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PSG daily investment update 24 May 2019
Date: 24 May 2019 Category: Stock Market |
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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 24 May 2019
South Africa
The JSE dropped on Thursday, following Asian markets in reaching a four-month low. Global markets remained jittery as the trade tension between the US and China caused tech stocks to fall. The All Share closed 1.74% in the red.
United States
US markets fell more than 1% on Thursday, as investors sold off technology, industrials and energy shares on fears that the Sino-US trade war could turn into a full-blown ‘cold tech-war’. At 19h00, the Nasdaq was down 1.86%.
Europe
European shares fell yesterday as the latest round of US-China trade dispute sapped investors’ risk appetite, while pressure on British Prime Minister Theresa to quit added to Brexit concerns. The pan-European STOXX 600 index closed 1.40% lower.
Hong Kong
The Hang Seng Index fell 1.33% on Thursday, dragged by technology shares, as worries mounted that the Sino-US trade conflict could fast turn into a technology cold war and threaten global economic growth.
Japan
The Nikkei dropped on Thursday after renewed US-China trade tensions dragged down technology shares. The Nikkei share average ended 0.62% lower.
Rand
The rand weakened R14.47/$ after the SARB said the interest rate will remain unchanged at 6.75% and that they plan a 25 basis point cut in the repo rate by the end of the first quarter of 2020. At 19h00, the currency traded at R14.45/$.
Precious metals
Gold prices firmed on Thursday, supported by a slide in equity markets amid fresh trade tensions. At 19h00, an ounce of spot gold traded at $1 285.80.
Oil
Oil prices dropped on Thursday, extending falls from the previous session amid surging US crude inventories as ample supply and weak refinery data weighed on demand. A barrel of Brent crude traded at $67.45 at 19h00.
The JSE dropped on Thursday, following Asian markets in reaching a four-month low. Global markets remained jittery as the trade tension between the US and China caused tech stocks to fall. The All Share closed 1.74% in the red.
United States
US markets fell more than 1% on Thursday, as investors sold off technology, industrials and energy shares on fears that the Sino-US trade war could turn into a full-blown ‘cold tech-war’. At 19h00, the Nasdaq was down 1.86%.
Europe
European shares fell yesterday as the latest round of US-China trade dispute sapped investors’ risk appetite, while pressure on British Prime Minister Theresa to quit added to Brexit concerns. The pan-European STOXX 600 index closed 1.40% lower.
Hong Kong
The Hang Seng Index fell 1.33% on Thursday, dragged by technology shares, as worries mounted that the Sino-US trade conflict could fast turn into a technology cold war and threaten global economic growth.
Japan
The Nikkei dropped on Thursday after renewed US-China trade tensions dragged down technology shares. The Nikkei share average ended 0.62% lower.
Rand
The rand weakened R14.47/$ after the SARB said the interest rate will remain unchanged at 6.75% and that they plan a 25 basis point cut in the repo rate by the end of the first quarter of 2020. At 19h00, the currency traded at R14.45/$.
Precious metals
Gold prices firmed on Thursday, supported by a slide in equity markets amid fresh trade tensions. At 19h00, an ounce of spot gold traded at $1 285.80.
Oil
Oil prices dropped on Thursday, extending falls from the previous session amid surging US crude inventories as ample supply and weak refinery data weighed on demand. A barrel of Brent crude traded at $67.45 at 19h00.
Our daily update
Yesterday we took a look at the inflation rate of various meat types and showed how pork and bacon prices are increasing rapidly world wide and in South Africa due to African swine flu affecting China and more recently the US. This is affecting supply while demand is still high, leading to prices being increased.
Read the full article here.
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.
The month of May continues to be negative, and this after 4 months of positive returns for the JSE All Share Index. As can be seen from the Calendar chart above the number of red blocks far outnumber the number of green blocks. It has been a pretty miserable month so far on the JSE, and May has wiped out almost half of the returns the market made in the first 4 months of 2019. Seems like sell in May and stay away is holding true. Yesterday biggest negative days on the JSE so far this year.
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