Naspers and Prosus shares weigh on ALSI

08 April 2021

Naspers and Prosus shares weigh on ALSI

Daily Investment Update

Market commentary

	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.
	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.
	Europe European markets retreated on Wednesday as investors exercised caution amid a deceleration in vaccine distribution across Europe and rising infections in several countries.
	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 Japanese stocks closed higher on Wednesday with electronics in the lead after multinational conglomerate Toshiba said it was considering a $20 billion proposal to go private. The Nikkei rose to 0.12% at 29 730.79, while the broader Topix added 0.67% to 1 967.43.
	Rand At the close of business, the rand weakened to R14.54/$, 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.
	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.
	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

^{Some data may be delayed, the above table reflects the latest available information
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
Manufacturing Production FEB	JP: Consumer Confidence MAR 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

^{The PSG Wealth Solutions are exclusively available through registered PSG planners and/or advisers
The above information reflects the latest available data at time of distribution, as such product performance data reflects T-2 numbers
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

^{The PSG Wealth equity portfolios are exclusively available through registered PSG planners and/or advisers
PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs
PSG Wealth SA and Offshore Equity Portfolio Inception date: 30 August 2015
PSG Wealth SA Listed Property Portfolio Inception date: 1 December 2015
PSG Wealth Dividend Income Equity Portfolio Inception date: 29 April 2016
PSG Wealth Managed Volatility Equity Portfolio Inception date: 28 July 2016
PSG Wealth Funds are exclusively available through registered PSG planners and/or advisers}

Recent Investment Ideas

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.

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.

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

^{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.
This document only contains general information and not the opinion of the distributor.}

Naspers and Prosus shares weigh on ALSI

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08 April 2021