Daily Equity Report Sharenet Logo

Welcome to the Sharenet Daily Equity Report
 Issue: 17 January 2011 20:00

The Cost of Filling your Car

In South Africa, as I guess the case around the world is, owning a car is a symbol that shows to the world that you have the ability to go where you want, when you want. This independence is much sought after by those without ‘wheels’, but for those already on the road, the urge is to always ‘upgrade’ to something that more matches your personality/ego. It is no wonder that buying or selling your car can be such an emotional event, with some people even naming their cars!

You may be asking why I’m bringing up emotional issues in an investment report? Well, put simply, investments (purchases) always involve emotions, and that the best way to optimise your investment (purchase) is often to reduce your emotional involvement! I put purchase in brackets as, unless you buy and sell cars for a living, buying a car is typically not an investment. The cost of running and maintaining a car, and the rate of depreciation, makes car ownership an expense purchase.

With petrol being one of the costs of running a car, its price can play a big role in your purchasing decision. When petrol is cheap petrol guzzlers don’t cost materially more to fill up than economical cars, but this equation changes as the price of petrol goes up. Taking a look at how the petrol price has moved relative to inflation over the past 10 years, we can see that it has comfortably outpaced inflation over this period (9.2% pa increase, vs 5.8% for inflation).

For a person whose salary has grown at the same rate as inflation, or even at inflation + 3% per annum, over the last decade, petrol has become a bigger slice of his salary. He has two choices here: either forgo expenditure in other areas of his life, or change his car for one that operates more economically. Over the last 12 months petrol has increased by 11.1%, around 7.5% ahead of inflation!

In the chart below we can see that the price of petrol (rolling 12 month price change) has been a lot more volatile than inflation over the past decade. The rand price of oil has, however, been the most volatile (by far) of the three. So while everyone complains at the volatility of the petrol price, they should take into account the volatility of the major input into petrol.

Current weather patterns (extremely cold northern hemisphere, and rainy southern hemisphere) are conducive to higher oil prices – at least in the short term – and coupled with a strong rand at the end of 2010, motorists shouldn’t expect 2011 to be an easy year on the pocket when filling up their cars.

For links to more investment and economic articles become a fan of the Seed Investment Consultants page on Facebook by clicking this link and following through to our page where you can click the ‘Like’ button at the top of the page.

Take care,

Mike Browne
021 9144 966

Source: http://www.sasol.com/sasol_internet/frontend/navigation.jsp?navid=11600012&rootid=599999

Mon, 17 Jan 2011

South African stocks fell on Monday, snapping a four-day advance, with paint company Freeworld Coatings sliding 4 percent after saying a proposed takeover bid by Japan's Kansai Paint was unfair to shareholders.  Full story
Rough diamond prices are expected to rise further this year, but will not match last year's sharp double-digit percentage rebound, which was boosted by restocking from jewellers, the head of De Beers sales division said on Monday.  Full story
South Africa's Oppenheimer family is not keen to sell its 40 percent stake in De Beers after a buoyant year for the world's top diamond miner, Nicky Oppenheimer said, dampening speculation about a divestment.  Full story
Developing countries and economies in transition together attracted more foreign investment than developed countries in 2010 for the first time, a United Nations study showed on Monday.  Full story

18h20 South African retailer Massmart's shareholders have accepted a takeover by U.S. group Wal-Mart, setting up the world's largest retailer for a. . .  Full story
18h10 Ratings agency Fitch raised South Africa's outlook to stable from negative on Monday, saying its recovery in 2010 after a recession. . .  Full story
14h06 Oil major Royal Dutch Shell plans to explore for shale gas in South Africa's Karoo Basin, it said in an advertisement. . .  Full story
11h22 South Africa's manufacturing activity dipped unexpectedly in December, weighed down by the employment component but stayed in expansionary territory, lessening prospects. . .  Full story

