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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 rant at the end.
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Short summary of PSG's market commentary for 17 April 2019
South Africa
The local bourse was flat on Wednesday after losses posted by mining stocks overshadowed gains accumulated in earlier trade. At 18h15 the All Share had gained 0.01%.
United States
Wall Street remained flat on Wednesday as a dip in healthcare shares continued for a second consecutive day. Shortly after the JSE closed, the Dow lost 0.12%.
Europe
A poor performance by healthcare and mining stocks dragged European markets through the mud on Wednesday as investors feared how healthcare politics could impact the industry. At 18h20 the pan-European STOXX 600 index was up by 0.10%.
Hong Kong
Hong Kong markets remained subdued after telecom and real estate companies posted poor performance results on Wednesday. The Hang Seng ended the day 0.02% in the red.
Japan
The Nikkei peaked at a four-month high on Wednesday following a rally led by automakers on optimism that Japan and the US might reach a consensus in their trade talks. The Nikkei ended the day 0.25% higher.
Rand
The rand firmed against major global currencies on Wednesday lifted by a range of positive local and international data. At 18h40, the rand traded R13.99 against the dollar.
Precious metals
Strong Chinese economic data and easing concerns over a global economic slowdown continued to boost risk appetite on Wednesday, putting a dent on the appeal of bullion and affecting its prices. At 19h05, spot gold was trading at $1 274.39 an ounce.
Oil
Brent crude peaked above $72 a barrel on Wednesday bolstered by economic growth in the world’s largest economy and a drop in US crude stocks. At 18h45, a barrel of Brent crude was trading at $72.19.
The local bourse was flat on Wednesday after losses posted by mining stocks overshadowed gains accumulated in earlier trade. At 18h15 the All Share had gained 0.01%.
United States
Wall Street remained flat on Wednesday as a dip in healthcare shares continued for a second consecutive day. Shortly after the JSE closed, the Dow lost 0.12%.
Europe
A poor performance by healthcare and mining stocks dragged European markets through the mud on Wednesday as investors feared how healthcare politics could impact the industry. At 18h20 the pan-European STOXX 600 index was up by 0.10%.
Hong Kong
Hong Kong markets remained subdued after telecom and real estate companies posted poor performance results on Wednesday. The Hang Seng ended the day 0.02% in the red.
Japan
The Nikkei peaked at a four-month high on Wednesday following a rally led by automakers on optimism that Japan and the US might reach a consensus in their trade talks. The Nikkei ended the day 0.25% higher.
Rand
The rand firmed against major global currencies on Wednesday lifted by a range of positive local and international data. At 18h40, the rand traded R13.99 against the dollar.
Precious metals
Strong Chinese economic data and easing concerns over a global economic slowdown continued to boost risk appetite on Wednesday, putting a dent on the appeal of bullion and affecting its prices. At 19h05, spot gold was trading at $1 274.39 an ounce.
Oil
Brent crude peaked above $72 a barrel on Wednesday bolstered by economic growth in the world’s largest economy and a drop in US crude stocks. At 18h45, a barrel of Brent crude was trading at $72.19.
Our daily update
Yesterday we covered an analysis by Coronation Fund Managers on five global stocks they have invested in or use to hold in the past. We found their summary of Tata Motors pretty interesting (and concerning for Tata Motors shareholers). Their summary on Tata Motors below.
Tata Motors (owner of Jaguar Land Rover; 0% of strategy).
This was a poor investment and a mistake in our view, and we sold out of the position during 2018. A combination of internal factors (including poor cost control measures and mediocre new product launches) and external factors (such as Brexit, EU emissions legislation and US-China trade wars) led to a sharp decline in profits. Given the very thin current margins, combined with high debt levels and an uncertain future, both in terms of alternative vehicles and Brexit (the UK represents 20% of sales, with a large part of the manufacturing base being in the UK), we felt that the risk/reward became unattractive and sold the position.
See the full article here.
Tata Motors (owner of Jaguar Land Rover; 0% of strategy).
This was a poor investment and a mistake in our view, and we sold out of the position during 2018. A combination of internal factors (including poor cost control measures and mediocre new product launches) and external factors (such as Brexit, EU emissions legislation and US-China trade wars) led to a sharp decline in profits. Given the very thin current margins, combined with high debt levels and an uncertain future, both in terms of alternative vehicles and Brexit (the UK represents 20% of sales, with a large part of the manufacturing base being in the UK), we felt that the risk/reward became unattractive and sold the position.
See the 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.
A very strong start to the first quarter of the month of April 2018 with the JSE All Share Index being up 4.28% since the start of April 2019. It basically ended 17 April 2019 dead flat with a increase of 0.01%. So can the JSE All Share index make it 4 positive months in a row? It certainly looks like it is heading in that direction.
This following three months of positive returns for the JSE All Share Index. But while there overall returns of the JSE All Share so far in 2019 has been positive (as shown by our 2019 Calendar tracker) 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
This following three months of positive returns for the JSE All Share Index. But while there overall returns of the JSE All Share so far in 2019 has been positive (as shown by our 2019 Calendar tracker) 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