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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 11 September 2019
South Africa
On Tuesday the JSE maintained its downward trend from the previous session after manufacturing production contracted by 1.10% in July, this from a downwardly revised 3.60% in June. Shortly after the closing bell, the All Share was down by 0.34%.
United States
US markets were flat on Tuesday after weak economic data from China fuelled concerns of a global recession. The Dow was up by 0.06% shortly after the JSE closed.
Europe
European markets traded lower on Tuesday as investors chose to remain cautious ahead of the European Central Bank’s (ECB) monetary policy meeting. At close of trade, the FTSE 100 was up 0.44%, France's CAC 40 rose 0.08% and Germany's DAX 30 ended 0.35% in the green.
Hong Kong
Hong Kong stocks were flat on Tuesday after China’s factory-gate prices for August deflated at the sharpest pace in three years. The Hang Seng Index closed 0.03% in the green.
Japan
Japanese shares rose to a six-week high on Tuesday after the banking sector benefited from an increase in government bond yields. The Nikkei Index closed 0.35% in the green.
Rand
The rand strengthened on Tuesday as no new threats on tariffs surfaced and investors remained optimistic over the prospect of fresh monetary stimulus. Just after the JSE closed, the rand strengthened to R14.65/$.
Precious metals
Improved risk appetite boosted by hopes of economic stimulus from key central banks pushed the price of gold to below $1 500 on Tuesday, amid a strengthened dollar environment. At 19h30, an ounce of spot gold traded at $1 491.57.
Oil
Optimism that OPEC and other major oil producers may opt to defer output cuts pushed oil prices to hit a six-week high on Tuesday. At 20h00, a barrel of Brent crude traded at $63.08.
On Tuesday the JSE maintained its downward trend from the previous session after manufacturing production contracted by 1.10% in July, this from a downwardly revised 3.60% in June. Shortly after the closing bell, the All Share was down by 0.34%.
United States
US markets were flat on Tuesday after weak economic data from China fuelled concerns of a global recession. The Dow was up by 0.06% shortly after the JSE closed.
Europe
European markets traded lower on Tuesday as investors chose to remain cautious ahead of the European Central Bank’s (ECB) monetary policy meeting. At close of trade, the FTSE 100 was up 0.44%, France's CAC 40 rose 0.08% and Germany's DAX 30 ended 0.35% in the green.
Hong Kong
Hong Kong stocks were flat on Tuesday after China’s factory-gate prices for August deflated at the sharpest pace in three years. The Hang Seng Index closed 0.03% in the green.
Japan
Japanese shares rose to a six-week high on Tuesday after the banking sector benefited from an increase in government bond yields. The Nikkei Index closed 0.35% in the green.
Rand
The rand strengthened on Tuesday as no new threats on tariffs surfaced and investors remained optimistic over the prospect of fresh monetary stimulus. Just after the JSE closed, the rand strengthened to R14.65/$.
Precious metals
Improved risk appetite boosted by hopes of economic stimulus from key central banks pushed the price of gold to below $1 500 on Tuesday, amid a strengthened dollar environment. At 19h30, an ounce of spot gold traded at $1 491.57.
Oil
Optimism that OPEC and other major oil producers may opt to defer output cuts pushed oil prices to hit a six-week high on Tuesday. At 20h00, a barrel of Brent crude traded at $63.08.
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Our daily update
We covered the latest financial results of AVI the consumer brands group that includes brands such as SaltiCrax and Five Roses Tea
Based on the latest financial results from AVI, our valuation model gives a full value price for AVI shares at R77.20. We therefore believe that AVI stock is overvalued at its current price and we would not recommend long term fundamental or value investors buy into the share at its current price. But rather buy into it at at least 10% below our target price. So a good entry point into AVI would be below
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Based on the latest financial results from AVI, our valuation model gives a full value price for AVI shares at R77.20. We therefore believe that AVI stock is overvalued at its current price and we would not recommend long term fundamental or value investors buy into the share at its current price. But rather buy into it at at least 10% below our target price. So a good entry point into AVI would be below
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.
For the month of September 2019 so far the JSE All Share Index is dup 0.61% for this period.
There are continued and growing concerns about a global 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.
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
For the month of September 2019 so far the JSE All Share Index is dup 0.61% for this period.
There are continued and growing concerns about a global 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.
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