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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 23 August 2019
South Africa
The JSE ended lower on Thursday as investors awaited new catalysts from the US Federal Reserve (Fed), while Moody’s warned that the government would need to either cut spending or hike taxes to fund Eskom bailouts. Shortly after the closing bell, the All Share was down by 0.66%.
United States
Wall Street held onto gains made in the previous session as investors digested positive earnings from retailers on Thursday. The Dow was up by 1.39% just after the JSE closed.
Europe
European shares traded lower on Thursday as the Fed poured cold water on hopes that last month’s interest rate cut signalled the beginning of a monetary policy easing cycle. At about 21h00, the FTSE 100 was down by 1.05%.
Hong Kong
Hong Kong stocks traded lower on Thursday as fears of a global recession persisted amid raging riots. The Hang Seng Index closed 0.81% in the red.
Japan
Japanese shares were flat on Thursday as investors awaited new catalysts from key central banks. The Nikkei Index closed 0.05% in the green.
Rand
The rand fell tracking global markets on Thursday as investors came to terms with the fact that additional rate cuts will take longer than anticipated. Just after the JSE closed, the rand strengthened to R15.24/$.
Precious metals
Gold prices dropped as investors remained cautious ahead of Fed Chairman Jerome Powell’s speech scheduled for later today. At 21h15, an ounce of spot gold traded at $1 498.77.
Oil
Oil prices dipped on Thursday as apprehensions over slowing global growth persisted. At 21h30, a barrel of Brent crude traded at $60.01
The JSE ended lower on Thursday as investors awaited new catalysts from the US Federal Reserve (Fed), while Moody’s warned that the government would need to either cut spending or hike taxes to fund Eskom bailouts. Shortly after the closing bell, the All Share was down by 0.66%.
United States
Wall Street held onto gains made in the previous session as investors digested positive earnings from retailers on Thursday. The Dow was up by 1.39% just after the JSE closed.
Europe
European shares traded lower on Thursday as the Fed poured cold water on hopes that last month’s interest rate cut signalled the beginning of a monetary policy easing cycle. At about 21h00, the FTSE 100 was down by 1.05%.
Hong Kong
Hong Kong stocks traded lower on Thursday as fears of a global recession persisted amid raging riots. The Hang Seng Index closed 0.81% in the red.
Japan
Japanese shares were flat on Thursday as investors awaited new catalysts from key central banks. The Nikkei Index closed 0.05% in the green.
Rand
The rand fell tracking global markets on Thursday as investors came to terms with the fact that additional rate cuts will take longer than anticipated. Just after the JSE closed, the rand strengthened to R15.24/$.
Precious metals
Gold prices dropped as investors remained cautious ahead of Fed Chairman Jerome Powell’s speech scheduled for later today. At 21h15, an ounce of spot gold traded at $1 498.77.
Oil
Oil prices dipped on Thursday as apprehensions over slowing global growth persisted. At 21h30, a barrel of Brent crude traded at $60.01
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Our daily update
Mr Price shares declined sharply yesterday after they released their latest trading statement which the markets didn't like at all. By 1pm the the stock was down 8.4%. Below a short extract from their trading statement
Apparel Segment Retail Sales Comparable store sales Units RSP Inflation
Mr Price -2.1% -5.3% -1.6% -0.6%
Mr Price Sport 9.3% 5.9% 4.0% 5.0%
Miladys 3.4% -1.2% 2.1% 1.7%
Total for apparel segment -0.5% -3.9% -1.0% 0.5%
Home Segment Retail Sales Comparable store sales Units RSP Inflation
Mr Price Home 3.2% 1.7% -4.4% 8.0%
Sheet Street 5.4% 2.9% -5.4% 11.4%
Total for Home segment 3.9% 2.1% -4.8% 9.1%
Total for the group Retail Sales Comparable store sales Units RSP Inflation
Group 0.6% -2.5% -1.9% 2.5%
Read the full article here
Apparel Segment Retail Sales Comparable store sales Units RSP Inflation
Mr Price -2.1% -5.3% -1.6% -0.6%
Mr Price Sport 9.3% 5.9% 4.0% 5.0%
Miladys 3.4% -1.2% 2.1% 1.7%
Total for apparel segment -0.5% -3.9% -1.0% 0.5%
Home Segment Retail Sales Comparable store sales Units RSP Inflation
Mr Price Home 3.2% 1.7% -4.4% 8.0%
Sheet Street 5.4% 2.9% -5.4% 11.4%
Total for Home segment 3.9% 2.1% -4.8% 9.1%
Total for the group Retail Sales Comparable store sales Units RSP Inflation
Group 0.6% -2.5% -1.9% 2.5%
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 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 -4.07% 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. There are growing concerns about a global slow down largely driven by the trade ware between the US and China. Locally the trading update released by Mr Price sent its share price tumbling and raised concerns again regarding struggling consumers and retail sector in South Africa.
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 -4.07% 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. There are growing concerns about a global slow down largely driven by the trade ware between the US and China. Locally the trading update released by Mr Price sent its share price tumbling and raised concerns again regarding struggling consumers and retail sector in South Africa.
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