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In our continued efforts to give our readers a broad number of views, opinions and information, we continue to provide PSG's daily market updates and add our own daily rant at the end.
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Short summary of PSG's market commentary for 11 February 2019
South Africa
The JSE edged lower on Friday, amid a risk-off tone in global markets, with Sasol leading the losses. The All Share fell by 1.20%.
United States
US shares fell on Friday, as scepticism over the United States and China reaching a trade deal before a looming deadline added to concerns over slowing global growth. At 21h00 the Dow was down 0.21%.
Europe
European shares slipped on Friday, as downgrades to growth forecasts and bleak earnings numbers weighed on sentiment. At 21h00 the DAX was 1.05% in the red.
Hong Kong
Hong Kong stocks ended weaker on Friday as the absence of any positive signs for a resolution in the US-China trade war dented sentiment. At the close of trade, the Hang Seng index was down 0.16%.
Japan
Japan’s Nikkei closed lower on Friday, as renewed worries about the US-China trade dispute plus dismal earnings from Japan Inc hurt risk appetites. At 21h00 the Nikkei was down by 2.01%.
Rand
The rand was weaker against major global currencies on Friday morning, as US-China trade war concerns continued to inject an air of gloom into the market. One dollar cost R13.61 at 21h00.
Precious metals
Gold was steady on Friday on worries that a prolonged China-US trade war could worsen global economic slowdown. At 21h00 an ounce of gold traded at $1 311.10.
Oil
Oil markets slipped on Friday, pulled down by worries about a global economic slowdown. At 21h00 a barrel of Brent crude traded at $62.10 a barrel.
The JSE edged lower on Friday, amid a risk-off tone in global markets, with Sasol leading the losses. The All Share fell by 1.20%.
United States
US shares fell on Friday, as scepticism over the United States and China reaching a trade deal before a looming deadline added to concerns over slowing global growth. At 21h00 the Dow was down 0.21%.
Europe
European shares slipped on Friday, as downgrades to growth forecasts and bleak earnings numbers weighed on sentiment. At 21h00 the DAX was 1.05% in the red.
Hong Kong
Hong Kong stocks ended weaker on Friday as the absence of any positive signs for a resolution in the US-China trade war dented sentiment. At the close of trade, the Hang Seng index was down 0.16%.
Japan
Japan’s Nikkei closed lower on Friday, as renewed worries about the US-China trade dispute plus dismal earnings from Japan Inc hurt risk appetites. At 21h00 the Nikkei was down by 2.01%.
Rand
The rand was weaker against major global currencies on Friday morning, as US-China trade war concerns continued to inject an air of gloom into the market. One dollar cost R13.61 at 21h00.
Precious metals
Gold was steady on Friday on worries that a prolonged China-US trade war could worsen global economic slowdown. At 21h00 an ounce of gold traded at $1 311.10.
Oil
Oil markets slipped on Friday, pulled down by worries about a global economic slowdown. At 21h00 a barrel of Brent crude traded at $62.10 a barrel.
Our daily rant..
Well so SASOL came out with a trading statement that did not impress investors. Of particular concern was SASOL's Lake Charles Chemicals Project (LCCP) which was expected to bring in EBITDA profits of $100million, but continued delays and other issues saw SASOL stating it will make an EBITDA loss of at least $165 million.
In Rand terms from expecting LCCP to contribute R1.4 billion to pre tax and pre depreciation profits it now expects to lose R2.2 billion on the project. That is a R3.6 billion swing in SASOL's guidance on LCCP. No surprise that the market is giving them a hiding. The image below (taken from Moneyweb) shows SOL's share price right after the announcement. See full update here.
In Rand terms from expecting LCCP to contribute R1.4 billion to pre tax and pre depreciation profits it now expects to lose R2.2 billion on the project. That is a R3.6 billion swing in SASOL's guidance on LCCP. No surprise that the market is giving them a hiding. The image below (taken from Moneyweb) shows SOL's share price right after the announcement. See full update here.
Our JSE All Share index daily performance calendar
The graphic below provides the daily returns of the JSE All Share Index (J203) on a calendar chart. Provides a great overview of the All share index over the course of the month. It will be updated daily with our daily investment update as received from PSG.
The first trading day of February ended in the red. In contrast to January in which every Friday ended the day in the green, so far for February 2019 every Friday has ended in the red. So far the market has declined by -1.68% to be exact during the first 8 days of February 2019. With the last two trading days (7th and 8th of February 2019) being the two most negative trading days so far in February 2019.