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Upbeat global sentiment lifts JSE

29 March 2021

Upbeat global sentiment lifts JSE

Daily Investment Update

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Market commentary

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South Africa

The JSE ended the week firmer as global markets cheered better-than-expected US jobless claims that were below 700 000 for the first time during the pandemic, adding to growing evidence that the economy is recovering.

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United States

Wall Street opened higher on Friday as investors sought underpriced bank and energy stocks amid expectations of what is to be the fastest economic growth since 1984. The Nasdaq gained 1.24% at closing bell.

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Europe

European markets rose on Friday, boosted by strong performances in commodity-linked firms as the prospect of a strong US economic recovery outweighed concerns over a rising number of new Covid-19 cases.

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Hong Kong

Shares in Hong Kong rebounded on recovery hopes following a sell-off in technology stocks in the previous session as investors feared that they would be de-listed from US markets. The Hang Seng gained 1.57%.

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Japan

Japanese stocks ended the week higher on Friday with SoftBank leading the gains as investors swept up undervalued stocks after their sharp retreat last week. The Nikkei gained 1.56%.

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Rand

At 18h15, the local currency strengthened to R15.01/$, R20.70/£ and R17.70/€ as emerging market currencies benefited from a rise in global sentiment.

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Precious metals

Gold prices were set for their first weekly decline in nearly a month on Friday as a firmer greenback and higher US Treasury yields tainted the metal’s appeal. At 19h00 spot gold traded $1 732.20/oz.

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Oil

Brent crude gained over 4% on Friday amid fears that the Suez Canal blockage would last longer-than-expected, which would affect the supply of crude and refined products.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 66 833.99 3.16 2.04 14.10 26.40 52.76
Gold mining 3 732.98 0.82 12.17 -2.33 -29.04 63.95
Basic minerals 48 627.30 4.91 2.54 21.01 29.89 93.77
Industrial index 93 660.88 2.32 2.39 14.00 22.61 38.89
Financial 30 955.85 2.52 0.35 2.05 30.49 28.36
Fin + Ind 30 8 037.87 2.27 1.79 10.52 24.59 35.88
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) 33 072.88 1.39 7.06 10.04 22.92 49.85
S&P 500 PR (USD) 3 974.54 1.66 4.40 7.74 21.45 53.72
NASDAQ (USD) 13 138.72 1.24 -0.35 2.78 20.82 69.85
FT-100 (GBP) 6 740.59 0.99 4.58 4.72 17.31 19.36
Hang Seng (HKD) 28 336.43 1.57 -1.91 7.73 22.55 25.08
Nikkei 225 (JPY) 29 176.70 1.55 0.73 9.64 26.75 59.30
MSCI World (USD) 8 406.00 1.44 3.37 6.20 21.78 52.39
Frankfurt (EUR) 6 361.58 0.87 6.98 8.55 18.28 47.48
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 729.23 -0.19 -2.11 -7.73 -7.60 6.65
Platinum ($) 1 184.00 -0.38 -3.97 14.50 35.47 59.04
Brent Oil ($) 63.75 -1.27 -2.36 25.89 54.03 145.14
Rand/USD 15.02 -0.38 0.12 -2.63 11.49 13.52
Rand/GBP 20.69 -0.50 1.53 -4.62 5.03 2.74
Rand/EUR 17.70 -0.45 2.53 1.30 11.10 7.87
ALBI (R) 744.08 0.03 -2.76 -2.12 4.93 21.27
  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: SACCI business confidence FEB
  1. UK: BoE Consumer Credit FEB
  2. US: Dallas Fed Manufacturing Index MAR

