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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 9 October 2019
South Africa
The JSE closed lower on Tuesday, with investors moving to safe havens as hope that the US and China will have successful trade talks this week faded. The All Share fell 0.33%.
United States
The US government widened its trade blacklist yesterday to include some of China's top artificial intelligence start-ups, punishing Beijing for its treatment of Muslim minorities and ratcheting up tensions ahead of high-level trade talks this week. Just after the JSE closed, the Dow fell 1.06%.
Europe
European shares dropped on Tuesday as an escalation in US-China trade tensions and Brexit worries along with disappointing corporate news dented sentiment. After the JSE closed the FTSE 100 was down 0.39%, France’s CAC 40 0.88% and Germany’s DAX 0.81%.
Hong Kong
Hong Kong stocks closed higher on Tuesday, tracking gains in mainland China on stimulus hopes, though uncertainties around Sino-US trade talks and worries over protests in the island city curbed gains. The Hang Seng index rose 0.24%.
Japan
Prices for Japanese government bonds (JGB) fell across maturities on Tuesday, taking cues from a rally in Tokyo stocks and overnight losses in US Treasuries. The benchmark 10-year JGB futures fell to 154.95 index points.
Rand
The rand was stronger on Tuesday morning as investors anticipated some progress in the US-China trade war as the two countries begin negotiations on Thursday. However the currency weakened to R15.27 at 20h00.
Precious metals
Gold prices slipped on Tuesday, weighed down by a firmer dollar ahead of upcoming trade talks between China and the US. At 20h00, an ounce of gold traded at $1 499.83.
Oil
Oil prices increased on Tuesday as unrest in Iraq and Ecuador raised supply concerns, but worries about US-China trade negotiations capped the market’s gains after US President Donald Trump said a quick deal is unlikely. A barrel of Brent crude traded at $59.03 at 20h00.
The JSE closed lower on Tuesday, with investors moving to safe havens as hope that the US and China will have successful trade talks this week faded. The All Share fell 0.33%.
United States
The US government widened its trade blacklist yesterday to include some of China's top artificial intelligence start-ups, punishing Beijing for its treatment of Muslim minorities and ratcheting up tensions ahead of high-level trade talks this week. Just after the JSE closed, the Dow fell 1.06%.
Europe
European shares dropped on Tuesday as an escalation in US-China trade tensions and Brexit worries along with disappointing corporate news dented sentiment. After the JSE closed the FTSE 100 was down 0.39%, France’s CAC 40 0.88% and Germany’s DAX 0.81%.
Hong Kong
Hong Kong stocks closed higher on Tuesday, tracking gains in mainland China on stimulus hopes, though uncertainties around Sino-US trade talks and worries over protests in the island city curbed gains. The Hang Seng index rose 0.24%.
Japan
Prices for Japanese government bonds (JGB) fell across maturities on Tuesday, taking cues from a rally in Tokyo stocks and overnight losses in US Treasuries. The benchmark 10-year JGB futures fell to 154.95 index points.
Rand
The rand was stronger on Tuesday morning as investors anticipated some progress in the US-China trade war as the two countries begin negotiations on Thursday. However the currency weakened to R15.27 at 20h00.
Precious metals
Gold prices slipped on Tuesday, weighed down by a firmer dollar ahead of upcoming trade talks between China and the US. At 20h00, an ounce of gold traded at $1 499.83.
Oil
Oil prices increased on Tuesday as unrest in Iraq and Ecuador raised supply concerns, but worries about US-China trade negotiations capped the market’s gains after US President Donald Trump said a quick deal is unlikely. A barrel of Brent crude traded at $59.03 at 20h00.
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Our daily update
Our sister website American Stock Research covered the latest earnings report of Levi Strauss the worlds leading denim maker. Below an extract on the valuation of Levi Strauss share. Levi Strauss is currently trading at $18.97 a share.
So what is Levi Strauss stock worth based on the release of their latest earnings report? Based on Levi Strauss' latest earnings and their outlook provided our valuation model provides a target (full value) price at $23.90 a Levi Strauss stock. We therefore believe that the stock is undervalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $23.90. Thus we see a good entry point into Levi Strauss stock at $21.50 or below. Since the stock of Levi Strauss is currently trading at well below our recommended entry point into Levi Strauss we rate Levi Strauss as a buy
Read the full article here
So what is Levi Strauss stock worth based on the release of their latest earnings report? Based on Levi Strauss' latest earnings and their outlook provided our valuation model provides a target (full value) price at $23.90 a Levi Strauss stock. We therefore believe that the stock is undervalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $23.90. Thus we see a good entry point into Levi Strauss stock at $21.50 or below. Since the stock of Levi Strauss is currently trading at well below our recommended entry point into Levi Strauss we rate Levi Strauss as a buy
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.
While the month of August was negative by -1.73% lets see what the month of September holds for the South African stock market.
So for the month September 2019 the JSE All Share Index ended the month down -2.01%. First trading week of October 2019 got off to very rough start but the second trading week is off to a flyer.
There continues to be concerns about a global economic slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
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
So for the month September 2019 the JSE All Share Index ended the month down -2.01%. First trading week of October 2019 got off to very rough start but the second trading week is off to a flyer.
There continues to be concerns about a global economic slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
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