|
PSG daily investment update 9 May 2019
Date: 9 May 2019 Category: Stock Market |
Related Topics |
|
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.
|
|
Short summary of PSG's market commentary for 9 May 2019
South Africa
The JSE was closed due to the national and provincial elections.
United States
Wall Street extend a two-day losing streak on Wednesday as investors expressed their concerns over the outcome of the infamous US-Sino trade negotiations. At 17h30, the Dow futures had lost over 0.10%.
Europe
European shares inched upwards on Wednesday despite sharp declines in Asia and on Wall Street, where the sectors susceptible to trade conditions were hard hit by the unexpected tariff hike on $200 billion worth of Chinese goods. At 17h30, the pan-European Stoxx 600 gained 0.02%.
Hong Kong
Hong Kong shares traded lower on Wednesday as poor trade data from China and fears of an escalation in the US-China trade war prompted investors to shy away from riskier assets. The Hang Seng ended the day 1.23% in the red.
Japan
Japan’s Nikkei fell to a five-week low on Wednesday as on-going trade tensions weighed heavily on the markets and a firm yen dragged exporters through the mud. At 17h30, the Nikkei lost 1.46%.
Rand
The local currency remained stagnant in a tight range as the elections took place on Wednesday, with investors keeping a close eye on the outcome. At 17h40, the rand traded at R14.35 against the dollar.
Precious metals
Gold prices peaked at a one-week high on Wednesday as fresh concerns over the US-China trade dispute and the effect thereof on global growth reduced risk sentiment, pushing investors towards safe-haven assets such as bullion. At 17h40, spot gold was up trading at $1 288.43 an ounce.
Oil
Oil prices steadied on Wednesday as tighter global supply somewhat eased concerns over the escalating US and China trade war, this after Washington increased tariffs on $200 billion worth of Chinese goods to 25%. At 17h45, a barrel of Brent crude was trading at $70.41.
The JSE was closed due to the national and provincial elections.
United States
Wall Street extend a two-day losing streak on Wednesday as investors expressed their concerns over the outcome of the infamous US-Sino trade negotiations. At 17h30, the Dow futures had lost over 0.10%.
Europe
European shares inched upwards on Wednesday despite sharp declines in Asia and on Wall Street, where the sectors susceptible to trade conditions were hard hit by the unexpected tariff hike on $200 billion worth of Chinese goods. At 17h30, the pan-European Stoxx 600 gained 0.02%.
Hong Kong
Hong Kong shares traded lower on Wednesday as poor trade data from China and fears of an escalation in the US-China trade war prompted investors to shy away from riskier assets. The Hang Seng ended the day 1.23% in the red.
Japan
Japan’s Nikkei fell to a five-week low on Wednesday as on-going trade tensions weighed heavily on the markets and a firm yen dragged exporters through the mud. At 17h30, the Nikkei lost 1.46%.
Rand
The local currency remained stagnant in a tight range as the elections took place on Wednesday, with investors keeping a close eye on the outcome. At 17h40, the rand traded at R14.35 against the dollar.
Precious metals
Gold prices peaked at a one-week high on Wednesday as fresh concerns over the US-China trade dispute and the effect thereof on global growth reduced risk sentiment, pushing investors towards safe-haven assets such as bullion. At 17h40, spot gold was up trading at $1 288.43 an ounce.
Oil
Oil prices steadied on Wednesday as tighter global supply somewhat eased concerns over the escalating US and China trade war, this after Washington increased tariffs on $200 billion worth of Chinese goods to 25%. At 17h45, a barrel of Brent crude was trading at $70.41.
Our daily update
Yesterday we covered an opinion piece of Allan Gray Asset Managers regarding the value and investment potential of African frontier markets. Below the summary of their article.
Conclusion
The challenges of operating in Africa aren’t new or exceptional. Multiple global companies have steadily built thriving businesses in countries across the continent: Unilever, Nestlé, MTN, Shoprite and Standard Bank. Undoubtedly, there are countless others that didn’t survive. What differentiates the winners in frontier markets? From Lagos to Hanoi, success often owes much to the openness and willingness to adapt business models and products to fit constrained household budgets and appeal to the familiar yet aspirational ways of life.
We continue to find attractively valued opportunities and believe frontier African markets are well-suited to a patient, contrarian investment approach.
Read the full article here.
Conclusion
The challenges of operating in Africa aren’t new or exceptional. Multiple global companies have steadily built thriving businesses in countries across the continent: Unilever, Nestlé, MTN, Shoprite and Standard Bank. Undoubtedly, there are countless others that didn’t survive. What differentiates the winners in frontier markets? From Lagos to Hanoi, success often owes much to the openness and willingness to adapt business models and products to fit constrained household budgets and appeal to the familiar yet aspirational ways of life.
We continue to find attractively valued opportunities and believe frontier African markets are well-suited to a patient, contrarian investment approach.
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 positive note. And then Donald Trump striked threatening to raise tariffs on billions worth of goods imported from China. So the last two trading days saw big negative trading days on the JSE. 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
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