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Positive global PMI results lifted markets

06 April 2021

Positive global PMI results lifted markets

Daily Investment Update

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Market commentary

SA flag Icon
South Africa

The ALSI reported a 1.13% gain at the closing bell on Thursday, as investor sentiment was lifted by details around the US stimulus spending plan, better-than-expected PMI results, and superb performances from Prosus and Naspers.

US flag Icon
United States

Wall Street opened higher on Thursday, boosted by tech shares, after more details around the US government’s spending plans were released. At 17h45, the Dow Jones stood 0.34% higher.

EU flag Icon
Europe

Despite France introducing another lockdown, European markets started the new month on a high note thanks to investor optimism about the US stimulus spending plan and robust factory data from the EU.

HK flag Icon
Hong Kong

At the close of trade on Thursday, the Hang Seng had climbed 1.98% higher, lifted by a strong run from the tech sector and optimism around US President Joe Biden’s government spending plan.

Japan flag Icon
Japan

The Nikkei ended the day 0.72% in the green, despite reporting an almost 2% drop for the week as investors booked profits on the back of renewed Covid-19 fears in Europe.

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Rand

The rand continued climbing on Thursday, lifted by the local PMI figures that surpassed expectations and marking its highest level since October 2020. At 17h45, the local currency stood at R14.65/$, R20.27/£ and R17.24/€.

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Precious metals

Disappointing jobless claims data released on Thursday, a softer dollar and a retreat of US bond yields boosted bullion’s safe-haven appeal. At 17h45, spot gold traded $1 729/oz.

Oil Icon
Oil

Oil rose significantly on Thursday after OPEC+ agreed to systematically lower output production as of May 2021 to reduce oversupply and support prices. Brent crude traded at $63.02 per barrel at 17h45.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 67 236.31 1.13 0.60 14.42 25.16 57.72
Gold mining 3 732.98 0.82 12.17 - 2.33 - 29.04 63.95
Basic minerals 48 290.69 0.54 - 0.28 19.26 29.80 97.74
Industrial index 95 230.22 2.20 1.89 15.43 22.93 42.95
Financial 30 984.14 - 0.83 - 0.99 2.98 21.90 36.49
Fin + Ind 30 8 143.82 1.44 1.11 11.87 22.69 41.23
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) 33 527.19 1.13 6.60 10.86 20.30 62.70
S&P 500 PR (USD) 4 077.91 1.44 6.26 9.83 20.57 66.64
NASDAQ (USD) 13 705.59 1.67 6.14 7.09 21.37 87.34
FT-100 (GBP) 6 737.30 0.35 2.89 5.37 16.45 27.25
Hang Seng (HKD) 28 938.74 1.97 - 1.43 6.61 23.93 29.21
Nikkei 225 (JPY) 30 089.25 0.79 4.88 11.52 30.11 71.51
MSCI World (USD) 8 586.85 1.10 5.47 7.44 20.33 64.12
Frankfurt (EUR) 6 509.88 0.66 7.81 10.12 18.67 58.28
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 735.20 0.40 - 1.78 - 9.27 - 9.48 7.63
Platinum ($) 1 212.40 0.04 - 1.41 17.26 32.26 64.45
Brent Oil ($) 62.67 0.84 - 10.40 15.95 50.52 82.20
Rand/USD 14.58 1.48 5.06 2.65 12.36 24.37
Rand/GBP 20.28 0.57 4.47 0.74 5.74 14.00
Rand/EUR 17.22 0.75 5.81 6.72 12.06 17.43
ALBI (R) 744.33 0.03 - 1.44 - 2.06 5.10 19.73
  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: Unemployment Rate FEB
  2. US: JOLTs Job Openings FEB

