22 DAILY INVESTMENT UPDATE United States US markets ended almost flat on Friday with the Dow and the S&P 500 Index still managing to post their best weekly gains since November. The materials sector lost 1.1%, while the consumer-discretionary sector added 0.3% to lead the gainers. A rally in the technology and consumer discretionary stocks countered a sharp sell-off in the materials sector, which fell on the back of lower oil prices. Europe European stocks closed lower on Friday with banking, oil and auto shares leading the decline, while investors took profits following a strong week that helped to stabilise markets after a chaotic start to the year. China Chinese stock markets were firmer on Monday as investors welcomed news over the weekend that the head securities regulator was being replaced, while signs that the government was stepping up its economic stimulus effort also lifted investor sentiment. Chinese stocks surged almost 2% higher with property and resources stocks leading the gainers. Local The JSE All Share Index closed 1.84% lower on Friday with banking and financial shares falling on the back of weaker European banks with Deutsche Bank among those hardest hit. Market sentiment was also hurt by a sharp decline in the share price of telecommunications group MTN Group after it reported that it expects its profit to be 20% lower. Japan The Nikkei Index gained in volatile trade on Monday as the yen weakened against the dollar, which supported export-related shares limit earlier losses, while also buoying overall market sentiment. Defensive stocks were the out performers on the day with food companies and drug makers in strong demand. Rand Precious Metals Oil The rand slipped slightly lower against the dollar on Friday afternoon, as the dollar recovered from recent losses. Finance Minister Pravin Gordhan is expected to deliver a sizeable and sustainable fiscal correction when he delivers the budget speech this week. The rand was last trading at R15.3840 against the US dollar, R17.0989 against the euro and R21.9571 against the British pound. The gold price continued to fall on Monday as the dollar and equity markets recovered, but the precious metal remained just above the $1 200 an ounce level as wariness over financial markets motivated investors to keep money in gold bullion. Gold was last trading at $1 215.76, with the platinum price at $931.50 and palladium at $496.90. Oil prices rallied higher in Asian trade on Monday following sharp losses on Friday, as the number of US oil rigs in use declined, which is expected to lead to a decline in 2016 production and helped to support prices. The general oversupply situation, however, is still keeping a lid on the market. Brent crude oil was last quoted at $33.46 a barrel.
Economic calendar Local International No new local economic events scheduled for today Eurozone: CPI Daily indicators Local Markets (R) Index Current Level 1 Day Move 3 Month Move 6 Month Move 1 Year Move ALSI 48,940.43-1.84-6.09-2.39-7.37 Gold Mining 1,785.58 7.76 96.36 101.45 28.45 Basic Minerals 18,871.17 0.08 2.41-7.64-25.16 Industrial Index 40,753.52-2.10-7.91-5.55-16.28 Financial 39,698.12-2.63-10.75-10.41-9.25 Fin + Ind 30 69,977.90-2.45-7.54 0.05-0.69 International Markets (Base currency) Index Current Level 1 Day Move 3 Month Move 6 Month Move 1 Year Move Dow Jones (USD) 16,391.99-0.13-7.56-5.51-8.86 S&P 500 PR (USD) 1,917.78-0.00-7.85-7.78-8.57 NASDAQ (USD) 4,504.43 0.38-11.22-10.25-8.53 FT-100 (GBP) 5,950.23-0.36-6.00-7.08-13.63 Hang Seng (HKD) 19,285.50-0.40-14.29-16.76-22.34 Nikkei 225 (JPY) 15,967.17-1.42-19.60-21.04-12.58 Paris CAC (EUR) 4,223.04-0.39-14.08-13.53-12.63 Frankfurt (EUR) 9,388.05-0.80-15.31-12.11-14.67 Other Markets Index Current Level 1 Day Move 3 Month Move 6 Month Move 1 Year Move Gold ($) 1,221.50 1.42 13.83 8.75 0.31 Platinum ($) 942.00 0.64 10.69-5.23-19.76 Brent Oil ($) 33.01-3.70-25.28-30.00-45.18 Rand/USD 15.38 0.15-9.38-17.43-31.81 Rand/GBP 21.96 0.43-3.32-6.96-22.25 Rand/EUR 17.10 0.22-14.41-13.74-28.89 ALBI (R) 485.31-0.61-2.99-0.14-2.43 Some data may be delayed, the above tables reflects the latest available information.
