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PSG daily investment update 29 April 2019
Date: 29 April 2019 Category: Stock Market |
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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 29 April 2019
South Africa
The JSE endured choppy trade in a shortened session on Friday amid subdued sentiment as investors awaited US GDP data for the first quarter of 2019. Shortly after the closing bell, the All Share gained 0.15%.
United States
Dow Jones futures were flat on Friday as investors kept a close eye on GDP data, which is anticipated to show the US economy maintained a steady pace of growth in the first quarter of the year. Shortly after the JSE closed, the Dow was down 0.10%.
Europe
Italy’s government bond yields plunged on Friday as investors anticipated that S&P Global will refrain from announcing the country’s ratings review. At 20h30 on Saturday, the FTSE Italia All Share was up 0.60%.
Hong Kong
Despite gains in early trade, Hong Kong shares recorded their biggest weekly drop in eight weeks on Friday as investors expressed concern over the possibility that China may reduce its stimulus measures as the economy continues to stabilise. The Hang Seng ended the day 0.20% in the red.
Japan
Japanese equities surged to a 1-month high on Friday following the Bank of Japan’s pledge to keep interest rates at low levels for longer. The Nikkei ended the day 0.25% higher.
Rand
The rand was little changed against major global currencies on Friday ahead of the release of US economic data. At 20h00 on Saturday, the rand traded R14.38 against the dollar.
Precious metals
Following a dip in US treasury yields and the dollar, gold prices surged on Friday, rebounding from a four-month low reached earlier in the week. At 20h00 on Saturday, spot gold was up trading at $1 285.99 an ounce.
Oil
Oil prices slipped on Friday amid efforts to recommence Russian oil flows that were halted as a result of contamination. On Saturday evening, a barrel of Brent crude was trading at $71.71.
The JSE endured choppy trade in a shortened session on Friday amid subdued sentiment as investors awaited US GDP data for the first quarter of 2019. Shortly after the closing bell, the All Share gained 0.15%.
United States
Dow Jones futures were flat on Friday as investors kept a close eye on GDP data, which is anticipated to show the US economy maintained a steady pace of growth in the first quarter of the year. Shortly after the JSE closed, the Dow was down 0.10%.
Europe
Italy’s government bond yields plunged on Friday as investors anticipated that S&P Global will refrain from announcing the country’s ratings review. At 20h30 on Saturday, the FTSE Italia All Share was up 0.60%.
Hong Kong
Despite gains in early trade, Hong Kong shares recorded their biggest weekly drop in eight weeks on Friday as investors expressed concern over the possibility that China may reduce its stimulus measures as the economy continues to stabilise. The Hang Seng ended the day 0.20% in the red.
Japan
Japanese equities surged to a 1-month high on Friday following the Bank of Japan’s pledge to keep interest rates at low levels for longer. The Nikkei ended the day 0.25% higher.
Rand
The rand was little changed against major global currencies on Friday ahead of the release of US economic data. At 20h00 on Saturday, the rand traded R14.38 against the dollar.
Precious metals
Following a dip in US treasury yields and the dollar, gold prices surged on Friday, rebounding from a four-month low reached earlier in the week. At 20h00 on Saturday, spot gold was up trading at $1 285.99 an ounce.
Oil
Oil prices slipped on Friday amid efforts to recommence Russian oil flows that were halted as a result of contamination. On Saturday evening, a barrel of Brent crude was trading at $71.71.
Our daily update
Below a snippet of Peregrine Treasury Services Weekly Market wrap regarding South African equities
The medical sector continues to remain under pressure, as Life Healthcare was seen slipping over 8.00% (down around R25.00 per share on the day) on Wednesday on the back of a poor earnings numbers for the six months ending 31 March 2019. Added strain continues to flow toward the sector, as medical aid companies start to heavily address the high costs that patients incur within the walls of these medical institutions. Life Healthcare opened up Friday’s trading day at R26.47 per share, now almost flat for the year.
Some of April’s bigger movers on the JSE, as at Friday morning:
Read the full article here.
The medical sector continues to remain under pressure, as Life Healthcare was seen slipping over 8.00% (down around R25.00 per share on the day) on Wednesday on the back of a poor earnings numbers for the six months ending 31 March 2019. Added strain continues to flow toward the sector, as medical aid companies start to heavily address the high costs that patients incur within the walls of these medical institutions. Life Healthcare opened up Friday’s trading day at R26.47 per share, now almost flat for the year.
Some of April’s bigger movers on the JSE, as at Friday morning:
- EOH: up around 83.60%
- Telkom: up around 13.82%
- Bidvest: up around 11.97%
- Price: up around 10.65%
- Tiger Brands: down around 9.35%
- Life Healthcare: down around 2.32%
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 JSE All Share Index has increased by 4.26% for the month of April 2019. This is by far the strongest showing of any of the months of 2019 and the JSE All Share Index looks set to provide investors with four straight months of positive returns. See our 2019 Calendar tracker for more.
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
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