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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 31 January 2019
South Africa
The local bourse slipped on Wednesday as it was pulled down by an earnings warning released by Shoprite’s, however, gains in the bullion sector capped JSE losses. At the close of business, both the All Share and the Top 40 were down 0.47%.
United States
US indices rallied on Wednesday due to positive earnings data released by Apple, Boeing and Amazon, as well as optimistic market predictions around the upcoming monetary policy updates to be released by the US Federal Reserve Bank (Fed) later on Wednesday. At market close, the Dow was up 1.77%.
Europe
On Wednesday European markets were boosted by strong results released by luxury goods companies such as Louis Vuitton; however, the trade discussions between the US and China kept investors cautious. The STOXX 600 closed up 0.25%, heading to its best monthly performance since October 2015.
Hong Kong
The Hang Seng rose slightly on Wednesday as investors expected the Fed would not hike US interest rates. At market close, the Hang Seng was 0.40% higher and the Shanghai 0.72% down.
Japan
Japan’s Nikkei fell on Wednesday despite the positive performance by Apple Inc because of Dainippon Sumitomo Pharma dropping severely after a failed drug trial. At the close of trade, the Nikkei was 0.52% lower.
Rand
The local currency continued its climb on Wednesday. Although Bloomberg data showed that the rand strengthened against the dollar in seven of the past 10 years during February, certain economists advised investors to stay mindful of the rand’s volatility. At 22h30, the rand traded at R13.35 a dollar, R17.52 a pound and R15.34 a euro.
Precious metals
On Wednesday gold prices almost reached an eight-month peak as investors were prudent ahead of the Fed’s policy announcements, the softening dollar, the Brexit vote results and the ever-looming US-China trade talks. At 22h30, spot gold was trading at $1 318.74 an ounce.
Oil
Oil prices rose further on Wednesday due to US stockpiles being lower than expected, and investors fearing the disrupted supply brought on by US sanctions imposed on PDVSA, a Venezuelan state-owned oil company. At 22h30, benchmark Brent crude was trading at $61.62 per barrel.
The local bourse slipped on Wednesday as it was pulled down by an earnings warning released by Shoprite’s, however, gains in the bullion sector capped JSE losses. At the close of business, both the All Share and the Top 40 were down 0.47%.
United States
US indices rallied on Wednesday due to positive earnings data released by Apple, Boeing and Amazon, as well as optimistic market predictions around the upcoming monetary policy updates to be released by the US Federal Reserve Bank (Fed) later on Wednesday. At market close, the Dow was up 1.77%.
Europe
On Wednesday European markets were boosted by strong results released by luxury goods companies such as Louis Vuitton; however, the trade discussions between the US and China kept investors cautious. The STOXX 600 closed up 0.25%, heading to its best monthly performance since October 2015.
Hong Kong
The Hang Seng rose slightly on Wednesday as investors expected the Fed would not hike US interest rates. At market close, the Hang Seng was 0.40% higher and the Shanghai 0.72% down.
Japan
Japan’s Nikkei fell on Wednesday despite the positive performance by Apple Inc because of Dainippon Sumitomo Pharma dropping severely after a failed drug trial. At the close of trade, the Nikkei was 0.52% lower.
Rand
The local currency continued its climb on Wednesday. Although Bloomberg data showed that the rand strengthened against the dollar in seven of the past 10 years during February, certain economists advised investors to stay mindful of the rand’s volatility. At 22h30, the rand traded at R13.35 a dollar, R17.52 a pound and R15.34 a euro.
Precious metals
On Wednesday gold prices almost reached an eight-month peak as investors were prudent ahead of the Fed’s policy announcements, the softening dollar, the Brexit vote results and the ever-looming US-China trade talks. At 22h30, spot gold was trading at $1 318.74 an ounce.
Oil
Oil prices rose further on Wednesday due to US stockpiles being lower than expected, and investors fearing the disrupted supply brought on by US sanctions imposed on PDVSA, a Venezuelan state-owned oil company. At 22h30, benchmark Brent crude was trading at $61.62 per barrel.
Our daily rant..
Yesterday saw Spur Corporation bring out a trading statement, and their crown jewel in recent years, smash burger maker, Rocomamas recorded a decline of 6.7% in same store sales over the period in question. A worrying sign for the food and beverages sector, when popular restaurants such as Rocomamas starts showing real signs of strain due to the poor economic conditions in South Africa.
Read more on Spur Corporation's trading statement here.
Read more on Spur Corporation's trading statement here.
Our JSE All Share index daily performance calendar
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.
For the month of January 2019 so far, the JSE All share index is up by 2.49%. Wednesday the 2nd saw its worse day of the month, while Wednesday the 9th saw the JSE All share record its best performing day of the month so far. Interestingly every Friday so far in January has seen the JSE end of a positive note.