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Gold hits one-week high

17 December 2020

Gold hits one-week high

Daily Investment Update

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Market commentary

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South Africa

Local markets were closed for a public holiday.

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United States

US markets rose on Wednesday amid hopes of continued monetary policy easing by the US Federal Reserve Bank (Fed) and a nationwide rollout of a COVID-19 vaccine. At 18h00, the Nasdaq rose 0.30%.

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Europe

European markets recorded gains on Wednesday amid rising hopes of a Brexit deal after both sides vowed to “go the extra mile” before the 31 December 2020 deadline.

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Hong Kong

The Hang Seng gained 0.97% on Wednesday, tracking global equities higher on encouraging vaccine developments and stimulus hopes.

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Japan

At the close of business, the Nikkei share average rose 0.26%, tracking an overnight rally on Wall Street after Apple Inc said it projects increased production and sales in 2021.

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Rand

Local markets were closed for a public holiday.

Precious metals Icon
Precious metals

Bullion rose to a one-week high on Wednesday as investors hoped for supplementary fiscal support for the US and expected the Fed to keep interest rates low. At 18h45, spot gold traded at $1 855.36/oz.

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Oil

A weakening dollar and progress on the rollout of a COVID-19 vaccine boosted oil prices, but an unexpected gain in US crude inventories capped gains. At 18h50, Brent crude rose 0.77%.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 59 478.26 - 0.05 4.23 6.50 15.08 7.82
Gold mining 3 688.75 1.94 - 14.31 - 37.25 - 5.74 43.69
Basic minerals 40 840.72 0.03 9.88 0.20 20.85 19.19
Industrial index 83 804.33 - 0.62 - 0.55 6.89 11.69 15.93
Financial 30 418.07 1.23 6.55 19.54 13.40 - 20.19
Fin + Ind 30 7 381.81 - 0.02 1.38 10.22 12.19 2.57
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) 30 154.54 - 0.15 0.98 8.12 15.95 9.26
S&P 500 PR (USD) 3 701.17 0.18 2.21 9.76 19.43 18.11
NASDAQ (USD) 12 595.06 0.50 6.56 12.76 30.00 45.49
FT-100 (GBP) 6 570.91 0.88 2.47 8.68 6.85 - 9.80
Hang Seng (HKD) 26 460.29 0.97 0.37 7.22 10.80 - 0.71
Nikkei 225 (JPY) 26 757.40 0.26 3.28 14.70 19.43 13.92
MSCI World (USD) 7 899.79 0.42 3.75 10.82 20.46 15.42
Frankfurt (EUR) 5 869.02 1.52 3.25 2.34 10.15 1.18
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 868.18 0.18 - 1.65 - 5.27 7.70 25.99
Platinum ($) 1 043.81 0.64 15.55 6.83 26.27 12.45
Brent Oil ($) 50.76 0.93 18.65 25.24 27.79 - 22.17
Rand/USD 14.78 1.83 4.07 8.67 14.68 - 2.52
Rand/GBP 20.01 0.31 1.89 4.60 6.80 - 5.95
Rand/EUR 18.07 1.19 1.16 5.76 6.89 - 12.59
ALBI (R) 755.42 0.02 1.70 5.25 8.94 9.33
  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. No economic data scheduled for release
  1. US: Initial Jobless Claims
  2. UK: BoE Interest Rate Decision (Dec)

