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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 27 August 2019
South Africa
Despite the strong performance by miners, the local market started the week in the red due to fragile sentiment among investors around trade-war developments. The JSE All Share closed 0.34% down.
United States
Wall Street opened higher on Monday thanks to US President Donald Trump calming investor fears, saying that the US and China should soon return to the negotiation table. At 19h45, the Nasdaq was 1.04% in the green.
Europe
It was a flat trading day for European shares on Monday, as UK markets were closed for a public holiday and optimistic comments about the tariff war towards the end of the day lifted shares. The STOXX 600 ended the day 0.02% lower.
Hong Kong
Asian shares had a tough start to the week and the Chinese yuan fell to an 11-year low because of the violent protests in Hong Kong over the weekend and fears that the heavy escalations in the trade war could cause further economic damage. The Hang Seng Index fell 1.90%.
Japan
It was a gruelling Monday for Japanese markets, reaching a three-week low as Chinese-related companies took a knock from the backlash of the US-China tariff spat. The Nikkei Index closed 2.17% lower.
Rand
The local currency made up some losses towards the close of trade on the back of positive trade-negotiation comments from the US and China. At 19h45, a dollar traded at R15.26.
Precious metals
While equity markets struggled on Monday, gold prices reaped the rewards, rising to a six-year high and reaching an intraday mark of over $1 550 per ounce. At 19h45, an ounce of spot gold traded at R1 527.93.
Oil
Investor concerns around the US-China trade dispute and optimistic comments by French President, Emmanuel Macron, that Washington and
Tehran might soon reach a deal caused choppy trade for oil yesterday. At 19h45, a barrel of Brent crude traded at $58.73
Despite the strong performance by miners, the local market started the week in the red due to fragile sentiment among investors around trade-war developments. The JSE All Share closed 0.34% down.
United States
Wall Street opened higher on Monday thanks to US President Donald Trump calming investor fears, saying that the US and China should soon return to the negotiation table. At 19h45, the Nasdaq was 1.04% in the green.
Europe
It was a flat trading day for European shares on Monday, as UK markets were closed for a public holiday and optimistic comments about the tariff war towards the end of the day lifted shares. The STOXX 600 ended the day 0.02% lower.
Hong Kong
Asian shares had a tough start to the week and the Chinese yuan fell to an 11-year low because of the violent protests in Hong Kong over the weekend and fears that the heavy escalations in the trade war could cause further economic damage. The Hang Seng Index fell 1.90%.
Japan
It was a gruelling Monday for Japanese markets, reaching a three-week low as Chinese-related companies took a knock from the backlash of the US-China tariff spat. The Nikkei Index closed 2.17% lower.
Rand
The local currency made up some losses towards the close of trade on the back of positive trade-negotiation comments from the US and China. At 19h45, a dollar traded at R15.26.
Precious metals
While equity markets struggled on Monday, gold prices reaped the rewards, rising to a six-year high and reaching an intraday mark of over $1 550 per ounce. At 19h45, an ounce of spot gold traded at R1 527.93.
Oil
Investor concerns around the US-China trade dispute and optimistic comments by French President, Emmanuel Macron, that Washington and
Tehran might soon reach a deal caused choppy trade for oil yesterday. At 19h45, a barrel of Brent crude traded at $58.73
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Our daily update
Yesterday our sister website covered the latest financial review from Walt Disney Company (owners of the very popular theme parks and the Marvel Studios) which has been a hit in recent years with all its super hero movies. Below a short extract from the article.
Based on the group's latest financial result, the market they operate in and the competition they face in the entertainment sector in general against other content providers such as Netflix we value the group's stock at $125.20 a share so we expect the group's shares to pul back towards levels closer to our target price of $125.20. We therefore recommend long term investors to wait it out and look the buy The Walt Disney Company shares at levels closer to 10% below our target price, so look to buy at levels closer to the $110 a share.
Read the full article here
Based on the group's latest financial result, the market they operate in and the competition they face in the entertainment sector in general against other content providers such as Netflix we value the group's stock at $125.20 a share so we expect the group's shares to pul back towards levels closer to our target price of $125.20. We therefore recommend long term investors to wait it out and look the buy The Walt Disney Company shares at levels closer to 10% below our target price, so look to buy at levels closer to the $110 a 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 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