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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 21 August 2019
South Africa
The JSE fell on Tuesday as food and drug retailers posted their biggest daily loss in over seven months. Shortly after the closing bell, the All Share was down by 0.19%.
United States
US markets struggled for direction on Tuesday after a mixed bag of retail earnings did little to influence market sentiment. The Dow was down 0.22% just after the JSE closed.
Europe
European shares endured a choppy day as positive earnings from British drug maker AstraZeneca were countered by recession fears. At about 19h00, the FTSE 100 was down 0.85%.
Hong Kong
Hong Kong stocks ended lower in thin trade on Tuesday as investors held on to gains made in the previous session on reports of trimmed interest rates in China. The Hang Seng Index ended down by 0.25%.
Japan
Posting a third consecutive day of gains, Japanese shares rose on Tuesday as investors sought equities on the back of easing trade tensions. The Nikkei Index closed up 0.55%.
Rand
The rand strengthened on Tuesday as market participants cheered the idea that major economies would take steps to boost slowing growth. Just after the JSE closed, the rand strengthened to R15.36/$.
Precious metals
Gold prices held steady on Tuesday following increased risk appetite as investors awaited new catalysts. At 19h15, an ounce of spot gold traded at $1 505.26.
Oil
Oil prices rose on Tuesday on the back of easing trade tensions after US President Donald Trump said he was positive that trade talks with China would eventually bear fruit. At 20h20, a barrel of Brent crude traded at $59.80.
The JSE fell on Tuesday as food and drug retailers posted their biggest daily loss in over seven months. Shortly after the closing bell, the All Share was down by 0.19%.
United States
US markets struggled for direction on Tuesday after a mixed bag of retail earnings did little to influence market sentiment. The Dow was down 0.22% just after the JSE closed.
Europe
European shares endured a choppy day as positive earnings from British drug maker AstraZeneca were countered by recession fears. At about 19h00, the FTSE 100 was down 0.85%.
Hong Kong
Hong Kong stocks ended lower in thin trade on Tuesday as investors held on to gains made in the previous session on reports of trimmed interest rates in China. The Hang Seng Index ended down by 0.25%.
Japan
Posting a third consecutive day of gains, Japanese shares rose on Tuesday as investors sought equities on the back of easing trade tensions. The Nikkei Index closed up 0.55%.
Rand
The rand strengthened on Tuesday as market participants cheered the idea that major economies would take steps to boost slowing growth. Just after the JSE closed, the rand strengthened to R15.36/$.
Precious metals
Gold prices held steady on Tuesday following increased risk appetite as investors awaited new catalysts. At 19h15, an ounce of spot gold traded at $1 505.26.
Oil
Oil prices rose on Tuesday on the back of easing trade tensions after US President Donald Trump said he was positive that trade talks with China would eventually bear fruit. At 20h20, a barrel of Brent crude traded at $59.80.
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Our daily update
Yesterday we covered the latest financial results from Shoprite Holdings, Africa's biggest retailer. Below a short extract from the article.
So what exactly are Shoprite (SHP) shares worth? Based on the groups latest financial results, their strong balance sheet and cash generation capacity, the decent margins they held on to during the tough economic climate, their cost containment measures and strong footprint across South Africa and the rest of Africa we value Shoprite shares at R143.98 a share
Read the full Shoprite financial review here
So what exactly are Shoprite (SHP) shares worth? Based on the groups latest financial results, their strong balance sheet and cash generation capacity, the decent margins they held on to during the tough economic climate, their cost containment measures and strong footprint across South Africa and the rest of Africa we value Shoprite shares at R143.98 a share
Read the full Shoprite financial review 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 -4.07% 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. There are growing concerns about a global slow down largely driven by the trade ware between the US and China
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 -4.07% 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. There are growing concerns about a global slow down largely driven by the trade ware between the US and China
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