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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 3 June 2019
South Africa
Tracking a global sell-off in financial markets, the JSE ended lower on Friday after the US vowed to impose trade tariffs on Mexico in response to illegal migration. Shortly after the closing bell, the All Share lost 0.09%.
United States
US markets fell sharply on Friday as fears that President Donald Trump’s threat to impose tariffs on Mexico could push the world’s biggest economy into a recession. At 19h00 on Sunday, the Dow had lost 1.41%.
Europe
European shares traded lower on Friday as markets digested Washington’s vow to impose a 5% tariff on Mexico from 10 June, which would then gradually increase to 25% until illegal immigration from Mexico comes to a halt. At 19h15 on Sunday, the pan-European Stoxx 600 lost 0.81%.
Hong Kong
Hong Kong shares recorded their worst month since October 2018, plunging to a four-month low on Friday as yet another deadlock in the infamous trade talks between Washington and Beijing triggered concerns over a global economic slowdown. At 19h20 on Sunday, the Hang-Seng lost 0.79%.
Japan
Japan’s Nikkei wasn’t spared from a global sell-off on Friday as the currency fell to a 3-month low after Trump’s announcement to impose tariffs on all goods from Mexico until illegal immigration is completely halted. At the closing bell, the Nikkei had lost 1.63%.
Rand
Following a tough week which saw the rand plunging as low as R14.80/$, the local currency was somewhat better than most global currencies on Friday afternoon. At 19h30 on Sunday, the rand traded at R14.59 against the dollar.
Precious metals
Gold prices went up on Friday on the back of increased demand for safer assets, after Trump’s announcement to impose tariffs on all Mexican imports fuelled fears of a global economic slowdown. At 19h40 on Sunday, spot gold was up trading at $1 305.62 an ounce.
Oil
The price of oil slipped on Friday and was set for its biggest monthly decline in over six months after Trump’s tariff spree took its toll and dented demand. At 19h45 on Sunday, a barrel of Brent crude was trading at $61.93.
Tracking a global sell-off in financial markets, the JSE ended lower on Friday after the US vowed to impose trade tariffs on Mexico in response to illegal migration. Shortly after the closing bell, the All Share lost 0.09%.
United States
US markets fell sharply on Friday as fears that President Donald Trump’s threat to impose tariffs on Mexico could push the world’s biggest economy into a recession. At 19h00 on Sunday, the Dow had lost 1.41%.
Europe
European shares traded lower on Friday as markets digested Washington’s vow to impose a 5% tariff on Mexico from 10 June, which would then gradually increase to 25% until illegal immigration from Mexico comes to a halt. At 19h15 on Sunday, the pan-European Stoxx 600 lost 0.81%.
Hong Kong
Hong Kong shares recorded their worst month since October 2018, plunging to a four-month low on Friday as yet another deadlock in the infamous trade talks between Washington and Beijing triggered concerns over a global economic slowdown. At 19h20 on Sunday, the Hang-Seng lost 0.79%.
Japan
Japan’s Nikkei wasn’t spared from a global sell-off on Friday as the currency fell to a 3-month low after Trump’s announcement to impose tariffs on all goods from Mexico until illegal immigration is completely halted. At the closing bell, the Nikkei had lost 1.63%.
Rand
Following a tough week which saw the rand plunging as low as R14.80/$, the local currency was somewhat better than most global currencies on Friday afternoon. At 19h30 on Sunday, the rand traded at R14.59 against the dollar.
Precious metals
Gold prices went up on Friday on the back of increased demand for safer assets, after Trump’s announcement to impose tariffs on all Mexican imports fuelled fears of a global economic slowdown. At 19h40 on Sunday, spot gold was up trading at $1 305.62 an ounce.
Oil
The price of oil slipped on Friday and was set for its biggest monthly decline in over six months after Trump’s tariff spree took its toll and dented demand. At 19h45 on Sunday, a barrel of Brent crude was trading at $61.93.
Our daily update
As we do every Friday, we provide readers with Peregrine's Weekly Markets Wrap. Below the extract that covers South African equities for last week.
SOUTH AFRICAN EQUITY
Local markets sold into the cabinet reshuffle this week, pointing toward a material amount of investors not being too confident in the thinking of Ramaphosa - most interestingly, David Mabuza being appointed as an MP.
Sibanye Gold saw their shareholders voting overwhelmingly in favour of the buyout of Lonmin, indicating that the risk appetite is big enough to venture into the likes of palladium and platinum, where they previously hadn’t. Shortly after this announcement the Sibanye chairman announced his retirement. Neal Froneman will now take center stage and ensure the success of the takeover.
Here’s some of the bigger movers on the JSE for the 2019 year so far, as at Friday morning:
Read the full article here.
SOUTH AFRICAN EQUITY
Local markets sold into the cabinet reshuffle this week, pointing toward a material amount of investors not being too confident in the thinking of Ramaphosa - most interestingly, David Mabuza being appointed as an MP.
Sibanye Gold saw their shareholders voting overwhelmingly in favour of the buyout of Lonmin, indicating that the risk appetite is big enough to venture into the likes of palladium and platinum, where they previously hadn’t. Shortly after this announcement the Sibanye chairman announced his retirement. Neal Froneman will now take center stage and ensure the success of the takeover.
Here’s some of the bigger movers on the JSE for the 2019 year so far, as at Friday morning:
- Impala Platinum: up 54.85%
- Kumba Iron Ore: up 60.70% (up 7.00% in the last week)
- Lonmin: up 51.13% (up almost 20.00% in the last week due to Sibanye takeover)
- Tongaat Hulett: down 67.56%
- Rebosis Property Fund: down 69.52%
- Delta Property Fund: down 56.00% (more than 10.00% in the last week)
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.
The month of May continues to be negative, and this after 4 months of positive returns for the JSE All Share Index. As can be seen from the Calendar chart above the number of red blocks far outnumber the number of green blocks. It has been a pretty miserable month so far on the JSE, and May has wiped out almost half of the returns the market made in the first 4 months of 2019. Seems like sell in May and stay away is holding true. While the last few trading days in May has turned positive, especially after President Ramaphosa's cabinet announcement it looks like the month of May will end solidly in the red.
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
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