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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 18 June 2019
South Africa
The JSE fell on Friday as investors remained concerned about a global economic slowdown after data showed that Chinese industrial production growth fell to a 17-year low in May. The All Share closed 0.86% in the red.
United States
Wall Street dropped on Friday, as chipmakers’ shares fell on a warning from sector major Broadcom of a broad weakening in global demand and as Chinese data pointed to a slowdown in industrial growth. At 18h30 the Nasdaq had lost 0.61%.
Europe
Technology shares pulled European stock markets lower on Friday after US chipmaker Broadcom warned of a broad slowdown in demand due to trade tensions and the US ban on Chinese mobile company Huawei. At 18h30 all major European indices were trading in the red.
Hong Kong
Hong Kong stocks fell on Friday as China reported lacklustre industrial production growth. At the close of trade, the Hang Seng Index was down 0.65%.
Japan
The Nikkei rose on Friday, with energy shares rallying after attacks on two oil tankers in the Gulf of Oman pushed crude oil prices sharply higher. The Nikkei closed up by 0.39%.
Rand
The rand was slightly firmer against major global currencies on Friday afternoon. At 18h30, a dollar traded at R14.81.
Precious metals
Gold rose on Friday as intensifying political concerns in the Middle East and weak economic data from China pushed an ounce of spot gold above the $1 350 level during the day. At 18h30, it gained some ground trading lower at $1 347.76.
Oil
Oil supplies will increase far more than demand in 2020 due to the start of various new projects, putting further pressure on oil cartel OPEC, the International Energy Agency (IEA) said on Friday. At 18h30 a barrel of Brent crude traded at $62.76.
The JSE fell on Friday as investors remained concerned about a global economic slowdown after data showed that Chinese industrial production growth fell to a 17-year low in May. The All Share closed 0.86% in the red.
United States
Wall Street dropped on Friday, as chipmakers’ shares fell on a warning from sector major Broadcom of a broad weakening in global demand and as Chinese data pointed to a slowdown in industrial growth. At 18h30 the Nasdaq had lost 0.61%.
Europe
Technology shares pulled European stock markets lower on Friday after US chipmaker Broadcom warned of a broad slowdown in demand due to trade tensions and the US ban on Chinese mobile company Huawei. At 18h30 all major European indices were trading in the red.
Hong Kong
Hong Kong stocks fell on Friday as China reported lacklustre industrial production growth. At the close of trade, the Hang Seng Index was down 0.65%.
Japan
The Nikkei rose on Friday, with energy shares rallying after attacks on two oil tankers in the Gulf of Oman pushed crude oil prices sharply higher. The Nikkei closed up by 0.39%.
Rand
The rand was slightly firmer against major global currencies on Friday afternoon. At 18h30, a dollar traded at R14.81.
Precious metals
Gold rose on Friday as intensifying political concerns in the Middle East and weak economic data from China pushed an ounce of spot gold above the $1 350 level during the day. At 18h30, it gained some ground trading lower at $1 347.76.
Oil
Oil supplies will increase far more than demand in 2020 due to the start of various new projects, putting further pressure on oil cartel OPEC, the International Energy Agency (IEA) said on Friday. At 18h30 a barrel of Brent crude traded at $62.76.
