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Global markets rebound somewhat on China’s virus containment efforts

23 January 2020

Global markets rebound somewhat on China’s virus containment efforts

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The local market took a knock for the third day in a row on Wednesday on the back of consumer inflation rising to 4% for December. The JSE lost 0.10% on the day.

US flag Icon
United States

Wall Street opened higher on Wednesday as investors felt more at ease by China’s efforts to contain the virus outbreak. At 20h00, the S&P 500 was 0.26% higher.

EU flag Icon
Europe

European indices reversed earlier gains, closing flat on Wednesday after US President Donald Trump "threatened to impose high tariffs on imports of cars from the European Union” at the World Economic Forum in Davos. The STOXX 600 Index fell 0.08% for the day.

HK flag Icon
Hong Kong

Asian markets made up some losses due to China’s swift efforts to contain the virus outbreak that eased investor concerns. At close of trade, the Hang Seng gained 1.27%.

Japan flag Icon
Japan

Despite continuous pressure on the tourism industry, Japanese shares made up some previous losses on Wednesday as investor fears eased and hygiene-related firms performed strongly. The Japanese index closed 0.70% firmer.

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Rand

On Wednesday, the local currency rose over 1%, boosted by investors returning to riskier assets. At 20h00, the rand traded R14.32 to the US dollar.

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Precious metals

Bullion prices eased somewhat on Wednesday as investors turned to riskier trades while markets expect dovish monetary policy from global central banks. An ounce of gold cost $1 557.76 at 20h00.

Oil Icon
Oil

Oil prices slipped over 2% on Wednesday as the International Energy Agency forecasting a surplus oil supply combined with demand concerns outweighed Libya’s production worries. At 20h00, a barrel of Brent crude traded for $63.41.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 57 918.89 - 0.10 0.99 3.91 1.67 10.84
Gold mining 2 787.59 - 0.21 6.46 15.75 32.74 108.87
Basic minerals 35 859.66 0.04 1.51 13.59 9.65 29.99
Industrial index 78 092.54 - 0.05 2.97 3.40 0.12 9.46
Financial 38 358.61 - 0.25 - 3.15 - 5.53 - 4.69 - 4.98
Fin + Ind 30 7 564.50 - 0.12 0.77 0.13 - 1.55 4.34
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) 29 186.27 - 0.03 2.65 9.59 8.70 22.50
S&P 500 PR (USD) 3 321.75 0.03 3.25 11.41 12.37 28.71
NASDAQ (USD) 9 370.81 - 0.19 5.04 15.10 15.64 32.35
FT-100 (GBP) 7 571.92 - 0.51 - 0.01 5.66 2.88 14.81
Hang Seng (HKD) 28 341.04 1.27 1.69 5.95 0.99 8.77
Nikkei 225 (JPY) 24 031.35 0.70 1.07 6.77 13.33 19.02
MSCI World (USD) 7 064.87 0.04 2.66 9.71 10.55 24.20
Frankfurt (EUR) 6 028.64 - 0.30 1.48 5.97 9.98 21.87
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 558.10 0.12 5.50 4.75 9.38 21.28
Platinum ($) 999.00 - 0.70 7.30 12.50 17.67 25.98
Brent Oil ($) 64.59 - 0.94 - 2.34 9.55 3.39 2.95
Rand/USD 14.33 0.91 - 1.90 2.42 - 0.20 - 2.76
Rand/GBP 18.82 0.23 - 1.99 0.24 - 6.39 - 4.19
Rand/EUR 15.89 0.89 - 0.92 2.57 0.17 - 0.22
ALBI (R) 704.52 0.04 1.13 1.23 1.84 10.42

  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. EU: ECB Interest rate decision
  2. JPN: Inflation rate DEC (Friday at 01h30)

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 3.88 7.97 7.98 8.01 8.03 7.79
PSG Wealth Income FoF D 3.50 8.15 7.67 7.93 8.33 8.02
PSG Wealth Preserver FoF D 3.22 7.70 4.72 6.08 6.52 6.66
PSG Wealth Moderate FoF D 3.62 9.11 2.87 5.58 6.99 6.30
PSG Wealth Creator FoF D 4.12 9.26 0.42 4.64 8.35 5.16
PSG Wealth Global Moderate FF D 11.17 18.75 11.85 8.98 4.73 8.96
PSG Wealth Global Creator FF D 16.01 33.26 18.97 17.34 11.46 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 6.17 13.08 2.26 6.54 8.29 3.92
PSG Wealth Global Creator FoF D 11.14 26.34 8.78 14.81 15.31 10.33
PSG Wealth Global Preserver FoF (USD) D 3.52 8.83 3.33 4.69 7.15 4.36
PSG Wealth Global Flexible FoF (USD) D 7.81 17.26 6.24 11.84 13.54 9.10
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 0.14 7.58 5.30 3.39 8.56 6.45
PSG Wealth Global Flexible FoF (GBP) D 3.44 15.97 8.71 9.13 14.87 11.30
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.52 7.23 7.27 7.36 7.37 7.19
PSG Income A 3.78 8.06 8.11 8.31 8.39 7.97
PSG Diversified Income 2.75 6.80 6.62 7.37 7.72 7.69
PSG Stable A 1.31 1.03 1.75 4.24 6.26 5.97
PSG Balanced A 0.07 - 3.96 - 3.07 1.21 5.85 4.69
PSG Flexible A - 0.03 - 3.74 - 3.03 1.13 7.03 5.61
PSG SA Equity D - 7.38 - 17.70 - 13.58 - 6.38 - -
PSG Equity A - 1.72 - 9.78 - 8.25 - 2.27 7.49 2.69
PSG Global Flexible FF A 6.84 4.25 3.01 3.77 5.28 -
PSG Global Equity FF A 7.24 3.68 1.80 4.23 6.60 7.16
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 2.52 - 0.38 - 5.61 1.67 9.25 2.71
PSG Global Equity USD 2.64 - 1.00 - 6.62 2.11 10.40 2.68
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 7.01 6.98 7.37 7.54 7.29
PSG Direct Low Equity 1.08 0.47 1.08 3.66 5.96 5.54
PSG Direct Managed - 0.18 - 4.34 - 3.50 0.73 5.66 4.45
PSG Direct Aggressive 0.69 - 4.23 - 3.63 0.37 6.48 -
PSG Direct Global Managed 6.60 3.77 2.54 3.30 4.80 -
PSG Direct Global Aggressive 6.85 3.42 1.79 3.59 5.64 -

  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 - 3.23 - 3.88 - 4.84 0.22 6.36 -
PSG Wealth SA Property Equity Portfolio - 6.37 - 8.81 - 10.55 - 5.20 - 2.49 -
PSG Wealth SA Dividend Income Equity Portfolio - 6.01 - 5.48 - 6.78 0.78 - -
PSG Wealth Offshore Equity Portfolio (USD) 12.56 23.31 9.85 17.27 16.81 -
PSG Wealth Managed Volatility Equity Portfolio - 3.78 - 7.14 - 8.97 - 3.66 - -

  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

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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.


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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.

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Author
author

Adriaan Pask PhD

Chief Investment Officer


At PSG Wealth
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