Back to top
SEARCH PSG

To search, just start typing...

SEARCH RESULTS

LOGIN

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


Virus outbreak in China leads to global risk aversion

22 January 2020

Virus outbreak in China leads to global risk aversion

Daily Investment Update

banner

Market commentary

SA flag Icon
South Africa

The local market recorded its biggest loss in over two months on Tuesday as investors shied away from riskier trades due to growing concerns surrounding the outbreak of the Coronavirus in China. The JSE lost 1.49% for the day.

US flag Icon
United States

Wall Street opened lower on Tuesday, weighed down by growth worries and fears about the outbreak of a virus in China. At 19h55, the S&P 500 was 0.05% down.

EU flag Icon
Europe

European indices slipped slightly on Tuesday due to global fears around the virus outbreak in China, however, losses were softened by positive German business sentiment data and trade discussions between France and the US. The STOXX 600 Index closed 0.14% lower.

HK flag Icon
Hong Kong

On Tuesday, just ahead of the Lunar New Year holiday, the Chinese stock market fell to a two-week low after it was announced that a new virus, which has killed four people so far, spread via contact. The Hang Seng lost 2.81% and the Shanghai 1.41%.

Japan flag Icon
Japan

Although pandemic fears in light of a new virus in China led to a drop in Japanese shares and tourism; mask, protective attire and infrared camera makers recorded gains on Tuesday. The Nikkei closed 0.91% weaker.

Rand Icon
Rand

The local currency extended losses on Tuesday as it struggled to gain momentum in light of the weak South African economic outlook fuelling pessimism. At 19h55, the rand traded R14.46 to the US dollar.

Precious metals Icon
Precious metals

Although bullion prices took a slight knock on Tuesday, fears that the Coronavirus in China could lead to a possible economic fallout kept the gold price steady. An ounce of gold cost $1 557.16 at 19h55.

Oil Icon
Oil

Oil prices slipped on Tuesday on the back of expectations that the well-supplied global market and growing US oil production would be able to absorb losses from Libya’s production cuts. At 19h55, a barrel of Brent crude traded for $65.13.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 976.39 - 1.49 1.07 3.66 1.34 10.79
Gold mining 2 793.55 - 3.30 6.69 11.98 32.78 114.60
Basic minerals 35 844.74 - 2.59 1.47 11.04 9.33 29.48
Industrial index 78 180.35 - 1.40 3.03 3.69 - 0.16 9.23
Financial 38 456.12 - 0.21 - 2.90 - 4.50 - 5.13 - 4.37
Fin + Ind 30 7 576.72 - 0.99 0.89 0.70 - 1.88 4.43
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) 29 196.04 - 0.52 2.68 9.46 8.81 21.04
S&P 500 PR (USD) 3 320.79 - 0.26 3.21 10.98 12.66 26.85
NASDAQ (USD) 9 388.94 0.34 6.47 15.41 15.32 33.97
FT-100 (GBP) 7 610.70 - 0.53 0.50 6.93 3.49 14.26
Hang Seng (HKD) 27 985.33 - 2.81 0.41 4.86 - 1.64 6.65
Nikkei 225 (JPY) 23 864.56 - 0.91 0.37 6.02 12.28 17.64
MSCI World (USD) 7 062.01 - 0.24 2.62 9.41 10.66 22.79
Frankfurt (EUR) 6 046.53 0.05 1.78 6.34 10.57 21.73
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 556.25 - 0.19 5.37 4.39 8.29 21.71
Platinum ($) 1 006.00 - 1.85 8.06 12.65 17.39 26.07
Brent Oil ($) 65.20 0.54 - 1.42 9.73 4.37 3.99
Rand/USD 14.47 0.44 - 1.51 1.07 - 2.64 - 4.16
Rand/GBP 18.86 0.23 - 1.65 0.14 - 7.51 - 5.46
Rand/EUR 16.03 0.57 - 1.50 1.56 - 2.03 - 1.63
ALBI (R) 704.25 0.10 1.11 1.68 1.92 10.89

  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. Inflation rate Dec
  1. US: Existing Home Sales DEC
  2. JPN: Balance of Trade DEC (Thursday 01h50)

