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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 16 August 2019
South Africa
The JSE fell on Thursday as global markets struggled to recover from Wednesday’s sell-off after China vowed to retaliate against US President Donald Trump’s recent tariff threat. The All share fell 0.35%.
United States
All three major US stock indexes struggled for direction yesterday as investors grappled with mixed messages of a strong consumer data and dropping US Treasury yields. The Dow was 0.40% higher just after the JSE closed.
Europe
European shares closed lower on Thursday, with London stocks losing more than 1%, as China warned of retaliation against US tariffs. After the JSE closed the FTSE 100 had fallen 1.13%, France’s CAC 40 0.27%, and Germany’s DAX 30 by 0.70%.
Hong Kong
Hong Kong stocks recovered on Thursday, as mainland investors hunted for bargains through the Stock Connect. The Hang Seng index rose 0.90%.
Japan
The Nikkei closed down by 1.21% on Thursday as resurgent global recession fears triggered a Wall Street slide and sent the safe-haven yen higher, weighing heavily on the country’s export firms.
Rand
The rand recovered slightly on Thursday, although investor sentiment remained brittle. At 20h30, the rand traded at $15.27 to the US dollar.
Precious metals
Gold prices were flat on Thursday as investors took stock of mixed economic data from the US, with strong US retail sales offering temporary respite to battered risk appetite. At 20h30, an ounce of spot gold traded at $1 522.69.
Oil
Oil slipped further on Thursday, pressured by mounting recession concerns and a surprise boost in US crude inventories. A barrel of Brent crude traded at $58.13 at 20h30.
The JSE fell on Thursday as global markets struggled to recover from Wednesday’s sell-off after China vowed to retaliate against US President Donald Trump’s recent tariff threat. The All share fell 0.35%.
United States
All three major US stock indexes struggled for direction yesterday as investors grappled with mixed messages of a strong consumer data and dropping US Treasury yields. The Dow was 0.40% higher just after the JSE closed.
Europe
European shares closed lower on Thursday, with London stocks losing more than 1%, as China warned of retaliation against US tariffs. After the JSE closed the FTSE 100 had fallen 1.13%, France’s CAC 40 0.27%, and Germany’s DAX 30 by 0.70%.
Hong Kong
Hong Kong stocks recovered on Thursday, as mainland investors hunted for bargains through the Stock Connect. The Hang Seng index rose 0.90%.
Japan
The Nikkei closed down by 1.21% on Thursday as resurgent global recession fears triggered a Wall Street slide and sent the safe-haven yen higher, weighing heavily on the country’s export firms.
Rand
The rand recovered slightly on Thursday, although investor sentiment remained brittle. At 20h30, the rand traded at $15.27 to the US dollar.
Precious metals
Gold prices were flat on Thursday as investors took stock of mixed economic data from the US, with strong US retail sales offering temporary respite to battered risk appetite. At 20h30, an ounce of spot gold traded at $1 522.69.
Oil
Oil slipped further on Thursday, pressured by mounting recession concerns and a surprise boost in US crude inventories. A barrel of Brent crude traded at $58.13 at 20h30.
Our daily update
Yesterday we covered the latest financial results from Truworths International (TRU) and below a short extract from the article published yesterday.
Based on Truworths financial results, their issues in the UK, their strong balance sheet and cash generation capacity and the healthy dividend yield of 6.6% all things considered we value Truworths International (TRU) at R80.68 a share. So at the current price we do believe the group offers value. Its recent decline due to the news about their problems in the UK has created a great buying opportunity for long term investors. The group's share price has declined almost as much in the last month as it has over the last 5 years. We think there is strong long term gains to be made if the shares are bought and the current price and the fat divided yield doesn't hurt either.
Read full article here
Based on Truworths financial results, their issues in the UK, their strong balance sheet and cash generation capacity and the healthy dividend yield of 6.6% all things considered we value Truworths International (TRU) at R80.68 a share. So at the current price we do believe the group offers value. Its recent decline due to the news about their problems in the UK has created a great buying opportunity for long term investors. The group's share price has declined almost as much in the last month as it has over the last 5 years. We think there is strong long term gains to be made if the shares are bought and the current price and the fat divided yield doesn't hurt either.
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 -4.89% 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 -4.89% 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