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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 November 2019
South Africa
The JSE rose slightly on Tuesday while the US-China trade war continued to steal investor focus. The local index closed up by 0.40%.
United States
Wall Street was trading higher on Tuesday with the S&P 500 and the Nasdaq hitting fresh intraday highs after President Donald Trump's speech at the Economic Club of New York. All three major indices were trading slightly in the green at 20:30.
Europe
European shares rose on Tuesday boosted by gains in chipmakers, while investors awaited a key speech by Trump for clues on a trade deal with China. The FTSE 100 traded 0.71% in the green at 18h00.
Hong Kong
Hong Kong stocks rebounded on Tuesday, as the market hoped for better news on trade from Trump later in the day. At the close of business, the Hang Seng index was up 0.52%.
Japan
Japanese stocks rose on Tuesday on hopes that a weaker yen will support the earnings of the country’s major exporters. The Nikkei index ended up 0.81%.
Rand
The rand was slightly firmer on Tuesday, with focus squarely on the US-China trade war, with a speech expected later by US President Donald Trump. Trading at R14.92 to the US dollar at 18h00.
Precious metals
Gold prices eased on Tuesday as the expectation of positive trade talks between the US and China bolstered risk appetite, while investors booked profits. An ounce of spot gold traded at $1 447.71 at 18h00.
Oil
Oil rose further above $62 a barrel on Tuesday, supported by hopes that Trump may signal progress on trade talks with China and lower inventories at a US oil hub. Brent Crude traded at $63 for a barrel at 18h00.
The JSE rose slightly on Tuesday while the US-China trade war continued to steal investor focus. The local index closed up by 0.40%.
United States
Wall Street was trading higher on Tuesday with the S&P 500 and the Nasdaq hitting fresh intraday highs after President Donald Trump's speech at the Economic Club of New York. All three major indices were trading slightly in the green at 20:30.
Europe
European shares rose on Tuesday boosted by gains in chipmakers, while investors awaited a key speech by Trump for clues on a trade deal with China. The FTSE 100 traded 0.71% in the green at 18h00.
Hong Kong
Hong Kong stocks rebounded on Tuesday, as the market hoped for better news on trade from Trump later in the day. At the close of business, the Hang Seng index was up 0.52%.
Japan
Japanese stocks rose on Tuesday on hopes that a weaker yen will support the earnings of the country’s major exporters. The Nikkei index ended up 0.81%.
Rand
The rand was slightly firmer on Tuesday, with focus squarely on the US-China trade war, with a speech expected later by US President Donald Trump. Trading at R14.92 to the US dollar at 18h00.
Precious metals
Gold prices eased on Tuesday as the expectation of positive trade talks between the US and China bolstered risk appetite, while investors booked profits. An ounce of spot gold traded at $1 447.71 at 18h00.
Oil
Oil rose further above $62 a barrel on Tuesday, supported by hopes that Trump may signal progress on trade talks with China and lower inventories at a US oil hub. Brent Crude traded at $63 for a barrel at 18h00.
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Our daily update
Peregrine Holdings released results earlier today. Below a few highlights of their latest results
KEY INDICATORS
- Interim cash dividend of 65.00 cents per share (September 2018: 85.00 cents per share) (March 2019: Final cash dividend of 100.00 cents per share) -
Assets under management R133 billion (March 2019: R124 billion)
- Basic and Headline earnings R158 million (September 2018: R272 million)
- Basic and Headline earnings per ordinary share (“HEPS”) 77.8 cents per share (September 2018: 128.7 cents per share)
- Ongoing(1) Segmental(2) Headline earnings R166 million (September 2018: R148 million)
- Ongoing Segmental HEPS 79.3 cents per share (September 2018: 68.8 cents per share)
- Total revenue from continuing operations R799 million (September 2018: R797 million)
- Profit from ordinary activities from continuing operations (before tax and capital items) R229 million (September 2018: R267 million)
- Loss from discontinued operation (net of income tax) R286 894 (30 September 2018: profit R112 million)
- Net asset value per share 857.2 cents (31 March 2019: 871.5 cents)
The six months ended 30 September 2019 have been highlighted by the continued uncertainty imposed on the global economy by the United States/China trade talks and the effect thereof on growth expectations. The world economy had been cyclically cooling down even before these talks and global central banks have responded by stimulating economies via lower interest rates and quantitative easing. With dovish central banks as the backstop, risk appetite returned and equity markets approached previous record highs with global equities and bonds rallying strongly. The South African landscape, however, continues to be dominated by the deteriorating fiscal and growth picture with high unemployment and wealth inequality constraining the country’s growth potential and business confidence levels hitting 20-year lows.
KEY INDICATORS
- Interim cash dividend of 65.00 cents per share (September 2018: 85.00 cents per share) (March 2019: Final cash dividend of 100.00 cents per share) -
Assets under management R133 billion (March 2019: R124 billion)
- Basic and Headline earnings R158 million (September 2018: R272 million)
- Basic and Headline earnings per ordinary share (“HEPS”) 77.8 cents per share (September 2018: 128.7 cents per share)
- Ongoing(1) Segmental(2) Headline earnings R166 million (September 2018: R148 million)
- Ongoing Segmental HEPS 79.3 cents per share (September 2018: 68.8 cents per share)
- Total revenue from continuing operations R799 million (September 2018: R797 million)
- Profit from ordinary activities from continuing operations (before tax and capital items) R229 million (September 2018: R267 million)
- Loss from discontinued operation (net of income tax) R286 894 (30 September 2018: profit R112 million)
- Net asset value per share 857.2 cents (31 March 2019: 871.5 cents)
The six months ended 30 September 2019 have been highlighted by the continued uncertainty imposed on the global economy by the United States/China trade talks and the effect thereof on growth expectations. The world economy had been cyclically cooling down even before these talks and global central banks have responded by stimulating economies via lower interest rates and quantitative easing. With dovish central banks as the backstop, risk appetite returned and equity markets approached previous record highs with global equities and bonds rallying strongly. The South African landscape, however, continues to be dominated by the deteriorating fiscal and growth picture with high unemployment and wealth inequality constraining the country’s growth potential and business confidence levels hitting 20-year lows.
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.
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