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 3.82 7.93 7.95 7.99 8.02 7.78
PSG Wealth Income FoF D 3.49 8.26 7.66 7.92 8.34 8.02
PSG Wealth Preserver FoF D 3.58 8.45 4.90 6.21 6.49 6.75
PSG Wealth Moderate FoF D 4.37 10.63 3.24 5.84 7.02 6.51
PSG Wealth Creator FoF D 5.77 11.57 1.22 5.19 8.66 5.64
PSG Wealth Global Moderate FF D 11.45 20.40 11.99 9.07 4.31 8.91
PSG Wealth Global Creator FF D 16.02 35.14 18.98 17.34 10.82 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 6.53 13.71 2.44 6.66 8.29 4.06
PSG Wealth Global Creator FoF D 11.25 27.59 8.84 14.85 15.21 10.40
PSG Wealth Global Preserver FoF (USD) D 3.62 9.03 3.38 4.73 6.70 4.38
PSG Wealth Global Flexible FoF (USD) D 8.10 18.46 6.38 11.94 12.96 9.16
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 0.50 8.01 5.50 3.52 8.51 6.53
PSG Wealth Global Flexible FoF (GBP) D 4.08 17.78 9.05 9.36 14.81 11.44
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.52 7.23 7.27 7.36 7.37 7.19
PSG Income A 3.75 8.09 8.10 8.30 8.40 7.97
PSG Diversified Income 2.77 6.92 6.63 7.38 7.71 7.69
PSG Stable A 1.61 1.55 1.90 4.34 6.26 5.99
PSG Balanced A 0.79 - 2.79 - 2.72 1.45 5.91 4.76
PSG Flexible A 0.94 - 2.36 - 2.56 1.46 7.04 5.71
PSG SA Equity D - 5.87 - 16.22 - 12.88 - 5.87 - -
PSG Equity A - 0.52 - 8.17 - 7.69 - 1.87 7.57 2.88
PSG Global Flexible FF A 7.45 6.48 3.30 3.96 4.61 -
PSG Global Equity FF A 7.91 6.24 2.12 4.44 5.87 7.28
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 3.10 0.06 - 5.34 1.87 9.55 2.87
PSG Global Equity USD 3.33 - 0.50 - 6.31 2.34 10.76 2.85
PSG Direct Portfolios
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Direct Flexible Income 3.13 7.07 6.97 7.37 7.54 7.29
PSG Direct Low Equity 1.42 1.08 1.25 3.78 5.97 5.56
PSG Direct Managed 0.60 - 3.12 - 3.12 0.99 5.71 4.52
PSG Direct Aggressive 1.65 - 2.62 - 3.17 0.68 6.36 -
PSG Direct Global Managed 7.21 6.00 2.83 3.49 4.13 -
PSG Direct Global Aggressive 7.50 5.86 2.10 3.80 4.93 -

  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
  4. The PSG Best Ideas Portfolios were renamed to the PSG Direct Portfolios in February 2018

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 - 2.35 - 2.44 - 4.41 0.53 6.65 -
PSG Wealth SA Property Equity Portfolio - 5.77 - 8.21 - 10.26 - 5.00 - 2.27 -
PSG Wealth SA Dividend Income Equity Portfolio - 5.45 - 4.59 - 6.50 0.98 - -
PSG Wealth Offshore Equity Portfolio (USD) 12.93 23.69 10.03 17.40 17.21 -
PSG Wealth Managed Volatility Equity Portfolio - 2.83 - 5.79 - 8.52 - 3.34 - -

  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

  • Our recommendation for PFE US is overweight; click here to read the full report on our secure site.
  • The group has been able to protect its gross profit margins despite the challenging trading environment because of its scale and defensive nature.
  • We believe Pfizer is a high-quality company with a high ROE and an attractive and sustainable operating margin.


company logo

Highlights

  • Our recommendation for MCG SJ is overweight; click here to read the full report on our secure site.
  • Having only listed on the JSE in February 2019, MultiChoice has already seen its shares grow by approximately 17% to R125.
  • At these levels, and trading at a forward P/E of 15 times, we believe that MultiChoice is still undervalued and is well-positioned to benefit from mass-market growth in both South and Southern Africa.


company logo

Highlights

  • Our recommendation for SOL SJ is underweight; click here to read the full report on our secure site.
  • Sasol is currently facing an increased risk profile through the decline in chemical product prices, a severely constrained balance sheet and slowing global economic backdrop.
  • The group’s chemicals business is also facing growing competition from additional ethylene capacity/supply into the market.


Corporate actions

Date Company Share code Expectation
29 January 2020 African Equity Empowerment Investments Limited AEE Cash Dividend
29 January 2020 Accelerate Property Fund Limited APF Cash Dividend
29 January 2020 Pioneer Food Group Limited PFG Cash Dividend
29 January 2020 Peregrine Holdings Limited PGR 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

Apple sales warning drags markets

Battle to contain coronavirus continues

Most markets end week subdued

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.