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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 14 November 2019
South Africa
The JSE closed slightly lower on Wednesday as geopolitical events continued to dampen the mood for riskier assets; it closed down by 0.11%.
United States
Wall Street edged lower on Wednesday as President Donald Trump’s threat to “substantially” raise tariffs if China did not make a trade deal with the US as well as escalating tensions in Hong Kong kept investors away from riskier assets. The three major indices were trading flat at 18h30.
Europe
European shares retreated on Wednesday, as a highly anticipated speech by Trump gave scant clues on the progress of a trade deal with China, and as anti-government protests in Hong Kong raged on, denting sentiment. The FTSE 100, DAX and CAC40 traded slightly in the red at 18h30.
Hong Kong
Hong Kong stocks dropped nearly 2% on Wednesday, led by declines in property shares, as protests spread across the city. Risk appetite was also curbed by fears that the US-China trade talks are not making progress. The Hang Seng Index fell 1.82%.
Japan
Japanese shares slipped on Wednesday after a keenly awaited speech from Trump disappointed investors. The Nikkei fell 0.85%.
Rand
Continued negative sentiment caused by the US-China trade war and unrest in Hong Kong weighed on the rand yesterday; it traded R14.92/ $ at 18h30.
Precious metals
Gold slipped on Tuesday on increased appetite for riskier assets. An ounce of gold traded at $1 463.20 at 18h30.
Oil
Oil prices reversed early losses on Wednesday after OPEC said it saw no signs of a global recession and rival US shale oil production could grow by much less than expected in 2020. At 18h30, a barrel of Brent crude traded at $62.40.
The JSE closed slightly lower on Wednesday as geopolitical events continued to dampen the mood for riskier assets; it closed down by 0.11%.
United States
Wall Street edged lower on Wednesday as President Donald Trump’s threat to “substantially” raise tariffs if China did not make a trade deal with the US as well as escalating tensions in Hong Kong kept investors away from riskier assets. The three major indices were trading flat at 18h30.
Europe
European shares retreated on Wednesday, as a highly anticipated speech by Trump gave scant clues on the progress of a trade deal with China, and as anti-government protests in Hong Kong raged on, denting sentiment. The FTSE 100, DAX and CAC40 traded slightly in the red at 18h30.
Hong Kong
Hong Kong stocks dropped nearly 2% on Wednesday, led by declines in property shares, as protests spread across the city. Risk appetite was also curbed by fears that the US-China trade talks are not making progress. The Hang Seng Index fell 1.82%.
Japan
Japanese shares slipped on Wednesday after a keenly awaited speech from Trump disappointed investors. The Nikkei fell 0.85%.
Rand
Continued negative sentiment caused by the US-China trade war and unrest in Hong Kong weighed on the rand yesterday; it traded R14.92/ $ at 18h30.
Precious metals
Gold slipped on Tuesday on increased appetite for riskier assets. An ounce of gold traded at $1 463.20 at 18h30.
Oil
Oil prices reversed early losses on Wednesday after OPEC said it saw no signs of a global recession and rival US shale oil production could grow by much less than expected in 2020. At 18h30, a barrel of Brent crude traded at $62.40.