Company results calendar Company Reports Expected Day Date Company Expectation Monday 22 February 2016 Rolfes RLF Next Interim Results Confirmed Monday 22 February 2016 Hulamin HLM Next Final Results Estimate Monday 22 February 2016 Delafrica DLA Next Interim Results Estimate Ex-Dividend Date Day Date Company Share Code Expectation Monday 22 February 2016 Finbond FGL Rights Issue.2598 for 1 Monday 22 February 2016 Mixtel MIX Interim Dividend 2.00 ZARc Monday 22 February 2016 Tower Property TWR Interim Dividend 45.1875 ZARc Monday 22 February 2016 Winhold WNH Regular Cash Dividend 7.00 ZARc Monday 29 February 2016 Hudaco HDC Final Dividend 345.00 ZARc Monday 29 February 2016 Indluplace ILU Regular Cash Dividend 22.93067 ZARc Monday 29 February 2016 Italtile ITE Interim Dividend 14.00 ZARc Monday 29 February 2016 Resilient RES Interim Dividend 232.46 ZARc Monday 29 February 2016 Woolies WHL Interim Dividend 133.00 ZARc Monday 7 March 2016 Fortress A FFA Interim Dividend 64.72 ZARc Monday 7 March 2016 Fortress B FFB Interim Dividend 62.81 ZARc Thursday 17 March 2016 Argent ART Interim Dividend 9.00 ZARc Dividend Pay Date Day Date Company Share Code Expectation Monday 29 February 2016 Mixtel MIX Interim Dividend 2.00 ZARc Monday 29 February 2016 Tower Property TWR Interim Dividend 45.1875 ZARc Monday 29 February 2016 Winhold WNH Regular Cash Dividend 7.00 ZARc Monday 7 March 2016 Hudaco HDC Final Dividend 345.00 ZARc Monday 7 March 2016 Indluplace ILU Regular Cash Dividend 22.93067 ZARc Monday 7 March 2016 Italtile ITE Interim Dividend 14.00 ZARc Monday 7 March 2016 Resilient RES Interim Dividend 232.46 ZARc Monday 7 March 2016 Woolies WHL Interim Dividend 133.00 ZARc Monday 14 March 2016 Finbond FGL Rights Issue.2598 for 1 Monday 14 March 2016 Fortress A FFA Interim Dividend 64.72 ZARc Monday 14 March 2016 Fortress B FFB Interim Dividend 62.81 ZARc Tuesday 29 March 2016 Argent ART Interim Dividend 9.00 ZARc
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 3.06 6.86 7.83 7.08 7.60 7.38 PSG MM Cautious FoF B 2.23 5.82 8.65 9.97 10.93 - PSG MM Balanced FoF B 1.30 3.72 8.42 11.57 - - PSG MM Equity FoF B -4.37-5.97 3.41 9.50 12.61 11.52 PSG MM Foreign Flex FoF B 6.42 16.08 12.99 20.94 21.88 - PSG Asset Management PSG Money Market A 3.28 6.51 6.25 5.84 5.69 5.64 PSG Income 3.44 6.73 6.74 6.07 5.85 - PSG Diversified Income 3.86 7.56 7.30 7.30 7.84 7.49 PSG Stable 2.13 5.32 6.93 8.72 9.84 - PSG Balanced A 0.12 2.23 7.48 12.07 13.18 12.30 PSG Flexible -0.03 2.54 7.69 14.10 14.56 13.67 PSG Equity A -7.31-9.66 1.64 11.70 14.67 13.31 PSG Global Flexible FF A 3.86 10.84 10.65 - - - PSG Global Equity FF 0.29 5.09 7.36 17.14 18.09 - PSG Multi-Management Funds: 1 Year Move 20.00 15.00 16.08 PSG Asset Management funds: 1 Year Move 15.00 10.00 10.00 5.00 6.86 5.82 3.72 5.00 - - -5.00-10.00-5.97-5.00-10.00-15.00 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 -10.02-11.68-6.04-0.58 1.42 1.20 PSG Asset Management ($) PSG Global Flexible USD A -12.86-16.30-7.22-1.45 - - PSG Global Equity USD -15.73-20.37-9.54-1.84 0.57-1.02
Sector focus JSE Banking Index The JSE Banking Index lost 4.06% on Friday, having recently tested a key resistance level. The index price is trading just below its 200 day moving average but is still trading above its 50 day moving average, while also trading within a narrow up channel. The long term trend remains bearish, while the medium term trend is neutral as it is moving sideways. Both the Stochastic and RSI indicators are trading close to overbought levels and turning lower to suggest a correction soon. A big bearish candle was formed as the index price closed significantly lower than it opened. Because this candle appears when prices are "high," it may be the first sign of a top. It is also occurring when index prices are confronting an overhead price resistance level and the long bearish candle adds credibility to the resistance. During the past 10 days, there have been five bullish candles and five bearish candles. During the past 50 days, there have been 23 bullish candles and 26 bearish candles for a net of three bearish candles.
Trade Spotlight: CFD & SSF Shoprite (SHP) The price of retailer Shoprite lost 3.59% on Friday as it pulled back further from the upper resistance trend line of a long term down channel. The share price is trading just below its 200 day moving average but is still trading above its 50 day moving average and the long term trend remains bearish. We expect the share price to breakout and close below the lower support trend line ofa narrow up channel to trigger a change in trend. The bearish price action is confirmed byboth the Stochastic and RSI indicators trading close to overbought levels. 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.