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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 19 February 2019
South Africa
The JSE started the week in the green because of broad-based gains and positive global sentiment. At close of business, both the All Share and the Top 40 had gained over 1%.
United States
US markets were closed for President’s Day.
Europe
European markets enjoyed a positive start to the week in light of the trade dispute between the US and China reaching a possible conclusion. At the end of trade, the STOXX 600 was 0.23% in the green.
Hong Kong
On Monday, Chinese markets soared due to optimism surrounding Sino trade agreements and hope that Beijing’s plan to encourage lending and investing could lift growth. At 20h25, the Shanghai traded 2.68% up.
Japan
The Nikkei started the week strong due to investors’ risk appetite growing in light of expectations that talks between the US and China might ease their brewing trade dispute. At 20h25, the Nikkei was 1.13% lower.
Rand
The rand weakened somewhat on Monday afternoon as investors awaited Finance Minister Tito Mboweni’s budget speech that’s due on Wednesday. At 20h25 the rand traded R14.15 against the dollar.
Precious metals
On Monday gold prices reached its highest levels since April 2018 thanks to a softer dollar, and palladium prices surged to record highs due to a sustained supply deficit. At 20h25, an ounce of gold cost $1 318.00 and an ounce of palladium $788.00.
Oil
Oil prices continued to climb on Monday, heading towards its best first quarter in eight years, as investor sentiment picked up due to speculations that OPEC might cap its oil supply. At 20h25, Brent crude traded at $66.50 per barrel.
The JSE started the week in the green because of broad-based gains and positive global sentiment. At close of business, both the All Share and the Top 40 had gained over 1%.
United States
US markets were closed for President’s Day.
Europe
European markets enjoyed a positive start to the week in light of the trade dispute between the US and China reaching a possible conclusion. At the end of trade, the STOXX 600 was 0.23% in the green.
Hong Kong
On Monday, Chinese markets soared due to optimism surrounding Sino trade agreements and hope that Beijing’s plan to encourage lending and investing could lift growth. At 20h25, the Shanghai traded 2.68% up.
Japan
The Nikkei started the week strong due to investors’ risk appetite growing in light of expectations that talks between the US and China might ease their brewing trade dispute. At 20h25, the Nikkei was 1.13% lower.
Rand
The rand weakened somewhat on Monday afternoon as investors awaited Finance Minister Tito Mboweni’s budget speech that’s due on Wednesday. At 20h25 the rand traded R14.15 against the dollar.
Precious metals
On Monday gold prices reached its highest levels since April 2018 thanks to a softer dollar, and palladium prices surged to record highs due to a sustained supply deficit. At 20h25, an ounce of gold cost $1 318.00 and an ounce of palladium $788.00.
Oil
Oil prices continued to climb on Monday, heading towards its best first quarter in eight years, as investor sentiment picked up due to speculations that OPEC might cap its oil supply. At 20h25, Brent crude traded at $66.50 per barrel.
Our daily rant..
While all eyes are on the budget speech to be delivered tomorrow, 20 February 2019, eyes on the stock market were all focused on EOH. The share declined a further 10.4% yesterday (18 Feb 2019) after releasing an updated SENS regarding their troubles with Microsoft in which Microsoft notified EOH about their intention to terminate their channel partner agreement. The SENS from EOH follows:
"There have been further developments in the media following our stakeholder communication issued on SENS on the 15 February 2019 and as previously advised EOH focused ENS to look at all large historical licensing contracts in the public sector vertical. Microsoft has still not officially provided us any confirmation for the reasons for the notice. This matter is now sub judice. ENS continue to give us regular updates and we are committed to swift and appropriate action.
Stephen van Coller reiterated “I again encourage anyone who has evidence to please come forward so we can root out any historical, unethical business practices both within EOH and the broader country. As part of our current processes, ENS reviews about 8-10 bids per week”.
Shareholders will be advised of any further developments."
"There have been further developments in the media following our stakeholder communication issued on SENS on the 15 February 2019 and as previously advised EOH focused ENS to look at all large historical licensing contracts in the public sector vertical. Microsoft has still not officially provided us any confirmation for the reasons for the notice. This matter is now sub judice. ENS continue to give us regular updates and we are committed to swift and appropriate action.
Stephen van Coller reiterated “I again encourage anyone who has evidence to please come forward so we can root out any historical, unethical business practices both within EOH and the broader country. As part of our current processes, ENS reviews about 8-10 bids per week”.
Shareholders will be advised of any further developments."
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 increased by 2.06% during the 18 days of February 2019. Its been a relatively directionless month for the stock market, with movements flip flopping between positive and negative. But in saying that fears regarding the trade ware between USA and China are easing, which means "risk on" assets such as shares listed in Emerging markets (EM) such as South Africa is in higher demand again pushing up demand and prices of locally listed shares slight in recent trading days