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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 12 November 2019
South Africa
Continued protest in Hong Kong and news that a US-China trade deal is far from reached impacted the local bourse on Monday. At close of trade, the ALSI was 0.78% in the red.
United States
Wall Street’s main indexes fell on Monday as comments by President Donald Trump dampened optimism around a US-China trade deal, while escalating violence in Hong Kong added to investor concerns. All three major indices were trading in the red at 18h25.
EuropeEuropean shares edged lower on Monday as an escalation in Hong Kong protests, an inconclusive Spanish election and a Moody’s warning about Britain’s sovereign debt made for a gloomy start to the week. The FSTE 100 traded down by 0.47% at 18h25.
Hong Kong
Hong Kong’s share index lost almost 3% as unrest in the Asian financial hub worsened on Monday, with police firing live rounds at anti-government protesters on the eastern side of the island and firing tear gas at protesters in the central business district. The index finished the session down 2.57%.
Japan
Japanese shares consolidated their gains on Monday after a strong rally over the past few weeks on hopes of a US-China trade deal, but fresh violence in Hong Kong dampened sentiment. The Nikkei slipped 0.26%.
Rand
The rand weakened on Monday, as fading optimism about a US-China trade deal weighed on global risk assets. On Friday, Trump said that the US had not agreed to roll back tariffs on China, despite optimism last week that the two parties were close to formalising a partial deal reached in October.
Precious metals
Gold prices rose on Monday on fresh doubts over whether the US and China could strike a trade deal, while a sluggish start to the week in equities weighed on risk appetite after violent weekend protests in Hong Kong. An ounce trading at $1 453.82 at 18h30.
Oil
Oil prices dipped on Monday after Trump appeared to downplay reports of an imminent lifting of tariffs in a protracted US-Chinese trade war, with a barrel of Brent crude trading at $62.73 at 18h30.
Continued protest in Hong Kong and news that a US-China trade deal is far from reached impacted the local bourse on Monday. At close of trade, the ALSI was 0.78% in the red.
United States
Wall Street’s main indexes fell on Monday as comments by President Donald Trump dampened optimism around a US-China trade deal, while escalating violence in Hong Kong added to investor concerns. All three major indices were trading in the red at 18h25.
EuropeEuropean shares edged lower on Monday as an escalation in Hong Kong protests, an inconclusive Spanish election and a Moody’s warning about Britain’s sovereign debt made for a gloomy start to the week. The FSTE 100 traded down by 0.47% at 18h25.
Hong Kong
Hong Kong’s share index lost almost 3% as unrest in the Asian financial hub worsened on Monday, with police firing live rounds at anti-government protesters on the eastern side of the island and firing tear gas at protesters in the central business district. The index finished the session down 2.57%.
Japan
Japanese shares consolidated their gains on Monday after a strong rally over the past few weeks on hopes of a US-China trade deal, but fresh violence in Hong Kong dampened sentiment. The Nikkei slipped 0.26%.
Rand
The rand weakened on Monday, as fading optimism about a US-China trade deal weighed on global risk assets. On Friday, Trump said that the US had not agreed to roll back tariffs on China, despite optimism last week that the two parties were close to formalising a partial deal reached in October.
Precious metals
Gold prices rose on Monday on fresh doubts over whether the US and China could strike a trade deal, while a sluggish start to the week in equities weighed on risk appetite after violent weekend protests in Hong Kong. An ounce trading at $1 453.82 at 18h30.
Oil
Oil prices dipped on Monday after Trump appeared to downplay reports of an imminent lifting of tariffs in a protracted US-Chinese trade war, with a barrel of Brent crude trading at $62.73 at 18h30.
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Our daily update
This morning on the JSE Stock Exchange News Service (SENS) there seems to be a tit for tat between the operator of the exchange, the JSE Limited and the Rolfes regarding a public censure imposed by the JSE on Rolfes. Below is Rolfes' response
Shareholders are referred to the Censure imposed by the JSE on Rolfes on SENS this morning. The Company strongly disagrees that the Censure is appropriate. While the Company subsequently became aware that the 2015 and 2016 reported results did not comply with IFRS and the JSE Listings Requirements, at the time of publication they were the results as presented to the Board by management and audited without qualification. When the errors and issues were identified in 2017, the Company immediately notified the JSE, restated the previous results in the 2017 financial statements and replaced its CEO and CFO. It is clear that the Company acted decisively and appropriately, and the points raised in the Censure are precisely what the Company itself had notified to the JSE.
Shareholders are referred to the Censure imposed by the JSE on Rolfes on SENS this morning. The Company strongly disagrees that the Censure is appropriate. While the Company subsequently became aware that the 2015 and 2016 reported results did not comply with IFRS and the JSE Listings Requirements, at the time of publication they were the results as presented to the Board by management and audited without qualification. When the errors and issues were identified in 2017, the Company immediately notified the JSE, restated the previous results in the 2017 financial statements and replaced its CEO and CFO. It is clear that the Company acted decisively and appropriately, and the points raised in the Censure are precisely what the Company itself had notified to the JSE.
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 the month of October 2019 saw the JSE All Share Index end in the green. And the first trading day of November 2019 saw the JSE edge up slightly last week Friday. Can the momentum continue and the "Christmas rally" carry the markets higher in the closing months of 2019? So the hard work of the first few trading days of November 2019 was basically wiped out by two negative days towards the end of last week. The last three trading days on the JSE has been negative and the strong start made to the month has been wiped out and the JSE All Share Index is now in negative territory for the month of November 2019
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 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