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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 28 August 2019
South Africa
Although in positive territory, the local market remained rather flat on Tuesday as mixed messages from the US and China about their tariff negotiations left investors treading with caution. The JSE All Share closed 0.16% up.
United States
US shares started Tuesday higher as investors remained hopeful that a conclusion to the trade war will be reached, despite mixed messages from the US and China. At 18h10, the Dow was 0.20% in the red.
Europe
Despite equities in London weighing European markets down on Tuesday, trade was lifted by hopes that the possible formation of a new government in Rome could prevent a snap election in Italy. The STOXX 600 ended the day up 0.63%.
Hong Kong
Chinese shares enjoyed a day of gains on Tuesday, boosted by positive US-China comments and upbeat economic data lifting investor sentiment. The Shanghai Index rose 1.35%.
Japan
Japanese shares rose slightly on Tuesday after US President Donald Trump announced that there is no immediate plan to raise tariffs on Japanese auto imports into the US. The Nikkei Index closed 0.96% higher.
Rand
The rand took a knock on Tuesday as investors acted cautiously due to mixed messages released by the US and China about their tariff war as well as local political unease. At 18h00, a dollar traded at R15.36.
Precious metals
Bullion prices enjoyed a stellar day across the board as investors remained uneasy over the lack of direction regarding the US-China trade dispute. At 18h10, an ounce of spot gold traded at R1 543.08.
Oil
Oil slipped on Tuesday after China did not confirm comments made by the US government supporting a possible trade resolution. At 18h10, a barrel of Brent crude traded at $58.57.
Although in positive territory, the local market remained rather flat on Tuesday as mixed messages from the US and China about their tariff negotiations left investors treading with caution. The JSE All Share closed 0.16% up.
United States
US shares started Tuesday higher as investors remained hopeful that a conclusion to the trade war will be reached, despite mixed messages from the US and China. At 18h10, the Dow was 0.20% in the red.
Europe
Despite equities in London weighing European markets down on Tuesday, trade was lifted by hopes that the possible formation of a new government in Rome could prevent a snap election in Italy. The STOXX 600 ended the day up 0.63%.
Hong Kong
Chinese shares enjoyed a day of gains on Tuesday, boosted by positive US-China comments and upbeat economic data lifting investor sentiment. The Shanghai Index rose 1.35%.
Japan
Japanese shares rose slightly on Tuesday after US President Donald Trump announced that there is no immediate plan to raise tariffs on Japanese auto imports into the US. The Nikkei Index closed 0.96% higher.
Rand
The rand took a knock on Tuesday as investors acted cautiously due to mixed messages released by the US and China about their tariff war as well as local political unease. At 18h00, a dollar traded at R15.36.
Precious metals
Bullion prices enjoyed a stellar day across the board as investors remained uneasy over the lack of direction regarding the US-China trade dispute. At 18h10, an ounce of spot gold traded at R1 543.08.
Oil
Oil slipped on Tuesday after China did not confirm comments made by the US government supporting a possible trade resolution. At 18h10, a barrel of Brent crude traded at $58.57.
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Our daily update
Yesterday our sister website covered the latest financial review from Nike Inc. And since South Africans can invest in offshore stocks via various platforms we provide a brief extract from the latest Nike results here.
So what do we value one of the worlds biggest clothing and apparel brands stock at? Based on Nike's latest financial results for the last quarter of their 2019 fiscal year and the numbers for the full 2019 fiscal year we value Nike stock at $61.50 a share. We therefore feel the group's stock is overvalued and would not advise long term fundamental investors to invest in Nike Inc shares at this point in time as the value proposition is not present in Nike at the moment.
Read the full article here
So what do we value one of the worlds biggest clothing and apparel brands stock at? Based on Nike's latest financial results for the last quarter of their 2019 fiscal year and the numbers for the full 2019 fiscal year we value Nike stock at $61.50 a share. We therefore feel the group's stock is overvalued and would not advise long term fundamental investors to invest in Nike Inc shares at this point in time as the value proposition is not present in Nike at the moment.
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