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PSG daily investment update 29 March 2019
Date: 29 March 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 29 March 2019
South Africa
Pressure from gold and platinum equities kept the local bourse subdued on Thursday in what economists described as a technical sell-off. At 19h25, the All Share had lost 0.16%.
United States
US shares were flat on Thursday as investors kept a close eye on developments from the latest US-Sino trade talks amid fears of a decelerating global economy. At 19h30, the Dow Jones futures were flat at 0.01% in the green.
Europe
European shares endured a choppy day of trade on Thursday as reports of new developments in the US-China trade negotiations somewhat lifted markets however, right after the JSE’s close, Brexit deadlocks and the uncertainty thereof weighed heavily on sentiment. At 19h35, the pan-European STOXX 600 index was down by 0.12%.
Hong Kong
Hong Kong shares struggled for direction on Thursday as optimism over progress in the US-China trade negotiations boosted sentiment but declining US Treasury yields trimmed gains that were made in early trade. The Hang Seng ended the day 0.17% in the red.
Japan
Declining US bond yields fuelled concerns over a slowdown in the world’s biggest economy, dragging the Nikkei through the mud and putting a dent
on cyclical stocks. The Nikkei ended the day 1.61% lower.
Rand
The rand weakened against major global currencies on Thursday taking cue from a 5% slump in the Turkish lira. At 19h55, the rand traded R14.59 against the dollar.
Precious metals
Palladium hit its lowest level in five weeks on Thursday as apprehensions over a global economic slowdown and a strong dollar forced investors to take profits. At 20h00, spot gold was trading at $1 290.89 an ounce.
Oil
Oil prices slipped for a second consecutive session on Thursday after US crude inventories surprised on the upside. At 20h05, a barrel of Brent crude was trading at $67.82.
Pressure from gold and platinum equities kept the local bourse subdued on Thursday in what economists described as a technical sell-off. At 19h25, the All Share had lost 0.16%.
United States
US shares were flat on Thursday as investors kept a close eye on developments from the latest US-Sino trade talks amid fears of a decelerating global economy. At 19h30, the Dow Jones futures were flat at 0.01% in the green.
Europe
European shares endured a choppy day of trade on Thursday as reports of new developments in the US-China trade negotiations somewhat lifted markets however, right after the JSE’s close, Brexit deadlocks and the uncertainty thereof weighed heavily on sentiment. At 19h35, the pan-European STOXX 600 index was down by 0.12%.
Hong Kong
Hong Kong shares struggled for direction on Thursday as optimism over progress in the US-China trade negotiations boosted sentiment but declining US Treasury yields trimmed gains that were made in early trade. The Hang Seng ended the day 0.17% in the red.
Japan
Declining US bond yields fuelled concerns over a slowdown in the world’s biggest economy, dragging the Nikkei through the mud and putting a dent
on cyclical stocks. The Nikkei ended the day 1.61% lower.
Rand
The rand weakened against major global currencies on Thursday taking cue from a 5% slump in the Turkish lira. At 19h55, the rand traded R14.59 against the dollar.
Precious metals
Palladium hit its lowest level in five weeks on Thursday as apprehensions over a global economic slowdown and a strong dollar forced investors to take profits. At 20h00, spot gold was trading at $1 290.89 an ounce.
Oil
Oil prices slipped for a second consecutive session on Thursday after US crude inventories surprised on the upside. At 20h05, a barrel of Brent crude was trading at $67.82.
Our daily update
Yesterday we covered the latest Quarterly Financial Statistics (QFS) results published by Statistics South Africa and we focused on the contribution of SMME's to total income earned by various industries. Below a snippet from yesterday's article:
So the Trade industry earned the most, with the manufacturing a relatively close second. And the Real estate and business services industry a distant 3rd position. The summary below shows the percentage contribution of the various firms to total income earned by the selected industries
So lets focus on the contribution of the various firm sizes to overall income earned. Just how much is smaller firms contributing to the total income earned by companies in South Africa?
So the Trade industry earned the most, with the manufacturing a relatively close second. And the Real estate and business services industry a distant 3rd position. The summary below shows the percentage contribution of the various firms to total income earned by the selected industries
- Trade: 34.79%
- Manufacturing: 31.75%
- Real estate and other business services: 12.43%
- Transport: 9.85%
- Mining and quarrying: 7.55%
- Construction: 3.63%
So lets focus on the contribution of the various firm sizes to overall income earned. Just how much is smaller firms contributing to the total income earned by companies in South Africa?
- Large: 62.32%
- Medium: 9.73%
- Small: 27.95%
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 depending on the market movements today, it looks like the JSE All Share Index for the month of March is set to end very close to the flat line. With the returns for the month so far sitting at a mere 0.13%. While it is still positive it is barely positive and far below the returns offered by the JSE All Share during January and February this year.
And while there overall returns of the JSE All Share so far in 2019 has been positive (as shown by our 2019 Calendar tracker) we are losing out in Dollar terms. 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 while there overall returns of the JSE All Share so far in 2019 has been positive (as shown by our 2019 Calendar tracker) we are losing out in Dollar terms. 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