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PSG daily investment update 6 May 2019
Date: 6 May 2019 Category: Stock Market |
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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 6 May 2019
South Africa
The local market ended the week on a high note, rising to 59 335.90 points by close of business on Friday. Gains were supported by platinum miners and banks. At the close of trade, the All Share was 1.01% in the green.
United States
US indices opened on a high on Friday as robust US job growth in April pointed to a solid US economy and the steady wage growth supported the US Federal Reserve Bank’s (Fed) call regarding interest rates. Shortly after the JSE closed, the Dow was 0.45% up.
Europe
On Friday, European markets made up losses from Thursday due to the strong performances by Adidas and HSBC as well as the increase in US jobs data. At the end of trade, the STOXX 600 was 0.39% higher.
Hong Kong
It was mainly a quiet trading day on Friday as Chinese markets were closed for a public holiday, but the Hang Seng rose on the back of HSBC Holdings outperforming its earnings estimates. The Hang Seng closed up 0.47%.
Japan
Markets were closed due to a public holiday.
Rand
On Friday, the local currency had the biggest growth spurt of all emerging market currencies based on the weaker-than-expected US wage growth and speculation that the Fed will not raise interest rates soon. At 17h50, the rand traded R14.39 against the dollar, R16.09 against the euro and R18.91 against the pound.
Precious metals
Gold prices climbed on Friday, almost reaching its biggest daily rise in two months, due to the dollar retreating. At 17h50, spot gold was trading at $1 280.34 an ounce.
Oil
Although it climbed somewhat on Friday, crude prices ended the week lower. The price was boosted by positive US jobs data and the sanctions on Iran and Venezuela tightened oil production. At 17h50, Brent crude was trading at $71.63 per barrel.
The local market ended the week on a high note, rising to 59 335.90 points by close of business on Friday. Gains were supported by platinum miners and banks. At the close of trade, the All Share was 1.01% in the green.
United States
US indices opened on a high on Friday as robust US job growth in April pointed to a solid US economy and the steady wage growth supported the US Federal Reserve Bank’s (Fed) call regarding interest rates. Shortly after the JSE closed, the Dow was 0.45% up.
Europe
On Friday, European markets made up losses from Thursday due to the strong performances by Adidas and HSBC as well as the increase in US jobs data. At the end of trade, the STOXX 600 was 0.39% higher.
Hong Kong
It was mainly a quiet trading day on Friday as Chinese markets were closed for a public holiday, but the Hang Seng rose on the back of HSBC Holdings outperforming its earnings estimates. The Hang Seng closed up 0.47%.
Japan
Markets were closed due to a public holiday.
Rand
On Friday, the local currency had the biggest growth spurt of all emerging market currencies based on the weaker-than-expected US wage growth and speculation that the Fed will not raise interest rates soon. At 17h50, the rand traded R14.39 against the dollar, R16.09 against the euro and R18.91 against the pound.
Precious metals
Gold prices climbed on Friday, almost reaching its biggest daily rise in two months, due to the dollar retreating. At 17h50, spot gold was trading at $1 280.34 an ounce.
Oil
Although it climbed somewhat on Friday, crude prices ended the week lower. The price was boosted by positive US jobs data and the sanctions on Iran and Venezuela tightened oil production. At 17h50, Brent crude was trading at $71.63 per barrel.
Our daily update
Every Friday we provide readers with Peregrine Treasury Services latest weekly markets wrap. Below an extract of the latest weekly markets wrap which focuses on SA equities.
SOUTH AFRICAN EQUITY
While the JSE has proposed changes to the current listing requirements, it's newly established competitor is making headway, obtaining its first retail listing,as Mr Price shares becoming trade-able on A2X as from the beginning of May. Mr price has attributed this secondary listing as an effort to deliver value to shareholders. The listing boosts the number of A2X listings to 19, with a combined market capitalisation of R2.4trn
Mr price formed part of the most traded shares on the local exchanges during the course of Thursday, along with British American Tabacco, Glencore and Miltichoice.
As with every market, for every winner there is a loser, and the same goes for equities, some of the top performers for Thursday included:
Read the full article here.
SOUTH AFRICAN EQUITY
While the JSE has proposed changes to the current listing requirements, it's newly established competitor is making headway, obtaining its first retail listing,as Mr Price shares becoming trade-able on A2X as from the beginning of May. Mr price has attributed this secondary listing as an effort to deliver value to shareholders. The listing boosts the number of A2X listings to 19, with a combined market capitalisation of R2.4trn
Mr price formed part of the most traded shares on the local exchanges during the course of Thursday, along with British American Tabacco, Glencore and Miltichoice.
As with every market, for every winner there is a loser, and the same goes for equities, some of the top performers for Thursday included:
- York Timber Holdings +20.57%
- Kaydav Group surging +20%
- ELB Group +15.33%
- Adcock Ingram Holdings -36.7%
- Aveng -33.33%
- Esor -25%
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.
So after 4 consecutive months of positive returns on the JSE All Share Index, the month of May kicked of trading on a very positive note with the first two trading days ending up 1.38%. For the JSE All Share Index performance over a longer period see our 2019 Calendar tracker for more.
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
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