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JSE closed higher ahead of SONA

11 February 2021

JSE closed higher ahead of SONA

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The JSE closed higher on Wednesday ahead of the State of the Nation Address where government is expected to expand on their economic recovery plan. At the closing bell, the All Share gained 1.52%.

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United States

US indices were mixed as concerns over the slow pace of vaccine rollouts overshadowed reports of an increase in consumer prices over the past month.

EU flag Icon
Europe

European markets opened higher on Wednesday with commodity-linked shares and banking stocks doing the heavy lifting.

HK flag Icon
Hong Kong

The Hang Seng index rose 1.91% on Wednesday following the release of data that pointed to a sustained recovery in China’s economy.

Japan flag Icon
Japan

The Nikkei looked set to rise above the psychologically important 30 000 points on Wednesday as hopes of a swift global economic recovery persisted.

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Rand

The rand continued to firm against emerging market currencies on Wednesday. At 17h30, it traded at R14.67/$, R20.32/£ and R17.80/€.

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Precious metals

Bullion rose to a near one-week high as a weaker dollar and hopes of additional stimulus boosted the metal’s appeal as a hedge against inflation. At 17h45, an ounce of gold traded at $1 837.96.

Oil Icon
Oil

Brent crude continued its rally on Wednesday supported by supply cuts and optimism that vaccine rollouts will increase 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 66 150.82 1.52 4.19 15.00 17.83 19.61
Gold mining 3 875.59 2.13 - 2.24 - 14.17 - 37.32 39.85
Basic minerals 46 443.92 3.49 - 1.11 21.97 11.22 41.78
Industrial index 94 180.05 0.73 8.99 11.47 20.82 22.17
Financial 31 382.67 - 0.02 1.99 10.86 24.19 - 13.32
Fin + Ind 30 8 103.73 0.53 7.03 11.34 21.74 10.02
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) 31 437.80 0.20 1.18 7.39 14.26 9.80
S&P 500 PR (USD) 3 909.88 - 0.03 2.33 10.71 17.31 18.75
NASDAQ (USD) 13 972.53 - 0.25 6.15 19.79 27.69 48.40
FT-100 (GBP) 6 524.36 - 0.11 - 5.05 4.09 9.22 - 9.55
Hang Seng (HKD) 30 038.72 1.91 7.75 14.29 24.12 13.79
Nikkei 225 (JPY) 29 562.93 0.19 5.07 18.86 33.46 27.23
MSCI World (USD) 8 345.05 0.08 1.78 12.00 19.38 17.92
Frankfurt (EUR) 6 013.42 - 0.56 - 0.83 5.85 9.82 3.25
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 836.59 - 0.34 - 2.53 - 1.68 - 9.20 17.12
Platinum ($) 1 244.48 - 0.14 10.05 38.86 25.00 25.26
Brent Oil ($) 61.09 0.88 9.11 44.08 37.59 12.15
Rand/USD 14.73 - 0.08 5.56 5.91 15.16 0.40
Rand/GBP 20.39 - 0.25 3.26 0.67 10.24 - 6.43
Rand/EUR 17.85 - 0.03 5.70 3.35 13.25 - 10.64
ALBI (R) 776.98 0.17 2.58 4.28 9.81 10.04
  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. ZA: Manufacturing production DEC
  1. MX: Interest rate decision
  2. US: Initial jobless claims 06/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 2.12 5.32 6.59 7.04 7.30 7.47
PSG Wealth Income FoF D 4.36 5.86 6.83 7.18 7.38 7.77
PSG Wealth Preserver FoF D 7.16 7.00 7.36 6.57 6.35 6.50
PSG Wealth Moderate FoF D 11.45 9.60 9.24 6.79 6.54 6.99
PSG Wealth Creator FoF D 19.28 16.32 12.07 7.46 6.93 8.71
PSG Wealth Global Preserver FF D - 9.00 4.38 11.22 - - -
PSG Wealth Global Moderate FF D - 4.67 10.48 16.30 13.96 10.28 6.80
PSG Wealth Global Flexible FF D - 3.26 17.46 21.12 - - -
PSG Wealth Global Creator FF D - 0.73 18.03 25.93 21.80 18.35 13.88
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 13.07 12.29 11.87 6.98 7.55 8.89
PSG Wealth Global Creator FoF D USD 17.85 19.96 21.69 14.96 15.49 16.23
PSG Wealth Global Preserver FoF (USD) D 7.32 4.81 6.27 4.66 4.53 6.13
PSG Wealth Global Flexible FoF (USD) D 14.76 19.21 17.23 12.80 13.07 13.88
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 2.71 - 0.89 3.29 4.19 2.62 6.60
PSG Wealth Global Flexible FoF (GBP) D 8.83 12.01 13.90 12.37 10.14 14.33
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 1.73 4.65 5.92 6.38 6.67 6.82
PSG Income A 3.84 9.39 8.70 8.50 8.56 8.56
PSG Diversified Income 6.17 9.07 7.92 7.58 7.78 7.95
PSG Stable A 14.10 5.79 3.47 3.50 4.45 5.76
PSG Balanced A 24.30 9.67 2.69 1.75 2.90 5.58
PSG Flexible A 25.73 6.48 1.16 0.87 1.86 5.60
PSG SA Equity D 29.72 7.69 - 6.30 - 7.09 - -
PSG Equity A 28.41 8.21 - 0.96 - 1.91 - 0.56 5.42
PSG Global Flexible FF A 11.04 13.58 9.91 9.01 6.33 -
PSG Global Equity FF A 15.28 9.07 7.06 7.04 5.39 6.87
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 32.39 16.67 5.84 2.20 3.88 9.41
PSG Global Equity USD 36.74 13.65 3.85 0.83 3.30 9.66
  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 14.09 3.49 1.04 - 1.20 1.08 4.18
PSG Wealth SA Property Equity Portfolio 14.20 - 29.23 - 22.70 - 17.18 - 12.73 - 9.85
PSG Wealth Dividend Income Equity Portfolio 15.73 - 5.85 - 6.05 - 6.68 - 1.17 -
PSG Wealth Offshore Equity Portfolio (USD) 15.96 15.32 20.11 14.94 17.40 17.45
  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

