12 DAILY INVESTMENT UPDATE United States Europe China US markets closed firmer on Thursday, as retail sales provided more evidence of a strengthening economy and that was supportive of the stock market. The main indices, however, closed off their session highs after the International Monetary Fund halted negotiations with debt-strapped Greece. European markets closed firmer but off the session s high on Thursday as a rally lost momentum. Investors remain concerned over the lingering uncertainty over Greece's debt problems. The Greek stock market was closed by the time the IMF said 'major differences' remained with Greece over an agreement to save the country from bankruptcy, which led to a late sell-off in European equities. The Hang Seng Index traded higher on Friday, while shares on mainland China also rose slightly. The property sector was supported by official data pointing to an improvement in real estate investment and home sales in China. The brighter outlook in property offered investors some hope after a batch of weak data this week that suggested that the economy was still struggling. South Africa The JSE All Share Index ended lower in a choppy session on Thursday with resource shares giving back its gains from the previous session, while platinum mining and industrial shares slipped lower at the close. The local market tracked firmer European and Asian markets but then weaker commodity prices and a stronger dollar weighed on market sentiment. Japan The Nikkei Index experienced a volatile trading session on Friday with investors worried over yet after another turn in Greece's debt talks yesterday after the International Monetary (IMF) pulled out of negotiations because of major differences with Athens. Rand Precious Metals Oil The rand traded weaker against the dollar on Thursday on the back of disappointing local manufacturing and mining production data. The dollar was also stronger against the pound and euro. The rand was last trading at R12.3788 against the US dollar, R13.9132 against the euro and R19.1678 against the British pound. Gold held onto its overnight losses in Singapore trade on Friday as strong US economic data boosted the probabilities of higher interest rates. The precious metal's failure to gain safe-haven bids on the back of the worsening Greek debt crisis raised concerns amongst traders. The gold price was last trading at $1 182.60, with platinum at $1 101.62 and palladium at $739.50. Crude oil prices declined on Thursday on the back of a stronger dollar and a gloomy economic outlook from the World Bank, while a positive International Energy Agency (IEA) report on global demand failed to dispel concerns over an oversupplied market. Brent crude was last quoted at $64.86 a barrel.
Economic Calendar Local International No new local economic events scheduled for today Japan: Industrial production EU: industrial production US: PPI US: University of Michigan Consumer Confidence Index Source: Bloomberg, Business Day Daily Indicators Local Markets (R) Index Current Level 1 Day Move 3 Month Move 6 Month Move 1 Year Move ALSI 51,881.45-0.15 0.25 7.84 2.41 Gold Mining 1,055.64-2.38-9.19-2.87-25.36 Basic Minerals 23,629.31-1.06 2.49 5.86-19.92 Industrial Index 44,239.20-0.32-4.07-0.71-3.25 Financial 43,605.48 0.39-0.42 9.86 16.56 Fin + Ind 30 70,733.67-0.05 0.32 9.94 12.13 International Markets (Base currency) Index Current Level 1 Day Move 3 Month Move 6 Month Move 1 Year Move Dow Jones (USD) 18,039.37 0.22 2.29 2.52 7.10 S&P 500 PR (USD) 2,108.86 0.17 3.36 3.61 8.49 NASDAQ (USD) 5,082.51 0.11 4.80 7.95 17.33 FT-100 (GBP) 6,846.74 0.24 1.86 5.96 0.12 Hang Seng (HKD) 26,907.85 0.83 13.45 15.42 15.70 Nikkei 225 (JPY) 20,382.97 1.68 8.86 18.11 35.26 Paris CAC (EUR) 4,971.37 0.74-0.53 17.64 9.14 Frankfurt (EUR) 11,332.78 0.60-4.01 14.91 13.90 Other Markets Index Current Level 1 Day Move 3 Month Move 6 Month Move 1 Year Move Gold ($) 1,180.50-0.46 1.88-3.20-6.50 Platinum ($) 1,109.00-0.36-1.51-10.42-24.86 Brent Oil ($) 65.70 1.26 16.51 2.35-40.25 Rand/USD 12.38-0.23-0.72-6.78-15.83 Rand/GBP 19.17-0.34-5.03-5.33-6.76 Rand/EUR 13.91 0.32-6.78 3.18 3.96 ALBI (R) 486.06 0.26-1.03 0.03 9.02
