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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 2 August 2019
South Africa
Following a solid showing by rand hedges, the local bourse ended higher on Thursday as world markets rebounded from a disappointing US Federal Reserve (Fed) policy statement, while an expansion in Absa’s manufacturing PMI figure boosted domestic investor confidence. Shortly after the closing bell, the All Share was up by 0.77%.
United States
Wall Street rallied on Thursday supported by a strong showing by technology stocks, after US Fed Chair Jerome Powell said on Wednesday that the central bank is not likely to trim interest rates in the foreseeable future. At 19h00, the S&P 500 was trading at 0.98% in the green.
Europe
European shares slid into negative territory on Thursday after the Fed dented hopes of future rate cuts, while a disappointing performance by Shell also weighed on market sentiment. At 19h25, the FTSE 100 was 0.03% in the red.
Hong Kong
Closing at a seven-week low on Thursday, the Hong Kong stock market channelled the broader Asian market into negative territory, after the Fed closed the door to further rate cuts while a disappointing economic growth rate for the second quarter weighed on sentiment. At 19h40, the Hang Seng lost 0.78%.
Japan
Japan’s Nikkei ended higher on Thursday amid a weakened yen environment, boosted by a strong performance by the real estate and transportation sectors. At the closing bell, the Nikkei had gained 0.09%.
Rand
The local currency lost its footing against the pound on Thursday after investors cheered the Bank of England’s decision to leave interest rates unchanged, while Britain comes to terms with the possibility of a no-deal Brexit. At 19h45, the rand traded at R14.64 against the dollar.
Precious metals
After the Fed dampened hopes for future rate cuts by saying this was merely “a mid-cycle adjustment to policy”, gold prices tracked a general decline in precious metals across the globe and fell to a two-week low on Thursday. At 19h50, spot gold was trading in the green at $1 439.98 an ounce.
Oil
Despite a drop in US inventories, oil prices snapped a six-day winning streak on Thursday after the Fed’s stance on interest rates triggered a decline in global commodities. At 20h00, a barrel of Brent crude was trading at $61.19.
Following a solid showing by rand hedges, the local bourse ended higher on Thursday as world markets rebounded from a disappointing US Federal Reserve (Fed) policy statement, while an expansion in Absa’s manufacturing PMI figure boosted domestic investor confidence. Shortly after the closing bell, the All Share was up by 0.77%.
United States
Wall Street rallied on Thursday supported by a strong showing by technology stocks, after US Fed Chair Jerome Powell said on Wednesday that the central bank is not likely to trim interest rates in the foreseeable future. At 19h00, the S&P 500 was trading at 0.98% in the green.
Europe
European shares slid into negative territory on Thursday after the Fed dented hopes of future rate cuts, while a disappointing performance by Shell also weighed on market sentiment. At 19h25, the FTSE 100 was 0.03% in the red.
Hong Kong
Closing at a seven-week low on Thursday, the Hong Kong stock market channelled the broader Asian market into negative territory, after the Fed closed the door to further rate cuts while a disappointing economic growth rate for the second quarter weighed on sentiment. At 19h40, the Hang Seng lost 0.78%.
Japan
Japan’s Nikkei ended higher on Thursday amid a weakened yen environment, boosted by a strong performance by the real estate and transportation sectors. At the closing bell, the Nikkei had gained 0.09%.
Rand
The local currency lost its footing against the pound on Thursday after investors cheered the Bank of England’s decision to leave interest rates unchanged, while Britain comes to terms with the possibility of a no-deal Brexit. At 19h45, the rand traded at R14.64 against the dollar.
Precious metals
After the Fed dampened hopes for future rate cuts by saying this was merely “a mid-cycle adjustment to policy”, gold prices tracked a general decline in precious metals across the globe and fell to a two-week low on Thursday. At 19h50, spot gold was trading in the green at $1 439.98 an ounce.
Oil
Despite a drop in US inventories, oil prices snapped a six-day winning streak on Thursday after the Fed’s stance on interest rates triggered a decline in global commodities. At 20h00, a barrel of Brent crude was trading at $61.19.
Our daily update
Woolworths released an updated trading statement yesterday. Below a short extract.
A strategic review of the David Jones store portfolio has also identified stores with onerous leases resulting in an additional provision of A$22.4 million at period end. The impairment reflects the economic headwinds and the accelerating structural changes affecting the Australian retail sector as well as the performance of the business, which has fallen short of expectations.
The WHL Board believes that the valuation of David Jones is realistic and reflective of its prospects. EPS, HEPS and adjusted diluted HEPS for the pro forma 52 weeks ended 23 June 2019 are expected to be within the ranges reflected in the table below:
June 2018 June 2019 (expected increase/decrease) in % June 2019
EPS (cents) -369.5 60.0% to 70.0% -110.8 to -147.8
HEPS (cents) 346.3 -7.5% to -2.5% 320.3 to 337.6
Adjusted diluted HEPS (cents) 364.1 -5.0% to 0% 345.9 to 364.1
Read the full article here
A strategic review of the David Jones store portfolio has also identified stores with onerous leases resulting in an additional provision of A$22.4 million at period end. The impairment reflects the economic headwinds and the accelerating structural changes affecting the Australian retail sector as well as the performance of the business, which has fallen short of expectations.
The WHL Board believes that the valuation of David Jones is realistic and reflective of its prospects. EPS, HEPS and adjusted diluted HEPS for the pro forma 52 weeks ended 23 June 2019 are expected to be within the ranges reflected in the table below:
June 2018 June 2019 (expected increase/decrease) in % June 2019
EPS (cents) -369.5 60.0% to 70.0% -110.8 to -147.8
HEPS (cents) 346.3 -7.5% to -2.5% 320.3 to 337.6
Adjusted diluted HEPS (cents) 364.1 -5.0% to 0% 345.9 to 364.1
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 -2.36%. Only the second negative month for the JSE in 2019. So lets see what August 2019 holds for South Africa's stock market. But it started the first day of August on a very positive note, with the JSE All share index ending the day up by 0.77%
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 -2.36%. Only the second negative month for the JSE in 2019. So lets see what August 2019 holds for South Africa's stock market. But it started the first day of August on a very positive note, with the JSE All share index ending the day up by 0.77%
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