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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 13 August 2019
South Africa
Global risk factors and the impact of the prolonged China-US trade dispute kept investors concerned on Monday, causing a drop in the JSE. The JSE All Share fell 0.29%.
United States
Wall Street fell on Monday as protests in Hong Kong added to concerns about the pace of growth in China, already under pressure from the prolonged bout of US trade tensions. The Dow was down 1.02% just after the JSE closed.
Europe
European shares dropped on Monday, as the protracted US-China trade war continued to spook investors. In Europe, the FTSE 100 lost 0.17% and France’s CAC 40 dropped by 0.11% at about 17h30.
Hong Kong
Hong Kong shares started the week on a soft note amid weeks of violent protests that threatened to weigh on the Asian financial hub’s economy. The Hang Seng index ended 0.69% down on Monday.
Japan
Japanese shares were not hit by violent protest in Hong Kong on Monday, benefitting from strong results from tech companies. The Nikkei index closed up 0.44%.
Rand
The trade dispute weighed heavily on the rand, with government’s efforts to bail out Eskom adding further pressure on the currency. The rand reached its weakest level in 2019 at R15.46/$ in intraday trade on Monday. Just after the JSE closed, the rand strengthened to R15.34/$.
Precious metals
Gold edged up on Monday, as investors’ demand for safe-haven assets increased on concerns over slow global economic growth due to the protracted trade dispute between the US and China. At 19h30, an ounce of spot gold traded at $1 513.49.
Oil
Oil prices fell on Monday amid worries about an economic slowdown and the US-China trade war, which have led to a cut in the outlook for global oil demand. At 19h30, a barrel of Brent crude traded at $58.55.
Global risk factors and the impact of the prolonged China-US trade dispute kept investors concerned on Monday, causing a drop in the JSE. The JSE All Share fell 0.29%.
United States
Wall Street fell on Monday as protests in Hong Kong added to concerns about the pace of growth in China, already under pressure from the prolonged bout of US trade tensions. The Dow was down 1.02% just after the JSE closed.
Europe
European shares dropped on Monday, as the protracted US-China trade war continued to spook investors. In Europe, the FTSE 100 lost 0.17% and France’s CAC 40 dropped by 0.11% at about 17h30.
Hong Kong
Hong Kong shares started the week on a soft note amid weeks of violent protests that threatened to weigh on the Asian financial hub’s economy. The Hang Seng index ended 0.69% down on Monday.
Japan
Japanese shares were not hit by violent protest in Hong Kong on Monday, benefitting from strong results from tech companies. The Nikkei index closed up 0.44%.
Rand
The trade dispute weighed heavily on the rand, with government’s efforts to bail out Eskom adding further pressure on the currency. The rand reached its weakest level in 2019 at R15.46/$ in intraday trade on Monday. Just after the JSE closed, the rand strengthened to R15.34/$.
Precious metals
Gold edged up on Monday, as investors’ demand for safe-haven assets increased on concerns over slow global economic growth due to the protracted trade dispute between the US and China. At 19h30, an ounce of spot gold traded at $1 513.49.
Oil
Oil prices fell on Monday amid worries about an economic slowdown and the US-China trade war, which have led to a cut in the outlook for global oil demand. At 19h30, a barrel of Brent crude traded at $58.55.
Our daily update
Based on the data from the South African Reserve Bank (SARB) we can say the following about banks in South Africa:
Registered Banks: 19
Mutual Banks: 4
Co-operative Banks: 4
Local branches of foreign Banks: 15
Foreign Banks with approved local representative offices: 30
Read full article here
Registered Banks: 19
Mutual Banks: 4
Co-operative Banks: 4
Local branches of foreign Banks: 15
Foreign Banks with approved local representative offices: 30
Read 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.
So the South African stock market is still up substantially for the year, with the only negative months so far being the month of May in which markets pulled back pretty sharply. But the markets rebounded in June with it ending up close to 5% for the month.
The JSE All Share Index ended the month of July down by -2.36%. Only the second negative month for the JSE in 2019. So far August has gotten off to a horrible start, with the JSE All Share index losing -2.26% so far in August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China.
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
The JSE All Share Index ended the month of July down by -2.36%. Only the second negative month for the JSE in 2019. So far August has gotten off to a horrible start, with the JSE All Share index losing -2.26% so far in August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China.
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