Company Results Calendar Company Reports Expected Day Date Company Share Code Expectation Friday 12 June 2015 AME AME Next Final Results Unconfirmed Friday 12 June 2015 Stellar SCP Next Interim Results Unconfirmed Friday 12 June 2015 Stenprop STP Next Final Results Unconfirmed Friday 12 June 2015 BSI Steel BSS Next Final Results Unconfirmed Friday 12 June 2015 Tharisa THA Next Interim Results Unconfirmed Friday 12 June 2015 Labat LAB Next Final Results Unconfirmed Ex-Dividend Date Day Date Company Share Code Expectation Friday 12 June 2015 Cartrack CTK Final Dividend 30.00 ZARc Friday 12 June 2015 Dipula A DIA Interim Dividend 45.94007 ZARc Friday 12 June 2015 Dipula B DIB Interim Dividend 35.3459 ZARc Friday 12 June 2015 Insimbi ISB Final Dividend 2.50 ZARc Friday 12 June 2015 Micromega MMG Final Dividend 35.00 ZARc Friday 12 June 2015 Medclin MDC Final Dividend 75.50 ZARc Friday 12 June 2015 Mr Price MPC Final Dividend 368.50 ZARc Friday 12 June 2015 Netcare NTC Interim Dividend 38.00 ZARc Friday 12 June 2015 Reunert RLO Interim Dividend 105.00 ZARc Friday 12 June 2015 Tongaat TON Final Dividend 210.00 ZARc Friday 12 June 2015 Vukile VKE Final Dividend 77.688 ZARc Friday 12 June 2015 Verimark VMK Final Dividend 5.21778 ZARc Monday 22 June 2015 CSG Holdings CSG Regular Cash Dividend 4.48 ZARc Monday 22 June 2015 Tigerbrands TBS Interim Dividend 339.00 ZARc Monday 22 June 2015 Vodacom VOD Final Dividend 400.00 AUD Dividend Pay Date Day Date Company Share Code Expectation Monday 22 June 2015 Medclin MDC Final Dividend 75.50 ZARc Monday 22 June 2015 Mr Price MPC Final Dividend 368.50 ZARc Monday 22 June 2015 Netcare NTC Interim Dividend 38.00 ZARc Monday 22 June 2015 Reunert RLO Interim Dividend 105.00 ZARc Thursday 25 June 2015 Tongaat TON Final Dividend 210.00 ZARc Monday 22 June 2015 Verimark VMK Final Dividend 5.21778 ZARc Monday 29 June 2015 Tigerbrands TBS Interim Dividend 339.00 ZARc Monday 29 June 2015 Vodacom VOD Final Dividend 400.00 AUD Source: Bloomberg
PSG MM Income FoF B PSG MM Cautious FoF B PSG MM Balanced FoF B PSG MM Equity FoF B PSG MM Foreign Flex FoF B PSG Money Market A PSG Income PSG Diversified Income PSG Stable PSG Balanced A PSG Flexible PSG Equity A PSG Global Flexible FF A PSG Global Equity FF Local Funds Performance data on local funds* is shown up to the last market close. PSG Multi Management PSG MM Income FoF B 3.79 7.54 7.27 7.75 7.60 7.30 PSG MM Cautious FoF B 5.13 9.07 10.53 12.69 - - PSG MM Balanced FoF B 5.99 8.77 13.30 - - - PSG MM Equity FoF B 7.23 6.22 16.42 19.68 17.01 17.33 PSG MM Foreign Flex FoF B 10.34 12.27 16.55 25.54 - - PSG Asset Management PSG Money Market A 3.16 6.27 5.74 5.53 5.49 5.62 PSG Income 3.18 6.62 5.86 5.64 - - PSG Diversified Income 4.03 7.11 7.16 8.44 7.72 7.48 PSG Stable 6.96 9.42 9.72 12.00 - - PSG Balanced A 10.44 13.32 16.68 18.16 16.41 15.82 PSG Flexible 11.85 14.12 20.15 20.96 18.24 19.04 PSG Equity A 13.22 12.66 22.93 25.74 21.49 21.67 PSG Global Flexible FF A 12.52 15.79 16.71 - - - PSG Global Equity FF 11.88 13.61 17.30 26.55 20.82 - PSG Multi-Management Funds: 1 Year Move PSG Asset Management funds: 1 Year Move 14.00 12.00 10.00 8.00 6.00 4.00 2.00-7.54 9.07 8.77 6.22 12.27 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - Offshore Funds Performance data on offshore funds* is shown up to the last market close minus 1 day. PSG Multi-Management PSG MM Foreign Flex FoF B 2.80-2.14 6.16 9.96 - - PSG Asset Management ($) PSG Global Flexible A USD Acc 5.02 1.01 6.63 - - - PSG Global Equity 5.17-0.02 7.69 12.92 5.56 - *Please note performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month.
