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Most indices traded up on hopes of a US economic aid package

26 March 2020

Most indices traded up on hopes of a US economic aid package

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The JSE rose on Wednesday, boosted by resources and miners. Moreover, “SA bonds bounced back from record lows after the Reserve Bank announced liquidity measures to ease the effects of the coronavirus in local markets, including a plan to buy government bonds”. Both the All Share and the Top 40 closed 5.17% higher.

US flag Icon
United States

US indices extended gains on Wednesday as investors waited for the US Senate, which seemed to near a vote on the $2 trillion economic aid package. At 17h40, the Dow was 2.82% up.

EU flag Icon
Europe

European shares rose further on Wednesday as investors expected more stimulus measures from key central banks to counter the impact of COVID-19 on the global economy.

HK flag Icon
Hong Kong

Asian markets logged gains for a second consecutive session on Wednesday, reaching the highest level in over a week. The Hang Seng Index closed 3.81% in the green.

Japan flag Icon
Japan

While the US gravitated towards the completion of a stimulus bill, Japanese shares saw their highest daily increase since 2008 on Wednesday and rose about 18% in the past three sessions. The Nikkei closed 8.04% higher.

Rand Icon
Rand

The local currency rose slightly on Wednesday for the second day in a row, benefitting from risk-on sentiment. A dollar traded at R17.42 at 17h40.

Precious metals Icon
Precious metals

Palladium neared its best daily gain since 1997 on Wednesday in light of the upcoming South African lockdown, which should dampen supply. An ounce of gold traded at $1 608.47 at 17h40.

Oil Icon
Oil

Oil prices were down on Wednesday as the US crude stockpile rose in the past week due to demand dulls and nationwide lockdowns across the globe. At 17h40, a barrel of Brent crude traded at $27.41.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 43 278.25 5.32 - 20.40 - 23.73 - 20.05 - 18.93
Gold mining 3 370.28 14.58 1.21 25.44 40.36 100.45
Basic minerals 25 577.63 7.76 - 23.22 - 26.18 - 16.58 - 18.67
Industrial index 65 806.35 3.46 - 12.11 - 12.69 - 11.90 - 8.69
Financial 23 413.17 6.61 - 33.11 - 40.35 - 38.71 - 38.02
Fin + Ind 30 5 763.22 4.32 - 19.18 - 22.67 - 21.46 - 19.23
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) 21 200.55 2.39 - 21.53 - 25.20 - 20.43 - 14.86
S&P 500 PR (USD) 2 475.56 1.15 - 20.71 - 22.81 - 16.24 - 9.76
NASDAQ (USD) 7 384.30 - 0.45 - 17.55 - 17.31 - 8.10 - 2.28
FT-100 (GBP) 5 688.20 4.45 - 18.35 - 24.61 - 20.39 - 17.05
Hang Seng (HKD) 23 527.19 3.82 - 12.14 - 15.17 - 8.63 - 14.45
Nikkei 225 (JPY) 19 546.63 8.04 - 13.47 - 17.61 - 10.35 - 4.83
MSCI World (USD) 5 251.88 2.49 - 21.15 - 23.73 - 17.58 - 12.77
Frankfurt (EUR) 4 389.60 1.79 - 22.80 - 25.76 - 19.29 - 12.98
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 620.95 1.34 - 2.11 8.73 5.89 22.86
Platinum ($) 734.00 8.10 - 24.10 - 21.50 - 23.06 - 13.65
Brent Oil ($) 27.15 0.44 - 51.78 - 59.60 - 56.97 - 59.50
Rand/USD 17.37 1.21 -14.80 -23.49 -14.70 -20.14
Rand/GBP 20.60 0.68 -5.24 -11.67 -10.67 -8.07
Rand/EUR 18.96 0.19 -15.38 -20.42 -14.49 -16.50
ALBI (R) 611.41 4.60 - 14.76 - 12.50 - 10.65 - 6.07
  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. ZA: PPI FEB
  1. DE: GfK Consumer Confidence APR
  2. UK: BoE Interest Rate Decision
  3. US: GDP Growth Rate Q/Q Final 4Q19

