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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 inputs in at the end.
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Short summary of PSG's market commentary for 11 October 2019
South Africa
The JSE climbed on Thursday after US President Donald Trump confirmed he would meet with Chinese vice-premier Liu He on Friday. The All Share gained 1.35%.
United States
US indices rose on Thursday on hopes that top-level US-China trade talks would yield at least a partial deal, while a rise in Apple’s shares lifted the technology sector. Just after the JSE closed, the Dow was up 0.83%.
Europe
European shares rose on Thursday as signs of progress in trade talks and hopes of a Brexit deal helped investors look past weak economic data and negative corporate updates. Shortly after the JSE closed, France’s CAC 40 was up by 1.27%, and Germany’s DAX 30 by 0.58%.
Hong Kong
The Hong Kong stock market closed higher on Thursday on hopes that Beijing and Washington could reach a partial deal, but gains were limited after a media report cited that this week’s high-level trade negotiations could be cut short. At the close of trade, the Hang Seng Index was up 0.24%.
Japan
Japanese stocks bounced back on Thursday, helped by a flush of optimism over chances that the US and China can scale back their trade war at high-level talks in Washington. The Nikkei index ended up 0.45%.
Rand
Reports suggesting the US and China are close to an agreement on issues of currency valuation boosted emerging-market currencies, including the rand, on Thursday. At 20h15, a dollar traded at R15.05.
Precious metals
Gold edged lower on Thursday after reports that certain reprieves might be made by both superpowers during trade talks in Washington. At 20h15, an ounce of gold traded at $1 499.07.
Oil
Oil prices rose on Thursday, buoyed by comments by the head of OPEC that the organisation could take action to balance oil markets and that it will decide in December on supply for next year. A barrel of Brent crude traded at $59.41 at 20h15
The JSE climbed on Thursday after US President Donald Trump confirmed he would meet with Chinese vice-premier Liu He on Friday. The All Share gained 1.35%.
United States
US indices rose on Thursday on hopes that top-level US-China trade talks would yield at least a partial deal, while a rise in Apple’s shares lifted the technology sector. Just after the JSE closed, the Dow was up 0.83%.
Europe
European shares rose on Thursday as signs of progress in trade talks and hopes of a Brexit deal helped investors look past weak economic data and negative corporate updates. Shortly after the JSE closed, France’s CAC 40 was up by 1.27%, and Germany’s DAX 30 by 0.58%.
Hong Kong
The Hong Kong stock market closed higher on Thursday on hopes that Beijing and Washington could reach a partial deal, but gains were limited after a media report cited that this week’s high-level trade negotiations could be cut short. At the close of trade, the Hang Seng Index was up 0.24%.
Japan
Japanese stocks bounced back on Thursday, helped by a flush of optimism over chances that the US and China can scale back their trade war at high-level talks in Washington. The Nikkei index ended up 0.45%.
Rand
Reports suggesting the US and China are close to an agreement on issues of currency valuation boosted emerging-market currencies, including the rand, on Thursday. At 20h15, a dollar traded at R15.05.
Precious metals
Gold edged lower on Thursday after reports that certain reprieves might be made by both superpowers during trade talks in Washington. At 20h15, an ounce of gold traded at $1 499.07.
Oil
Oil prices rose on Thursday, buoyed by comments by the head of OPEC that the organisation could take action to balance oil markets and that it will decide in December on supply for next year. A barrel of Brent crude traded at $59.41 at 20h15
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Our daily update
We take a quick look at the financial results for the 6 months ended 31 August 2019 of financial services group, PSG Konsult
SALIENT FEATURES
• Recurring headline earnings per share increased by 8% to 23.2 cents per share
• Interim dividend per share increased by 7% to 7.5 cents per share
• Total assets under management decreased by 1% to R228bn
• Gross written premium increased by 35% to R2.7bn PSG Konsult achieved a solid 8% growth in recurring headline earnings per share and generated a return on equity of 20.2%, despite difficult business conditions.
No performance fees were generated during the current period, compared to the prior period where performance fees constituted 4.6% of headline earnings. PSG Konsult and its subsidiaries (“the group”) continued its investment in technology and people.
With R228 billion in assets under management PSG Konsult is about a third the size of Coronation Fund Managers in terms of assets under management.
• Recurring headline earnings per share increased by 8% to 23.2 cents per share
• Interim dividend per share increased by 7% to 7.5 cents per share
• Total assets under management decreased by 1% to R228bn
• Gross written premium increased by 35% to R2.7bn PSG Konsult achieved a solid 8% growth in recurring headline earnings per share and generated a return on equity of 20.2%, despite difficult business conditions.
No performance fees were generated during the current period, compared to the prior period where performance fees constituted 4.6% of headline earnings. PSG Konsult and its subsidiaries (“the group”) continued its investment in technology and people.
With R228 billion in assets under management PSG Konsult is about a third the size of Coronation Fund Managers in terms of assets under management.
Our JSE All Share index daily performance calendar
Visit our JSE Calendar tracker page for a expanded version of the calendar below
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.
While the month of August was negative by -1.73% lets see what the month of September holds for the South African stock market.
So for the month September 2019 the JSE All Share Index ended the month down -2.01%. A strong surge in markets yesterday, 10 October 2019 based on new that there might be a mini trade deal and a potential pathway to a Brexit deal based on discussions between UK Prime Minister and Ireland's prime minster. For October 2019 so far the JSE All Share Index is 0.52% in the green.
There continues to be concerns about a global economic slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
For more on daily market movements see our 2019 Calendar tracker.
But we as South African investors are losing out in Dollar terms. Largely due to continued Rand weakness not only over the short term but over the last couple of years. We continue to advise investors to take money out of South Africa and invest it offshore. Looking for ideas for investments to make? Go read this article
So for the month September 2019 the JSE All Share Index ended the month down -2.01%. A strong surge in markets yesterday, 10 October 2019 based on new that there might be a mini trade deal and a potential pathway to a Brexit deal based on discussions between UK Prime Minister and Ireland's prime minster. For October 2019 so far the JSE All Share Index is 0.52% in the green.
There continues to be concerns about a global economic slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
For more on daily market movements see our 2019 Calendar tracker.
But we as South African investors are losing out in Dollar terms. Largely due to continued Rand weakness not only over the short term but over the last couple of years. We continue to advise investors to take money out of South Africa and invest it offshore. Looking for ideas for investments to make? Go read this article