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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 26 November 2019
South Africa
Although the JSE rose on trade deal optimism, gains were trimmed by concerns over SA’s credit outlook on Monday. At the closing bell, the JSE All Share was flat at 0.02% in the red.
United States
Wall Street indices rose after US national security adviser, Robert O’Brienth said “a trade pact between Washington and Beijing was still possible before the end of the year”. Shortly after the JSE closed, the Nasdaq gained 0.90%.
Europe
European markets gained momentum on Monday following reports that Washington and Beijing were close to signing a trade deal. At the close of business, the pan-European STOXX 600 Index climbed 0.95%.
Hong Kong
Notwithstanding concerns over anti-government protests in Hong Kong, investors cheered optimism over the prospect of a US-China trade truce. The Hang Seng rose by 1.50%.
Japan
Japanese shares rallied on Monday after the US and China dispelled negative media reports and underscored their desire to ratify a trade pact that would halt a 16-month long trade dispute. At close of trade, the Nikkei recorded a gain of 0.78%.
Rand
The local currency lost its footing against the dollar on Monday as investors continued to digest S&P’s decision to change its outlook from stable to negative. At 18h20 a dollar traded at R14.75.
Precious metals
Gold prices fell on Monday on the back of heightened risk-on sentiment after Beijing and Washington sparked new hopes of a trade deal. An ounce of spot gold traded at $1 458.67 at 18h25.
Oil
Notwithstanding renewed trade talk optimism, oil prices fell on Monday on the back of rising US crude inventories. At 18h30, a barrel of Brent crude was down 0.31% and traded at $63.46
Although the JSE rose on trade deal optimism, gains were trimmed by concerns over SA’s credit outlook on Monday. At the closing bell, the JSE All Share was flat at 0.02% in the red.
United States
Wall Street indices rose after US national security adviser, Robert O’Brienth said “a trade pact between Washington and Beijing was still possible before the end of the year”. Shortly after the JSE closed, the Nasdaq gained 0.90%.
Europe
European markets gained momentum on Monday following reports that Washington and Beijing were close to signing a trade deal. At the close of business, the pan-European STOXX 600 Index climbed 0.95%.
Hong Kong
Notwithstanding concerns over anti-government protests in Hong Kong, investors cheered optimism over the prospect of a US-China trade truce. The Hang Seng rose by 1.50%.
Japan
Japanese shares rallied on Monday after the US and China dispelled negative media reports and underscored their desire to ratify a trade pact that would halt a 16-month long trade dispute. At close of trade, the Nikkei recorded a gain of 0.78%.
Rand
The local currency lost its footing against the dollar on Monday as investors continued to digest S&P’s decision to change its outlook from stable to negative. At 18h20 a dollar traded at R14.75.
Precious metals
Gold prices fell on Monday on the back of heightened risk-on sentiment after Beijing and Washington sparked new hopes of a trade deal. An ounce of spot gold traded at $1 458.67 at 18h25.
Oil
Notwithstanding renewed trade talk optimism, oil prices fell on Monday on the back of rising US crude inventories. At 18h30, a barrel of Brent crude was down 0.31% and traded at $63.46
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Our daily update
Last week Wednesday Statistics South Africa released the latest inflation numbers for South Africa, which came in at 3.7%. But what exactly makes up this number? Below we unpack South Africa's inflation rate in a little more detail.
First up South Africa's inflation rate per province
Next up South Africa's inflation rate for pensioners
Next we take a look at the inflation rate of goods and services
Next we take a look at the inflation rate of South Africa per expenditure group as reflected by Deciles. Decile 1 shows the inflation rate of the bottom 10% of households in terms of expenditure (the poor) and Decile 10 shows the top 10% of households in terms of expenditure (the rich)
Next we take a look at the inflation rate of the main expenditure groups in the CPI:
Read more about South Africa's inflation rate here
First up South Africa's inflation rate per province
- Limpopo: 4.5%
- Western Cape: 4.3%
- Northern Cape: 3.8%
- South Africa: 3.7%
- Free State: 3.7%
- Gauteng: 3.6%
- KwaZulu-Natal: 3.6%
- Mpumalanga: 3.3%
- North West: 3.2%
- Eastern Cape: 3.1%
Next up South Africa's inflation rate for pensioners
- Pensioners inflation: 3.7%
Next we take a look at the inflation rate of goods and services
- Inflation for services: 4.2%
- Inflation for all goods: 3.1%
- Inflation for durable goods: 2.2%
- Inflation for semi-durable goods: 2.0%
- Inflation for non durable goods: 3.5%
Next we take a look at the inflation rate of South Africa per expenditure group as reflected by Deciles. Decile 1 shows the inflation rate of the bottom 10% of households in terms of expenditure (the poor) and Decile 10 shows the top 10% of households in terms of expenditure (the rich)
- Decile 1 (the poorest households in SA): 5.4%
- Decile 2: 4.8%
- Decile 3: 4.2%
- Decile 4: 4%
- Decile 5: 3.8%
- Decile 6: 3.5%
- Decile 7: 3.4%
- Decile 8: 3.4%
- Decile 9: 3.5%
- Decile 10 (the richest households in SA): 3.8%
Next we take a look at the inflation rate of the main expenditure groups in the CPI:
- Food and non alcoholic beverages: 3.6%
- Alcoholic beverages and tobacco: 5.7%
- Clothng and footwear: 2.2%
- Housing and utilities:4.8%
- Household content and services:3%
- Health: 4.8%
- Transport: 0.3%
- Communication: 0.4%
- Recreation and culture: 1.1%
- Education: 6.7%
- Restaurants and hotels: 3.1%
- Miscellaneous goods and services: 5.7%
Read more about South Africa's inflation rate 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? Continued rumors about a trade deal between the USA and China keeps sparking optimism on the markets for a few days and then it dissipates. The JSE All Share Index is up by 0.73% 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