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 3.84 7.95 7.93 7.98 8.03 7.83
PSG Wealth Income FoF D - 1.90 2.16 4.73 5.79 6.68 6.79
PSG Wealth Preserver FoF D - 14.49 - 12.60 - 3.70 - 0.42 0.73 2.20
PSG Wealth Moderate FoF D - 21.65 - 21.43 - 8.92 - 4.06 - 2.36 - 0.57
PSG Wealth Creator FoF D - 27.71 - 29.30 - 14.63 - 8.19 - 4.92 - 3.97
PSG Wealth Global Moderate FF D - 3.93 1.91 11.25 8.32 2.42 5.93
PSG Wealth Global Creator FF D - 7.74 0.76 13.63 12.52 6.66 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D - 15.69 - 13.38 - 7.02 - 2.26 0.14 - 1.48
PSG Wealth Global Creator FoF D - 21.50 - 17.80 - 6.40 0.34 3.39 1.78
PSG Wealth Global Preserver FoF (USD) D - 13.85 - 11.51 - 4.29 - 1.96 0.37 0.28
PSG Wealth Global Flexible FoF (USD) D - 14.68 - 12.81 - 3.05 1.72 4.32 3.48
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D - 9.86 - 3.53 2.20 - 0.37 3.74 3.61
PSG Wealth Global Flexible FoF (GBP) D - 9.28 - 2.42 5.48 3.34 8.37 7.19
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.45 7.18 7.23 7.33 7.38 7.21
PSG Income A 2.29 6.42 7.16 7.60 7.98 7.73
PSG Diversified Income - 5.06 - 1.69 2.13 4.14 5.30 5.79
PSG Stable A - 20.02 - 20.75 - 9.90 - 4.56 - 1.31 0.23
PSG Balanced A - 30.54 - 33.78 - 18.94 - 11.56 - 6.43 - 4.31
PSG Flexible A - 34.98 - 37.62 - 20.72 - 13.04 - 7.27 - 4.75
PSG SA Equity D - 40.14 - 45.95 - 31.83 - 21.62 - -
PSG Equity A - 36.13 - 41.26 - 24.96 - 16.73 - 8.66 - 7.93
PSG Global Flexible FF A - 25.55 - 28.51 - 8.12 - 4.95 -4.67 -
PSG Global Equity FF A - 33.99 - 37.44 - 14.14 - 8.73 - 6.76 - 3.11
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 31.21 - 36.10 - 21.74 - 12.85 - 5.40 - 6.51
PSG Global Equity USD - 35.97 - 41.18 - 24.92 - 14.92 - 6.36 - 8.07
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 - 0.55 3.00 4.83 5.81 6.44 6.47
PSG Direct Low Equity - 20.00 - 20.94 - 10.23 - 5.00 - 1.69 - 0.20
PSG Direct Managed - 31.82 - 35.05 - 19.75 - 12.33 - 7.06 - 4.85
PSG Direct Aggressive - 33.53 - 37.10 - 19.73 - 12.76 - 7.38 -
PSG Direct Global Managed - 25.72 - 28.83 - 8.54 - 5.38 - 5.10 -
PSG Direct Global Aggressive - 31.06 - 34.49 - 12.30 - 7.72 - 6.39 -
  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 -24.17 -28.66 -17.34 -9.21 -5.47 -
PSG Wealth SA Property Equity Portfolio -54.16 -56.78 -37.09 -26.86 -21.84 -
PSG Wealth SA Dividend Income Equity Portfolio -33.74 -36.60 -24.66 -13.14 - -
PSG Wealth Offshore Equity Portfolio (USD) -13.46 -8.13 0.26 6.34 8.20 -
  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 BID SJ is Neutral; click here to read the full report on our secure site.
  • Bidcorp is well-diversified and highly cash generative business. It is the largest foodservice distributor outside of the USA, with the largest geographic footprint when compared with its global peers.
  • We do remain cautious given the macroeconomic headwinds taking place at present.
  • We believe Bidcorp is a good-quality company with a stable ROE and a sustainable operating margin, although further margin expansion from this higher base is going to be more difficult.


company logo

Highlights

  • Our recommendation for ANH SJ is overweight; click here to read the full report on our secure site.
  • We believe AB InBev is a good-quality company with an attractive and sustainable operating margin and a reliable cash conversion.
  • Operating margins across the group geographies are well ahead of peers, making further efficiency-enabled outperformance less likely.
  • Despite management believing that acquisitive growth and the extraction of synergies from acquisitions is a core competency of the group, balance sheet flexibility will likely limit such growth.


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.


Corporate actions

Date Company Share code Expectation
01 April 2020 AECI Limited AFE Cash Dividend
01 April 2020 African Oxygen Limited AFX Cash Dividend
1 April 2020 FirstRand Limited FSR Cash Dividend
1 April 2020 Fairvest Property Holdings Limited (REIT) FVT Cash Dividend
1 April 2020 Growthpoint Properties Limited GRT Cash Divivdend
1 April 2020 Liberty Holdings Limited LBH Cash Dividend
1 April 2020 Metrofile Holdings Limited MFL Cash Dividend
1 April 2020 Mondi Plc MNP DRIPOption 1 - (Cash Dividend) Gross - ZAR9.346835Less 20% SA Tax - ZAR1.869367Net - ZAR7.477468Option 2 (Reinvestment)Reinvestment Price - To be announcedDefault - Option 1 (Cash)
1 April 2020 Mpact Limited MPT Cash Dividend
1 April 2020 MTN Group Limited MTN Cash Dividend
1 April 2020 Old Mutual Limited OMU Cash Dividend
1 April 2020 Putprop Limited PPR Cash Dividend
1 April 2020 Quilter Plc QLT Cash Dividend
1 April 2020 Rand Merchant Investment Holdings Limited RMI Cash Dividend
1 April 2020 SA Corporate Rea;l Estate Fund SAC Cash Dividend
1 April 2020 Sabvest Limited SBV Cash Dividend
1 April 2020 Sasfin Holdings Limited SFN Cash Dividend
1 April 2020 Spur Corporation Limited SUR Cash Dividend
1 April 2020 Sabvest Limited "N" Ordinary Shares SVN Cash Dividend
1 April 2020 Trellidor Holdings Limited TRL 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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