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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 23 July 2019
South Africa
The JSE closed lower on Monday, due to concerns that the US Federal Reserve (Fed) may only make a 25 basis point cut to the interest rate this month. The JSE All Share lost 0.40%.
United States
Wall Street started slow on Monday as investors were wary of making big bets ahead of key central bank meetings on interest rates and as earnings from companies like Facebook and Amazon are expected later in the week. At 17h30 the Dow was down by 0.18%.
Europe
European shares ended flat on Monday with low trading volumes at the start of an important week for corporate earnings and a meeting by the European Central Bank over monetary policy. All main indices closed flat.
Hong Kong
China’s new Nasdaq-style board for homegrown tech firms opened on Monday with shares growing as much as 520%, Reuters noted. Modelled after Nasdaq, and complete with a US-style IPO system, the STAR index is a bold move by China to reform capital markets. The STAR Market is operated by the Shanghai Stock Exchange.
Japan
Japanese shares dipped on Monday as hopes for a large Fed rate cut faded and investors took a cautious stance ahead of the domestic earnings seasons. The Nikkei fell 0.23%.
Rand
The rand firmed on Monday afternoon as focus remained on US monetary policy, with experts expecting a rate cut of 25bps. At 19h30 the rand traded at R13.85/$.
Precious metals
Gold steadied on Monday on lowered expectations of a big interest rate cut by the Fed later this month. At 19h30 an ounce of gold traded at $1 428.40.
Oil
Oil prices rose on Monday on concerns that Iran's seizure of a British tanker last week may lead to supply disruptions in the energy-rich Gulf. A barrel of Brent crude traded at $63.61 at 19h30
The JSE closed lower on Monday, due to concerns that the US Federal Reserve (Fed) may only make a 25 basis point cut to the interest rate this month. The JSE All Share lost 0.40%.
United States
Wall Street started slow on Monday as investors were wary of making big bets ahead of key central bank meetings on interest rates and as earnings from companies like Facebook and Amazon are expected later in the week. At 17h30 the Dow was down by 0.18%.
Europe
European shares ended flat on Monday with low trading volumes at the start of an important week for corporate earnings and a meeting by the European Central Bank over monetary policy. All main indices closed flat.
Hong Kong
China’s new Nasdaq-style board for homegrown tech firms opened on Monday with shares growing as much as 520%, Reuters noted. Modelled after Nasdaq, and complete with a US-style IPO system, the STAR index is a bold move by China to reform capital markets. The STAR Market is operated by the Shanghai Stock Exchange.
Japan
Japanese shares dipped on Monday as hopes for a large Fed rate cut faded and investors took a cautious stance ahead of the domestic earnings seasons. The Nikkei fell 0.23%.
Rand
The rand firmed on Monday afternoon as focus remained on US monetary policy, with experts expecting a rate cut of 25bps. At 19h30 the rand traded at R13.85/$.
Precious metals
Gold steadied on Monday on lowered expectations of a big interest rate cut by the Fed later this month. At 19h30 an ounce of gold traded at $1 428.40.
Oil
Oil prices rose on Monday on concerns that Iran's seizure of a British tanker last week may lead to supply disruptions in the energy-rich Gulf. A barrel of Brent crude traded at $63.61 at 19h30
Our daily update
Yesterday we covered the latest Johannesburg Stock Exchange (JSE) trading statistics for the week ending 19 July 2019. Below an extract from the article
Number of trades:
Number of trades (2019): 1 430 229
Number of trades (2018): 960 873
% change year on year: 48.85%
Volume traded:
Volume traded (2019): 1 413 399 000
Volume of traded (2018): 1 387 557 000
% change year on year: 1.86%
Value of trades:
Value of trades (2019): R87 357 789 000
Value of trades (2018): R84 594 506 000
% change year on year: 3.27%
Foreign purchase/selling:
Net sales/Purchases (2019): R1 765 196 000
Net sales/Purchases (2018): -R1 074 747 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R33.52 billion
Net sales/Purchases (2018): R14.49 billion
Read the full article here
Number of trades:
Number of trades (2019): 1 430 229
Number of trades (2018): 960 873
% change year on year: 48.85%
Volume traded:
Volume traded (2019): 1 413 399 000
Volume of traded (2018): 1 387 557 000
% change year on year: 1.86%
Value of trades:
Value of trades (2019): R87 357 789 000
Value of trades (2018): R84 594 506 000
% change year on year: 3.27%
Foreign purchase/selling:
Net sales/Purchases (2019): R1 765 196 000
Net sales/Purchases (2018): -R1 074 747 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R33.52 billion
Net sales/Purchases (2018): R14.49 billion
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 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 is up -0.27% for the month of July 2019. Question is can it get into the green and stay there 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 is up -0.27% for the month of July 2019. Question is can it get into the green and stay there 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