Back to top
SEARCH PSG

To search, just start typing...

SEARCH RESULTS

LOGIN

Please select which division you would like to log in to.


Tech sector caused mixed markets

12 November 2020

Tech sector caused mixed markets

Daily Investment Update

banner

Market commentary

SA flag Icon
South Africa

Drops in the share price of Naspers and Prosus dragged down the JSE on Wednesday, but hopes for a COVID-19 vaccine capped losses. The All Share closed 0.11% in the red.

US flag Icon
United States

Expectations for a faster economic rebound after signs of a successful COVID-19 vaccine boosted Wall Street on Wednesday with the Dow Jones trading up by 0.90% at 19h40.

EU flag Icon
Europe

Economic concerns around rising COVID-19 infections on the European continent was offset by optimism about a possible vaccine, with the FTSE 100 closing up by 1.35%.

HK flag Icon
Hong Kong

Stricter regulations for tech giants like the Alibaba Group dragged Hong Kong shares down on Wednesday with the Hang Seng closing 0.28% in the red.

Japan flag Icon
Japan

Optimism about a faster economic recovery boosted the Nikkei by 1.78% on Wednesday.

Rand Icon
Rand

The rand was firmer before President Cyril Ramaphosa addressed the nation last night, trading at R15.69/$ at 19h50.

Precious metals Icon
Precious metals

A stronger greenback hurt the safe-haven appeal of gold on Wednesday, keeping the price of an ounce of spot gold below the $1 900 psychological level.

Oil Icon
Oil

Hopes for a working COVID-19 vaccine continued to boost sentiment on Wednesday with the price of Brent crude trading up by almost 2% at $44.49 a barrel at 19h45.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 607.30 - 0.11 4.43 1.61 15.85 5.50
Gold mining 4 261.77 - 5.68 - 21.39 - 24.26 - 5.41 82.84
Basic minerals 37 737.32 - 0.91 - 4.08 - 9.11 22.98 18.23
Industrial index 83 661.21 - 1.35 6.17 5.68 9.36 14.25
Financial 29 797.26 4.80 18.38 14.58 22.03 - 23.55
Fin + Ind 30 7 329.46 0.31 9.34 8.04 12.64 0.19
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) 29 397.63 - 0.08 2.93 6.72 22.69 8.61
S&P 500 PR (USD) 3 572.66 0.77 2.86 7.63 23.00 17.92
NASDAQ (USD) 11 553.86 - 1.36 - 0.17 5.55 27.20 37.61
FT-100 (GBP) 6 382.10 1.35 6.22 4.55 9.11 - 10.03
Hang Seng (HKD) 26 226.98 - 0.28 8.82 6.06 9.69 0.55
Nikkei 225 (JPY) 25 349.60 1.78 7.35 12.18 25.30 10.80
MSCI World (USD) 7 513.69 0.85 3.36 7.55 23.61 13.39
Frankfurt (EUR) 5 719.79 0.40 1.26 2.08 22.09 0.13
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 876.20 0.07 - 1.89 - 6.03 10.44 28.02
Platinum ($) 887.00 1.37 0.91 - 6.83 15.65 0.34
Brent Oil ($) 43.80 0.44 2.22 - 1.57 47.82 - 29.56
Rand/USD 15.64 - 0.53 5.52 10.17 15.49 - 4.76
Rand/GBP 20.66 - 0.07 4.36 9.17 7.74 - 7.68
Rand/EUR 18.42 - 0.07 5.71 10.49 8.04 - 11.98
ALBI (R) 745.02 - 0.01 4.98 5.67 7.37 8.76
  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. Unemployment rate Q3
  2. Mining production SEP
  3. SACCI business confidence OCT
  1. UK: GDP growth rate preliminary Q3
  2. EA: Industrial production SEP
  3. US: Inflation rate OCT

