April 2024
Adriaan Pask, Chief Investment Officer
PSG Wealth
The FTSE/JSE All Share Index (ALSI) fell the most since November, logging a 2.04% decline on Tuesday, driven by concerns over a potential escalation of tensions in the Middle East and speculation over the timing of interest rate cuts in the US. Israel's resolve to retaliate against Iran's weekend missile strike added more market volatility, prompting investors to seek refuge in safe-haven assets like gold, the dollar, and US Treasury bonds. The rand traded above R19/$ for most of the day.
US stocks traded in mixed fashion on Tuesday with investors reacting to Federal Reserve (Fed) Chair Jerome Powell's comments and a new round of earnings reports. The S&P 500 and Nasdaq flatlined, while the Dow Jones saw an increase of over 100 points. Powell's statements regarding the necessity of maintaining elevated interest rates for an extended period to combat inflationary pressures added to the market's cautious sentiment. Meanwhile, robust retail sales in the US provided fresh evidence that consumer spending remains robust despite inflationary pressures, leading to expectations that interest rates will remain elevated for a longer duration this year.
Asian markets declined, with the Shanghai Composite falling by 1.65%, while the Nikkei lost 1.94%. Mainland Chinese stocks reversed gains from the previous session, as stronger-than-expected Chinese GDP data reduced expectations for additional policy easing. Official figures revealed that China's economy grew by 5.30% in the first quarter compared to the previous year, surpassing the 5.20% growth seen in the previous quarter and exceeding expectations for a 5% expansion.
On Tuesday, the FTSE 100 experienced a significant decline, sinking by 1.90%. This marked its worst session since July, following a broader selloff in European equities. The market was affected by ongoing concerns regarding escalating geopolitical tensions in the Middle East, as well as diminishing prospects for interest rate cuts by key central banks. New data revealed that the UK unemployment rate unexpectedly rose to 4.20% in the moving quarter ending February. Despite this, money markets indicated a slight reduction in expectations for rate cuts by the Bank of England (BoE) this year, as wage growth surprisingly did not decrease, adding further pressure to equity markets.
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Date | Index | Current Level | 1 Day Move | 1 Month Move | 6 Month Move | 1 Year Move |
---|---|---|---|---|---|---|
2024-04-29 | ALSI | 75370.99 | 1.40 | 3.29 | 9.96 | 0.32 |
2024-04-29 | Basic minerals | 45310.40 | 0.61 | 10.54 | 12.23 | -5.52 |
2024-04-29 | Fin + Ind 30 | 9701.52 | 1.65 | 1.20 | 10.44 | 3.83 |
2024-04-29 | Financial | 39695.51 | 2.09 | 0.63 | 6.20 | 9.47 |
2024-04-29 | Industrial index | 110596.95 | 1.35 | 1.96 | 11.87 | 0.65 |
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note 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.
ASISA category | Fund name | NAV (Rands) at | Performance –As at | |||
---|---|---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % |
Performance data on local funds is shown up to the last market close minus 1 day.
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note 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.
Through our tried-and tested investment philosophy, we have built competitive global solutions to help clients achieve their investment goals.
The following funds are rand-denominated, but invest internationally:
ASISA category | Fund name | NAV (Rands) at | Performance –As at | |||
---|---|---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % |
Performance data on offshore funds is shown up to the last market close minus 2 days.
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note 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.
The following funds invest internationally using foreign currency
ASISA category | Fund name | NAV (Rands) at | Performance –As at | |||
---|---|---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % |
Performance data on offshore funds is shown up to the last market close minus 2 days.
Some data may be delayed, the above table reflects the latest information available from Morningstar.
Please note 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.
Fund display name | Performance –As at 2024/04/29 | |||
---|---|---|---|---|
1 year % | 3 year % | 5 year % | Inception % | |
PSG Wealth Income Growth Equity Portfolio | 2.14 | 4.72 | -0.56 | 1.36 |
PSG Wealth Offshore Equity Portfolio (USD) | 11.13 | 4.03 | 9.73 | 11.53 |
PSG Wealth SA Equity Portfolio | -4.55 | 1.60 | 0.28 | 2.91 |
PSG Wealth SA Property Equity Portfolio | 11.00 | 7.53 | -2.54 | -3.18 |
* PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs.
The House view portfolios are bespoke solution portfolios and not part of the Collective Investment Schemes’ portfolios.
n this report, we discuss the latest results released by Implala Platinum and provide our view on platinum group metals.
We include an updated valuation for Impala and stress test various assumptions to show valuation asymmetry that is skewed upwards. Impala Platinum released its interim results for the six months ended 31 December 2031 in early March 2024. The results, which contained the maiden interim inclusion of Impala Bafokeng, were characterised by the following:
Our research supports a hold recommendation.
