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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 24 July 2019
South Africa
The JSE closed higher on Tuesday, tracking world markets as investors digested global political developments. The JSE All Share rose 0.51%.
United States
A host of strong earnings boosted US markets on Tuesday, with investors not taking much notice of Boris Johnson who could become the UK’s next prime minister. At 17h30 the Dow Jones had gained 0.35%.
Europe
The sterling fell yesterday after Brexit hardliner Johnson won the leadership of Britain’s Conservative Party, clearing the way for him to become prime minister of the UK. This did not dent European markets that rose on strong earnings from Europe’s banking heavyweights. At 17h30 the FTSE 100 had gained 0.74%, France’s CAC 40 rose to 1.27% and Germany’s DAX 30 was up by 1.94%.
Hong Kong
Hong Kong shares closed higher on Tuesday, following a global rally boosted by expectations that the European Central Bank (ECB) and the Federal Reserve (Fed) will cut interest rates. The Hang Seng index rose 0.34%.
Japan
Expectations that the ECB and US Fed will cut interest rates boosted stocks globally, with Japanese shares being no exception. The Nikkei rose 0.95% on Tuesday.
Rand
The rand weakened slightly against the dollar on Tuesday, as markets digested the news that the new Conservative party leader could be the UK’s new prime minister.
Precious metals
Gold prices slipped on Tuesday as the dollar strengthened following a deal on extending the debt limit in the US. At 20h15, an ounce of gold traded at $1419.57.
Oil
Oil dropped on Tuesday as the concern faded for now that rising tension in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook. At 18h15, a barrel of Brent crude traded at $64.12.
The JSE closed higher on Tuesday, tracking world markets as investors digested global political developments. The JSE All Share rose 0.51%.
United States
A host of strong earnings boosted US markets on Tuesday, with investors not taking much notice of Boris Johnson who could become the UK’s next prime minister. At 17h30 the Dow Jones had gained 0.35%.
Europe
The sterling fell yesterday after Brexit hardliner Johnson won the leadership of Britain’s Conservative Party, clearing the way for him to become prime minister of the UK. This did not dent European markets that rose on strong earnings from Europe’s banking heavyweights. At 17h30 the FTSE 100 had gained 0.74%, France’s CAC 40 rose to 1.27% and Germany’s DAX 30 was up by 1.94%.
Hong Kong
Hong Kong shares closed higher on Tuesday, following a global rally boosted by expectations that the European Central Bank (ECB) and the Federal Reserve (Fed) will cut interest rates. The Hang Seng index rose 0.34%.
Japan
Expectations that the ECB and US Fed will cut interest rates boosted stocks globally, with Japanese shares being no exception. The Nikkei rose 0.95% on Tuesday.
Rand
The rand weakened slightly against the dollar on Tuesday, as markets digested the news that the new Conservative party leader could be the UK’s new prime minister.
Precious metals
Gold prices slipped on Tuesday as the dollar strengthened following a deal on extending the debt limit in the US. At 20h15, an ounce of gold traded at $1419.57.
Oil
Oil dropped on Tuesday as the concern faded for now that rising tension in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook. At 18h15, a barrel of Brent crude traded at $64.12.
Our daily update
Yesterday we covered the latest financial results from Kumba Iron Ore who benefited greatly from a sharp increase in global iron ore prices. Below an extract from the article
- Fatality free since May 2016 - EBITDA margin up 22 percentage points to 58%
- Strong balance sheet with net cash of R18.8 billion - Average realised export price up 57% to US$108/tonne
- Headline earnings up 239% to R10.1 billion or R31.51 per share
- Interim cash dividend of R30.79 per share
Read the full article here
- Fatality free since May 2016 - EBITDA margin up 22 percentage points to 58%
- Strong balance sheet with net cash of R18.8 billion - Average realised export price up 57% to US$108/tonne
- Headline earnings up 239% to R10.1 billion or R31.51 per share
- Interim cash dividend of R30.79 per share
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 0.24% for the month of July 2019. Question is can it keep it in the green 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 0.24% for the month of July 2019. Question is can it keep it in the green 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