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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 6 August 2019
South Africa
The local bourse had a difficult start to the week after US President Donald Trump accused China of currency manipulation and threatened to impose 10% on $300 billion worth of Chinese imports on 1 September 2019. At the closing bell, the All Share was 2.31% in the red.
United States
US markets started the week in the red due to the continued sell-off trade from last week fuelled by the lower Chinese yuan, weighing on tech shares, and the ever-present trade war between the US and China. At 17h30, the DJ Industrial Average was over 2% in the negative.
Europe
On Monday, European shares hit a two-month low on the back of global sell-off trade due to the increasing tensions around the US-Chinese tariff war that weighed down mining, luxury and technology shares. The STOXX 600 closed down 2.31%.
Hong Kong
The Chinese yuan dropped 1.40% on Monday, breaching the seven-per-dollar level for the first time in over 10 years, indicating that ”Beijing might be willing to tolerate more currency weakness that could further inflame a trade conflict.” The Hang Seng ended Monday 2.35% down.
Japan
On Monday, continued friction between the US and China, as well as a stronger yen dragging down exporters such as Panasonic and Daikin, led to Japanese shares tumbling. At the closing bell, the Nikkei had lost 2.11%.
Rand
The local currency flirted with the R15/$-threshold on Monday as investors avoided risky trades amid escalating US-Sino tariff tensions. At 17h30, the rand traded R14.89 against the dollar.
Precious metals
Monday was a superb day for bullion prices as gold hit a six-year high after investors flocked to this safe haven asset amid trade war fears and a slowing global economy. At 17h30, an ounce of spot gold traded at $1 461.14.
Oil
Oil lost about 3% on Monday as the trade tensions between the US and China heated up, which could limit demand from the world’s top crude buyers. At 17h30, Brent crude was trading at $60.73 per barrel
The local bourse had a difficult start to the week after US President Donald Trump accused China of currency manipulation and threatened to impose 10% on $300 billion worth of Chinese imports on 1 September 2019. At the closing bell, the All Share was 2.31% in the red.
United States
US markets started the week in the red due to the continued sell-off trade from last week fuelled by the lower Chinese yuan, weighing on tech shares, and the ever-present trade war between the US and China. At 17h30, the DJ Industrial Average was over 2% in the negative.
Europe
On Monday, European shares hit a two-month low on the back of global sell-off trade due to the increasing tensions around the US-Chinese tariff war that weighed down mining, luxury and technology shares. The STOXX 600 closed down 2.31%.
Hong Kong
The Chinese yuan dropped 1.40% on Monday, breaching the seven-per-dollar level for the first time in over 10 years, indicating that ”Beijing might be willing to tolerate more currency weakness that could further inflame a trade conflict.” The Hang Seng ended Monday 2.35% down.
Japan
On Monday, continued friction between the US and China, as well as a stronger yen dragging down exporters such as Panasonic and Daikin, led to Japanese shares tumbling. At the closing bell, the Nikkei had lost 2.11%.
Rand
The local currency flirted with the R15/$-threshold on Monday as investors avoided risky trades amid escalating US-Sino tariff tensions. At 17h30, the rand traded R14.89 against the dollar.
Precious metals
Monday was a superb day for bullion prices as gold hit a six-year high after investors flocked to this safe haven asset amid trade war fears and a slowing global economy. At 17h30, an ounce of spot gold traded at $1 461.14.
Oil
Oil lost about 3% on Monday as the trade tensions between the US and China heated up, which could limit demand from the world’s top crude buyers. At 17h30, Brent crude was trading at $60.73 per barrel
Our daily update
Yesterday we covered the latest trading statistics released by the JSE for the week ending 2 August 2019. And foreigners were net sellers of R5billion worth of South African listed shares during the last week. And this is over and above the net selling of R6 billion two weeks ago. It is clear that foreigners are cashing in their local investments, and Rand weakness surely plays a large part in this, as foreign investors lose money with the Rand weakening so they selling and taking the money out of SA in order to protect them from losses created by currency weakness
JSE Trading Statistics for the week ending 2 August 2019
Number of trades:
Number of trades (2019): 1 581 572
Number of trades (2018): 1 284 788
% change year on year: 23.10%
Volume traded:
Volume traded (2019):1 556 124 000
Volume of traded (2018): 1 498 821 000
% change year on year: 3.82%
Value of trades:
Value of trades (2019): R101 783 854 000
Value of trades (2018): R97 365 844 000
% change year on year: 4.54%
Foreign purchase/selling:
Net sales/Purchases (2019): -R5 069 662 000
Net sales/Purchases (2018): -R3 793 138 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R43.79 billion
Net sales/Purchases (2018): R10.49 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R10.49 billion for the YTD while this year they have been net sellers to the tune of -R43.79 billion in the year to date (YTD). That is a R54.2 billion swing in the value of foreigners being net buyers or sellers over the course of the last 12 months. A clear sign that foreign capital is still leaving South African equities in vast amounts. Even with the Ramaphosa presidency trying to win back investor confidence. ESKOM's financial woes are scaring the markets and foreign investors. And with expected exchange rate weakness due to ESKOM's problems foreigners are selling their Rand holdings in order to protect against Rand weakness
Read full article here
JSE Trading Statistics for the week ending 2 August 2019
Number of trades:
Number of trades (2019): 1 581 572
Number of trades (2018): 1 284 788
% change year on year: 23.10%
Volume traded:
Volume traded (2019):1 556 124 000
Volume of traded (2018): 1 498 821 000
% change year on year: 3.82%
Value of trades:
Value of trades (2019): R101 783 854 000
Value of trades (2018): R97 365 844 000
% change year on year: 4.54%
Foreign purchase/selling:
Net sales/Purchases (2019): -R5 069 662 000
Net sales/Purchases (2018): -R3 793 138 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R43.79 billion
Net sales/Purchases (2018): R10.49 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R10.49 billion for the YTD while this year they have been net sellers to the tune of -R43.79 billion in the year to date (YTD). That is a R54.2 billion swing in the value of foreigners being net buyers or sellers over the course of the last 12 months. A clear sign that foreign capital is still leaving South African equities in vast amounts. Even with the Ramaphosa presidency trying to win back investor confidence. ESKOM's financial woes are scaring the markets and foreign investors. And with expected exchange rate weakness due to ESKOM's problems foreigners are selling their Rand holdings in order to protect against Rand weakness
Read 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 far August has gotten off to a horrible start, with the JSE All Share index losing -3.2% in the first three trading days of August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China.
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 far August has gotten off to a horrible start, with the JSE All Share index losing -3.2% in the first three trading days of August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China.
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