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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 11 April 2019
South Africa
The JSE closed above 58 000 points on Wednesday for the first time since September 2018, after banks and retailers posted good gains and the rand strengthened to below R14/$. The All Share rose 1.32% to 58 411.7 points.
United States
Technology stocks boosted Wall Street on Wednesday, ahead of the release of the Federal Reserve’s minutes from its latest policy meeting. Shortly after the JSE closed, the Dow was flat.
Europe
European shares were slightly higher on Wednesday ahead of a Brexit summit and a policy meeting of the European Central Bank. Shortly after the JSE closed, the FTSE 100 was also flat, while the CAC 40 had added 0.26% and the DAX 30 rose by 0.53%.
Hong Kong
Hong Kong shares ended lower on Wednesday, amid worries over slower global economic growth and trade tensions. The Hang Seng closed 0.10% in the red.
Japan
The Nikkei fell on Wednesday as trade tensions between the United States and Europe escalated and global growth concerns dented investor confidence. The Nikkei closed 0.53% lower.
Rand
The rand broke past the psychologically important R14/$ level on Wednesday, the first time since February this year. A dollar cost R13.90 at 18h45.
Precious metals
Gold was steady on Wednesday as global equities retreated after the IMF cut its global growth outlook ahead of the release of minutes from the US Federal Reserve’s March meeting. At 18h45, an ounce of gold traded at $1 309.73
Oil
Oil prices rose on Wednesday, as oil cartel Opec production cuts and US sanctions on Iran and Venezuela continued to tighten supply. A barrel of Brent crude traded at $72.09 at 18h45.
The JSE closed above 58 000 points on Wednesday for the first time since September 2018, after banks and retailers posted good gains and the rand strengthened to below R14/$. The All Share rose 1.32% to 58 411.7 points.
United States
Technology stocks boosted Wall Street on Wednesday, ahead of the release of the Federal Reserve’s minutes from its latest policy meeting. Shortly after the JSE closed, the Dow was flat.
Europe
European shares were slightly higher on Wednesday ahead of a Brexit summit and a policy meeting of the European Central Bank. Shortly after the JSE closed, the FTSE 100 was also flat, while the CAC 40 had added 0.26% and the DAX 30 rose by 0.53%.
Hong Kong
Hong Kong shares ended lower on Wednesday, amid worries over slower global economic growth and trade tensions. The Hang Seng closed 0.10% in the red.
Japan
The Nikkei fell on Wednesday as trade tensions between the United States and Europe escalated and global growth concerns dented investor confidence. The Nikkei closed 0.53% lower.
Rand
The rand broke past the psychologically important R14/$ level on Wednesday, the first time since February this year. A dollar cost R13.90 at 18h45.
Precious metals
Gold was steady on Wednesday as global equities retreated after the IMF cut its global growth outlook ahead of the release of minutes from the US Federal Reserve’s March meeting. At 18h45, an ounce of gold traded at $1 309.73
Oil
Oil prices rose on Wednesday, as oil cartel Opec production cuts and US sanctions on Iran and Venezuela continued to tighten supply. A barrel of Brent crude traded at $72.09 at 18h45.
Our daily update
According to Bloomberg, Nissan is promising to invest a further R3 billion in its South African plant as it preps the plant to build the new Nissan Navara Pickup, or bakkie as known in South Africa. The following extract was take off sharenet regarding the news on the Navara pickup.
Nissan Motor plans to invest a further R3 billion in its South African plant to prepare for production of the latest version of the Navara pickup. The decision by the Japanese carmaker may add 30 000 units to the plant’s current annual volume of 35 000, Mike Whitfield, managing director of Nissan Africa, said at the factory north of Pretoria on Wednesday. The manufacture of the Navara from 2020 will also create jobs in a country where more than one in four of the population are unemployed.
“Automotive is already the largest part of South Africa’s manufacturing sector, contributing around 7% of gross domestic product annually and accounting for a third of manufacturing output,” South African President Cyril Ramaphosa said at the Nissan facility in Rosslyn. Nissan’s investment is the first significant commitment by an automaker since international firms agreed with the government late last year to extend a manufacturing incentive programme through 2035. The plan has also seen the likes of Toyota Motor, Volkswagen AG and BMW AG operate plants in the country, in return for generous tax breaks. The majority of vehicles are produced for export.
Nissan plans to more than double its industrial reach in the Middle East, Africa and India by 2022 by adding more factories, Peyman Kargar, chairman of the car-maker’s operations in those three territories, said in an interview last month. “By 2022 we want to double our presence in Africa and South Africa is the most important base for this growth,” Kargar said on Wednesday. “We export to more than 45 countries from South Africa and with the new Navara this will be even more.”
Nissan Motor plans to invest a further R3 billion in its South African plant to prepare for production of the latest version of the Navara pickup. The decision by the Japanese carmaker may add 30 000 units to the plant’s current annual volume of 35 000, Mike Whitfield, managing director of Nissan Africa, said at the factory north of Pretoria on Wednesday. The manufacture of the Navara from 2020 will also create jobs in a country where more than one in four of the population are unemployed.
“Automotive is already the largest part of South Africa’s manufacturing sector, contributing around 7% of gross domestic product annually and accounting for a third of manufacturing output,” South African President Cyril Ramaphosa said at the Nissan facility in Rosslyn. Nissan’s investment is the first significant commitment by an automaker since international firms agreed with the government late last year to extend a manufacturing incentive programme through 2035. The plan has also seen the likes of Toyota Motor, Volkswagen AG and BMW AG operate plants in the country, in return for generous tax breaks. The majority of vehicles are produced for export.
Nissan plans to more than double its industrial reach in the Middle East, Africa and India by 2022 by adding more factories, Peyman Kargar, chairman of the car-maker’s operations in those three territories, said in an interview last month. “By 2022 we want to double our presence in Africa and South Africa is the most important base for this growth,” Kargar said on Wednesday. “We export to more than 45 countries from South Africa and with the new Navara this will be even more.”
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 3.41% since the start of April. A very strong start to the first quarter of the month of April 2018. Can the JSE All Share index make it 4 positive months in a row?
his 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
his 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