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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 17 July 2019
South Africa
The local market continued to climb on Tuesday, boosted by a strong showing by banks and financials, while investors awaited the South African Reserve Bank’s rates announcement on Thursday. At the closing bell, the All Share was 0.90% higher.
United States
Despite positive retail sales figures released for June, US shares opened slightly lower on Tuesday after the release of mixed quarterly bank reports. At 18h00, the S&P 500 traded 0.16% down.
Europe
European equities rose on Tuesday on the back of weak German economic data releases, and new Brexit concerns that supported stimulus from the European Central Bank. The pan-European STOXX 600 Index closed the day 0.35% in the green.
Hong Kong
On Tuesday, the Hang Seng edged up ahead of US retail sales results and corporate earnings releases, as investors looked for guidance on how the economic superpower is fairing. At 18h00, the Hang Seng stood 0.13% in the green.
Japan
Japanese markets fell on Tuesday as investors digested China's slow economic growth. However, automobiles outperformed on reports that China will shift to hybrid vehicles. The Nikkei closed the day 0.69% down.
Rand
Although the rand firmed against the pound and the euro on Tuesday, it lost some ground against the dollar due to the dollar strengthening as a result of positive US retail sales figures for June. At 18h00, the rand traded R13.93 against the dollar.
Precious metals
Positive retail sales data out of the US dragged gold prices down on Tuesday as experts started to lower their expectations of US rate cuts. At 18h00, spot gold traded at $1 404.51 an ounce.
Oil
On Tuesday, the oil price stabilised in light of trade tensions easing between the US and Iran and as crude production resumed on the US Gulf after Hurricane Barry past. At 18h00, a barrel of Brent crude was trading at $67.08.
The local market continued to climb on Tuesday, boosted by a strong showing by banks and financials, while investors awaited the South African Reserve Bank’s rates announcement on Thursday. At the closing bell, the All Share was 0.90% higher.
United States
Despite positive retail sales figures released for June, US shares opened slightly lower on Tuesday after the release of mixed quarterly bank reports. At 18h00, the S&P 500 traded 0.16% down.
Europe
European equities rose on Tuesday on the back of weak German economic data releases, and new Brexit concerns that supported stimulus from the European Central Bank. The pan-European STOXX 600 Index closed the day 0.35% in the green.
Hong Kong
On Tuesday, the Hang Seng edged up ahead of US retail sales results and corporate earnings releases, as investors looked for guidance on how the economic superpower is fairing. At 18h00, the Hang Seng stood 0.13% in the green.
Japan
Japanese markets fell on Tuesday as investors digested China's slow economic growth. However, automobiles outperformed on reports that China will shift to hybrid vehicles. The Nikkei closed the day 0.69% down.
Rand
Although the rand firmed against the pound and the euro on Tuesday, it lost some ground against the dollar due to the dollar strengthening as a result of positive US retail sales figures for June. At 18h00, the rand traded R13.93 against the dollar.
Precious metals
Positive retail sales data out of the US dragged gold prices down on Tuesday as experts started to lower their expectations of US rate cuts. At 18h00, spot gold traded at $1 404.51 an ounce.
Oil
On Tuesday, the oil price stabilised in light of trade tensions easing between the US and Iran and as crude production resumed on the US Gulf after Hurricane Barry past. At 18h00, a barrel of Brent crude was trading at $67.08.
Our daily update
So EOH reported to shareholders that they have uncovered around R1.2 billion in suspicious transactions during their investigation into suspected improper behaviour of some of the group's subsidiaries. Below an extract from the SENS released by EOH.
UPDATE ON THE EOH INVESTIGATIONS, INCLUDING WEBCAST INVITE AND FURTHER CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the initial cautionary announcement released on SENS on 19 February 2019 and the further cautionary announcements released on 3 April 2019, 21 May 2019 and 3 July 2019, respectively. Following submission of a forensic report and its recommendations to the board of directors of EOH (the "Board"), the Board has assessed the findings of the ENSafrica report ("ENS Report") and has prepared an interim update on the forensic investigation ("Interim Update"). The Interim Update is available on the Company's website at https://www.eoh.co.za/media-room/ and a webcast will be hosted by the Company at 09h00 on Tuesday, 16 July 2019.
Interested parties are requested to register their attendance at http://themediaframe.eu/links/eoh190606.html. To date, the ENSafrica investigation has found evidence of a number of governance failings and wrongdoing at EOH, including unsubstantiated payments, tender irregularities and other unethical business practices which are primarily limited to the public sector business centralised in EOH Mthombo (Pty) Ltd and to a limited number of EOH employees.
Suspicious transactions of R1.2 billion have been identified and are being investigated by ENSafrica. The exact nature of each of these transactions has not as yet been verified and may relate to legitimate transactions, theft or bribery and corruption payments. ENSafrica will provide the Company with bi-monthly updates which will in turn inform areas for further investigation and remedial work. EOH will continue to assess the financial impact of the findings. Accordingly, shareholders are advised to continue to exercise caution when dealing in the Company's securities until a further announcement is made.
16 July 2019
UPDATE ON THE EOH INVESTIGATIONS, INCLUDING WEBCAST INVITE AND FURTHER CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the initial cautionary announcement released on SENS on 19 February 2019 and the further cautionary announcements released on 3 April 2019, 21 May 2019 and 3 July 2019, respectively. Following submission of a forensic report and its recommendations to the board of directors of EOH (the "Board"), the Board has assessed the findings of the ENSafrica report ("ENS Report") and has prepared an interim update on the forensic investigation ("Interim Update"). The Interim Update is available on the Company's website at https://www.eoh.co.za/media-room/ and a webcast will be hosted by the Company at 09h00 on Tuesday, 16 July 2019.
Interested parties are requested to register their attendance at http://themediaframe.eu/links/eoh190606.html. To date, the ENSafrica investigation has found evidence of a number of governance failings and wrongdoing at EOH, including unsubstantiated payments, tender irregularities and other unethical business practices which are primarily limited to the public sector business centralised in EOH Mthombo (Pty) Ltd and to a limited number of EOH employees.
Suspicious transactions of R1.2 billion have been identified and are being investigated by ENSafrica. The exact nature of each of these transactions has not as yet been verified and may relate to legitimate transactions, theft or bribery and corruption payments. ENSafrica will provide the Company with bi-monthly updates which will in turn inform areas for further investigation and remedial work. EOH will continue to assess the financial impact of the findings. Accordingly, shareholders are advised to continue to exercise caution when dealing in the Company's securities until a further announcement is made.
16 July 2019
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 is down -0.22% for the month of July 2019. We expect the Rand to weaken from its recent strength as we predict that the South African Reserve Bank (SARB) monetary policy committee (MPC) will cut South Africans interest rates later this month.
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 is down -0.22% for the month of July 2019. We expect the Rand to weaken from its recent strength as we predict that the South African Reserve Bank (SARB) monetary policy committee (MPC) will cut South Africans interest rates later this month.
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