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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 15 August 2019
South Africa
Signs that the global economy is slowing and that major economies may be headed towards a recession put pressure on risk assets on Wednesday, with the JSE losing 1.94%.
United States
Wall Street’s indexes slid more than 2% on Wednesday, as a US bond market indicator pointed to renewed risk of a recession following poor economic data from Germany and China. Shortly after the JSE closed, the Dow was down 2.09%.
Europe
European shares tumbled yesterday as the US yield curve inverted following bleak data from major economies. Shortly after the JSE closed, the FTSE 100 had lost 1.58%, the CAC 40 2.35% and the DAX 30 2.15%.
Hong Kong
Hong Kong stocks ended slightly firmer on Wednesday, as bleak China economic data overshadowed US President Donald Trump’s trade concession, while protests continued to roil the island city. The Hang Seng index ended up 0.08%.
Japan
Japanese stocks recouped losses on Wednesday, thanks to Washington delaying the start of tariffs on some Chinese imports. The Nikkei rose by 0.98%.
Rand
Concern that the global economy is headed towards an economic downturn put pressure on the rand on Wednesday. At 19h40, one dollar cost R15.39.
Precious metals
Gold prices edged lower on Wednesday after the US delayed tariffs on some Chinese imports, easing trade concerns, although political uncertainties and lingering global growth concerns limited losses for the safe-haven metal. At 19h45, an ounce of spot gold traded at $1 519.58.
Oil
Oil prices fell on Wednesday after disappointing economic data from China and Europe and a rise in US crude inventories. A barrel of Brent crude traded at $60.77 at 19h45.
Signs that the global economy is slowing and that major economies may be headed towards a recession put pressure on risk assets on Wednesday, with the JSE losing 1.94%.
United States
Wall Street’s indexes slid more than 2% on Wednesday, as a US bond market indicator pointed to renewed risk of a recession following poor economic data from Germany and China. Shortly after the JSE closed, the Dow was down 2.09%.
Europe
European shares tumbled yesterday as the US yield curve inverted following bleak data from major economies. Shortly after the JSE closed, the FTSE 100 had lost 1.58%, the CAC 40 2.35% and the DAX 30 2.15%.
Hong Kong
Hong Kong stocks ended slightly firmer on Wednesday, as bleak China economic data overshadowed US President Donald Trump’s trade concession, while protests continued to roil the island city. The Hang Seng index ended up 0.08%.
Japan
Japanese stocks recouped losses on Wednesday, thanks to Washington delaying the start of tariffs on some Chinese imports. The Nikkei rose by 0.98%.
Rand
Concern that the global economy is headed towards an economic downturn put pressure on the rand on Wednesday. At 19h40, one dollar cost R15.39.
Precious metals
Gold prices edged lower on Wednesday after the US delayed tariffs on some Chinese imports, easing trade concerns, although political uncertainties and lingering global growth concerns limited losses for the safe-haven metal. At 19h45, an ounce of spot gold traded at $1 519.58.
Oil
Oil prices fell on Wednesday after disappointing economic data from China and Europe and a rise in US crude inventories. A barrel of Brent crude traded at $60.77 at 19h45.
Our daily update
Yesterday we covered the latest financial results from Curro Holdings (COH) and below a short extract from the article published yesterday.
So in our previous valuation in February 2019 we valued Curro shares at around R40 a share. Based on their latest financial results, their capex plans, cash generated per share, their gearing ratio (which needs to be watched as it has increased sharply) we value COH shares at R38.80 a share and we do believe they offer long term investors an excellent entry point into a business with strong future prospects. While sentiment towards COH is overwhelmingly negative (as shown on the massive share price decline over the last number of years) we are of the opinion that they offer great value at their current levels and should their learner numbers, profits and number of campuses continue to expand we see no reason why COH cannot trade at our valuation of R38.80 a share.
Read full article here
So in our previous valuation in February 2019 we valued Curro shares at around R40 a share. Based on their latest financial results, their capex plans, cash generated per share, their gearing ratio (which needs to be watched as it has increased sharply) we value COH shares at R38.80 a share and we do believe they offer long term investors an excellent entry point into a business with strong future prospects. While sentiment towards COH is overwhelmingly negative (as shown on the massive share price decline over the last number of years) we are of the opinion that they offer great value at their current levels and should their learner numbers, profits and number of campuses continue to expand we see no reason why COH cannot trade at our valuation of R38.80 a share.
Read full article 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.
So the South African stock market is still up substantially for the year, with the only negative months so far being the month of May in which markets pulled back pretty sharply. But the markets rebounded in June with it ending up close to 5% for the month.
The JSE All Share Index ended the month of July down by -2.6%. Only the second negative month for the JSE in 2019. So far August has gotten off to a horrible start, with the JSE All Share index losing -4.54% so far in August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China and bond yield inversion which is leading markets to believe that a recession in the USA is on its way
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
The JSE All Share Index ended the month of July down by -2.6%. Only the second negative month for the JSE in 2019. So far August has gotten off to a horrible start, with the JSE All Share index losing -4.54% so far in August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China and bond yield inversion which is leading markets to believe that a recession in the USA is on its way
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