesday with electronics in the lead after multinational conglomerate Toshiba said it was considering a $20 billion proposal to go private. The Nikkei rose to 0.12% at 29 730.79, while the broader Topix added 0.67% to 1 967.43.

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Rand

At the close of business, the rand weakened to R14.54/$, R17.27/€, and strengthened to R19.98/£ after local factory activity rose marginally to 50.3 points in March 2021 from 50.2 in the previous month.

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Precious metals

Spot gold dipped 0.68% to $1 737.72/oz by 18h30 as a mixture of upbeat economic data from the US and hopes of a swift economic rebound tainted the metal’s safe-haven appeal.

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Oil

Oil prices were elevated by upbeat sentiment over signs of a solid economic recovery “ though gains were capped as talks to revive a nuclear deal with Iran raised the possibility of an easing of sanctions on its oil exports.”


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 67 160.42 - 1.33 - 0.84 7.84 24.48 45.25
Gold mining 3 732.98 0.82 12.17 - 2.33 - 29.04 63.95
Basic minerals 49 279.85 - 0.29 - 1.78 6.97 32.16 77.04
Industrial index 93 399.73 - 2.46 0.41 9.68 19.49 32.89
Financial 31 074.11 - 0.47 - 2.42 4.45 22.91 26.84
Fin + Ind 30 8 040.66 - 1.71 - 0.31 8.28 20.48 31.31
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) 33 446.26 0.05 6.34 8.25 19.35 50.83
S&P 500 PR (USD) 4 079.95 0.15 6.32 7.65 20.25 56.03
NASDAQ (USD) 13 688.84 - 0.07 6.01 4.93 20.87 74.92
FT-100 (GBP) 6 885.32 0.91 4.24 1.45 17.67 24.72
Hang Seng (HKD) 28 674.80 - 0.91 - 1.16 4.42 18.83 22.27
Nikkei 225 (JPY) 29 730.79 0.12 3.63 8.86 27.95 59.36
MSCI World (USD) 8 612.04 0.17 5.78 5.77 20.38 54.33
Frankfurt (EUR) 6 529.25 - 0.24 9.02 8.65 17.39 46.54
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 739.71 0.11 2.36 - 9.16 - 8.05 5.07
Platinum ($) 1 233.35 0.33 10.63 12.65 43.29 66.17
Brent Oil ($) 62.95 - 0.33 - 9.54 15.54 47.10 89.83
Rand/USD 14.54 - 0.15 6.23 5.37 11.83 20.60
Rand/GBP 20.01 0.40 6.81 4.06 6.97 11.32
Rand/EUR 17.26 - 0.13 6.14 8.13 11.44 13.28
ALBI (R) 756.61 0.91 0.14 0.00 7.30 18.40
  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. Manufacturing Production FEB
  1. JP: Consumer Confidence MAR
  2. EA: PPI FEB

