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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 7 August 2019
South Africa
While global equity markets endured a day of choppy trade on Tuesday, the local market held on to gains despite losing steam towards the close of business after the yuan stabilised. At the closing bell, the All Share was 0.17% in the green.
United States
US shares opened stronger on Tuesday, recovering from the biggest one-day slide in 2019, after a stable yuan boosted tech shares. At 19h45, the Nasdaq was almost 1% up
Europe
Tuesday marked another day of losses for European markets, weighed down by trade-war concerns, despite China fixing the yuan at a stronger rate and Germany releasing upbeat economic data. The STOXX 600 closed 0.47% lower.
Hong Kong
Although Chinese authorities took action on Tuesday to stabilise the yuan’s drop, the stock market continued to fall after Beijing was branded a “currency manipulator” by Washington, escalating the US-China trade tensions. The Hang Seng ended the day 0.67% down.
Japan
Japanese shares hit a seven-month low as investors feared that the trade strife between the US and China might boil over into a full-blown economic war. At the closing bell, the Nikkei had lost 0.65%.
Rand
The local currency suffered some late afternoon losses on Tuesday after Moody’s stated that “Eskom financial results is highlighted as an unsustainable capital structure and is in need of an urgent turnaround.” At 19h45, the rand traded R14.98 against the dollar.
Precious metals
Gold prices enjoyed another day of hikes as investors continued to seek safe-haven assets in light of the US-China trade tensions. At 19h45, an ounce of spot gold traded at $1 472.27.
Oil
Oil prices continued to feel pressure from the escalating tariff war between China and the US on Tuesday, losing about 9% in the past week. At 19h45, Brent crude was trading at $59.58 per barrel.
While global equity markets endured a day of choppy trade on Tuesday, the local market held on to gains despite losing steam towards the close of business after the yuan stabilised. At the closing bell, the All Share was 0.17% in the green.
United States
US shares opened stronger on Tuesday, recovering from the biggest one-day slide in 2019, after a stable yuan boosted tech shares. At 19h45, the Nasdaq was almost 1% up
Europe
Tuesday marked another day of losses for European markets, weighed down by trade-war concerns, despite China fixing the yuan at a stronger rate and Germany releasing upbeat economic data. The STOXX 600 closed 0.47% lower.
Hong Kong
Although Chinese authorities took action on Tuesday to stabilise the yuan’s drop, the stock market continued to fall after Beijing was branded a “currency manipulator” by Washington, escalating the US-China trade tensions. The Hang Seng ended the day 0.67% down.
Japan
Japanese shares hit a seven-month low as investors feared that the trade strife between the US and China might boil over into a full-blown economic war. At the closing bell, the Nikkei had lost 0.65%.
Rand
The local currency suffered some late afternoon losses on Tuesday after Moody’s stated that “Eskom financial results is highlighted as an unsustainable capital structure and is in need of an urgent turnaround.” At 19h45, the rand traded R14.98 against the dollar.
Precious metals
Gold prices enjoyed another day of hikes as investors continued to seek safe-haven assets in light of the US-China trade tensions. At 19h45, an ounce of spot gold traded at $1 472.27.
Oil
Oil prices continued to feel pressure from the escalating tariff war between China and the US on Tuesday, losing about 9% in the past week. At 19h45, Brent crude was trading at $59.58 per barrel.
Our daily update
Yesterday we covered the latest banking and bank related crime statistics as published by South African Banking Risk Information Centre (SABRIC). An extract of the full article follows and relates to bank robberies in South Africa.
The SABRIC reported highlighted that the number of bank robberies increased more than 100% in 2018 when compared to 2017, and that there was an increase of 59% in the losses for banks due to bank robbery incidents when compared to the prior year. So in which provinces did bank robberies take place? The summary below shows the contribution of all the provinces to the overall number of bank robberies reported.
Read full article here
The SABRIC reported highlighted that the number of bank robberies increased more than 100% in 2018 when compared to 2017, and that there was an increase of 59% in the losses for banks due to bank robbery incidents when compared to the prior year. So in which provinces did bank robberies take place? The summary below shows the contribution of all the provinces to the overall number of bank robberies reported.
- Eastern Cape: 44%
- Gauteng: 28%
- Mpumalanga: 7%
- KwaZulu-Natal: 6%
- North West: 5%
- Free State: 5%
- Western Cape: 4%
- Limpopo: 2%
- Northern Cape: 0%
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 -3.03% so far in 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 -3.03% so far in 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