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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 5 February 2019
South Africa
The JSE fell on Monday after a slump in retailers continued amid markets waiting for direction from US President Donald Trump’s state of the union address on Tuesday and President Cyril Ramaphosa’s state of the nation address on Thursday. The All Share lost 1%.
United States
Wall Street gained on Monday, boosted by technology shares ahead of Alphabet’s earnings, the last FAANG stock to post quarterly results. At 20h45 the Dow was up by 0.26%. Today markets will watch Trump’s state of the union address.
Europe
European shares were flat on Monday as the banking sector fell following poor results from Julius Baer. Just after the JSE closed, the FTSE 100 had gained 0.20%, while both the CAC 40 and DAX 30 dropped by 0.70% and 0.41% respectively.
Hong Kong
Mainland Chinese markets are shut for the week for the Lunar New Year holiday, while the Hong Kong market traded half day on Monday, ahead of this three-day festival.
Japan
The Nikkei climbed on Monday, led by financial stocks following solid economic data from the US. The Nikkei share average rose 0.46% at the midday break.
Rand
The rand was weaker on Monday, extending losses it suffered over the weekend. At 21h00 a dollar cost R13.40.
Precious metals
Gold prices slipped on Monday as global shares firmed on upbeat economic data from the US and a stronger greenback. At 21h00 an ounce of gold traded at $1 320.75.
Oil
Oil traded close to $62.75 a barrel on Monday as Opec-led supply cuts and US sanctions against Venezuela’s petroleum industry offset forecasts of weaker demand and an economic slowdown.
The JSE fell on Monday after a slump in retailers continued amid markets waiting for direction from US President Donald Trump’s state of the union address on Tuesday and President Cyril Ramaphosa’s state of the nation address on Thursday. The All Share lost 1%.
United States
Wall Street gained on Monday, boosted by technology shares ahead of Alphabet’s earnings, the last FAANG stock to post quarterly results. At 20h45 the Dow was up by 0.26%. Today markets will watch Trump’s state of the union address.
Europe
European shares were flat on Monday as the banking sector fell following poor results from Julius Baer. Just after the JSE closed, the FTSE 100 had gained 0.20%, while both the CAC 40 and DAX 30 dropped by 0.70% and 0.41% respectively.
Hong Kong
Mainland Chinese markets are shut for the week for the Lunar New Year holiday, while the Hong Kong market traded half day on Monday, ahead of this three-day festival.
Japan
The Nikkei climbed on Monday, led by financial stocks following solid economic data from the US. The Nikkei share average rose 0.46% at the midday break.
Rand
The rand was weaker on Monday, extending losses it suffered over the weekend. At 21h00 a dollar cost R13.40.
Precious metals
Gold prices slipped on Monday as global shares firmed on upbeat economic data from the US and a stronger greenback. At 21h00 an ounce of gold traded at $1 320.75.
Oil
Oil traded close to $62.75 a barrel on Monday as Opec-led supply cuts and US sanctions against Venezuela’s petroleum industry offset forecasts of weaker demand and an economic slowdown.
Our daily rant..
In a SENS announcement yesterday Clover announced that it received a firm offer from a newly formed company (Milco) of which Brimstone is a shareholder to acquire all the shares in Clover for a price of R25 a share.
The market reacted very positively to this announcement, as the share was trading at R20 a share when the announcement was made. An offer of R25 a share is a25% increase on the closing price of the shares as at 1 February 2019. The image below shows the share price behavior of Clover yesterday. See more regarding the offer to acquire all their shares here.
Clover share price reaction after buy out offer was made at R25 per Clover share
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.
The first trading day of February ended in the red. In contrast to January in which every Friday ended the day in the green. So far the market has lost -1.42% for the month of February. Giving back more than half the gains the JSE All Share made during January 2019.