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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 20 February 2019
South Africa
The local bourse remained flat on Tuesday due to investor anticipation of the 2019 National Budget Speech that will be held later today. At close of business, the All Share was marginally lower.
United States
On Tuesday US indices struggled to find direction as investors kept a close eye on trade negotiations between China and the US set to resume in Washington. At 20h35, the Dow was 1.74% in the green.
Europe
The strong start of European markets this week was short lived as disappointing data released by HSBC hurt the banking sector, and as optimism around the tariff-war died down. At the end of trade, the STOXX 600 was 0.22% in the red.
Hong Kong
The Shanghai Composite Index closed flat on Tuesday due to the knock the blue-chip CSI300 index took and investors booking profits. At 20h35, the Shanghai traded 0.05% up.
Japan
Tuesday was a good day for Japanese shares as the Nikkei neared a two-month high on the back of gains in railways and utilities. At 20h35, the Nikkei closed 1.13% lower.
Rand
Although the local currency strengthened somewhat against the dollar, anticipation of Finance Minister Tito Mboweni’s budget address that’s due today weighed it down. At 20h35, a dollar cost R14.04.
Precious metals
Bullion prices continued their bullish climb on Tuesday in light of the pressure optimism around the US-China trade negotiations put on the greenback. At 20h35, an ounce of gold cost $1 318.00.
Oil
Oil prices steadied on Tuesday as investors’ concerns about global oil demand increased, and highs around the US-China trade negotiations lost steam. At 20h35, Brent crude traded at $66.45 per barrel.
The local bourse remained flat on Tuesday due to investor anticipation of the 2019 National Budget Speech that will be held later today. At close of business, the All Share was marginally lower.
United States
On Tuesday US indices struggled to find direction as investors kept a close eye on trade negotiations between China and the US set to resume in Washington. At 20h35, the Dow was 1.74% in the green.
Europe
The strong start of European markets this week was short lived as disappointing data released by HSBC hurt the banking sector, and as optimism around the tariff-war died down. At the end of trade, the STOXX 600 was 0.22% in the red.
Hong Kong
The Shanghai Composite Index closed flat on Tuesday due to the knock the blue-chip CSI300 index took and investors booking profits. At 20h35, the Shanghai traded 0.05% up.
Japan
Tuesday was a good day for Japanese shares as the Nikkei neared a two-month high on the back of gains in railways and utilities. At 20h35, the Nikkei closed 1.13% lower.
Rand
Although the local currency strengthened somewhat against the dollar, anticipation of Finance Minister Tito Mboweni’s budget address that’s due today weighed it down. At 20h35, a dollar cost R14.04.
Precious metals
Bullion prices continued their bullish climb on Tuesday in light of the pressure optimism around the US-China trade negotiations put on the greenback. At 20h35, an ounce of gold cost $1 318.00.
Oil
Oil prices steadied on Tuesday as investors’ concerns about global oil demand increased, and highs around the US-China trade negotiations lost steam. At 20h35, Brent crude traded at $66.45 per barrel.
Our daily rant..
While all eyes are on the budget speech to be delivered tomorrow, 20 February 2019, eyes on the stock market were all focused on EOH. The share declined a further 10.4% yesterday (18 Feb 2019) after releasing an updated SENS regarding their troubles with Microsoft in which Microsoft notified EOH about their intention to terminate their channel partner agreement. The SENS from EOH follows:
"There have been further developments in the media following our stakeholder communication issued on SENS on the 15 February 2019 and as previously advised EOH focused ENS to look at all large historical licensing contracts in the public sector vertical. Microsoft has still not officially provided us any confirmation for the reasons for the notice. This matter is now sub judice. ENS continue to give us regular updates and we are committed to swift and appropriate action.
Stephen van Coller reiterated “I again encourage anyone who has evidence to please come forward so we can root out any historical, unethical business practices both within EOH and the broader country. As part of our current processes, ENS reviews about 8-10 bids per week”.
Shareholders will be advised of any further developments."
"There have been further developments in the media following our stakeholder communication issued on SENS on the 15 February 2019 and as previously advised EOH focused ENS to look at all large historical licensing contracts in the public sector vertical. Microsoft has still not officially provided us any confirmation for the reasons for the notice. This matter is now sub judice. ENS continue to give us regular updates and we are committed to swift and appropriate action.
Stephen van Coller reiterated “I again encourage anyone who has evidence to please come forward so we can root out any historical, unethical business practices both within EOH and the broader country. As part of our current processes, ENS reviews about 8-10 bids per week”.
Shareholders will be advised of any further developments."
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.
The first trading day of February ended in the red. In contrast to January in which every Friday ended the day in the green, so far for February 2019 every Friday has ended in the red. So far the market has increased by 1.94% during the 19 days of February 2019. Its been a relatively directionless month for the stock market, with movements flip flopping between positive and negative. But in saying that fears regarding the trade ware between USA and China are easing, which means "risk on" assets such as shares listed in Emerging markets (EM) such as South Africa is in higher demand again pushing up demand and prices of locally listed shares slight in recent trading days. But today is a big day for South African markets and its exchange rate, with the 2019 budget speech being delivered by the minister of Finance Tito Mboweni.
We expect lthe following from the budget speech:
We expect lthe following from the budget speech:
- Sin taxes will increase
- Fuel levy will increase
- Road accident fund levy will increase
- Less relief for bracket creep
- Potentially higher tax rates for the high income earners
- Securities transfer taxes will be increased
- ESKOM will be bailed out by the tax payer... Again
- SAA will be bailed out by the tax payer.. Again
South Africa's Finance Minister: Tito Mboweni