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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 22 July 2019
South Africa
The JSE ended the week on a high, boosted by banks, gold miners and positive sentiment that the US will cut interest rates later in July. At the closing bell, the Top 40 was 0.65% higher.
United States
US equities opened Friday in the green thanks to Microsoft’s positive earnings report lifting tech shares, and the US Federal Reserve Bank (Fed) alluding to an interest rate cut later in the month. At 17h30, the Dow Jones traded 0.26% up.
Europe
European markets ended Friday marginally higher, as concerns over Italy’s political stability offset investor hopes of a US rate cut later in the month. The pan-European STOXX 600 Index closed the day 0.12% in the positive.
Hong Kong
Asian markets rose on Friday due to comments made by the Fed that “cemented expectations” of rate cuts in July, as well as reports that US-China trade talks have resumed. At the end of trade, the Hang Seng stood 1.07% in the green.
Japan
On Friday, Japanese indices jumped, lifted by positive reports around the month’s US interest rate expectations as well as a strong performance by the semiconductor sector. The Nikkei closed the day 2% up.
Rand
The local currency was rattled on Friday after a report from the Public Protector, Advocate Busisiwe Mkhwebane, stated that President Cyril Ramaphosa might have “deliberately" misled parliament about a R500 000 donation from corruption-implicated company Bosasa. At 17h30, the rand traded R13.91 against the dollar.
Precious metals
Despite gold prices losing some ground on Friday, it was still on the way to recording a six-year high and closed the week 1.70% up. At 17h30, spot gold traded at $1 429.65 an ounce.
Oil
Oil prices rose on Friday on the back of growing tensions between the US and the Middle East after the US destroyed an Iranian drone in the Strait of Hormuz. At 17h30, a barrel of Brent crude was trading at $62.42.
The JSE ended the week on a high, boosted by banks, gold miners and positive sentiment that the US will cut interest rates later in July. At the closing bell, the Top 40 was 0.65% higher.
United States
US equities opened Friday in the green thanks to Microsoft’s positive earnings report lifting tech shares, and the US Federal Reserve Bank (Fed) alluding to an interest rate cut later in the month. At 17h30, the Dow Jones traded 0.26% up.
Europe
European markets ended Friday marginally higher, as concerns over Italy’s political stability offset investor hopes of a US rate cut later in the month. The pan-European STOXX 600 Index closed the day 0.12% in the positive.
Hong Kong
Asian markets rose on Friday due to comments made by the Fed that “cemented expectations” of rate cuts in July, as well as reports that US-China trade talks have resumed. At the end of trade, the Hang Seng stood 1.07% in the green.
Japan
On Friday, Japanese indices jumped, lifted by positive reports around the month’s US interest rate expectations as well as a strong performance by the semiconductor sector. The Nikkei closed the day 2% up.
Rand
The local currency was rattled on Friday after a report from the Public Protector, Advocate Busisiwe Mkhwebane, stated that President Cyril Ramaphosa might have “deliberately" misled parliament about a R500 000 donation from corruption-implicated company Bosasa. At 17h30, the rand traded R13.91 against the dollar.
Precious metals
Despite gold prices losing some ground on Friday, it was still on the way to recording a six-year high and closed the week 1.70% up. At 17h30, spot gold traded at $1 429.65 an ounce.
Oil
Oil prices rose on Friday on the back of growing tensions between the US and the Middle East after the US destroyed an Iranian drone in the Strait of Hormuz. At 17h30, a barrel of Brent crude was trading at $62.42.
Our daily update
So in a week that saw more cray politics in South Africa with the Public Protector continuing to go after Pravin Gordhan and President Ramaphosa in what is believe the Zuma faction of the ANC fighting back, looking to get another shot at looting state coffers. The week also so the South African Reserve Bank finally cutting interest rates. But the size of the cut was so marginal the cost of implementing the cut probably outways the effect it will have on the economy. We still believe the South African Reserve Bank is well behind the "8 ball" when it comes to interest rates and South Africans should have seen a lot sharper decline in interest rates than a mere 25 basis points.
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 isup 0.13% for the month of July 2019. Question is can it keep it up until the end of the month, to make it 6 out of 7 months of 2019 that the JSE All share has ended in positive territory?
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 isup 0.13% for the month of July 2019. Question is can it keep it up until the end of the month, to make it 6 out of 7 months of 2019 that the JSE All share has ended in positive territory?
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