Nikkei records a 30-year high

13 January 2021

Nikkei records a 30-year high

Daily Investment Update

Market commentary

	South Africa Although the JSE still traded at record highs on Tuesday, concern about increasing global COVID-19 cases and President Cyril Ramaphosa extending level 3 lockdown and closing select borders weighed on investor sentiment. The All Share closed 0.35% in the red.
	United States Wall Street edged up at its open on Tuesday as investors waited for the start of earnings season to gauge the health of the US's corporate sector and economy.
	Europe European markets were mostly flat on Tuesday as investors awaited the start of earnings season and more clarity around the US fiscal spending plans under President Joe Biden. The STOXX 600 closed flat at 0.05%.
	Hong Kong The Hang Seng ended Tuesday 1.32% higher as inflows from mainland China boosted the index to an almost one-year high.
	Japan On Tuesday the Nikkei closed flat at 0.09%, but reached a 30-year high, boosted by drug makers on news that Chugai Pharmaceutical’s drug effectively treated COVID-19 patients.
	Rand Although the rand made up ground on Tuesday in early sessions, it eased slightly towards the end of trade due to the global spike in COIVD-19 infections and “a rise in US yields on expectations of more debt issuance in the country”. At 20h30, the local currency traded at R15.31/$.
	Precious metals After choppy trade on Tuesday, gold fell about 1% “as a surge in US Treasury yields outweighed support from bets on higher inflation as Washington rolls out more stimulus”. Spot gold traded at $1 845.72/oz at 20h30 on Tuesday.
	Oil Brent crude reached an almost 11-month high on Tuesday thanks to tighter supply and a widely anticipated drop in US inventories. At 20h15, Brent crude had gained 1.37% to $56.35/barrel.

Market indicators

Local markets (R)
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
ALSI	63 535.10	- 0.35	7.00	14.65	15.85	13.61
Gold mining	3 963.66	- 1.00	9.55	- 26.67	- 26.24	45.14
Basic minerals	46 415.00	- 0.95	13.76	17.64	24.81	35.16
Industrial index	87 699.77	- 0.19	3.90	10.73	10.37	16.23
Financial	30 421.77	0.41	2.57	20.00	13.80	- 18.26
Fin + Ind 30	7 628.58	- 0.03	3.55	13.17	11.32	4.02
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)	31 068.69	0.19	3.47	8.28	20.40	10.27
S&P 500 PR (USD)	3 801.19	0.04	3.89	7.99	20.34	18.54
NASDAQ (USD)	13 036.43	0.28	5.37	12.78	23.26	43.28
FT-100 (GBP)	6 754.11	- 0.65	3.32	13.19	12.43	- 8.08
Hang Seng (HKD)	28 276.75	1.32	6.68	14.88	10.71	1.92
Nikkei 225 (JPY)	28 164.34	0.09	5.80	19.73	27.34	20.37
MSCI World (USD)	8 142.94	0.16	4.38	10.66	21.80	16.86
Frankfurt (EUR)	6 024.46	- 0.08	6.18	5.99	10.22	3.28
Other markets
Index	Current level	1 Day move	1 Month move	3 Month move	6 Month move	1 Year move
Gold ($)	1 859.42	0.12	1.54	- 3.02	3.11	20.21
Platinum ($)	1 077.01	0.77	4.11	19.82	26.37	9.35
Brent Oil ($)	56.72	1.65	11.39	29.89	28.72	- 14.34
Rand/USD	15.23	2.33	- 0.98	8.06	8.92	- 5.88
Rand/GBP	20.84	1.16	- 3.70	3.37	0.84	- 11.47
Rand/EUR	18.60	1.77	- 1.63	4.46	2.32	- 16.10
ALBI (R)	757.04	0.23	0.54	6.33	9.03	8.13

^{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
Retail Sales NOV	EU: ECB President Lagarde Speech US: Inflation Rate YoY DEC JP: Balance of Trade DEC (Thursday 05h00)

