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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 9 July 2019
South Africa
The JSE closed in the green on Monday following an excellent performance by the mining sector, offsetting the impact of Naspers’ decline. Shortly after the closing bell, the All Share was up 0.25%.
United States
Stock futures in the US took a knock on Monday as investors anticipated a hefty interest rate cut by the Federal Reserve (Fed) later this month, after the release of a strong jobs report for June. At 18h30, the Dow was trading 0.13% in the red.
Europe
While multinational airline company IAG dropped in share price on talks of a looming fine for data theft, the FTSE 100 Index traded lower on Monday as markets remained subdued ahead of a widely anticipated rate cut by the Fed. At 18h50, the FTSE 100 had lost 0.05%.
Hong Kong
Posting its sharpest daily decline in four weeks, the Hang Seng tracked a global selloff in equities on Monday after the release of solid American jobs data forced investors to re-evaluate their bets on the Fed’s next move. At 19h00, the Hang Seng was down 1.77%.
Japan
Japan’s Nikkei was trapped in a downward spiral on Monday after a strong US non-farm payroll showing offset market forecasts for hefty rate cuts later this month. At the closing bell, the Nikkei lost 0.97%.
Rand
The rand maintained an upper hand against major global currencies on Monday as investors closely watched for signs of interest rate cuts by the Fed. At 19h15, the rand traded at R14.13 against the dollar.
Precious metals
Gold prices surged on Monday, rising above $1 400 an ounce as investor focus gravitated towards global growth concerns and interest rate cuts by major central banks. At 19h30, spot gold was up trading at $1 400.01 an ounce.
Oil
Tensions over Iran’s nuclear programme lifted oil prices above $65.20 a barrel on Monday, but gains were slightly trimmed by concerns over slowing global economic growth and the effect thereof on oil demand. At 19h35, a barrel of Brent crude was trading at $65.22.
The JSE closed in the green on Monday following an excellent performance by the mining sector, offsetting the impact of Naspers’ decline. Shortly after the closing bell, the All Share was up 0.25%.
United States
Stock futures in the US took a knock on Monday as investors anticipated a hefty interest rate cut by the Federal Reserve (Fed) later this month, after the release of a strong jobs report for June. At 18h30, the Dow was trading 0.13% in the red.
Europe
While multinational airline company IAG dropped in share price on talks of a looming fine for data theft, the FTSE 100 Index traded lower on Monday as markets remained subdued ahead of a widely anticipated rate cut by the Fed. At 18h50, the FTSE 100 had lost 0.05%.
Hong Kong
Posting its sharpest daily decline in four weeks, the Hang Seng tracked a global selloff in equities on Monday after the release of solid American jobs data forced investors to re-evaluate their bets on the Fed’s next move. At 19h00, the Hang Seng was down 1.77%.
Japan
Japan’s Nikkei was trapped in a downward spiral on Monday after a strong US non-farm payroll showing offset market forecasts for hefty rate cuts later this month. At the closing bell, the Nikkei lost 0.97%.
Rand
The rand maintained an upper hand against major global currencies on Monday as investors closely watched for signs of interest rate cuts by the Fed. At 19h15, the rand traded at R14.13 against the dollar.
Precious metals
Gold prices surged on Monday, rising above $1 400 an ounce as investor focus gravitated towards global growth concerns and interest rate cuts by major central banks. At 19h30, spot gold was up trading at $1 400.01 an ounce.
Oil
Tensions over Iran’s nuclear programme lifted oil prices above $65.20 a barrel on Monday, but gains were slightly trimmed by concerns over slowing global economic growth and the effect thereof on oil demand. At 19h35, a barrel of Brent crude was trading at $65.22.
