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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 rant at the end.
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Short summary of PSG's market commentary for 27 March 2019
South Africa
The JSE recovered from its second sharpest daily decline of 2019 on Tuesday, following a solid performance by rand hedges and diversified miners. At 18h20 the All Share had gained 0.50%.
United States
Wall Street enjoyed a day of gains on Tuesday as market heavyweights such as Apple and chipmakers lifted technology shares, while higher crude oil prices prompted a rise in energy companies. At 18h25 the Dow Jones had gained 0.67%.
Europe
Concerns over a softening global economy and Brexit uncertainty had little impact on European shares on Tuesday as most European indexes fought a day of choppy trade to end in the green. At 18h30 the pan-European STOXX 600 index gained 0.78%.
Hong Kong
Hong Kong shares were flat on Tuesday following a sharp decline in the previous session while investors remained cautious amid fears of a possible US recession. The Hang Seng ended the day 0.08% in the red.
Japan
Japan’s Nikkei had a stellar performance on Tuesday as a rise in cyclical stocks boosted the currency, notwithstanding fears of a decelerating global economy. At 18h45, the Nikkei had gained 2.15%.
Rand
The local currency weakened against major global currencies on Tuesday, as the dollar strengthened amid easing concerns over a global economic slowdown. At 18h50, the rand traded R14.40 against the dollar.
Precious metals
Positive risk sentiment together with a rally in equity markets following sharp declines in the previous session weighed on the price of gold on Tuesday. At 18h50, spot gold was trading at $1 315.99 an ounce.
Oil
Oil prices surged on Tuesday as Opec supply cuts countered apprehensions over weaker demand as a result of an ailing global economy. At 19h00, a barrel of Brent crude was trading at $67.71.
The JSE recovered from its second sharpest daily decline of 2019 on Tuesday, following a solid performance by rand hedges and diversified miners. At 18h20 the All Share had gained 0.50%.
United States
Wall Street enjoyed a day of gains on Tuesday as market heavyweights such as Apple and chipmakers lifted technology shares, while higher crude oil prices prompted a rise in energy companies. At 18h25 the Dow Jones had gained 0.67%.
Europe
Concerns over a softening global economy and Brexit uncertainty had little impact on European shares on Tuesday as most European indexes fought a day of choppy trade to end in the green. At 18h30 the pan-European STOXX 600 index gained 0.78%.
Hong Kong
Hong Kong shares were flat on Tuesday following a sharp decline in the previous session while investors remained cautious amid fears of a possible US recession. The Hang Seng ended the day 0.08% in the red.
Japan
Japan’s Nikkei had a stellar performance on Tuesday as a rise in cyclical stocks boosted the currency, notwithstanding fears of a decelerating global economy. At 18h45, the Nikkei had gained 2.15%.
Rand
The local currency weakened against major global currencies on Tuesday, as the dollar strengthened amid easing concerns over a global economic slowdown. At 18h50, the rand traded R14.40 against the dollar.
Precious metals
Positive risk sentiment together with a rally in equity markets following sharp declines in the previous session weighed on the price of gold on Tuesday. At 18h50, spot gold was trading at $1 315.99 an ounce.
Oil
Oil prices surged on Tuesday as Opec supply cuts countered apprehensions over weaker demand as a result of an ailing global economy. At 19h00, a barrel of Brent crude was trading at $67.71.
Our daily update
EOH released a SENS on 25 March providing investors with an update regarding their Microsoft Channel Agreement that was cancelled by Microsoft supposedly due to concerns regarding EOH's business ethics and practices. In their SENS they gave their opinion on the impact the cancellation of this agreement will have on them. It follows below.
The impact of the latest notices is still being assessed, but early indications are that:
- Our Microsoft related bespoke application development, its largest business, will be predominantly unimpacted.
- Any long-term impact on the IP businesses, including the core IP that has been developed for re-sale utilising Microsoft technologies, can be mitigated through migration to other cloud providers.
- Our CRM (Dynamics 365) and Productivity Solutions business will be impacted in terms of access to partner support portals.
- Our Microsoft-related managed services business and clients will experience no impact as these services are provided on client infrastructure and platforms.
- Our Cloud business and platform business and the re-sale of Azure cloud offerings will be impacted in the short-term and EOH is in discussions to find a solution to ensure continuity of service and revenue streams.
While EOH's assessed impact of the latest notification on profit before tax is estimated at less than R20 million during the current financial year, this will bring the total impact of Microsoft exposure to R30 million profit before tax. Moreover, there is an overall medium to long-term go-to-market and credential impact and risk in not retaining Microsoft Gold Partner status. EOH apologises for any uncertainty and inconvenience caused and will continue to use our best endeavours to ensure there are no outages or disruptions to any client services as a result of the terminations.
For more on the EOH/Microsoft Sage see our EOH/Microsoft page
The impact of the latest notices is still being assessed, but early indications are that:
- Our Microsoft related bespoke application development, its largest business, will be predominantly unimpacted.
- Any long-term impact on the IP businesses, including the core IP that has been developed for re-sale utilising Microsoft technologies, can be mitigated through migration to other cloud providers.
- Our CRM (Dynamics 365) and Productivity Solutions business will be impacted in terms of access to partner support portals.
- Our Microsoft-related managed services business and clients will experience no impact as these services are provided on client infrastructure and platforms.
- Our Cloud business and platform business and the re-sale of Azure cloud offerings will be impacted in the short-term and EOH is in discussions to find a solution to ensure continuity of service and revenue streams.
While EOH's assessed impact of the latest notification on profit before tax is estimated at less than R20 million during the current financial year, this will bring the total impact of Microsoft exposure to R30 million profit before tax. Moreover, there is an overall medium to long-term go-to-market and credential impact and risk in not retaining Microsoft Gold Partner status. EOH apologises for any uncertainty and inconvenience caused and will continue to use our best endeavours to ensure there are no outages or disruptions to any client services as a result of the terminations.
For more on the EOH/Microsoft Sage see our EOH/Microsoft page
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 JSE All Share have seen two significantly red trading days in the last week, as fears about a slow down in China grips the markets. In addition to this, there is concerns that a slow down in China will affect the USA and a possible recession looming for the world's biggest economy. With all this in mind the JSE All Share is down -0.79% for the month of March so far. While it ended January and February in the green, it looks like March will be a red month of the JSE All Share.
And while there overall returns of the JSE All Share so far in 2019 has been positive (as shown by our 2019 Calendar tracker) we are losing out in Dollar terms. 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
And while there overall returns of the JSE All Share so far in 2019 has been positive (as shown by our 2019 Calendar tracker) we are losing out in Dollar terms. 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