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PSG daily investment update 10 April 2019
Date: 10 April 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 10 April 2019
South Africa
The JSE closed somewhat lower on Tuesday as investors eyed upcoming risk events. Earlier in the day the International Monetary Fund (IMF) downgraded SA’s 2019 growth forecast to 1.20% from 1.40% previously. The All Share fell 0.25%.
United States
Wall Street lost ground on Tuesday as tariff tensions between the US and its European trading partners escalated, and as the IMF cut its global growth outlook. Shortly after the JSE closed the Dow had fallen 0.67%.
Europe
EU leaders are set to meet today to consider a request by UK Prime Minister Theresa May to delay Brexit until 30 June, as she struggles to find consensus among British MPs. Shortly after the JSE closed, the FTSE 100 had lost 0.30%.
Hong Kong
Hong Kong shares rose on Tuesday after fresh Chinese policy support to boost economic growth drove the mainland market higher. The Hang Seng index closed up 0.30%.
Japan
The Nikkei ended higher on Tuesday as tech shares and machinery stocks outperformed. The index ended 0.20% higher.
Rand
The rand remained range-bound on Tuesday as markets awaited fresh catalysts. At 19h30 a dollar traded for R14.07.
Precious metals
Gold rose on Tuesday as the dollar and equities weakened after the IMF cut its global economic growth forecasts for the year. An ounce of gold traded at $1 304.46 at 19h30.
Oil
Oil prices fell on Tuesday as Russia said it may ease its production-cutt deal with OPEC which overshadowed the prospect of violence in Libya. At 19h30 a barrel of Brent crude traded at $71.10.
The JSE closed somewhat lower on Tuesday as investors eyed upcoming risk events. Earlier in the day the International Monetary Fund (IMF) downgraded SA’s 2019 growth forecast to 1.20% from 1.40% previously. The All Share fell 0.25%.
United States
Wall Street lost ground on Tuesday as tariff tensions between the US and its European trading partners escalated, and as the IMF cut its global growth outlook. Shortly after the JSE closed the Dow had fallen 0.67%.
Europe
EU leaders are set to meet today to consider a request by UK Prime Minister Theresa May to delay Brexit until 30 June, as she struggles to find consensus among British MPs. Shortly after the JSE closed, the FTSE 100 had lost 0.30%.
Hong Kong
Hong Kong shares rose on Tuesday after fresh Chinese policy support to boost economic growth drove the mainland market higher. The Hang Seng index closed up 0.30%.
Japan
The Nikkei ended higher on Tuesday as tech shares and machinery stocks outperformed. The index ended 0.20% higher.
Rand
The rand remained range-bound on Tuesday as markets awaited fresh catalysts. At 19h30 a dollar traded for R14.07.
Precious metals
Gold rose on Tuesday as the dollar and equities weakened after the IMF cut its global economic growth forecasts for the year. An ounce of gold traded at $1 304.46 at 19h30.
Oil
Oil prices fell on Tuesday as Russia said it may ease its production-cutt deal with OPEC which overshadowed the prospect of violence in Libya. At 19h30 a barrel of Brent crude traded at $71.10.
Our daily update
According to an article on Moneyweb, S&P expects South Africa to continue with policy reforms after the elections in South Africa that is to be held on the 8th of May 2019. The following is an extract from the original article.
S&P Global Ratings expects South Africa’s ruling party to continue with policy reforms after the May 8 election, and that’s why it has a stable outlook on the nation’s credit rating.
“We think the new administration will continue on the path that they have started,” sovereign analyst Gardner Rusike said Tuesday at a conference in Johannesburg. “The best-case scenario” is that the African National Congress wins and continues with the reforms that it started, he said. “Reforms will encourage investment.”
S&P cut South Africa’s debt assessment to sub-investment grade in April 2017 after former President Jacob Zuma changed the cabinet and appointed a new finance minister and deputy minister. After Cyril Ramaphosa replaced Zuma as leader of the ANC and the country, he has taken steps to root out mismanagement at state firms such as power utility Eskom and pledged policy reforms to boost economic growth and lure investment into the country.
S&P Global Ratings expects South Africa’s ruling party to continue with policy reforms after the May 8 election, and that’s why it has a stable outlook on the nation’s credit rating.
“We think the new administration will continue on the path that they have started,” sovereign analyst Gardner Rusike said Tuesday at a conference in Johannesburg. “The best-case scenario” is that the African National Congress wins and continues with the reforms that it started, he said. “Reforms will encourage investment.”
S&P cut South Africa’s debt assessment to sub-investment grade in April 2017 after former President Jacob Zuma changed the cabinet and appointed a new finance minister and deputy minister. After Cyril Ramaphosa replaced Zuma as leader of the ANC and the country, he has taken steps to root out mismanagement at state firms such as power utility Eskom and pledged policy reforms to boost economic growth and lure investment into the country.
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 a very positive start for the month of April has turned into an extremely positive start for the Month of April 2019 with the JSE Al Share being up by 2.42% since the start of April. This following three months of positive returns for the JSE All Share Index. But while there overall returns of the JSE All Share so far in 2019 has been positive (as shown by our 2019 Calendar tracker) 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