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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 28 June 2019
South Africa
Weak performances by platinum miners and banks led to the JSE losing ground on Thursday; however, investors are closely monitoring events leading up to the G20 summit to start on Friday. As the closing bell struck, the All Share read 0.61% lower.
United States
US indices opened higher on Thursday, as positive sentiment lifted tech stocks, although, the lack of clarity ahead of the trade negotiations between the US and China left investors somewhat uneasy. At 20h25, the Nasdaq was trading 0.77% higher.
Europe
Despite a strong performance by chemicals giant, Bayer, lifting the Dax, European markets closed flat on Thursday after early evening (local time) reports from the White House led to renewed pessimism around the US-China tariff war. At the end of trade, the pan-European STOXX 600 stood at 0%.
Hong Kong
On Thursday, Asian shares made up Wednesday’s losses due to investor optimism ahead of the G20 summit where the economic superpowers, the US and China, will discuss their trade dispute further. The Hang Seng closed 1.51% up.
Japan
Investor sentiment improved on Thursday, lifting the Nikkei, due to cyclical stocks and companies with a large Chinese exposure basking in positive territories. At the end of trade, the Nikkei had gained 1.19%.
Rand
The rand continued the week’s rising run on Thursday. Experts ascribed these gains to the US Federal Reserve Bank’s dovish stance, events surrounding the US-Sino trade dispute and Moody’s keeping their ratings view stable. At 20h25, a dollar cost R14.16.
Precious metals
Although bullion prices fell sharply on Thursday, gold is still heading towards recording its best month in three years. At 20h25, an ounce of spot gold traded at $1 407.02.
Oil
Oil prices faced a difficult day as investors monitor the events leading to the G20 Summit, where a decision could be made that’ll strengthen the global economy and increase the demand for oil. At 20h25, a barrel of Brent crude was trading at $66.59.
Weak performances by platinum miners and banks led to the JSE losing ground on Thursday; however, investors are closely monitoring events leading up to the G20 summit to start on Friday. As the closing bell struck, the All Share read 0.61% lower.
United States
US indices opened higher on Thursday, as positive sentiment lifted tech stocks, although, the lack of clarity ahead of the trade negotiations between the US and China left investors somewhat uneasy. At 20h25, the Nasdaq was trading 0.77% higher.
Europe
Despite a strong performance by chemicals giant, Bayer, lifting the Dax, European markets closed flat on Thursday after early evening (local time) reports from the White House led to renewed pessimism around the US-China tariff war. At the end of trade, the pan-European STOXX 600 stood at 0%.
Hong Kong
On Thursday, Asian shares made up Wednesday’s losses due to investor optimism ahead of the G20 summit where the economic superpowers, the US and China, will discuss their trade dispute further. The Hang Seng closed 1.51% up.
Japan
Investor sentiment improved on Thursday, lifting the Nikkei, due to cyclical stocks and companies with a large Chinese exposure basking in positive territories. At the end of trade, the Nikkei had gained 1.19%.
Rand
The rand continued the week’s rising run on Thursday. Experts ascribed these gains to the US Federal Reserve Bank’s dovish stance, events surrounding the US-Sino trade dispute and Moody’s keeping their ratings view stable. At 20h25, a dollar cost R14.16.
Precious metals
Although bullion prices fell sharply on Thursday, gold is still heading towards recording its best month in three years. At 20h25, an ounce of spot gold traded at $1 407.02.
Oil
Oil prices faced a difficult day as investors monitor the events leading to the G20 Summit, where a decision could be made that’ll strengthen the global economy and increase the demand for oil. At 20h25, a barrel of Brent crude was trading at $66.59.
Our daily update
Yesterday we covered the latest South African banking sector information which showed that South African banks are writing off around 3.8% of loans and debt that has been issued, as consumers and businesses struggle to pay back their outstanding debts. Below an extract from the article yesterday.
In total South African banks wrote off or impaired loans that have been advanced to the value of R161.12 billion during April 2019. This is an increase of 22% on the R131.85 billion that was impaired by banks during April 2018. Impairments growing a lot faster than the new gross loans and advances that are being issued. And this will affect banks balance sheets and their overall profitability. Currently as at April 2019, 3.79% of all loans and advances made by South African banks are being impaired (or written off). This is up from 3.39% a year ago. If banks, South African's, government of the South African Reserve Bank needed a sign that South African consumers are really struggling this is it. South African's are struggling to pay back and service all their debt. And South Africa needs a more expansionary or accommodating monetary policy, not only to assist ailing South Africa consumers but to give South Africa's economy a boost.
Read the full article here
In total South African banks wrote off or impaired loans that have been advanced to the value of R161.12 billion during April 2019. This is an increase of 22% on the R131.85 billion that was impaired by banks during April 2018. Impairments growing a lot faster than the new gross loans and advances that are being issued. And this will affect banks balance sheets and their overall profitability. Currently as at April 2019, 3.79% of all loans and advances made by South African banks are being impaired (or written off). This is up from 3.39% a year ago. If banks, South African's, government of the South African Reserve Bank needed a sign that South African consumers are really struggling this is it. South African's are struggling to pay back and service all their debt. And South Africa needs a more expansionary or accommodating monetary policy, not only to assist ailing South Africa consumers but to give South Africa's economy a boost.
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 after four very positive months on the markets the month of May bucked the trend and saw half the gains made during the first four months of the year on the JSE wiped out in one month. JSE All share index as a whole is up 4.3% so far in June 2019. Reversing the severe losses on the markets in May 2019. Tensions between the US and Iran and potential trade deal discussions between President Trump and President Xi Jinping has sent markets a little lower during the last week.
And the South African Rand (ZAR) has made a strong come back in recent weeks.
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
And the South African Rand (ZAR) has made a strong come back in recent weeks.
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