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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 27 February 2019
South Africa
The JSE closed above 56 000 points on Tuesday, with only property shares and gold miners closing down. Retailers and platinum miners led the gains. The All Share closed 0.65% in the green.
United States
Before a hearing in front of the US Senate Banking Committee on Tuesday, Fed Chairman Jerome Powell said rising risks and recent soft data should not prevent solid growth for the US economy for 2019. He said the Fed will remain “patient” in deciding on further interest rate hikes.
Europe
European shares were firmly in the red on Tuesday as the optimism around US-China trade talks started to cool, with London’s FTSE 100 lagging the broader markets as the sterling rallied. At market close, the FTSE 100 was down 0.45%, while the CAC 40 was flat.
Hong Kong
Hong Kong shares fell on Tuesday, tracking a correction in Asian markets, as investors waited to see if Washington and Beijing could clinch a trade deal. At the close of trade, the Hang Seng index traded 0.65% in the red.
Japan
The Nikkei closed slightly weaker on Tuesday as Asian shares weakened and selling pressure ahead of the fiscal year-end in March forced a retreat. The Nikkei ended the day down 0.37%.
Rand
Fading prospects of the UK leaving the EU without a deal caused the rand to weaken against the pound on Tuesday. At 19h45 the rand was 1.44% weaker at R18.36/£.
Precious metals
Bloomberg warned of the growing potential for a correction in the price of Palladium after this metal surged about 40% in four months. The metal used to control harmful emissions in petrol-fuelled cars hit repeated records as a supply deficit deepened and demand increased. The threat of a strike by a mining union in South Africa this week added momentum to the surge. Spot palladium hit a fresh record of $1 558.80 an ounce on Tuesday.
Oil
The oil price recovered slightly from Monday's losses caused by tweets from US President Donald Trump who said prices were too high. A barrel of Brent crude traded at $65.21 at 19h45 on Tuesday.
The JSE closed above 56 000 points on Tuesday, with only property shares and gold miners closing down. Retailers and platinum miners led the gains. The All Share closed 0.65% in the green.
United States
Before a hearing in front of the US Senate Banking Committee on Tuesday, Fed Chairman Jerome Powell said rising risks and recent soft data should not prevent solid growth for the US economy for 2019. He said the Fed will remain “patient” in deciding on further interest rate hikes.
Europe
European shares were firmly in the red on Tuesday as the optimism around US-China trade talks started to cool, with London’s FTSE 100 lagging the broader markets as the sterling rallied. At market close, the FTSE 100 was down 0.45%, while the CAC 40 was flat.
Hong Kong
Hong Kong shares fell on Tuesday, tracking a correction in Asian markets, as investors waited to see if Washington and Beijing could clinch a trade deal. At the close of trade, the Hang Seng index traded 0.65% in the red.
Japan
The Nikkei closed slightly weaker on Tuesday as Asian shares weakened and selling pressure ahead of the fiscal year-end in March forced a retreat. The Nikkei ended the day down 0.37%.
Rand
Fading prospects of the UK leaving the EU without a deal caused the rand to weaken against the pound on Tuesday. At 19h45 the rand was 1.44% weaker at R18.36/£.
Precious metals
Bloomberg warned of the growing potential for a correction in the price of Palladium after this metal surged about 40% in four months. The metal used to control harmful emissions in petrol-fuelled cars hit repeated records as a supply deficit deepened and demand increased. The threat of a strike by a mining union in South Africa this week added momentum to the surge. Spot palladium hit a fresh record of $1 558.80 an ounce on Tuesday.
Oil
The oil price recovered slightly from Monday's losses caused by tweets from US President Donald Trump who said prices were too high. A barrel of Brent crude traded at $65.21 at 19h45 on Tuesday.
Our daily rant..
Yesterday saw listed chemicals group AECI (AFE) release financial results for their year ending December 2018. And the results released looked pretty solid. With them trading at around R94.80 currently it places them on a PE of around 9 and a dividend yield of 5.4%, and this while they have cash on hand of around R14 a share (or almost 15% of the current share price). See our update on AECI's results here.
Another company that released results yesterday was Shoprite (SHP). At the end of January they released a trading statement in which they warned about declining profits and tough economic conditions, at the time they were trading at R178 a share. After the results release yesterday they were trading at around R165 (down almost 7.5% since their trading statement at the end of January 2019. To be honest the results released did not look as bad as many market participants expected and the share closed up 4.9% at R169.75. See our update in Shoprite's results here.
The JSE All Share ended they day up 0.65% and the Rand/Dollar was sitting at R13.85
Another company that released results yesterday was Shoprite (SHP). At the end of January they released a trading statement in which they warned about declining profits and tough economic conditions, at the time they were trading at R178 a share. After the results release yesterday they were trading at around R165 (down almost 7.5% since their trading statement at the end of January 2019. To be honest the results released did not look as bad as many market participants expected and the share closed up 4.9% at R169.75. See our update in Shoprite's results here.
The JSE All Share ended they day up 0.65% and the Rand/Dollar was sitting at R13.85
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 first trading day of February ended in the red. In contrast to January in which every Friday ended the day in the green, so far for February 2019 every Friday has ended in the red. So far the market has increased by 3.85% during the 26 days of February 2019. For the month to date the market has seen a pretty strong increase of 3.85% (if this growth was to continue for the full year the market would be returning well over 30% for the year. While the odds of this is extremely unlikely (especially in a election year in South Africa), as our JSE trading statistics update showed, the total market capital of all shares listed on the JSE is quiet a bit higher than it was last year this time.