Please join us on Thursday at 11h30 for our Microsoft Teams Q&A sessions. Click here to join. <https://www.psg.co.za/wealthonline#investment-research>
On 29 February 2024, FirstRand released its half-year results for 2024. Highlights from the results were as follows:
1. Headline earnings were up by 6%, with revenue (+9%) rising in line with operating costs (+9%).
2. Net interest income increased by 13%.
a. Growth in core lending advances of 11% is the main driver of higher net interest income. Growth spread across segments with RMB corporate and investment banking being the largest contributor.
b. Net interest margin slightly increased from 4.38% to 4.47% benefitting less from higher interest rates due to FirstRand’s asset-liability management strategy which should also protect the margin when interest rates decrease.
Our research supports a buy recommendation.
Please join us on Thursday at 11h30 for our Microsoft Teams Q&A sessions. Click here to join. <https://www.psg.co.za/wealthonline#investment-research>
On 5 March 2024, Shoprite released its half-year results for year end 30 June 2024.
1. Total sales grew by 13.9% y/y to R121 billion and a like-for-like increase of 6.5%.
2. Gross profit grew by 14.7% to R28.6 billion. Gross profit margin increased slightly from 23.4% to 23.6% y/y.
3. A market share growth of R4 billion and 56 months of uninterrupted market share gains took the total market share to approximately 35%.
4. R500m load shedding costs, putting it on an annual run rate of R1bn, slightly down from R1.3bn in FY23.
Our research supports a hold recommendation.
Please join us on Thursday at 11h30 for our Microsoft Teams Q&A sessions. Click here to join. <https://www.psg.co.za/wealthonline#investment-research>
View the Economic Calendar
Date | Company | Share code | Expectation |
---|---|---|---|
17 April 2024 | ABSA Bank Limited Non-Cumulative Non-Redeemable Preference Shares | ABSP | Cash Dividend |
17 April 2024 | ADvTech Limited | ADH | Cash Dividend |
17 April 2024 | AVI Limited | AVI | Cash Dividend |
17 April 2024 | Ca sales Holdings Limited | CAA | Cash Dividend |
17 April 2024 | Coronation Fund Managers Limited | CML | Odd-Lot Offer |
17 April 2024 | Coronation Fund Managers Limited | CML | Repurchase Offer |
17 April 2024 | Coronation Fund Managers Limited | CML | Repurchase Offer |
17 April 2024 | Discovery Limited | DSY | Cash Dividend |
17 April 2024 | Heriot REIT Limited | HET | Cash Dividend |
17 April 2024 | MC Mining Limited | MCZ | Tender Offer |
17 April 2024 | Momentum Metropolitan Holdings Limited | MTM | Cash Dividend |
17 April 2024 | MTN Group Limited | MTN | Cash Dividend |
17 April 2024 | Old Mutual Limited | OMU | Cash Dividend |
17 April 2024 | Quilter Plc | QLT | Cash Dividend |
17 April 2024 | Remgro Limited | REM | Cash Dividend |
17 April 2024 | SA Corporate Real Estate Fund | SAC | Cash Dividend |
17 April 2024 | Sabvest Capital Limited | SBP | Cash Dividend |
17 April 2024 | Stadio Holdings Limited | SDO | Cash Dividend |
17 April 2024 | South Ocean Holdings Limited | SOH | Cash Dividend |
17 April 2024 | Thugela Resources Limited | TGA | Cash Dividend |
17 April 2024 | Telemasters Holdings Limited | TLM | Cash Dividend |
17 April 2024 | Anchor Group Pty Ltd | UAUG | Tender Offer |
19 April 2024 | Discovery Limited | DSY | Cash Dividend |
The information above is to the best of our knowledge correct.
The Corporate Actions are updated weekly.
Collective Investment Schemes in Securities (CIS) are generally medium-term to long-term investments. The value of participatory interests (units) may go down as well as up and past performance is not a guide to future performance. Collective Investment Schemes are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from PSG Collective Investments (RF) Limited. Commission and incentives may be paid, and if so, are included in the overall costs. Forward pricing is used. The Portfolios may be capped at any time in order for them to be managed in accordance with their mandate.
Performance is calculated for the portfolio and individual investor performance may differ as a result thereof. Different classes of participatory interest can apply to these portfolios and are subject to different fees, charges and possibly dividend withholding tax and will thus have differing performances. Annualised performances show longer term performance rescaled over a 12-month period. Individual performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. The portfolio is valued at 15h00 daily. Income distributions are net of any applicable taxes. Investment performance data is for illustrative purposes only. Actual performance figures are available on request. Always refer to the fund fact sheet (Minimum Disclosure Document) for full details, fees and risks of the fund.
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