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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 21 November 2019
South Africa
The local markets ended flat on Wednesday, following global markets into the negative as investors grew weary on the back of renewed trade conflict fears. The Top 40 closed down 0.17%.
United States
Wall Street indices slipped on Wednesday after reports surfaced that the first phase of the US-China tariff deal might only be completed in 2020. At 17h50, the Dow traded 0.41% in the red.
Europe
European markets recorded their worst day in three weeks as the “increasing political strain between Washington and Beijing” weighed on investor sentiment. The pan-European STOXX 600 Index dropped 0.12%.
Hong Kong
On Wednesday, Hong Kong shares fell as “China’s foreign ministry said the United States should stop interfering in Hong Kong and Chinese affairs” renewing concerns about a possible trade solution. The Hang Seng Index dropped 0.75% for the day.
Japan
The IT sector recorded the biggest drop on Wednesday, pulled down by semiconductor companies, after US President Donald Trump reiterated his plan to raise tariffs on Chinese imports if a solution is not reached. The Nikkei fell by 0.62%.
Rand
The local currency slipped against the dollar on Wednesday as investors embraced a risk-off mood in light of the worsening US-China trade relations. At 17h50, the rand was trading R14.76 to the US dollar.
Precious metals
Gold prices basked in the risk-off sentiment on Wednesday, offering a safe-haven for investors who were worried about the new US-Sino trade war developments. An ounce of gold cost $1 468.04 at 17h50.
Oil
News that Russia would continue to work with OPEC to balance the global oil market and better-than-expected US inventory data boosted the oil price on Wednesday; however, trade concerns countered some of the day’s gains. Brent crude traded at $61.88 a barrel at 17h50
The local markets ended flat on Wednesday, following global markets into the negative as investors grew weary on the back of renewed trade conflict fears. The Top 40 closed down 0.17%.
United States
Wall Street indices slipped on Wednesday after reports surfaced that the first phase of the US-China tariff deal might only be completed in 2020. At 17h50, the Dow traded 0.41% in the red.
Europe
European markets recorded their worst day in three weeks as the “increasing political strain between Washington and Beijing” weighed on investor sentiment. The pan-European STOXX 600 Index dropped 0.12%.
Hong Kong
On Wednesday, Hong Kong shares fell as “China’s foreign ministry said the United States should stop interfering in Hong Kong and Chinese affairs” renewing concerns about a possible trade solution. The Hang Seng Index dropped 0.75% for the day.
Japan
The IT sector recorded the biggest drop on Wednesday, pulled down by semiconductor companies, after US President Donald Trump reiterated his plan to raise tariffs on Chinese imports if a solution is not reached. The Nikkei fell by 0.62%.
Rand
The local currency slipped against the dollar on Wednesday as investors embraced a risk-off mood in light of the worsening US-China trade relations. At 17h50, the rand was trading R14.76 to the US dollar.
Precious metals
Gold prices basked in the risk-off sentiment on Wednesday, offering a safe-haven for investors who were worried about the new US-Sino trade war developments. An ounce of gold cost $1 468.04 at 17h50.
Oil
News that Russia would continue to work with OPEC to balance the global oil market and better-than-expected US inventory data boosted the oil price on Wednesday; however, trade concerns countered some of the day’s gains. Brent crude traded at $61.88 a barrel at 17h50
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Our daily update
Earlier today Mr Price Group released their latest interim financial results for the period ending September 201. Below an extract of our financial review of Mr Price's latest results
Based on Mr Price's latest interim financial results released our valuation model provides a full value price for Mr Price shares at R180.70, this is down from our Mr Price stock valuation in June 2019, and this is largely due to the group's deteriorating financial position as shown by a 9.6% decline in their headline earnings per share compared to the same period of the previous year.
Read the full article here
Based on Mr Price's latest interim financial results released our valuation model provides a full value price for Mr Price shares at R180.70, this is down from our Mr Price stock valuation in June 2019, and this is largely due to the group's deteriorating financial position as shown by a 9.6% decline in their headline earnings per share compared to the same period of the previous year.
Read the 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 month of October 2019 saw the JSE All Share Index end in the green. And the first trading day of November 2019 saw the JSE edge up slightly last week Friday. Can the momentum continue and the "Christmas rally" carry the markets higher in the closing months of 2019? So the hard work of the first few trading days of November 2019 was basically wiped out by two negative days towards the end of last week. The JSE All Share Index is up 1.69% for the month of November 2019.
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
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