Daily Investment Update

WTI crude oil futures fell by around 7%, closing near $68.50 per barrel on Monday, as markets took comfort in the lack of casualties following Iran’s missile strike on a US airbase in Qatar, seen by many as a sign of de-escalation. Earlier in the session, prices had surged to $74.30, the highest level since January 2025, before retreating as investors reassessed the likelihood of immediate supply disruptions and awaited further developments. The Strait of Hormuz remains a key chokepoint, responsible for around 20% of global oil shipments. While Iran’s parliament has voiced support for a partial closure, the final decision lies with the country’s national security council. US Secretary of State Marco Rubio warned that such action would be “economic suicide” for Iran and called on China, its largest oil customer, to intervene.

In response to falling oil prices, energy majors ExxonMobil and Chevron gave up earlier gains. Nonetheless, broader equity markets remained buoyed by strong corporate earnings and easing concerns over near-term supply risks. Meanwhile, gold prices slipped 0.21% to $3 381.23 per ounce, while platinum gained 1.68% to settle at $1 288.35.

US stocks trimmed some of their recent gains on Monday after Iran launched missile strikes on US bases in Qatar. Despite this, the major indices still ended the day higher with the S&P 500 closing 0.69% at 6 008.75, the Dow Jones futures rose by 0.72% to 42 820.00 and the Nasdaq 100 increased by 0.83% to finish at 19 609.69. Tesla was a standout performer, climbing more than 8% following the launch of its first driverless taxi fleet, while AMD gained 2.3% after receiving a research upgrade.

On Monday, US Federal Reserve Vice Chair for Supervision Michelle Bowman suggested that interest rate cuts might be approaching. She highlighted growing concerns about labour market risks but saw less chance that elevated import tariffs would cause persistent inflation. In currency markets, the US dollar strengthened by 0.41% against the Japanese yen to 146.68. The euro rebounded from earlier losses, rising 0.09% to $1.1532 following Bowman’s comments. Meanwhile, the dollar index, which tracks the greenback against a basket of major currencies including the yen and euro, fell by 0.19%.

In Europe, the FTSE 100 edged lower by 0.19% to close at 8 758.04 as investors adopted a cautious stance due to geopolitical tensions. Travel stocks also came under pressure, with easyJet falling more than 2% and IAG down nearly 1.50%. Frankfurt’s DAX closed around 0.29% lower at 23 282.51, mirroring the broader regional mood as traders balanced geopolitical uncertainties with fresh economic data. The pan-European STOXX 50 slipped 0.20% to 5 222, while the STOXX 600 fell 0.30% to 535, reflecting a cautious shift towards safer assets. Among individual movers, Novo Nordisk shares dropped 5.30% after the company ended its retail partnership with Hims & Hers. Insurers also faced declines on concerns over the risks posed by potential military action affecting tankers and infrastructure, with AXA and Munich Re both falling more than 3%.

South African markets ended Monday on a positive note, with the FTSE/JSE All Share Index rising by 0.44% to close at 95 128.20. The FTSE/JSE Top 40 advanced 0.63% to 87 683.76, while the FTSE/JSE Capped Shareholder-Weighted Top 40 also gained 0.63% to settle at 16 321. In contrast, the property sector remained under pressure, as the FTSE/JSE All Property Index declined by 0.51% to 8 743. Overall, the local market showed resilience, bolstered by broad-based strength across most sectors despite a drag from property stocks. Meanwhile, the rand firmed, ending the session 0.75% stronger at R17.86 to the US dollar.

Asian markets showed mixed results, with the Nikkei falling 0.13% to close at 38 354.09, while the Hang Seng and Shanghai indices rose by 0.64% and 0.71%, respectively.

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ALBI (R) 1167.66 0.43 Brent Oil ($) 78.39 1.79 Gold ($) 3358.47 -0.29 Platinum ($) 1267.89 -0.07 Rand/EUR 20.79 -0.26 Rand/GBP 24.27 0.09 Rand/USD 18.10 -0.57

Market indicators

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Date Index Current Level 1 Day Move 1 Month Move 6 Month Move 1 Year Move
2025-06-23 ALSI 94710.48 -0.22 2.20 13.89 22.42
2025-06-23 Basic minerals 53997.50 -1.76 7.90 41.51 30.21
2025-06-23 Fin + Ind 30 12438.44 0.24 0.60 7.93 20.66
2025-06-23 Financial 51299.93 0.29 0.74 3.16 16.61
2025-06-23 Industrial index 141337.73 0.21 0.34 11.70 23.49

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.

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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.

Global funds

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:

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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.

Invest in other currencies

The following funds invest internationally using foreign currency

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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.