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 D 2.51 6.27 7.11 7.38 7.58 7.63
PSG Wealth Income FoF D 4.29 5.38 6.60 6.92 7.42 7.54
PSG Wealth Preserver FoF D 5.47 2.97 4.19 3.51 5.34 5.15
PSG Wealth Moderate FoF D 8.81 1.87 3.25 1.64 4.68 4.28
PSG Wealth Creator FoF D 17.44 3.03 3.92 0.31 4.16 3.79
PSG Wealth Global Preserver FF D - 7.08 8.12 9.57 - - -
PSG Wealth Global Moderate FF D - 0.96 12.51 12.27 7.10 9.47 6.74
PSG Wealth Global Flexible FF D 2.19 21.51 17.85 - - -
PSG Wealth Global Creator FF D 6.11 22.92 19.95 14.46 17.73 13.11
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 16.78 7.27 7.69 4.26 6.22 4.99
PSG Wealth Global Creator FoF D 26.01 17.98 15.52 11.70 14.17 11.48
PSG Wealth Global Preserver FoF (USD) D 9.85 2.52 4.53 2.90 3.94 4.46
PSG Wealth Global Flexible FoF (USD) D 20.05 15.28 12.88 9.62 12.19 10.39
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 4.27 - 0.73 3.33 2.57 2.76 6.36
PSG Wealth Global Flexible FoF (GBP) D 12.41 11.56 11.85 9.12 10.11 12.52
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.11 5.62 6.44 6.73 6.95 7.00
PSG Income A 4.94 9.87 9.07 8.91 8.73 8.58
PSG Diversified Income 6.12 7.81 7.21 7.38 7.64 7.64
PSG Stable A 8.19 - 2.11 - 1.25 1.18 3.04 3.84
PSG Balanced A 13.64 - 6.26 - 6.66 - 3.38 0.09 1.64
PSG Flexible A 14.03 - 11.72 - 8.70 - 5.06 - 1.03 1.37
PSG SA Equity D 23.09 - 14.09 - 15.37 - 11.02 - -
PSG Equity A 15.68 - 12.04 - 12.15 - 8.22 - 3.19 - 0.15
PSG Global Flexible FF A 2.43 - 1.60 - 3.08 - 1.82 3.28 -
PSG Global Equity FF A 4.37 - 8.38 - 7.41 - 4.25 1.98 2.39
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 26.32 - 2.59 - 5.29 - 3.19 1.05 2.81
PSG Global Equity USD 27.78 - 7.77 - 8.65 - 5.02 0.19 2.08
  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 9.29 - 5.36 - 5.16 - 3.73 - 0.54 0.83
PSG Wealth SA Property Equity Portfolio 7.10 - 46.66 - 31.26 - 23.20 - 16.26 -
PSG Wealth Dividend Income Equity Portfolio 7.77 - 18.29 - 11.49 - 6.41 - 2.46 -
PSG Wealth Offshore Equity Portfolio (USD) 16.62 13.55 13.64 12.32 15.85 13.43
  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

  • Although the group is trading at a steep discount to itself and a 47% discount to our SOTP value, we believe that the market has mostly captured risks from UK operations due to Brexit, reinstated lockdowns, and volatility around African businesses.
  • As a result, we recommend an overweight position to investors with a high-risk tolerance only and stress that reversions toward long-term averages remain dependent on a medium-term recovery in profitability and normalisation in property fundamentals.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • The group is currently focussed on numerous initiatives to stabilise its operations, protect liquidity and strengthen its balance sheet.
  • We estimate that the local operations have access to sufficient liquidity to give it the flexibility to restructure its Australian operations.
  • However, the pandemic has resulted in a weak consumer environment, and the restructuring of the Australian operations has no easy solutions.
  • Currently, Woolworths is trading on a forward P/E multiple of 13.2 times relative to its five-year average of 14.3, which we feel fairly values the group.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • On an earnings basis, the group is trading at a forward P/E ratio of 11.5 times, which compares favourably with its long-term average of 13.7 times but trades in line with its historical premium to peers.
  • We feel that this fairly values the group, especially considering the increased pressure on the South African economy as well as the elevated debt levels.
  • Therefore, we maintain our neutral recommendation with regard to this counter.
  • For more information about this counter, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
18 November 2020 AH-Vest Limited AHL Cash Dividend
18 November 2020 Exemplar REITail Limited EXP Cash Dividend
18 November 2020 Investec Australia Property Fund Limited IAP Interest Distribution
18 November 2020 Investec Bank (Mauritius) Limited IMRP7 Cash Dividend
18 November 2020 London Finance and Investment Group Plc LNF Cash Dividend
18 November 2020 MIX Telematics Limited MIX Cash Dividend
18 November 2020 Newfunds Govi ETF Portfolio NFGOVI Cash Distribution
18 November 2020 Spear REIT Limited SEA DRIPOption 1 - (Cash Dividend) Gross - ZAR0.2934465Less 20% Withholding Tax - ZAR0.0586893 Net - ZAR0.2347572Option 2 (Reinvestment)Reinvestment Price - ZAR4.4565535Default - Option 1 (Cash)
18 November 2020 Vivo Energy Plc VVO 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.

Recommended Articles

Vaccine optimism boosts rand

SA downgraded further into junk

Rand lower on SARB projections

Author
author

Adriaan Pask PhD

Chief Investment Officer


At PSG Wealth
Copyright © PSG Konsult Ltd (1998-2020), All Rights Reserved. FAIS affiliates of the PSG Konsult Group are authorised financial services providers.