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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 June 2019
South Africa
The local bourse was pulled down somewhat on Wednesday by Naspers, which fell 1.10%, and miners; however, positive economic data supported retailers. The All Share closed 0.07% in the red.
United States
Despite the lower US inflation rate that supported the possible interest rate cuts, US shares were weighed down by US President Donald Trump taking a tougher stance against China in the US-Sino tariff war. At 21h15, the Nasdaq was down 0.36%.
Europe
European shares fell on Wednesday due to banks and oil companies performing poorly, soft economic data from China and Washington toughening its stance on the trade talks with China. The STOXX 600 closed 0.30% lower.
Hong Kong
Financial markets in Hong Kong came under pressure on Wednesday as thousands of protestors and police clashed regarding a mass demonstration against legislation to extradite citizens to China. The Hang Seng ended 1.94% in the red.
Japan
On Wednesday, Japan’s Nikkei lost Tuesday’s gains as investor fears increased because Trump took a firmer stance in the US-China trade negotiations. The benchmark Nikkei fell by 0.35%.
Rand
The rand, which was the worst-performing emerging market currency, lost some ground on Wednesday due to rising uncertainty in the global arena. At 21h15, a dollar traded for R14.88.
Precious metals
Bullion prices rose on Wednesday as investors flocked to the safe-haven after concerns around the US-China trade war flared up. At 21h15, an ounce of spot gold traded at $1 332.52.
Oil
Despite OPEC extending supply cuts, oil prices plummeted on Wednesday due to US stockpiles rising and weaker demand. At 21h15, a barrel of Brent crude traded at $60.64.
The local bourse was pulled down somewhat on Wednesday by Naspers, which fell 1.10%, and miners; however, positive economic data supported retailers. The All Share closed 0.07% in the red.
United States
Despite the lower US inflation rate that supported the possible interest rate cuts, US shares were weighed down by US President Donald Trump taking a tougher stance against China in the US-Sino tariff war. At 21h15, the Nasdaq was down 0.36%.
Europe
European shares fell on Wednesday due to banks and oil companies performing poorly, soft economic data from China and Washington toughening its stance on the trade talks with China. The STOXX 600 closed 0.30% lower.
Hong Kong
Financial markets in Hong Kong came under pressure on Wednesday as thousands of protestors and police clashed regarding a mass demonstration against legislation to extradite citizens to China. The Hang Seng ended 1.94% in the red.
Japan
On Wednesday, Japan’s Nikkei lost Tuesday’s gains as investor fears increased because Trump took a firmer stance in the US-China trade negotiations. The benchmark Nikkei fell by 0.35%.
Rand
The rand, which was the worst-performing emerging market currency, lost some ground on Wednesday due to rising uncertainty in the global arena. At 21h15, a dollar traded for R14.88.
Precious metals
Bullion prices rose on Wednesday as investors flocked to the safe-haven after concerns around the US-China trade war flared up. At 21h15, an ounce of spot gold traded at $1 332.52.
Oil
Despite OPEC extending supply cuts, oil prices plummeted on Wednesday due to US stockpiles rising and weaker demand. At 21h15, a barrel of Brent crude traded at $60.64.
Our daily update
Total retail trade sales showed moderate growth year on year for April 2019. While the first quarter was a real struggle for the sector one wonders if the modest growth recorded in April is the start of a turn around in the sector? We doubt it, but with our struggling economy any form of good news will be taken right now. The summary below shows the year on year growth rate in retail trade sales for April 2019 for both current prices and constant prices (effects of inflation have been removed).
Based on the latest retail trade sales data the relative size of various retail outlet types are as follows:
- Total retail trade sales (constant prices): 2.39%
- Total retail trade sales (current prices): 4.56%
Based on the latest retail trade sales data the relative size of various retail outlet types are as follows:
- General dealers: 42.6%
- Textiles,clothing,footwear and leather goods: 17.9%
- All other: 11.7%
- Pharmaceutical and medical goods,cosmetics and toiletries: 8.6%
- Food, beverages and tobacco in specialised stores: 8.2%
- Hardware,paint and glass: 7.2%
- Household furniture,appliances and equipment: 3.9%
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 after four very positive months on the markets the month of May bucked the trend and saw half the gains made during the first four months of the year on the JSE wiped out in one month. While the South African Rand has really been struggling the Rand hedges on the JSE has been pushing the local stock market higher. so th 8th trading day of June ended up being the first negative trading day for the JSE All Share Index and it was marginally in the red. The JSE All Share Index is still up 5.43% so far in June 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