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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 22 February 2019
South Africa
Although banks performed well on Thursday, the boost was counterbalanced by losses in gold mines, Naspers and Woolworths that caused the local bourse to slump. At close of trade, the All Share was down by 0.37%.
United States
US markets started Thursday slow as soft economic reports and lower healthcare shares weight indices down. At 22h50, the Nasdaq was 0.54% in the red.
Europe
European shares tumbled slightly on Thursday due to weak corporate earnings reports and disappointing factory output data. At the end of business, the STOXX 600 was 0.28% down.
Hong Kong
On Thursday, Hong Kong shares strengthened due to signs that the US and China are making progress towards possibly settling the seven-month tariff war. At the end of trade, the Hang Seng was 0.40% higher.
Japan
The Nikkei was lifted by companies with large Chinese exposure, such as Fanuc and Yaskawa Electric, as optimism over a possible US-China trade agreement boosted investor confidence. According to Reuters, “top US and Chinese trade officials are working this week… to resolve the most contentious issues in their seven-month trade war.”
Rand
The rand reached an intraday high of R13.80 to the dollar on Thursday as analysts reacted positively to the government’s decision not to bail Eskom out entirely. However, negative comments from Moody’s deflated the rand’s rise somewhat. At 22h50, a dollar cost R14.01.
Precious metals
Bullion prices took a knock on Thursday on the back of comments by the US Federal Reserve Bank suggesting another US rate hike for 2019. At 22h50, an ounce of gold cost $1 323.77.
Oil
Brent crude prices fell on Thursday due to US inventories and production continuing to build up, amidst investor concerns about slowing global economic growth. At 22h50, Brent crude traded at $66.98 per barrel.
Although banks performed well on Thursday, the boost was counterbalanced by losses in gold mines, Naspers and Woolworths that caused the local bourse to slump. At close of trade, the All Share was down by 0.37%.
United States
US markets started Thursday slow as soft economic reports and lower healthcare shares weight indices down. At 22h50, the Nasdaq was 0.54% in the red.
Europe
European shares tumbled slightly on Thursday due to weak corporate earnings reports and disappointing factory output data. At the end of business, the STOXX 600 was 0.28% down.
Hong Kong
On Thursday, Hong Kong shares strengthened due to signs that the US and China are making progress towards possibly settling the seven-month tariff war. At the end of trade, the Hang Seng was 0.40% higher.
Japan
The Nikkei was lifted by companies with large Chinese exposure, such as Fanuc and Yaskawa Electric, as optimism over a possible US-China trade agreement boosted investor confidence. According to Reuters, “top US and Chinese trade officials are working this week… to resolve the most contentious issues in their seven-month trade war.”
Rand
The rand reached an intraday high of R13.80 to the dollar on Thursday as analysts reacted positively to the government’s decision not to bail Eskom out entirely. However, negative comments from Moody’s deflated the rand’s rise somewhat. At 22h50, a dollar cost R14.01.
Precious metals
Bullion prices took a knock on Thursday on the back of comments by the US Federal Reserve Bank suggesting another US rate hike for 2019. At 22h50, an ounce of gold cost $1 323.77.
Oil
Brent crude prices fell on Thursday due to US inventories and production continuing to build up, amidst investor concerns about slowing global economic growth. At 22h50, Brent crude traded at $66.98 per barrel.
Our daily rant..
Yesterday was a story of two tales on the JSE. On the one hand we had Woolworths releasing their financial results which shows how tough the retail environment currently is in South Africa. With the group's fashion, beauty and housing division struggling, while the Woolies Foods keeps delivering solid results. The group's Australian operations David Jones and Country Road are not exactly shooting the lights out. While we do believe the shares offer long term value, as we showed yesterday in our Woolies interim results update, investors will have to be very patient. The share ended the day down -2.91%. A clear sign the market didnt like the numbers.
On the other hand we had listed pharmaceuticals giant, Adcock Ingram bring out very positive results yesterday, with our valuation models showing they offer long term investors significant value at their current price, based on the results they released yesterday. They ended the day up by 2.29%, a sign the market liked their results almost as much as we did. See our Adcock Ingram financial results review here.
On the other hand we had listed pharmaceuticals giant, Adcock Ingram bring out very positive results yesterday, with our valuation models showing they offer long term investors significant value at their current price, based on the results they released yesterday. They ended the day up by 2.29%, a sign the market liked their results almost as much as we did. See our Adcock Ingram financial results 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.
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 2.48% during the 21 days of February 2019. Its been a relatively directionless month for the stock market, with movements flip flopping between positive and negative. There are no real drivers for world markets right now and they seem undecided as to whether it wants to go up or down. Perfect play ground for day traders.