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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 September 2019
South Africa
The JSE pushed higher on Thursday after the European Central Bank (ECB) slashed interest rates and vowed to boost economic activity. Shortly after the closing bell, the All Share was up by 0.96%.
United States
US stocks traded higher on Thursday after Washington backtracked tariff hikes on Chinese goods, easing trade tensions. The Dow was up by 0.46% shortly after the JSE closed.
Europe
European shares surged on Thursday after the ECB undertook to boost economic activity, cutting interest rates by 10 basis points. Shortly after the JSE closed, the FTSE 100 was up 0.10%, France's CAC 40 rose to 0.44% and Germany's DAX 30 ended 0.41% in the green.
Hong Kong
Hong Kong stocks wobbled on Thursday but were on track for weekly gains amid easing trade tensions. The Hang Seng Index closed 0.17% in the red.
Japan
Signs of cooling trade tensions between the US and China lifted Japanese shares on Thursday with the Nikkei reaching its highest levels since October 2018. The Nikkei Index closed 0.75% in the green.
Rand
The rand strengthened to a six-week high on Thursday afternoon as investors cheered the ECB’s decision to cut interest rates. Just after the JSE closed, the rand weakened to R14.59/$.
Precious metals
Improved risk appetite boosted by cheers of economic stimulus from ECB continued to lift the price of gold on Thursday after the central bank trimmed interest rates by 10 basis points. At 19h00, an ounce of spot gold traded at $1 498.13.
Oil
Oil prices dropped on Thursday after OPEC decided to trim production output and US crude inventories declined to the lowest level in almost a year. At 19h15, a barrel of Brent crude lost 1.79% and traded at $60.29.
The JSE pushed higher on Thursday after the European Central Bank (ECB) slashed interest rates and vowed to boost economic activity. Shortly after the closing bell, the All Share was up by 0.96%.
United States
US stocks traded higher on Thursday after Washington backtracked tariff hikes on Chinese goods, easing trade tensions. The Dow was up by 0.46% shortly after the JSE closed.
Europe
European shares surged on Thursday after the ECB undertook to boost economic activity, cutting interest rates by 10 basis points. Shortly after the JSE closed, the FTSE 100 was up 0.10%, France's CAC 40 rose to 0.44% and Germany's DAX 30 ended 0.41% in the green.
Hong Kong
Hong Kong stocks wobbled on Thursday but were on track for weekly gains amid easing trade tensions. The Hang Seng Index closed 0.17% in the red.
Japan
Signs of cooling trade tensions between the US and China lifted Japanese shares on Thursday with the Nikkei reaching its highest levels since October 2018. The Nikkei Index closed 0.75% in the green.
Rand
The rand strengthened to a six-week high on Thursday afternoon as investors cheered the ECB’s decision to cut interest rates. Just after the JSE closed, the rand weakened to R14.59/$.
Precious metals
Improved risk appetite boosted by cheers of economic stimulus from ECB continued to lift the price of gold on Thursday after the central bank trimmed interest rates by 10 basis points. At 19h00, an ounce of spot gold traded at $1 498.13.
Oil
Oil prices dropped on Thursday after OPEC decided to trim production output and US crude inventories declined to the lowest level in almost a year. At 19h15, a barrel of Brent crude lost 1.79% and traded at $60.29.
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Our daily update
Yesterday we covered the latest financial results from restaurant and take-away food franchise group, Spur Corporation. Below a short extract.
Based on Spur's latest financial results, their strong revenue growth, their strong brands, their solid cash on balance sheet and cash generating ability our valuation models (largely based on dividend discount and discounted cash flow models) sets a full value price of R27.20 for Spur. We therefore believe the group is undervalued at its current price.
Read the full Spur financial review here
Based on Spur's latest financial results, their strong revenue growth, their strong brands, their solid cash on balance sheet and cash generating ability our valuation models (largely based on dividend discount and discounted cash flow models) sets a full value price of R27.20 for Spur. We therefore believe the group is undervalued at its current price.
Read the full Spur financial review 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 up by 2.98% for this period. A very strong start for the first half of September 2019. Sure investors will hope that this continues.
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 up by 2.98% for this period. A very strong start for the first half of September 2019. Sure investors will hope that this continues.
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