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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 October 2019
South Africa
The JSE rose on Friday, as global markets climbed on the news that talks between the US and China over their trade impasse were progressing well. The JSE rose 0.84%.
United States
Wall Street opened higher on Friday, with high hopes that talks between President Donald Trump and Chinese Vice Premier Liu He would culminate in a partial trade deal. Shortly after the JSE’s closed the Dow was up by 1.59%.
Europe
Reports on Friday that UK Prime Minister Boris Johnson and his Irish counterpart found a pathway to a possible Brexit deal after three years of uncertainty boosted markets. Just after the JSE closed, the FTSE 100 had gained 0.65%, France’s CAC 40 1.47%, and Germany’s DAX 30 2.46%.
Hong Kong
Shares in China and Hong Kong jumped on Friday, as investors cheered signs of progress in the ongoing Sino-US trade talks. The Hang Seng index added 2.34%.
Japan
Japanese shares rose on Friday as the safe-haven yen eased on hopes of progress in US-China trade talks. The Nikkei ended up 1.15%.
Rand
The rand broke through the R15/$ level on Friday on hope that the US and China could make progress in trade negotiations. At 17h35 the rand traded more than 2% firmer at R14.74/$.
Precious metals
Gold prices fell on Friday, as optimism around the US-China trade talks and the possibility of a Brexit deal diminished safe-haven interest in bullion. At 20h00 an ounce of spot gold traded at $1 484.78.
Oil
Oil prices jumped on Friday after Iranian media said a state-owned oil tanker had been struck by missiles in the Red Sea near Saudi Arabia, raising the prospect of supply disruptions weeks after attacks on Saudi oil plants. A barrel of Brent crude traded at $60.58 at 20h00.
The JSE rose on Friday, as global markets climbed on the news that talks between the US and China over their trade impasse were progressing well. The JSE rose 0.84%.
United States
Wall Street opened higher on Friday, with high hopes that talks between President Donald Trump and Chinese Vice Premier Liu He would culminate in a partial trade deal. Shortly after the JSE’s closed the Dow was up by 1.59%.
Europe
Reports on Friday that UK Prime Minister Boris Johnson and his Irish counterpart found a pathway to a possible Brexit deal after three years of uncertainty boosted markets. Just after the JSE closed, the FTSE 100 had gained 0.65%, France’s CAC 40 1.47%, and Germany’s DAX 30 2.46%.
Hong Kong
Shares in China and Hong Kong jumped on Friday, as investors cheered signs of progress in the ongoing Sino-US trade talks. The Hang Seng index added 2.34%.
Japan
Japanese shares rose on Friday as the safe-haven yen eased on hopes of progress in US-China trade talks. The Nikkei ended up 1.15%.
Rand
The rand broke through the R15/$ level on Friday on hope that the US and China could make progress in trade negotiations. At 17h35 the rand traded more than 2% firmer at R14.74/$.
Precious metals
Gold prices fell on Friday, as optimism around the US-China trade talks and the possibility of a Brexit deal diminished safe-haven interest in bullion. At 20h00 an ounce of spot gold traded at $1 484.78.
Oil
Oil prices jumped on Friday after Iranian media said a state-owned oil tanker had been struck by missiles in the Red Sea near Saudi Arabia, raising the prospect of supply disruptions weeks after attacks on Saudi oil plants. A barrel of Brent crude traded at $60.58 at 20h00.
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Our daily update
On Friday EOH released their latest trading update for the year ended 31 July 2019. The group has been marred by corporate governance issues and recently lost their partnership agreement with Microsoft (read more about that here).
So as expected the group is struggling and its showing in their trading update, below an extract of that trading update:
Shareholders are referred to the trading statement published on SENS on 18 September 2019, in which it was indicated that EOH’s earnings per share (“EPS”) and headline earnings per share (“HEPS”) for the Group for the year ended 31 July 2019 (“FY2019”) will decrease meaningfully from the audited EPS and HEPS as previously reported for the year ended 31 July 2018 (“FY2018 audited”). The EPS loss was anticipated to be at least 2 700 cents per share and HEPS loss was anticipated to be at least 1 800 cents per share.
The is a significant loss per share. The stock price of EOH has declined by -60.50% over the last 12 months
So as expected the group is struggling and its showing in their trading update, below an extract of that trading update:
Shareholders are referred to the trading statement published on SENS on 18 September 2019, in which it was indicated that EOH’s earnings per share (“EPS”) and headline earnings per share (“HEPS”) for the Group for the year ended 31 July 2019 (“FY2019”) will decrease meaningfully from the audited EPS and HEPS as previously reported for the year ended 31 July 2018 (“FY2018 audited”). The EPS loss was anticipated to be at least 2 700 cents per share and HEPS loss was anticipated to be at least 1 800 cents per share.
The is a significant loss per share. The stock price of EOH has declined by -60.50% over the last 12 months
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.
So for the month September 2019 the JSE All Share Index ended the month down -2.01%. Midway through the trading month of October 2019 and the JSE All Share Index is up by 1.36%. Question is whether it can hold on to the gains made for the rest of the month.
There continues to be concerns about a global economic 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. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
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
So for the month September 2019 the JSE All Share Index ended the month down -2.01%. Midway through the trading month of October 2019 and the JSE All Share Index is up by 1.36%. Question is whether it can hold on to the gains made for the rest of the month.
There continues to be concerns about a global economic 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. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
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