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 2.00 4.79 6.29 6.84 7.16 7.36
PSG Wealth Income FoF D 3.61 8.97 6.21 6.59 7.05 7.45
PSG Wealth Preserver FoF D 9.05 19.72 6.20 6.08 6.01 6.02
PSG Wealth Moderate FoF D 15.90 32.73 7.59 6.96 6.42 6.34
PSG Wealth Creator FoF D 28.61 58.93 11.46 9.21 8.15 8.16
PSG Wealth Global Preserver FF D - 5.38 - 5.90 7.51 11.70 - -
PSG Wealth Global Moderate FF D - 1.18 5.82 11.75 13.48 8.43 6.18
PSG Wealth Global Flexible FF D - 1.41 9.75 15.69 - - -
PSG Wealth Global Creator FF D 3.42 21.70 20.15 21.90 16.13 13.23
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 13.04 34.70 10.06 6.82 7.26 7.30
PSG Wealth Global Creator FoF D USD 17.85 58.89 18.89 14.88 15.07 14.62
PSG Wealth Global Preserver FoF (USD) D 7.69 20.31 5.30 4.82 4.39 4.98
PSG Wealth Global Flexible FoF (USD) D 12.68 41.52 14.41 12.10 12.18 12.11
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 2.38 10.05 2.57 4.81 2.29 5.27
PSG Wealth Global Flexible FoF (GBP) D 5.82 26.62 11.34 12.33 9.09 12.31
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 1.33 3.70 5.45 6.05 6.41 6.64
PSG Income A 2.68 8.55 8.07 8.04 8.23 8.33
PSG Diversified Income 5.09 13.19 7.11 6.88 7.40 7.57
PSG Stable A 14.38 27.36 3.59 3.24 4.56 5.31
PSG Balanced A 26.12 50.05 4.35 2.59 3.59 5.03
PSG Flexible A 28.13 54.65 2.56 1.89 2.86 4.77
PSG SA Equity D 29.49 67.63 - 2.65 - 6.14 - -
PSG Equity A 30.23 60.79 0.86 - 0.74 0.49 4.33
PSG Global Flexible FF A 21.18 42.41 9.14 10.65 6.20 -
PSG Global Equity FF A 27.45 54.42 6.93 9.12 5.46 6.95
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 38.25 76.00 7.01 4.16 5.15 8.19
PSG Global Equity USD 45.25 86.17 5.51 3.30 4.76 8.60
  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 17.90 30.32 - 0.47 - 0.93 1.24 3.18
PSG Wealth SA Property Equity Portfolio 37.30 44.82 - 18.28 - 16.12 - 11.62 - 10.56
PSG Wealth Dividend Income Equity Portfolio 18.05 28.27 - 6.92 - 6.62 - 0.52 -
PSG Wealth Offshore Equity Portfolio (USD) 20.76 44.24 18.57 15.71 17.21 16.05
  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

  • Heineken is a high-quality company with an excellent track record and a defensive portfolio of brands covering multiple price points in emerging and developed markets.
  • The group’s position as a leader in the international premium segment, where brand loyalty is much higher than in other beer categories, should help sustain long-term shareholder value.
  • On a forward P/E basis, the share trades at 26.5 times, a 28.2% premium to its historical average and a 14.5% premium to its FactSet peers.
  • At current prices, we feel the share is fairly valued and recommend a neutral portfolio positioning.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • Trading at a 34% discount to its NAV, we believe that a lot of bad news is already discounted into Growthpoint's price.
  • The group would not be forced into a rights issue to de-risk the balance sheet, as it has multiple listed investments which could be disposed of at a discount to its market value if needed before a rights issue; although, this is not our base case.
  • Our base-case scenario assumes that there will be enough liquidity available for the sector to renew expiring debt maturities, allowing the property sector the opportunity to trade out the current constrained space and a medium-term normalisation in rental collections.
  • We change our neutral position for the SA Equity portfolio to overweight and our overweight position for a property only portfolio mandate to neutral.
  • For more information about this counter, please contact your PSG Wealth adviser.


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.


Corporate actions

Date Company Share code Expectation
14 April 2021 ABSA Bank Limited Non-Cumulative Non-Redeemable Preference Sares ABSP Cash Dividend
14 April 2021 Advtech Limited ADH Cash Dividend
14 April 2021 AVI Limited AVI Cash Dividend
14 April 2021 AVI Limited AVI Special Cash Dividend
14 April 2021 Growthpoint Properties Limited (REIT) GRT Cash Dividend
14 April 2021 Harmony Gold Mining Company Limited HAR Cash Dividend
14 April 2021 Investec Bank (Mauritius) Limited IMRP2 Cash Dividend
14 April 2021 Metair Investments Limited MTA Cash Dividend
14 April 2021 Nedbank Limited Non-Redeemable Non-Cumulative Preference Shares NBKP Cash Dividend
14 April 2021 Old Mutual Limited OMU Cash Dividend
14 April 2021 RECM and Clibre Limited RACP Unbundling
14 April 2021 Resilient REIT Limited RES Cash Dividend
14 April 2021 Rand Merchant Investment Holdings Limited RMI Cash Dividend
14 April 2021 Standard Bank Group Limited SBK 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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