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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 September 2019
South Africa
The JSE closed higher on Thursday, as the majority of global equities climbed after comments from the US and China bolstered hopes of the two superpowers reaching a truce on trade. The JSE All Share rose 0.72%.
United States
Wall Street declined on Thursday after a report that the US was unlikely to extend a temporary waiver over Huawei’s blacklisting, adding to worries regarding the possible impeachment of President Donald Trump. Just after the JSE closed, the Dow was down 0.42%.
Europe
European shares moved higher yesterday, boosted by technology shares after encouraging comments from China on the trade dispute soothed sentiment. Shortly after the JSE closed, the FTSE 100 had added 1.11%, France’s CAC 40 0.75% and Germany’s DAX 0.55%.
Hong Kong
Hong Kong shares closed higher on Thursday as investors cheered signs of progress towards a trade deal between the world’s two largest economies. The Hang Seng index rose 0.40%.
Japan
The Nikkei added 0.13% on Thursday, as investors welcomed Trump’s hints of progress toward a trade deal with Beijing.
Rand
While the rand strengthened to below R15/$ yesterday, it weakened later in the day as emerging markets brushed aside trade optimism comments from the US. At 19h45 a dollar traded at R15.00.
Precious metals
Gold edged higher on Thursday as investors bought into the market after a sharp fall in the previous session, though bullion’s gains were limited by a firm dollar. An ounce of spot gold traded at $1 507.91 at 19h45.
Oil
Oil steadied on Thursday amid optimism that the US and China could resolve their trade dispute, though prices came under pressure from Saudi Arabia’s moves to restore output quickly after attacks on its oil installations. At 19h45 a barrel of Brent crude traded at $62.08.
The JSE closed higher on Thursday, as the majority of global equities climbed after comments from the US and China bolstered hopes of the two superpowers reaching a truce on trade. The JSE All Share rose 0.72%.
United States
Wall Street declined on Thursday after a report that the US was unlikely to extend a temporary waiver over Huawei’s blacklisting, adding to worries regarding the possible impeachment of President Donald Trump. Just after the JSE closed, the Dow was down 0.42%.
Europe
European shares moved higher yesterday, boosted by technology shares after encouraging comments from China on the trade dispute soothed sentiment. Shortly after the JSE closed, the FTSE 100 had added 1.11%, France’s CAC 40 0.75% and Germany’s DAX 0.55%.
Hong Kong
Hong Kong shares closed higher on Thursday as investors cheered signs of progress towards a trade deal between the world’s two largest economies. The Hang Seng index rose 0.40%.
Japan
The Nikkei added 0.13% on Thursday, as investors welcomed Trump’s hints of progress toward a trade deal with Beijing.
Rand
While the rand strengthened to below R15/$ yesterday, it weakened later in the day as emerging markets brushed aside trade optimism comments from the US. At 19h45 a dollar traded at R15.00.
Precious metals
Gold edged higher on Thursday as investors bought into the market after a sharp fall in the previous session, though bullion’s gains were limited by a firm dollar. An ounce of spot gold traded at $1 507.91 at 19h45.
Oil
Oil steadied on Thursday amid optimism that the US and China could resolve their trade dispute, though prices came under pressure from Saudi Arabia’s moves to restore output quickly after attacks on its oil installations. At 19h45 a barrel of Brent crude traded at $62.08.
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Our daily update
Yesterday we covered the lastest financial results of Capitec (CPI) and their number of active clients is still increasing at a rapid rate. Below an extract from our Capitec financial review.
So the big question is what are Capitec shares actually worth? Do they offer any value at their current price considering the very strong run the shares have had over the last 5 years? Does the growth in Capitec's profits corrospond to the growth in the share price, or is the share price running hot and due for a pull back? Based on Capitec's latest financial results and their prospects our valuation model provides a target (full value) price for Capitec Bank at R1220.
We therefore believe that Capitec Bank's shares is overvalued and we would not recommend long term fundamental or value investors buy into the group's shares at its current price. We suggest looking to enter at least 10% below our target price, which in this case is R1220. A good entry point would therefore be around R1098 a share
Read the full article here
So the big question is what are Capitec shares actually worth? Do they offer any value at their current price considering the very strong run the shares have had over the last 5 years? Does the growth in Capitec's profits corrospond to the growth in the share price, or is the share price running hot and due for a pull back? Based on Capitec's latest financial results and their prospects our valuation model provides a target (full value) price for Capitec Bank at R1220.
We therefore believe that Capitec Bank's shares is overvalued and we would not recommend long term fundamental or value investors buy into the group's shares at its current price. We suggest looking to enter at least 10% below our target price, which in this case is R1220. A good entry point would therefore be around R1098 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.
While the month of August was negative by -1.73% lets see what the month of September holds for the South African stock market.
So the shortened trading week almost over the JSE All Share Index is down by -1.21% for the month of September 2019 so far. While the month started off very positively it has since relinquished the gains it made and is now down by almost 25 with just a few more trading days to go in the month.
There continues to be concerns about a global economic 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
So the shortened trading week almost over the JSE All Share Index is down by -1.21% for the month of September 2019 so far. While the month started off very positively it has since relinquished the gains it made and is now down by almost 25 with just a few more trading days to go in the month.
There continues to be concerns about a global economic 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