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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 26 August 2019
South Africa
News that Naspers had enough votes to proceed with their Prosus listing in Amsterdam did little to boost the local bourse on Friday. The JSE All Share closed down 0.35%.
United States
The US economy is in a "favourable place" and the US Federal Reserve (Fed) will "act as appropriate" to keep the current economic expansion on track, Fed chair Jerome Powell said on Friday in remarks that gave few clues about whether the central bank will cut interest rates at its next meeting or not. At 17h20, the S&P 500 was 1.48% in the red.
Europe
European shares closed lower on Friday, after the speech by Fed chief Powell at Jackson Hole gave little clues on whether the central bank could cut interest rates next month. At 17h20 the FTSE 100 was down 0.30% and the DAX by 0.81%.
Hong Kong
Shares in China and Hong Kong rose on Friday, bolstered by hopes for potential progress in Sino-US trade negotiations as the US still plans in-person talks next month. The Hang Seng Index added 0.50%.
Japan
Japanese stocks rose on Friday, drawing support from a weaker yen, firmer Chinese markets, and a jump in domestic defence shares as ties with South Korea soured further. The Nikkei share average ended the day 0.40% higher.
Rand
The rand was weaker on Friday after it emerged that China was gearing up to levy tariffs on $75bn worth of US goods at the end of the month. At 17h20, a dollar traded at R15.19.
Precious metals
Gold edged lower on Friday, as investors locked in profits from bullion’s recent strength as they awaited clarity on US interest rate cuts from the US Fed chairman’s speech at Jackson Hole. At 17h20, an ounce of spot gold traded at R1 524.90.
Oil
Oil prices steadied on Friday, with attention focused on a speech by US Fed chief Powell for news on whether it will cut interest rates for a second time in 2019 to boost the world's largest economy. At 17h20, a barrel of Brent crude traded at $58.87.
News that Naspers had enough votes to proceed with their Prosus listing in Amsterdam did little to boost the local bourse on Friday. The JSE All Share closed down 0.35%.
United States
The US economy is in a "favourable place" and the US Federal Reserve (Fed) will "act as appropriate" to keep the current economic expansion on track, Fed chair Jerome Powell said on Friday in remarks that gave few clues about whether the central bank will cut interest rates at its next meeting or not. At 17h20, the S&P 500 was 1.48% in the red.
Europe
European shares closed lower on Friday, after the speech by Fed chief Powell at Jackson Hole gave little clues on whether the central bank could cut interest rates next month. At 17h20 the FTSE 100 was down 0.30% and the DAX by 0.81%.
Hong Kong
Shares in China and Hong Kong rose on Friday, bolstered by hopes for potential progress in Sino-US trade negotiations as the US still plans in-person talks next month. The Hang Seng Index added 0.50%.
Japan
Japanese stocks rose on Friday, drawing support from a weaker yen, firmer Chinese markets, and a jump in domestic defence shares as ties with South Korea soured further. The Nikkei share average ended the day 0.40% higher.
Rand
The rand was weaker on Friday after it emerged that China was gearing up to levy tariffs on $75bn worth of US goods at the end of the month. At 17h20, a dollar traded at R15.19.
Precious metals
Gold edged lower on Friday, as investors locked in profits from bullion’s recent strength as they awaited clarity on US interest rate cuts from the US Fed chairman’s speech at Jackson Hole. At 17h20, an ounce of spot gold traded at R1 524.90.
Oil
Oil prices steadied on Friday, with attention focused on a speech by US Fed chief Powell for news on whether it will cut interest rates for a second time in 2019 to boost the world's largest economy. At 17h20, a barrel of Brent crude traded at $58.87.
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Our daily update
Earlier today we covered the latest JSE market trading statistics for the week ending 23 August 2019. Below an extract from that article
Number of trades:
Number of trades (2019): 1 466 730
Number of trades (2018): 1 306 243
% change year on year: 12.29%
Volume traded:
Volume traded (2019): 1 484 026 000
Volume of traded (2018): 1 367 220 000
% change year on year: 8.45%
Value of trades:
Value of trades (2019): R94 372 927 000
Value of trades (2018): R97 295 325 000
% change year on year: -3%
Foreign purchase/selling:
Net sales/Purchases (2019): -R4 217 896 000
Net sales/Purchases (2018): -R2 392 774 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R53.379 billion
Net sales/Purchases (2018): R4.730 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R4.730 billion for the YTD while this year they have been net sellers to the tune of -R53.379 billion in the year to date (YTD). That is a R58.109 billion swing in the value of foreigners being net buyers or sellers over the course of the last 12 months. A clear sign that foreign capital is still leaving South African equities in vast amounts. Even with the Ramaphosa presidency trying to win back investor confidence. ESKOM's financial woes are scaring the markets and foreign investors. And with expected exchange rate weakness due to ESKOM's problems foreigners are selling their Rand holdings in order to protect against Rand weakness
JSE total market capitalisation:
Market Cap (2019): R15.804 trillion
Market Cap (2018): R14.979 trillion
% change year on year: 5.15%
Read the full article here
Number of trades:
Number of trades (2019): 1 466 730
Number of trades (2018): 1 306 243
% change year on year: 12.29%
Volume traded:
Volume traded (2019): 1 484 026 000
Volume of traded (2018): 1 367 220 000
% change year on year: 8.45%
Value of trades:
Value of trades (2019): R94 372 927 000
Value of trades (2018): R97 295 325 000
% change year on year: -3%
Foreign purchase/selling:
Net sales/Purchases (2019): -R4 217 896 000
Net sales/Purchases (2018): -R2 392 774 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R53.379 billion
Net sales/Purchases (2018): R4.730 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R4.730 billion for the YTD while this year they have been net sellers to the tune of -R53.379 billion in the year to date (YTD). That is a R58.109 billion swing in the value of foreigners being net buyers or sellers over the course of the last 12 months. A clear sign that foreign capital is still leaving South African equities in vast amounts. Even with the Ramaphosa presidency trying to win back investor confidence. ESKOM's financial woes are scaring the markets and foreign investors. And with expected exchange rate weakness due to ESKOM's problems foreigners are selling their Rand holdings in order to protect against Rand weakness
JSE total market capitalisation:
Market Cap (2019): R15.804 trillion
Market Cap (2018): R14.979 trillion
% change year on year: 5.15%
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 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 -4.42% 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. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war.
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 -4.42% 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. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war.
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