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Our daily update
Spar released financial results yesterday. Below a short extract from the group's latest financial results
PERFORMANCE OVERVIEW
The SPAR Group Ltd ("the group") reported an excellent performance for the year under review, with turnover increasing by 8.4% to R109.5 billion, against the backdrop of markets that remain tough in all regions of operations. Through focused margin management and tight cost and efficiency control, the group increased operating profit by 7.2% to R3.0 billion. The group’s diluted headline earnings per share increased by 9.9% to 1160.6 cents per share on a normalised basis. - SPAR Southern Africa delivered solid growth of 8.0% in wholesale turnover in a competitive environment. The core SPAR business grew turnover by 7.0% to R57.6 billion, supported by strong marketing initiatives which continued to attract cash-strapped consumers. The TOPS liquor brand again delivered an impressive result with wholesale sales growth of 17.6. Combined, food and liquor wholesale turnover increased by 8.1%. Despite a generally weak building materials sector, Build It increased sales by 6.0% to R8.0 billion, underpinned by effective marketing and improved retailer loyalty. The SPAR Southern Africa store network increased to 2 349 stores, with 169 new stores opened. The group completed 298 (2018: 276) store upgrades across all brands. - The BWG Group in Ireland has once again reported a strong financial performance with euro-denominated turnover growth increasing by 6.2% to EUR 1.5 billion. The result was positively impacted by acquisitions, in particular, Corrib Foods acquired in November 2018. Adjusting for these new businesses, comparable turnover increased by 2.2% in a market with negative price inflation. All retail brands reported positive sales growth.
The Foodservice business reported impressive double-digit turnover growth and has become a significant part of the Irish business, while MACE, XL and SPAR retail brands all delivered turnover growths of over 4%. During the year the business have implemented a number of logistics and supply chain initiatives which have ensured cost efficient deliveries, despite increased labour rates. BWG Group opened 60 new stores and finished the financial year with 1 360 stores. - SPAR Switzerland’s wholesale business reported turnover growth of 1.2% in CHF terms, reflecting strong trading from upgraded retailer-owned stores. While the second half saw an improved performance, operating profit for the full year remains impacted by the aggressive marketing initiatives in the first half. The market remained challenging, but the brand is gaining positive support as initiatives continued to gain traction. SPAR Switzerland had a total store network of 322 stores at year end, adding 26 new stores during the financial year.
PERFORMANCE OVERVIEW
The SPAR Group Ltd ("the group") reported an excellent performance for the year under review, with turnover increasing by 8.4% to R109.5 billion, against the backdrop of markets that remain tough in all regions of operations. Through focused margin management and tight cost and efficiency control, the group increased operating profit by 7.2% to R3.0 billion. The group’s diluted headline earnings per share increased by 9.9% to 1160.6 cents per share on a normalised basis. - SPAR Southern Africa delivered solid growth of 8.0% in wholesale turnover in a competitive environment. The core SPAR business grew turnover by 7.0% to R57.6 billion, supported by strong marketing initiatives which continued to attract cash-strapped consumers. The TOPS liquor brand again delivered an impressive result with wholesale sales growth of 17.6. Combined, food and liquor wholesale turnover increased by 8.1%. Despite a generally weak building materials sector, Build It increased sales by 6.0% to R8.0 billion, underpinned by effective marketing and improved retailer loyalty. The SPAR Southern Africa store network increased to 2 349 stores, with 169 new stores opened. The group completed 298 (2018: 276) store upgrades across all brands. - The BWG Group in Ireland has once again reported a strong financial performance with euro-denominated turnover growth increasing by 6.2% to EUR 1.5 billion. The result was positively impacted by acquisitions, in particular, Corrib Foods acquired in November 2018. Adjusting for these new businesses, comparable turnover increased by 2.2% in a market with negative price inflation. All retail brands reported positive sales growth.
The Foodservice business reported impressive double-digit turnover growth and has become a significant part of the Irish business, while MACE, XL and SPAR retail brands all delivered turnover growths of over 4%. During the year the business have implemented a number of logistics and supply chain initiatives which have ensured cost efficient deliveries, despite increased labour rates. BWG Group opened 60 new stores and finished the financial year with 1 360 stores. - SPAR Switzerland’s wholesale business reported turnover growth of 1.2% in CHF terms, reflecting strong trading from upgraded retailer-owned stores. While the second half saw an improved performance, operating profit for the full year remains impacted by the aggressive marketing initiatives in the first half. The market remained challenging, but the brand is gaining positive support as initiatives continued to gain traction. SPAR Switzerland had a total store network of 322 stores at year end, adding 26 new stores during the financial year.
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. The JSE All Share Index is down -0.13% for the month of November 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