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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 September 2019
South Africa
The local market ended the week in the green on the back of more positive comments from the Chinese government regarding the tariff war, lifting sentiment globally. The JSE All Share closed 1.56% up.
United States
US indices extended gains from Thursday by opening strong on Friday due to optimism that the US and China will soon resume negotiations. At 17h45, the Dow Jones was 0.19% in the red.
Europe
European markets ended a brutal month of trade on a higher note on Friday thanks to the upbeat comments about the protracted trade war made by the US and Chinese governments. The STOXX 600 ended the day 0.73% higher.
Hong Kong
Despite the optimism surrounding the US-Sino tariff dispute, Hong Kong shares recorded the biggest monthly drop since May on Friday due to simmering protests. The Hang Seng Index closed 0.66% lower.
Japan
Japanese markets posted sharp gains on Friday, rising 1.40% for the week, as Chinese-linked shares advanced on hopeful signs that the US and China will recommence negotiations. The Nikkei Index closed 1.19% up.
Rand
The local currency strengthened against the dollar on Friday thanks to improved sentiment over the US-China trade war that boosted risk-on trade. At 18h45, a dollar traded at R15.20.
Precious metals
Although the gold price was flat on Friday, it was still on its way to record its fourth consecutive monthly gain. At 18h45, an ounce of spot gold traded at R1 528.28.
Oil
Despite the oil price losing some of its latest gains on Friday, it still recorded its biggest weekly rise since July – almost 2%. At 18h45, a barrel of Brent crude traded at $59.39.
The local market ended the week in the green on the back of more positive comments from the Chinese government regarding the tariff war, lifting sentiment globally. The JSE All Share closed 1.56% up.
United States
US indices extended gains from Thursday by opening strong on Friday due to optimism that the US and China will soon resume negotiations. At 17h45, the Dow Jones was 0.19% in the red.
Europe
European markets ended a brutal month of trade on a higher note on Friday thanks to the upbeat comments about the protracted trade war made by the US and Chinese governments. The STOXX 600 ended the day 0.73% higher.
Hong Kong
Despite the optimism surrounding the US-Sino tariff dispute, Hong Kong shares recorded the biggest monthly drop since May on Friday due to simmering protests. The Hang Seng Index closed 0.66% lower.
Japan
Japanese markets posted sharp gains on Friday, rising 1.40% for the week, as Chinese-linked shares advanced on hopeful signs that the US and China will recommence negotiations. The Nikkei Index closed 1.19% up.
Rand
The local currency strengthened against the dollar on Friday thanks to improved sentiment over the US-China trade war that boosted risk-on trade. At 18h45, a dollar traded at R15.20.
Precious metals
Although the gold price was flat on Friday, it was still on its way to record its fourth consecutive monthly gain. At 18h45, an ounce of spot gold traded at R1 528.28.
Oil
Despite the oil price losing some of its latest gains on Friday, it still recorded its biggest weekly rise since July – almost 2%. At 18h45, a barrel of Brent crude traded at $59.39.
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Our daily update
Our sister site covered the latest earnings report of Sanderson Farms Inc. the third biggest poultry producer in the United States. Below a short extract from the article.
Based on the group's latest earnings report, the decreases in some of their main input costs as well as the fact that prices for their products are expected to come under pressure after having risen sharply in the last year we have a target price for Sanderson Farms stock of $115.10. We therefore believe the group's stock is overvalued and would not recommend fundamental long term investors to buy into the stock at its current price. Rather look to enter it at about 10% below our target (full value) price of $115.10. So we would recommend buying around $105 a share.
Read the full valuation here
Read the full valuation 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. The JSE All Share Index closed the month of August down by -1.73%. However the last trading week of the month of August was largely positive and we are sure investors are hoping that the positive momentum carries on through September 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 based on the skittish markets we suspect that August will end well in the red.
There are continued and 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. The JSE All Share Index closed the month of August down by -1.73%. However the last trading week of the month of August was largely positive and we are sure investors are hoping that the positive momentum carries on through September 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 based on the skittish markets we suspect that August will end well in the red.
There are continued and 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