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 2.25 5.86 6.89 7.26 7.46 7.57
PSG Wealth Income FoF D 4.43 6.01 7.13 7.16 7.50 7.85
PSG Wealth Preserver FoF D 5.89 5.22 6.39 4.70 5.75 5.94
PSG Wealth Moderate FoF D 9.15 5.41 7.10 3.71 5.40 5.78
PSG Wealth Creator FoF D 15.87 6.53 8.58 3.27 5.08 6.41
PSG Wealth Global Preserver FF D - 5.04 9.01 9.18 - - -
PSG Wealth Global Moderate FF D 1.22 13.94 13.21 8.98 9.38 5.88
PSG Wealth Global Flexible FF D 2.09 21.57 18.17 - - -
PSG Wealth Global Creator FF D 4.29 23.65 22.67 16.40 17.42 12.31
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 14.71 9.22 10.98 4.97 6.78 6.36
PSG Wealth Global Creator FoF D 22.01 18.36 20.45 12.11 14.49 12.88
PSG Wealth Global Preserver FoF (USD) D 7.82 3.85 6.38 3.56 4.49 5.35
PSG Wealth Global Flexible FoF (USD) D 17.02 15.89 15.93 10.06 12.69 11.53
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 2.72 3.28 3.60 3.43 3.36 7.07
PSG Wealth Global Flexible FoF (GBP) D 10.08 16.14 13.17 9.95 10.74 13.43
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 1.91 5.30 6.28 6.62 6.86 6.95
PSG Income A 4.73 9.80 8.99 8.85 8.73 8.64
PSG Diversified Income 6.65 8.58 7.86 7.58 7.72 7.84
PSG Stable A 10.30 2.19 1.98 2.58 3.77 5.09
PSG Balanced A 17.26 1.45 - 0.57 - 0.51 1.51 4.25
PSG Flexible A 17.89 - 3.48 - 2.78 - 2.00 0.14 4.11
PSG SA Equity D 20.48 - 6.33 - 9.76 - 7.81 - -
PSG Equity A 19.83 - 3.11 - 5.34 - 4.71 - 2.00 3.97
PSG Global Flexible FF A 11.61 12.21 5.18 3.07 4.48 -
PSG Global Equity FF A 13.79 6.13 1.93 0.63 3.41 5.48
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 28.62 6.63 3.34 - 0.78 2.89 6.25
PSG Global Equity USD 30.18 2.05 0.86 - 2.63 2.20 5.95
  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 - 3.15 - 1.98 - 1.96 0.36 3.03
PSG Wealth SA Property Equity Portfolio 6.79 - 35.97 - 21.32 - 19.35 - 12.70 - 10.54
PSG Wealth Dividend Income Equity Portfolio 7.78 - 14.17 - 7.85 - 6.85 - 1.76 -
PSG Wealth Offshore Equity Portfolio (USD) 19.60 15.12 18.08 12.49 16.67 14.79
  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

  • 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 these counters, please contact your PSG Wealth adviser.


company logo

Highlights

  • COVID-19 has accelerated the long-overdue impairments and the disintegration of the relationship between property fundamentals and the premium placed on the counters.
  • As a result, the sector P/NAV is trading at an approximate 50% discount.
  • The market has particularly placed higher discounts on counters with weak balance sheets.
  • However, some companies have held up during this crisis, particularly Equites Property Fund, Sirius Real Estate and Stor-Age Property REIT.
  • For more information about these counters, please contact your PSG Wealth adviser.


company logo

Highlights

  • On a forward P/E basis, the share now trades at 10.6 times, a 22.3% discount to its historical average, and a 41.5% discount to its FactSet peers.
  • The group offers an attractive dividend yield of 5.2%, which, according to management, is sustainable despite possible tax reforms.
  • At current prices, we feel the share is undervalued.
  • For more information about this counter, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
22 December 2020 Arrowhead Properties Limited AHA Interim Cash Dividend
22 December 2020 Arrowhead Properties Limited AHA Final Cash Dividend
22 December 2020 Arrowhead Properties Limited AHB Interim Cash Dividend
22 December 2020 Arrowhead Properties Limited AHB Final Cash Dividend
22 December 2020 Capital Appreciation Limited CTA Cash Dividend
22 December 2020 Firstrand Limited 2Y Dollar Custodial Certificate DCCUS2 Interest Payment
22 December 2020 Mahube Infrastructure Limited MHB Cash Dividend
22 December 2020 Sibanye-Stillwater Limited SSW Odd-lot Offer (Shareholders holding less than 100 shares)Option 1 (Sell Entitlement) (Subject to 20% DWT)Gross Offer Price - ZAR57.23039Less 20% DWT - ZAR11.44608Net - ZAR45.78431Option 2 (Retain Odd-lot holding)Default - Option 1 (Sell Entitlement)
22 December 2020 Sibanye-Stillwater Limited SSW Specific Repurhase Offer (Shareholders holding from 100 to 400 shares)Option 1 (Tender shares) (Subject to 20% DWT)Gross Offer Price - ZAR57.23039Less 20% DWT - ZAR11.44608Net - ZAR45.78431Option 2 (Default) - No Action
  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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