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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 rant at the end.
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Short summary of PSG's market commentary for 14 February 2019
South Africa
The JSE endured a choppy day of trade but closed firmer on Wednesday, tracking positive world markets that were lifted by developments in the US-China trade negotiations. At 17h30 the All Share was up 1.08%.
United States
Optimism over bilateral trade talks between the US and China boosted The Dow Jones futures on Wednesday, while a drop in inflation did little to change the outlook on interest rates. At 17h30 The Dow Jones futures gained 0.46%.
Europe
European shares traded higher on Wednesday following the release of data that showed upbeat earnings growth forecasts for the fourth quarter. At 17h45 the FTSE 100 gained 0.82%.
Hong Kong
A rally in Mainland Chinese shares boosted the Hong Kong stock market to reach its highest 6-month close on Wednesday after Trump hinted at a trade truce with China. The Hang Seng ended the day 1.16% firmer.
Japan
The Nikkei peaked at a near two-month high on Wednesday following optimism that the trade negotiations between Washington and Beijing may be nearing a consensus. At 17h50 the Nikkei made gains of 1.34%.
Rand
The rand weakened against major global currencies on Wednesday after the release of disappointing economic data amid a gloomy local environment. At 17h50 the rand traded R14.05 against the dollar.
Precious metals
Gold prices steadied on Wednesday as the greenback came off a two-month peak on optimism of a potential trade truce between Washington and Beijing. At 18h00 Spot gold was trading at $1 311.15 an ounce.
Oil
Oil prices went up on Wednesday after Saudi Arabia announced further cuts in crude exports, while US futures surged following a decline in domestic oil inventories. At 18h15 benchmark Brent crude was trading at $63.61 a barrel.
The JSE endured a choppy day of trade but closed firmer on Wednesday, tracking positive world markets that were lifted by developments in the US-China trade negotiations. At 17h30 the All Share was up 1.08%.
United States
Optimism over bilateral trade talks between the US and China boosted The Dow Jones futures on Wednesday, while a drop in inflation did little to change the outlook on interest rates. At 17h30 The Dow Jones futures gained 0.46%.
Europe
European shares traded higher on Wednesday following the release of data that showed upbeat earnings growth forecasts for the fourth quarter. At 17h45 the FTSE 100 gained 0.82%.
Hong Kong
A rally in Mainland Chinese shares boosted the Hong Kong stock market to reach its highest 6-month close on Wednesday after Trump hinted at a trade truce with China. The Hang Seng ended the day 1.16% firmer.
Japan
The Nikkei peaked at a near two-month high on Wednesday following optimism that the trade negotiations between Washington and Beijing may be nearing a consensus. At 17h50 the Nikkei made gains of 1.34%.
Rand
The rand weakened against major global currencies on Wednesday after the release of disappointing economic data amid a gloomy local environment. At 17h50 the rand traded R14.05 against the dollar.
Precious metals
Gold prices steadied on Wednesday as the greenback came off a two-month peak on optimism of a potential trade truce between Washington and Beijing. At 18h00 Spot gold was trading at $1 311.15 an ounce.
Oil
Oil prices went up on Wednesday after Saudi Arabia announced further cuts in crude exports, while US futures surged following a decline in domestic oil inventories. At 18h15 benchmark Brent crude was trading at $63.61 a barrel.
Our daily rant..
ESKOM continues with loadshedding. A slight improvement is the fact that loadshedding Stage 2 is being implemented on Valentines day 2019. Yesterday private schools company, Curro Holdings, which was spun off years ago from Paladin Capital (PSG Group's former private equity arm) reported financial results for the year ending December 2018. As at end of December 2018 they had 51 300 learners on their book, and the reported a net profit of R240 odd million, which equates to a net profit of around R4700 per learner. They also announced the maiden dividend of 12c a share, a very very modest dividend to start off with we might add. See more on Curro's financial results announced here.
The image below shows Curro's footprint across Southern Africa
The image below shows Curro's footprint across Southern Africa
Our JSE All Share index daily performance calendar
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.
The first trading day of February ended in the red. In contrast to January in which every Friday ended the day in the green, so far for February 2019 every Friday has ended in the red. So far the market has increased by 0.74% during the first 13 days of February 2019. Its been a relatively directionless month for the stock market, with movements flip flopping between positive and negative. Neither the bulls nor the bears are currently in control of the markets, so we are basically just moving sideways. However risk on sentiment towards riskier assets such as emerging market stock markets has increased as trade war fears between the USA and China seems to abating a bit.