Our daily update
JSE Trading Statistics for the week ending 5 July 2019
Number of trades:
Number of trades (2019): 1 267 363
Number of trades (2018): 1 029 998
% change year on year: 23.05%
Volume traded:
Volume traded (2019): 1 128 809 000
Volume of traded (2018): 1 693 539 000
% change year on year: -33.35%
Value of trades:
Value of trades (2019): R84 238 103 000
Value of trades (2018): R82 729 074 000
% change year on year: 1.82%
Foreign purchase/selling:
Net sales/Purchases (2019): -R3 409 324 000
Net sales/Purchases (2018): -R877 185 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R32.66 billion
Net sales/Purchases (2018): R16.637 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R16.637 billion for the YTD while this year they have been net sellers to the tune of -R32.66 billion in the year to date (YTD). That is a massive R49.3 billion swing in fortunes of foreigners being net buyers or sellers over the course of the last 12 months.
JSE total market capitalisation:
Market Cap (2019): R16.337 trillion
Market Cap (2018): R14.715 trillion
% change year on year: 11.02%
So as shown in the JSE total market capitalisation above, the overall stock market of South Africa has increased substantially over the course of the last 12 months (and it would have been even higher if it wasn't for the tariff war between the USA and China). The markets had a particularly positive start to the year, with all four months of the year ending in positive territory. While May ended the month strongly in the negative. June fought back and ended the months 4.55% in the green. But July is off to a pretty shaky start with the JSE All share ending down just over -1% for the first trading week of the second half of the year
Read the full JSE trading stats article for the week ending 5 July 2019 here
Number of trades:
Number of trades (2019): 1 267 363
Number of trades (2018): 1 029 998
% change year on year: 23.05%
Volume traded:
Volume traded (2019): 1 128 809 000
Volume of traded (2018): 1 693 539 000
% change year on year: -33.35%
Value of trades:
Value of trades (2019): R84 238 103 000
Value of trades (2018): R82 729 074 000
% change year on year: 1.82%
Foreign purchase/selling:
Net sales/Purchases (2019): -R3 409 324 000
Net sales/Purchases (2018): -R877 185 000
So year to date (YTD) foreigners have been net seller/buyers:
Net sales/Purchases (2019): -R32.66 billion
Net sales/Purchases (2018): R16.637 billion
So a year ago foreigners were net buyers of SA listed shares to the value of R16.637 billion for the YTD while this year they have been net sellers to the tune of -R32.66 billion in the year to date (YTD). That is a massive R49.3 billion swing in fortunes of foreigners being net buyers or sellers over the course of the last 12 months.
JSE total market capitalisation:
Market Cap (2019): R16.337 trillion
Market Cap (2018): R14.715 trillion
% change year on year: 11.02%
So as shown in the JSE total market capitalisation above, the overall stock market of South Africa has increased substantially over the course of the last 12 months (and it would have been even higher if it wasn't for the tariff war between the USA and China). The markets had a particularly positive start to the year, with all four months of the year ending in positive territory. While May ended the month strongly in the negative. June fought back and ended the months 4.55% in the green. But July is off to a pretty shaky start with the JSE All share ending down just over -1% for the first trading week of the second half of the year
Read the full JSE trading stats article for the week ending 5 July 2019 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.
For the first trading week of July 2019, the market was down just over 1% for the first trading week of the 2nd half of 2019. On the bright side though is the fact that the South African Rand has been very strong recently with it breaking through the R14/$ barrier for the first time in months. Sadly strong jobs numbers in the US reduced the odds of a FED rate cut which saw the US dollar strengthen and the Rand trading well above $14 again.
The second trading week of July 2019 got off to a positive start. Lets hope this continues.
For more on daily market movements see our 2019 Calendar tracker.
But we as South African investors are losing out in Dollar terms. Largely due to continued Rand weakness not only over the short term but over the last couple of years. We continue to advise investors to take money out of South Africa and invest it offshore. Looking for ideas for investments to make? Go read this article
For the first trading week of July 2019, the market was down just over 1% for the first trading week of the 2nd half of 2019. On the bright side though is the fact that the South African Rand has been very strong recently with it breaking through the R14/$ barrier for the first time in months. Sadly strong jobs numbers in the US reduced the odds of a FED rate cut which saw the US dollar strengthen and the Rand trading well above $14 again.
The second trading week of July 2019 got off to a positive start. Lets hope this continues.
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