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 4.82 6.32 6.87 7.17 7.37
PSG Wealth Income FoF D 3.53 9.58 6.26 6.65 6.99 7.45
PSG Wealth Preserver FoF D 9.21 23.75 6.53 6.40 6.28 6.06
PSG Wealth Moderate FoF D 16.11 37.55 8.07 7.31 6.78 6.22
PSG Wealth Creator FoF D 28.23 65.01 12.11 9.20 8.09 7.60
PSG Wealth Global Preserver FF D - 5.21 - 4.49 7.63 12.43 - -
PSG Wealth Global Moderate FF D - 1.23 6.93 11.79 14.26 9.38 6.55
PSG Wealth Global Flexible FF D - 2.02 9.60 15.69 - - -
PSG Wealth Global Creator FF D 3.01 21.01 20.60 22.93 17.17 13.71
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 12.25 32.79 10.03 6.39 6.78 6.79
PSG Wealth Global Creator FoF D USD 17.32 53.17 18.90 14.55 14.37 13.89
PSG Wealth Global Preserver FoF (USD) D 7.70 19.56 5.31 4.68 4.24 4.95
PSG Wealth Global Flexible FoF (USD) D 11.50 38.61 14.21 11.75 11.60 11.84
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 2.71 10.55 2.80 4.77 2.29 5.16
PSG Wealth Global Flexible FoF (GBP) D 5.22 25.96 11.45 12.45 8.69 11.88
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 1.33 3.70 5.45 6.05 6.41 6.64
PSG Income A 2.58 8.40 8.04 8.04 8.21 8.32
PSG Diversified Income 4.67 13.10 6.99 6.85 7.31 7.54
PSG Stable A 14.34 27.28 3.53 3.25 4.33 5.23
PSG Balanced A 26.46 50.19 4.25 2.60 3.28 4.81
PSG Flexible A 28.55 54.57 2.52 1.90 2.59 4.55
PSG SA Equity D 28.15 66.21 - 2.88 - 6.35 - -
PSG Equity A 30.43 60.95 0.89 - 0.73 0.16 3.89
PSG Global Flexible FF A 24.59 43.86 9.89 11.80 7.25 -
PSG Global Equity FF A 31.59 55.89 7.82 10.38 6.48 7.35
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A 41.57 78.63 8.30 3.96 4.84 7.68
PSG Global Equity USD 49.63 89.97 7.05 3.14 4.46 8.09
  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 17.31 31.57 - 0.21 - 1.17 1.12 2.36
PSG Wealth SA Property Equity Portfolio 34.67 34.81 - 18.92 - 16.03 - 12.13 - 10.70
PSG Wealth Dividend Income Equity Portfolio 17.81 29.99 - 5.93 - 6.99 - 1.24 -
PSG Wealth Offshore Equity Portfolio (USD) 17.35 44.38 18.17 14.53 16.52 15.61
  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

  • In the current environment, we anticipate that cost management should remain imperative to mitigate subdued activity levels while more normalised results from Automotive and Financial Services operations should further aid the group's earnings recovery.
  • On an earnings basis, the group trades on a forward PE ratio of 13.2 times, in line with its long-term average of 13.5 times and at a significant premium to its peers.
  • We feel that this fairly values the group, especially when considering the increased pressure on the South African economy and elevated debt levels.
  • For more information about this counter, please contact your PSG Wealth adviser.


company logo

Highlights

  • BHP boasts a high-quality portfolio of assets that spans across a diversified range of commodities and countries.
  • However, the group is vulnerable to several external variables like commodity prices and exchange rates, which significantly affect the group's profitability, but is not under management's control.
  • We feel that the valuation is attractive on a spot EV/EBITDA ratio of 3 times.
  • Therefore, we maintain our overweight recommendation for this counter.
  • For more information about this counter, please contact your PSG Wealth adviser.


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.


Corporate actions

Date Company Share code Expectation
07 April 2021 AECI Limited AFE Cash Dividend
07 April 2021 Fairvest Property Holdings Limited (REIT) FVT DRIPOption 1 - (Cash Dividend) Gross - ZAR0.1059Less 20% DWT - ZAR0.02118Net - ZAR0.08472Option 2 (Reinvestment)Reinvestment Price - ZAR1.85082Default - Option 1 (Cash)
07 April 2021 Libstar Holdings Limited LBR Cash Dividend
07 April 2021 Mondi Plc MNP DRIPOption 1 - (Cash Dividend) Gross - ZAR7.3432845Less 20% DWT - ZAR1.4686569Net - ZAR5.8746276Option 2 (Reinvestment)Reinvestment Price - To be announcedDefault - Option 1 (Cash)
07 April 2021 Quilter Plc QLT Cash Dividend
07 April 2021 Rand Merchant Investment Holdings Limited RMI Cash Dividend
07 April 2021 Standard Bank Limited 6.5% First Cumulative Preference Shares SBKP Cash Dividend
07 April 2021 Standard Bank Limited Non-Redeemable, Non-Cumulative, Non-Participating Second Preference Shares SBPP Cash Dividend
07 April 2021 Sea Harvest Group Limited SHG Cash Dividend
07 April 2021 Shoprite Holdings Limited SHP Cash Dividend
07 April 2021 Sanlam Limited SLM 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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