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Pfizer ahead in the vaccine race

19 November 2020

Pfizer ahead in the vaccine race

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The JSE closed up 0.47% on Wednesday, boosted by the Spar Group’s unexpected rise in annual revenue; its biggest gain in 16 years.

US flag Icon
United States

Wall Street opened stronger on Wednesday after Boeing was cleared to resume flights and Pfizer announced it would apply for emergency US authorisation for its COVID-19 vaccine. At 18h14, the S&P 500 had gained 0.17%.

EU flag Icon
Europe

European shares ended Wednesday in the green as positive results from Pfizer’s COVID-19 vaccine boosted sentiment. The STOXX 600 ended the day 0.44% higher.

HK flag Icon
Hong Kong

The Hang Seng ended Wednesday 0.49% higher at 26 544 points due to a stellar performance from the automaker sector and optimism around a possible COVID-19 vaccine.

Japan flag Icon
Japan

The Nikkei closed 1.10% in the red on Wednesday because of a severe increase in COVID-19 infections in Tokyo.

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Rand

The local currency lost some steam on Wednesday due to poor local retail sales results for September 2020. At 18h30, the rand traded at R15.46/$.

Precious metals Icon
Precious metals

Bullion prices were down on Wednesday after Pfizer announced it would “apply for emergency US OK for vaccine” in light of its successful trial. Gold traded at $1 880.85/oz at 18h30.

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Oil

Brent crude traded at $44.26 a barrel at 18h15 on Wednesday, gaining almost 2%, as investors anticipate OPEC+ to delay planned oil output increases.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 323.67 0.47 4.15 1.37 12.63 4.41
Gold mining 4 008.87 - 3.02 - 23.44 - 31.76 - 16.44 63.73
Basic minerals 37 393.07 0.29 - 4.24 - 10.58 10.48 16.01
Industrial index 84 047.32 0.64 5.83 7.09 10.33 13.85
Financial 29 148.88 0.38 18.33 12.91 23.89 - 24.91
Fin + Ind 30 7 308.95 0.57 9.01 8.63 13.74 - 0.45
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) 29 438.42 - 1.16 3.12 6.53 21.03 7.48
S&P 500 PR (USD) 3 609.53 - 0.48 3.76 7.18 27.15 17.85
NASDAQ (USD) 11 899.34 - 0.21 2.02 7.13 32.55 40.61
FT-100 (GBP) 6 385.24 0.31 8.15 5.73 7.19 - 9.78
Hang Seng (HKD) 26 544.29 0.49 8.90 5.31 14.00 2.71
Nikkei 225 (JPY) 25 728.14 - 1.10 9.92 12.37 28.79 12.05
MSCI World (USD) 7 605.91 - 0.11 4.95 7.26 28.32 13.91
Frankfurt (EUR) 5 683.82 0.52 2.27 2.49 19.38 - 0.04
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 885.40 - 0.38 - 1.19 - 3.31 8.68 28.64
Platinum ($) 926.00 2.09 7.30 - 3.04 19.64 5.71
Brent Oil ($) 44.34 1.35 3.28 - 2.46 27.38 - 28.99
Rand/USD 15.52 - 0.86 6.19 9.92 11.70 - 5.01
Rand/GBP 20.53 - 0.63 4.13 9.99 4.11 - 7.61
Rand/EUR 18.38 - 0.67 5.64 10.16 3.96 - 12.34
ALBI (R) 742.01 0.22 3.67 4.70 6.79 7.87
  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. Interest rate decision
  2. Building permits SEP
  1. UK: Inflation rate OCT
  2. US: Initial jobless claims 14/NOV
  3. JP: Inflation rate OCT (Friday 01h30)
  4. CN: Loan prime rate 1Y (Friday 03h30)