^{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	2.18	5.60	6.74	7.15	7.39	7.53
PSG Wealth Income FoF D	4.66	5.80	6.89	6.96	7.35	7.75
PSG Wealth Preserver FoF D	8.46	6.97	7.19	5.32	6.12	6.14
PSG Wealth Moderate FoF D	12.91	8.53	8.74	4.69	6.09	6.47
PSG Wealth Creator FoF D	19.00	10.67	10.03	4.00	6.02	7.69
PSG Wealth Global Preserver FF D	- 0.46	14.32	13.39	-	-	-
PSG Wealth Global Moderate FF D	6.15	20.48	18.82	13.27	10.73	6.41
PSG Wealth Global Flexible FF D	7.18	28.07	24.39	-	-	-
PSG Wealth Global Creator FF D	10.65	29.63	30.39	20.78	18.98	13.10
PSG Wealth Solutions ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Moderate FoF D	15.52	10.59	12.19	5.19	7.40	7.83
PSG Wealth Global Creator FoF D	21.62	19.61	23.41	12.42	15.57	14.87
PSG Wealth Global Preserver FoF (USD) D	8.59	4.28	6.61	3.53	4.53	5.75
PSG Wealth Global Flexible FoF (USD) D	17.19	18.19	17.93	10.48	13.45	13.04
PSG Wealth Solutions (£)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Wealth Global Preserver FoF (GBP) D	3.07	1.04	4.18	3.20	2.79	6.65
PSG Wealth Global Flexible FoF (GBP) D	9.82	14.66	15.25	10.12	10.54	13.92
PSG Asset Management
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Money Market A	1.82	4.99	6.10	6.50	6.76	6.89
PSG Income A	3.84	9.38	8.71	8.53	8.57	8.58
PSG Diversified Income	6.85	8.32	7.40	7.17	7.54	7.75
PSG Stable A	13.19	3.08	1.96	2.28	3.85	5.25
PSG Balanced A	23.09	4.52	0.37	- 0.41	1.98	4.93
PSG Flexible A	24.78	0.81	- 1.14	- 1.65	0.96	5.04
PSG SA Equity D	22.94	- 3.91	- 10.12	- 9.72	-	-
PSG Equity A	26.55	1.33	- 3.87	- 4.91	- 1.37	5.07
PSG Global Flexible FF A	26.24	22.02	12.59	7.91	7.37	-
PSG Global Equity FF A	30.63	15.76	9.59	5.28	6.37	6.82
PSG Asset Management ($)
Fund	6 Month move	1 Year move	2 Year move	3 Year move	4 Year move	5 Year move
PSG Global Flexible USD A	34.26	10.36	5.59	- 0.23	3.91	8.48
PSG Global Equity USD	37.74	6.16	3.45	- 2.15	3.28	8.47

^{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	15.83	4.98	- 0.81	- 3.00	0.47	3.69
PSG Wealth SA Property Equity Portfolio	3.91	- 37.04	- 27.17	- 21.05	- 15.10	- 11.87
PSG Wealth Dividend Income Equity Portfolio	14.31	- 6.17	- 8.95	- 8.59	- 1.92	-
PSG Wealth Offshore Equity Portfolio (USD)	15.28	15.54	19.15	11.43	17.36	15.93

^{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

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.

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.

Highlights

We believe Mr Price is well-positioned in the retail sector, being a budget retailer and its high proportion of cash sales in the anticipated deteriorating credit landscape.
Earnings recovery will likely be aided by real space growth through the acquisition of Power Fashion.
On a P/E basis, the group trades at a slight premium to its historical multiple and a discount to its peers.
Mr Price remains our preferred clothing retail counter, but we feel that the share is fairly valued at current levels and maintain our neutral recommendation.
For more information about this counter, please contact your PSG Wealth adviser.

Corporate actions

Date	Company	Share code	Expectation
13 January 2021	Deneb Investments Limited	DNB	Cash Distribution (Capital Reduction)
13 January 2021	Texton Property Fund Limited	TEX	Tender Offer
13 January 2021	Hospitality Property Fund Limited	HPB	General Offer
13 January 2021	African Oxygen Limited	AFX	Special Cash Dividend
13 January 2021	Tiger Brands Limited	TBS	Special Cash Dividend
13 January 2021	Tiger Brands Limited	TBS	Cash Dividend
13 January 2021	Astral Foods Limited	ARL	Cash Dividend
13 January 2021	Quantum Foods Holdings Limited	QFH	Cash Dividend
13 January 2021	Marshall Monteagle Plc	MMP	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.}

Nikkei records a 30-year high

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13 January 2021