  • Coronation has a decent record of growing assets under management (AUM) over the past 17 years; however, AUM growth has been subdued over the past seven years, with funds up only 1.14% since September 2014.
  • This shows that the group has been heavily impacted by the subdued local economic environment, which has translated into share price underperformance relative to the benchmark over the past five years (Coronation down 7.7% versus Capped SWIX up 11.1%).
  • Based on the valuations and investment performance, we feel that the share is fairly valued and recommend a neutral exposure to Coronation.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • The counter does not share the high compounding and growth characteristics that we prefer for select portfolios.
  • It seems attractively priced on a forward P:E of 4.0 times, a 37.6% discount to its historical average, and a 69.9% discount to its peers compared with its 55% historical discount.
  • We will continue to monitor the market with the intension to exit the position at a price closer to fair value.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • The company estimates that it needs only around 40% of its non-risk-adjusted projected pipeline revenue to accomplish its 6% annual growth objective, which provides some comfort even if there are clinical trial setbacks. However, with another major patent expiration cycle around FY25, we see Pfizer's share upside tied to pipeline success.
  • Several early trials will guide to the extent to which it needs to replenish its pipeline with mergers and acquisitions.
  • On a forward P:E basis, the share now trades at 15.1 times, a 13.3% premium to its historical average, and a 16.9% premium to its FactSet peers.
  • At current prices, we feel the share is fairly valued.
  • For more information about this counter, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
17 February 2021 FirstRand Limited Non-Cumulative Non-Redeemable B Preference Shares FSRP Cash Dividend
17 February 2021 Hudaco Industries Limited HDC Cash Dividend
17 February 2021 Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference Shares IMRP3 Cash Dividend
17 February 2021 Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference Shares IMRP6 Cash Dividend
17 February 2021 Investec Bank (Mauritius) Ltd Redeemable Cumulative Non-Participating No Par Value Preference Shares IMRP7 Cash Dividend
17 February 2021 Mix Telematics Limited MIX Cash Dividend
17 February 2021 Octodec Investments Limited (REIT) OCT 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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