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Rand flat ahead of local lockdown update

31 March 2021

Rand flat ahead of local lockdown update

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The ALSI continued its winning streak on Tuesday, closing 0.30% up, as it followed the strong performances of other global markets.

US flag Icon
United States

Wall Street opened lower on Tuesday as the tech sector was knocked by rising US bond yields. At 17h20, the S&P 500 had lost 0.30

EU flag Icon
Europe

European markets traded higher on Tuesday due to climbing investor sentiment “on hopes of a vaccine-driven economic recovery”. The STOXX 600 closed up 0.71%, measuring just under its pre-pandemic peak.

HK flag Icon
Hong Kong

By the close of trade on Tuesday, the Hang Seng had gained 0.84% alongside other Asian markets on investor optimism about the global vaccination programme.

Japan flag Icon
Japan

After the Bank of Japan announced it would only buy “Topix-linked exchange traded funds,” the Nikkei took a knock; however, the underperformance did not last. The Nikkei closed 0.77% in the green.

Rand Icon
Rand

The rand remained below the R15/$-threshold on Tuesday but was little changed after the announcement that President Cyril Ramaphosa would address the nation and update local lockdown restrictions ahead of the Easter long weekend. At 17h30, the local currency stood at R14.91/$, R20.46/£ and R17.49/€.

Precious metals Icon
Precious metals

Gold fell almost 2% on Tuesday, reaching a nearly three-week low as the US dollar remained firm on hopes of a faster US economic recovery. At 17h30, spot gold traded $1 683.96/oz.

Oil Icon
Oil

On Tuesday, the oil price lost ground as the Suez Canal was finally reopened to traffic; however, all eyes remain on the OPEC+ meeting later this week. At the close of the local market, Brent crude traded at $64.48 per barrel.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 67 291.66 0.30 2.81 14.08 25.68 59.71
Gold mining 3 732.98 0.82 12.17 - 2.33 - 29.04 63.95
Basic minerals 48 189.82 - 0.08 1.64 18.65 28.74 93.47
Industrial index 94 570.62 0.36 3.38 14.28 23.09 43.45
Financial 31 955.44 0.78 4.05 5.45 26.96 49.96
Fin + Ind 30 8 161.30 0.61 3.46 11.64 24.02 45.09
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) 33 066.96 - 0.31 7.05 9.26 20.21 51.33
S&P 500 PR (USD) 3 958.55 - 0.32 3.99 6.47 18.63 53.30
NASDAQ (USD) 13 045.39 - 0.11 - 1.05 1.53 17.23 69.15
FT-100 (GBP) 6 772.12 0.53 5.07 4.35 17.39 25.36
Hang Seng (HKD) 28 577.50 0.84 - 1.07 5.61 22.38 27.11
Nikkei 225 (JPY) 29 432.70 0.77 2.23 7.95 27.97 56.65
MSCI World (USD) 8 382.34 - 0.17 3.08 4.83 19.28 52.21
Frankfurt (EUR) 6 473.57 1.29 8.87 9.40 17.62 52.90
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 679.72 - 0.33 - 3.88 - 9.63 - 9.91 4.45
Platinum ($) 1 161.71 0.20 - 2.48 16.27 35.21 63.52
Brent Oil ($) 64.98 0.63 - 1.74 27.19 58.37 160.65
Rand/USD 14.93 - 0.31 0.69 - 2.11 10.73 16.82
Rand/GBP 20.50 0.04 2.45 - 2.59 4.62 7.46
Rand/EUR 17.48 0.17 3.75 2.83 10.70 11.63
ALBI (R) 741.95 - 0.35 - 3.04 - 2.14 4.32 21.08
  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. Balance of Trade FEB
  1. UK: GDP Growth Rate Q/Q Final Q4
  2. DE: Unemployment Rate MAR
  3. JP: Tankan Large Manufacturers Index Q1 (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 FoF D 1.99 4.83 6.32 6.86 7.17 7.38
PSG Wealth Income FoF D 3.63 9.62 6.32 6.69 7.06 7.49
PSG Wealth Preserver FoF D 9.08 24.54 6.65 6.47 6.37 6.07
PSG Wealth Moderate FoF D 15.85 38.50 8.17 7.37 6.85 6.27
PSG Wealth Creator FoF D 28.00 65.35 12.14 9.22 8.10 7.83
PSG Wealth Global Preserver FF D - 4.63 4.12 7.79 13.35 - -
PSG Wealth Global Moderate FF D - 0.19 13.17 12.22 15.18 10.87 6.52
PSG Wealth Global Flexible FF D - 0.60 18.32 16.12 - - -
PSG Wealth Global Creator FF D 4.22 31.06 20.69 23.56 18.60 13.52
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 12.64 33.98 10.05 6.41 6.79 6.98
PSG Wealth Global Creator FoF D USD 17.54 50.70 18.96 14.59 14.44 14.22
PSG Wealth Global Preserver FoF (USD) D 7.87 20.45 5.36 4.71 4.27 4.97
PSG Wealth Global Flexible FoF (USD) D 12.19 38.02 14.34 11.83 11.68 11.89
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 2.19 11.19 2.69 4.69 2.15 5.11
PSG Wealth Global Flexible FoF (GBP) D 4.99 25.13 11.34 12.38 8.66 11.83
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 1.63 4.36 5.45 6.05 6.58 6.77
PSG Income A 2.75 8.94 8.13 8.06 8.22 8.36
PSG Diversified Income 5.13 15.08 7.35 6.97 7.37 7.62
PSG Stable A 15.03 31.04 4.22 3.58 4.53 5.39
PSG Balanced A 28.18 55.00 5.30 3.16 3.66 5.08
PSG Flexible A 30.56 58.89 3.55 2.53 3.01 4.86
PSG SA Equity D 31.05 70.26 - 1.87 - 6.03 - -
PSG Equity A 32.74 64.37 2.04 - 0.10 0.47 4.25
PSG Global Flexible FF A 24.56 45.55 10.73 12.80 8.83 -
PSG Global Equity FF A 31.61 55.12 8.76 11.37 8.07 7.38
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 41.15 75.79 8.21 3.91 4.90 7.90
PSG Global Equity USD 49.18 86.60 6.94 3.07 4.53 8.31
  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 18.28 36.88 0.29 -0.83 1.33 2.96
PSG Wealth SA Property Equity Portfolio 35.27 37.04 -19.08 -16.13 -12.23 -10.85
PSG Wealth Dividend Income Equity Portfolio 19.48 36.41 -5.26 -6.55 -1.42 -
PSG Wealth Offshore Equity Portfolio (USD) 18.43 49.77 18.38 14.67 16.54 15.81
  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

  • We believe the group is a good quality company with attractive and sustainable operating margins and reliable cash conversion.
  • On a forward P/E basis, the group is trading at an 18.4% discount to its long-term average of 17.9 times and a 20.2% premium to its FactSet peers.
  • We feel this is attractive, given the low double-digit earnings growth expected over the medium term, which is ahead of most consumer staple counters trading as much richer valuations.
  • We maintain the overweight portfolio positioning.
  • For more information about this counter, please contact your PSG Wealth adviser.


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.


Corporate actions

Date Company Share code Expectation
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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