Sector Focus JSE ALSI 40 Index The JSE ALSI 40 Index edged 0.22% lower on Thursday with the benchmark index price pulling back off its intraday high. The index price is still trading above its 200 day moving average but just below its 50 day moving average and the long term trend remains bullish. Both the Stochastic and RSI indicators are trading close to oversold levels. A bearish candlestick body was formed yesterday because the index price closed lower than it opened. This candle also has a long upper shadow, which is typically a bearish signal. During the past 10 days, there have been 3 bullish candles and 7 bearish candles for a net of 4 bearish candles. During the past 50 days, there have been 23 bullish candles and 27 bearish candles for a net of 4 bearish candles. Currency Report Commentary The rand was softer against the dollar late on Thursday as local manufacturing and mining production data weighed on the local currency. The dollar clung to modest gains early on Friday, having drifted higher on fresh evidence that the US economy was gaining momentum, while the euro was on the defensive after the IMF pulled out of debt talks with Greece. The dollar index last traded at 95.004, recovering from a near one-month low of 94.322 set on Wednesday. Dollar bulls took some heart after retail sales rose sharply in May, adding to recent upbeat employment data that suggested the economy was warming up after a chilly start to the year. If the momentum is sustained, the Federal Reserve could begin to hike interest rates later in the year, a scenario still favoured by many economists. The euro declined against most of the major currencies on Thursday as talks on Greece's debt obligations reached an impasse after the International Monetary Fund (IMF) withdrew from bailout talks. Later today, industrial production data from the Eurozone and Spain's consumer price inflation figures are likely to attract market attention. The Australian and New Zealand dollars were subdued on Friday after a week that saw the Aussie rally as chances for an interest rate cut receded, while the kiwi was set for an eighth week of decline as New Zealand's central bank began an easing cycle.
Trade Spotlight TFG (TFG) The share price of The Foschini Group (TFG) gained 1.44% on Thursday, having recently bounced off a support level close to the 61.8% Fibonacci retracement level. The share price is trading in a very narrow up channel and has crossed above its 200 day moving average but is still trading below its 50 day moving average and the long term trend remains bullish. The Stochastic indicator is trading in oversold territory, while the RSI indicator is moving higher to suggest a rally soon. Aggressive traders could enter a long trade at yesterday s closing price at the 15900c level, while we use the 50 day moving average at the 17030c level as our target price, while a close below the 200 day moving average at the 15535c level would trigger our stop loss. TFG (TFG) Instrument Direction Entry Price Target Price Stop Loss Risk / Reward Potential Reward CFD/ SSF Long 15900c 17030c 15535c N/A N/A The information in this document is to the best of our knowledge correct at the time of distribution but due to the nature thereof cannot be guaranteed. This document only contains general information and not the opinion of the distributor. Affiliates of the PSG Konsult Group are authorised financial services providers.