|
Related Topics |
|
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.
|
|
Short summary of PSG's market commentary for 20 August 2019
South Africa
The JSE kicked off the week on a positive note after China slashed interest rates to counter slowing growth, while US President Donald Trump said he was still optimistic that Beijing and Washington will soon reach a trade consensus. Shortly after the closing bell, the All Share was up by 0.95% on Monday.
United States
News of an interest rate cut in China boosted Wall Street on Monday, and restored faith that major economies are prepared to implement the necessary stimulus to counter slowing growth. The Dow was up 1.07% just after the JSE closed.
Europe
European markets tracked a global rally on Monday on the back of lower interest rates in China, while bond yields recovered on improved global sentiment. Just after 20h00, the FTSE 100 gained 1.02% and the French CAC 40 was up by 1.34%.
Hong Kong
Hong Kong stocks started the week on a solid note, reaching a two-month high after Beijing enforced measures to boost slowing economic growth. The Hang Seng Index ended up by 2.17% on Monday.
Japan
While market participants were mostly cautious on the back of simmering US-China trade tensions, Japanese shares ended higher on news of interest rate cuts in Beijing. The Nikkei Index closed up 0.71%.
Rand
The rand lost its footing against the dollar on Monday as a mixed bag of global risk factors weighed on sentiment. Just after the JSE closed, the rand weakened to R15.44/$.
Precious metals
Gold prices fell on Monday amid a stronger dollar environment and a general rally in global equities. At 20h15, an ounce of spot gold traded at $1 497.85.
Oil
Gaining over 1%, oil prices were set for a day of gains on Monday as buyers cheered the idea that major economies would take steps to boost slowing growth. At 20h30, a barrel of Brent crude traded at $59.78
The JSE kicked off the week on a positive note after China slashed interest rates to counter slowing growth, while US President Donald Trump said he was still optimistic that Beijing and Washington will soon reach a trade consensus. Shortly after the closing bell, the All Share was up by 0.95% on Monday.
United States
News of an interest rate cut in China boosted Wall Street on Monday, and restored faith that major economies are prepared to implement the necessary stimulus to counter slowing growth. The Dow was up 1.07% just after the JSE closed.
Europe
European markets tracked a global rally on Monday on the back of lower interest rates in China, while bond yields recovered on improved global sentiment. Just after 20h00, the FTSE 100 gained 1.02% and the French CAC 40 was up by 1.34%.
Hong Kong
Hong Kong stocks started the week on a solid note, reaching a two-month high after Beijing enforced measures to boost slowing economic growth. The Hang Seng Index ended up by 2.17% on Monday.
Japan
While market participants were mostly cautious on the back of simmering US-China trade tensions, Japanese shares ended higher on news of interest rate cuts in Beijing. The Nikkei Index closed up 0.71%.
Rand
The rand lost its footing against the dollar on Monday as a mixed bag of global risk factors weighed on sentiment. Just after the JSE closed, the rand weakened to R15.44/$.
Precious metals
Gold prices fell on Monday amid a stronger dollar environment and a general rally in global equities. At 20h15, an ounce of spot gold traded at $1 497.85.
Oil
Gaining over 1%, oil prices were set for a day of gains on Monday as buyers cheered the idea that major economies would take steps to boost slowing growth. At 20h30, a barrel of Brent crude traded at $59.78
Advertisement
Our daily update
Yesterday we covered the latest financial results from City Lodge Hotel Group, in which the group's commentary on their financial results were pretty depressing and worrying, especially if you are a South African. During the period covering their financial results they had a occupancy rate of just 58%. Which is relatively low. Below an extract of the article from yesterday.
So what are City Lodge Hotel Group shares worth when all things are considered? Based on their current financial results and their short to medium term prospects we value their shares at R99.20 a share. Thus at its current price we believe that the group's shares are fully valued right now. We would therefore not recommend buying at the current levels but rather look to buy into the group's shares at around R90 a share or at least 10% less than our valuation price.
Read full article here
So what are City Lodge Hotel Group shares worth when all things are considered? Based on their current financial results and their short to medium term prospects we value their shares at R99.20 a share. Thus at its current price we believe that the group's shares are fully valued right now. We would therefore not recommend buying at the current levels but rather look to buy into the group's shares at around R90 a share or at least 10% less than our valuation price.
Read full article here
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.
So the South African stock market is still up substantially for the year, with the only negative months so far being the month of May in which markets pulled back pretty sharply. But the markets rebounded in June with it ending up close to 5% for the month.
The JSE All Share Index ended the month of July down by -2.6%. Only the second negative month for the JSE in 2019. So far August has gotten off to a horrible start, with the JSE All Share index losing -4.83% so far in August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China and bond yield inversion which is leading markets to believe that a recession in the USA is on its way
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
The JSE All Share Index ended the month of July down by -2.6%. Only the second negative month for the JSE in 2019. So far August has gotten off to a horrible start, with the JSE All Share index losing -4.83% so far in August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China and bond yield inversion which is leading markets to believe that a recession in the USA is on its way
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