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 FoF D 2.00 4.82 6.36 6.89 7.18 7.38
PSG Wealth Income FoF D 3.55 9.56 6.38 6.69 7.01 7.48
PSG Wealth Preserver FoF D 8.77 25.24 6.38 6.13 6.21 5.82
PSG Wealth Moderate FoF D 15.36 39.78 7.66 6.60 6.57 5.83
PSG Wealth Creator FoF D 26.97 63.40 11.24 7.85 7.44 7.07
PSG Wealth Global Preserver FF D -5.83 7.86 7.57 12.97 - -
PSG Wealth Global Moderate FF D -0.95 19.17 11.72 14.86 11.69 6.14
PSG Wealth Global Flexible FF D -0.97 25.52 15.26 - - -
PSG Wealth Global Creator FF D 4.91 44.76 20.01 22.97 19.68 13.26
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 12.97 35.55 9.77 6.17 6.63 6.85
PSG Wealth Global Creator FoF D USD 19.03 58.08 18.18 13.66 14.08 13.89
PSG Wealth Global Preserver FoF (USD) D 7.83 22.90 5.29 4.63 4.19 4.88
PSG Wealth Global Flexible FoF (USD) D 13.30 44.33 13.84 11.35 11.51 11.72
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 1.46 9.25 3.30 4.91 2.25 5.06
PSG Wealth Global Flexible FoF (GBP) D 5.16 24.96 11.68 12.00 8.65 11.73
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 1.63 4.36 5.77 6.27 6.58 6.77
PSG Income A 2.69 9.01 8.10 8.06 8.17 8.36
PSG Diversified Income 5.03 15.22 7.35 6.91 7.24 7.57
PSG Stable A 14.74 30.65 3.86 3.16 4.13 5.11
PSG Balanced A 27.43 54.27 4.44 2.29 3.03 4.54
PSG Flexible A 29.47 57.37 2.38 1.46 2.25 4.21
PSG SA Equity D 29.94 65.27 -3.14 -7.31 - -
PSG Equity A 31.70 62.30 0.91 -1.28 -0.33 3.53
PSG Global Flexible FF A 23.19 54.43 9.42 11.92 9.29 -
PSG Global Equity FF A 30.32 66.15 7.41 10.37 8.52 6.63
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 41.59 72.53 7.81 3.51 4.64 7.73
PSG Global Equity USD 49.68 82.29 6.59 2.70 4.30 8.12
  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 16.76 32.53 -0.43 -2.07 0.72 1.89
PSG Wealth SA Property Equity Portfolio 42.70 36.38 -18.30 -15.82 -12.36 -10.86
PSG Wealth Dividend Income Equity Portfolio 18.74 32.00 -6.03 -7.91 -2.55 -
PSG Wealth Offshore Equity Portfolio (USD) 17.74 49.29 18.14 15.05 16.18 15.74
  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

  • Diageo is a high-quality company with a strong portfolio of brands, a global footprint and structural growth tailwinds as it focuses on the premiumisation of its brands.
  • As such, the medium-term outlook for organic revenue growth remains positive.
  • However, in lieu of the Covid-19 lockdown disruptions, it will take time for the on-premise market to be fully operational.
  • We feel this is justified given the quality of its operations and its attractive growth; thus, we reaffirm the current overweight portfolio positioning.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • We believe BTI can consistently grow earnings over the long-term despite volume declines in the combustible segment.
  • We feel that medium-term earnings are likely to be supported by continuous investments in next generation products as these mature and improve profitability.
  • Regardless of a growth outlook that mirrors the broader staple market, the group is trading at a significant discount to staple counters.
  • Thus, we maintain an overweight position for the counter.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • On a PB basis, the group is currently trading at an 8.6% discount to its peers.
  • The group's balance sheet is strong relative to other real estate companies, as seen in the very comfortable LTV ratio of 20.5%, which is well below its covenant of 40%.
  • We feel the group is well-positioned, given the effect of the pandemic on the real estate sector.
  • Liberty's discount to its five-year historical average has improved since it released 1H20 results; it now trades at a 16.8% discount to its historical average.
  • Accordingly, we maintain our neutral guidance for portfolios with a property only mandate.
  • For more information about this counter, please contact your PSG Wealth adviser.


Corporate actions

Date Company Share code Expectation
30 March 2021 FirstRand Limited FSR Cash Dividend
30 March 2021 Metrofile Holdings Limited MFL Cash Dividend
30 March 2021 Putprop Limited PPR Cash Dividend
30 March 2021 Royal Bafokeng Platinum Limited RBP Cash Dividend
30 March 2021 South Ocean Holdings Limited SOH Cash Dividend
30 March 2021 Trellidor Holdings Limited TRL Cash Dividend
31 March 2021 Hammerson plc HMN DVOPOption 1 - (Cash Dividend) PID Gross Rate - TBA Less 20% UK Tax - TBA Net - TBAOption 2 (Enhanced Scrip Dividend Alternative) Ratio - TBADefault - Option 1 (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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