House view equity portfolios

Fund display name Performance –As at 2025/06/23
1 year %3 year %5 year %Inception %
PSG Wealth Income Growth Equity Portfolio 11.15 10.15 9.96 3.55
PSG Wealth Offshore Equity Portfolio (USD) 8.93 9.93 10.29 11.13
PSG Wealth SA Equity Portfolio 21.31 9.97 9.83 5.53
PSG Wealth SA Property Equity Portfolio 23.47 17.50 15.85 0.45

* 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.

Recent investment ideas

Aspen earnings at risk amid vaccine disputes

  1. Aspen is facing heightened uncertainty due to the unresolved dispute over its mRNA manufacturing contract, which could reduce EBITDA by up to R2 billion. The potential risk of a R770 million impairment further weighs on near-term profitability. Meanwhile, delays in regulatory approvals for insulin products are also pushing back expected revenue contributions, despite secured take-or-pay agreements.
  2. Key points in the investment thesis are:
  • Aspen is facing increased regulatory scrutiny in the US following an FDA warning letter, which has resulted in tighter compliance monitoring at a critical manufacturing site. This has elevated external perception risks in the near term specific to Aspen while there is a general drive in the US to move manufacturing domestically.
  • Exposure to evolving trade dynamics: Potential tariff developments in the US market could increase cost structures and temporarily challenge export competitiveness in select product categories.
  • Aspen is strategically entering the obesity and diabetes treatment markets via its partnership with Eli Lilly (Mounjaro) and plans to manufacture GLP-1 drugs by FY26, positioning it to benefit from rising global demand.
  • Following the Sandoz China acquisition, Aspen plans to restructure the business in H2 FY25 to improve flexibility and regulatory readiness.
  • Regulatory reforms in South Africa, including SAHPRA’s priority review framework, may accelerate approvals for key medicines and support Aspen’s local manufacturing strategy.

APN has an Intrinsic value of R131 per share (down from R206 previously) and a Hold recommendation.

British American Tobacco full year results for FY24.

  • On 13 February 2025, British American Tobacco released full year results for FY24.
     
    • Total revenue declined 6.4% to £25.9 billion, due to regulatory issues in Bangladesh and Australia as well as larger than expected decline in cigarette volumes in the US. DEPS was up 2% to 2400.24 p/share.
    • Combustibles revenue was flat with price increases of 5.3% offsetting volume declines of 5.2%.
    • Profit from operations came in £2.7 billion impacted by a once off £6.2 billion charge related to provisioning for the settlement in Canada.
    • NGPs increased by £251 million and now have a contribution margin of 7.1%.
    • Adjusted net debt/EBITDA now sits at 2.44x, below the target of 2.54x.
    • A mixed bag of category performance with vapour disappointing at -5%, but Modern Oral growing at 46%, ahead of expectations.
    • Guidance remained unchanged at 1% revenue growth and share buybacks continue. Management guided for £700 million in FY24 (now completed) and a further £900 million in FY25. (Subsequently a further £200 million in share buybacks has been announced taking the total to £1.1 billion).
    Our research supports hold recommendation.

Renergen’s FY25 results for the period ending 28 February 2025

  • In this report, we review Renergen’s FY25 results for the period ending 28 February 2025, released on 19 May 2025, as well as the offer by ASP Isotopes Inc to purchase all the outstanding shares of Renergen. Financials: Revenue improved by 80%, from R29 million in FY24 to R52.1 million in FY25. The increase was driven by improved production and higher LNG prices. Cost of sales rose by R61.3 million to R80.2 million, mainly due the following:
    • Depreciation increased by R32.7 million.
    • Fuel and lubrication costs rose by R9.7 million, due to a larger asset base leading to increased machine hours.
    • Utility costs increased by R14.7 million, impacted by increased machine hours and the commissioning of the LHe production plant.
    Our research supports a sell recommendation.

Corporate Actions

Date Company Share code Expectation
25 June 2025 British American Tobacco Plc BTI

Cash Dividend

25 June 2025 Fairvest Limited A SharesFTA

Cash Dividend

25 June 2025 Fairvest Limited B SharesFTB

Cash Dividend

25 June 2025 Oceana Group LimitedOCE

Cash Dividend

25 June 2025 PPC LimitedPPC

Cash Dividend

25 June 2025 Reunert Limited RLO

Cash Dividend

25 June 2025 Sirius Real Estate LimitedSRE

DRIP

25 June 2025 Sygnia Limited SYG

Cash Dividend

25 June 2025 SAB Zenzele Kabili Holdings Limited SZK

Special Dividend

The information above is to the best of our knowledge correct.
The Corporate Actions are updated weekly.

Fund performance

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.

PSG Financial Services +27 (21) 918 7800

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