Our daily update
As we do every Friday we cover the latest weekly market wrap as published by Peregrine Treasury Services. And in today's daily update we provide an extract of their weekly wrap which cover South African equities
SOUTH AFRICAN EQUITY
South African equity markets have held up surprisingly well over the last five trading days, with a material amount of support being gifted by Naspers and many of the other larger dual-listed companies on the local securities exchange. Cigarette maker, British American Tobacco (BTI), gave guidance on their expectation of cigarette sales numbers, which they expect to slow down by around 3.50% globally. Cigarette sales in the US dropped 5.00% alone, while the actual market price of BTI dropped around 5.00% during the course of the week. BTI opened Friday’s trading day at R548.91
Tsogo Sun saw the unbundling of their hotel business which will now be called Tsogo Sun Hotels Limited and trade under the ticker TGO. Tsogo Sun’s share price dipped by around 18.00%, but this was mainly attributed to the unbundling of their hotel business, which ended its first solo trading day at R4.00, valuing the new hotel business at around R4.20 billion. Tsogo Sun (TSH) will now be known as Tsogo Sun Gaming and will look after the casino side of the business along with other alternative forms of gaming. The whole idea of the unbundling the hotel business from the gaming business may potentially bring in more interest and liquidity, from the likes of Shariah funds, to the hotel side of the business.
Naspers saw their core headline earnings (HEPS) coming in up to 31% - 32% stronger than the previous period, while HEPS, excluding MultiChoice, came in between 24% and 26% stronger. Naspers look to list on the Amsterdam stock exchange in July in order to create further liquidity and easier access for its European investors. Naspers opened Friday’s trading day at R3,485.00 – over 3.00% up for the week. Going into Thursday’s closing auction, the general feel was that foreign investors may be stepping in to add some pressure on SA Inc. companies, along with the rand. One will have to see what happens today on local markets, but the feel is relatively sombre.
Here’s some of the
bigger movers on the JSE for the 2019 year so far, as at Friday morning:
Read the full article here
SOUTH AFRICAN EQUITY
South African equity markets have held up surprisingly well over the last five trading days, with a material amount of support being gifted by Naspers and many of the other larger dual-listed companies on the local securities exchange. Cigarette maker, British American Tobacco (BTI), gave guidance on their expectation of cigarette sales numbers, which they expect to slow down by around 3.50% globally. Cigarette sales in the US dropped 5.00% alone, while the actual market price of BTI dropped around 5.00% during the course of the week. BTI opened Friday’s trading day at R548.91
Tsogo Sun saw the unbundling of their hotel business which will now be called Tsogo Sun Hotels Limited and trade under the ticker TGO. Tsogo Sun’s share price dipped by around 18.00%, but this was mainly attributed to the unbundling of their hotel business, which ended its first solo trading day at R4.00, valuing the new hotel business at around R4.20 billion. Tsogo Sun (TSH) will now be known as Tsogo Sun Gaming and will look after the casino side of the business along with other alternative forms of gaming. The whole idea of the unbundling the hotel business from the gaming business may potentially bring in more interest and liquidity, from the likes of Shariah funds, to the hotel side of the business.
- TGO opened Friday’s trading day at R4.43
- TSH opened up Friday’s trading day at R16.20
Naspers saw their core headline earnings (HEPS) coming in up to 31% - 32% stronger than the previous period, while HEPS, excluding MultiChoice, came in between 24% and 26% stronger. Naspers look to list on the Amsterdam stock exchange in July in order to create further liquidity and easier access for its European investors. Naspers opened Friday’s trading day at R3,485.00 – over 3.00% up for the week. Going into Thursday’s closing auction, the general feel was that foreign investors may be stepping in to add some pressure on SA Inc. companies, along with the rand. One will have to see what happens today on local markets, but the feel is relatively sombre.
Here’s some of the
bigger movers on the JSE for the 2019 year so far, as at Friday morning:
- Impala Platinum: up 84.43% (8.07% in the last five trading days)
- Kumba Iron Ore: up 69.66%
- Tongaat Hulett: down 76.32%
- Rebosis Property Fund: down 67.66%
- Delta Property Fund: down 53.78%
Read 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.
So after four very positive months on the markets the month of May bucked the trend and saw half the gains made during the first four months of the year on the JSE wiped out in one month. While the South African Rand has really been struggling the Rand hedges on the JSE has been pushing the local stock market higher. so the last two trading days of June ended up being negative but for the months as a whole so far the JSE All Share Index is still up 4.55% so far in June 2019
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
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