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 2.47 6.19 7.07 7.35 7.55 7.62
PSG Wealth Income FoF D 4.69 5.31 6.72 6.93 7.37 7.53
PSG Wealth Preserver FoF D 7.27 3.54 5.05 3.86 5.35 5.35
PSG Wealth Moderate FoF D 11.77 3.16 4.80 2.21 4.87 4.69
PSG Wealth Creator FoF D 20.33 4.56 5.55 0.84 4.60 4.22
PSG Wealth Global Preserver FF D - 7.88 8.67 9.88 - - -
PSG Wealth Global Moderate FF D - 0.26 13.76 13.41 8.29 8.88 7.24
PSG Wealth Global Flexible FF D 1.47 21.31 18.85 - - -
PSG Wealth Global Creator FF D 7.08 23.86 22.60 15.95 16.99 13.92
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 19.10 8.44 8.73 4.69 6.72 5.46
PSG Wealth Global Creator FoF D 28.46 19.14 17.69 12.19 14.80 12.02
PSG Wealth Global Preserver FoF (USD) D 10.58 3.10 5.11 3.16 4.29 4.80
PSG Wealth Global Flexible FoF (USD) D 22.55 16.29 14.36 9.98 12.46 10.89
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 3.39 0.60 3.38 2.84 3.08 6.64
PSG Wealth Global Flexible FoF (GBP) D 12.55 13.71 12.32 9.61 10.54 12.83
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 2.11 5.62 6.44 6.73 6.95 7.00
PSG Income A 5.10 9.74 9.01 8.84 8.72 8.56
PSG Diversified Income 7.01 7.77 7.32 7.38 7.60 7.68
PSG Stable A 12.62 - 0.91 - 0.32 1.71 3.20 4.26
PSG Balanced A 21.27 - 3.81 - 4.89 - 2.35 0.46 2.46
PSG Flexible A 22.44 - 8.92 - 6.76 - 3.82 - 0.62 2.32
PSG SA Equity D 31.49 - 12.87 - 13.81 - 10.04 - -
PSG Equity A 24.94 - 9.08 - 10.01 - 6.76 - 2.72 1.08
PSG Global Flexible FF A 12.66 6.20 1.08 0.96 3.67 -
PSG Global Equity FF A 17.08 - 0.13 - 2.88 - 1.28 2.53 4.54
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 37.16 1.34 - 2.83 - 2.06 2.03 4.15
PSG Global Equity USD 40.68 - 3.54 - 5.93 - 3.78 1.26 3.59
  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 15.34 - 4.55 - 3.44 - 3.50 - 0.11 1.15
PSG Wealth SA Property Equity Portfolio 12.05 - 47.35 - 30.14 - 23.67 - 16.63 -
PSG Wealth Dividend Income Equity Portfolio 14.86 - 17.72 - 10.01 - 6.55 - 2.30 -
PSG Wealth Offshore Equity Portfolio (USD) 20.18 14.18 14.73 12.82 16.47 13.90
  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

  • Microsoft's operations benefitted from changing consumer behaviour, which is accelerating the rate of cloud adoption. However, we feel the group's attractive attributes are fully reflected in the current share price.
  • On an earnings basis, the share is currently trading at an 18% premium to its peers compared with its 10% historical discount over the past five years.
  • Microsoft's diverse and global operations, increasingly interlinked ecosystem, high margin, scalable operations and annuity-type revenue warrant a premium in our opinion.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • The local property sector was already constrained by an oversupply of stock within the retail and office space before the COVID-19 pandemic hit.
  • Although Growthpoint completed an equity issue, they would not necessarily be forced into another one.
  • Growthpoint has multiple listed investments, which could be disposed of at a discount to its market value if needed before another rights issue.
  • While we recognise a difficult valuation cycle ahead, we feel the share offers value trading at a 47% discount to its NAV post the equity issue.
  • For more information about this sector, please contact your PSG Wealth adviser.


company logo

Highlights

  • Although Apple has sound cash generation and a solid balance sheet, we expect it to come under pressure as global demand for iPhone and wearables weakens as those markets become increasingly saturated.
  • As the installed base matures, we expect revenue from services to slow while revenue from other product divisions should normalise after the COVID-19 surge.
  • Apple is the highest weighted stock in the Dow Jones Global Titans Index at 10.23%.
  • We retain our underweight recommendation in the counter.
  • For more information about this sector, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
25 November 2020 Afrimat Limited AFT Cash Dividend
25 November 2020 Compagnie Financiere Richemont SA CFR Bonus Issue
25 November 2020 Cartrack Holdings Limited CTK Cash Dividend
25 November 2020 Investec Bank (Mauritius Limited Redeemable Cumulative Non-Participating No Par Value Preference Shares IMRP1 Cash Dividend
25 November 2020 Investec Bank (Mauritius Limited Redeemable Cumulative Non-Participating No Par Value Preference Shares IMRP3 Cash Dividend
25 November 2020 Investec Bank (Mauritius Limited Redeemable Cumulative Non-Participating No Par Value Preference Shares IMRP6 Cash Dividend
25 November 2020 Investec Holdings Limited Preference Shares IVTP Cash Dividend
25 November 2020 Naspers Limited NPN 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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