Trading Statistics


Major Moves Up
SharenameSaleMove% MoveVolume
1 MMG  1101010.00.%6553
2 OANDO  350299.03.%68914
3 COMAIR  247166.93.%20705
4 IQUAD  310165.44.%5000
5 WESIZWE  230115.02.%186785
6 IPS  11054.76.%12000
7 ELLIES   23094.07.%488945
8 PLATMIN  675253.85.%8391
9 PALLINGHT  441163.76.%185018
10 URONE  38951353.59.%31960
11 MVELASERV  1270403.25.%65624
12 METAIR  1280403.23.%25075
13 ONELOGIX  13942.96.%77434
14 JUBILEE  348102.96.%135091
15 ANOORAQ  1110302.78.%10516
16 S-OCEAN  23552.17.%64000
17 CAPITEC-N  4232821.98.%35857
18 VERIMARK  16431.86.%127830
19 OPTIMUM  3050551.84.%497132
20 OCTODEC  1720311.84.%48043

Click here for more Major Moves...
Major Moves Down
SharenameSaleMove% MoveVolume
1 LITHA  252-18-6.67.%337867
2 DIGICOR  300-20-6.25.%7750
3 RAINBOW  1610-80-4.73.%623562
4 REDEFINTL  615-30-4.65.%264151
5 FREEWORLD  1101-49-4.26.%113014
6 CBH  310-13-4.02.%185413
7 VUKILE  1435-59-3.95.%43987
8 ASTRAL  12800-500-3.76.%43778
9 UCS  231-9-3.75.%20700
10 BWI  130-5-3.70.%24400
11 REUNERT  6670-250-3.61.%1272767
12 OMNIA  7441-267-3.46.%10476
13 LIB-HOLD  7402-238-3.12.%213628
14 DAWN  840-26-3.00.%80490
15 ABSA  13811-409-2.88.%400870
16 STEINHOFF  2415-70-2.82.%3879293
17 RICHEMONT  3925-108-2.68.%16169256
18 CASHBIL  9450-260-2.68.%14700
19 GBGOLD  1730-45-2.54.%2935
20 PNR-FOODS  5910-153-2.52.%38967

Click here for more Major Moves...

New Highs
SharenameSaleHighMove% MoveVolume
1 URONE  389538951353.59.%31960
2 ONELOGIX  13914442.96.%77434
3 AFEAGLE  15215221.33.%99000
4 KUMBAIO  45225463872250.50.%182177
5 ITLTILE  42142110.24.%11000
6 NASPERSN  3975640775-193-0.48.%2476029
7 ZEDER  265272-3-1.12.%670958
8 SASOL  3511135883-589-1.65.%857709
9 RICHEMONT  39254088-108-2.68.%16169256

Click here for more Major Moves...
New Lows
SharenameSaleLowMove% MoveVolume

Click here for more Major Moves...

Spot Prices
NameTimeRPMove% Move
JSE Overall17:0032316.20-344.86-1.06%
JSE Top 4017:0028893.16-333.80-1.14%
JSE Gold17:002556.27-1.28-0.05%
JSE Financial17:0021841.59-228.84-1.04%
JSE Industrial17:0032209.95-339.38-1.04%
JSE Indust 2517:0026696.35-313.26-1.16%
JSE Resource17:0057174.92-623.22-1.08%
DJ Futures19:0011711.00-14.00-0.12%
DJ Ind14/0111787.3855.480.47%
SP 50014/011293.249.480.74%
FTSE 10018:355985.70-16.37-0.27%
All Ords07:384872.60-36.00-0.73%
NZSE 5006:263354.30-15.59-0.46%
NameTimeRPMove% Move
Gold/R kg19:56301324-3427-1.12%
Brent Crude19:5697.30-.24-0.25%
Rand / Dollar19:586.8892-0.0458-0.66%
Rand / Pound19:5510.9197-0.0543-0.49%
Rand / Euro19:559.1625-0.1077-1.16%
Rand / NZD19:575.3232-0.0053-0.10%
Rand / AUD19:556.8575-0.0125-0.18%
Yen / Dollar19:5682.7000-0.1900-0.23%
Euro / Dollar19:550.75200.00400.53%
Dollar / Euro19:581.3293-0.0076-0.57%
Pound / Dollar19:550.6292-0.0005-0.08%

Click here for the Sharenet Spot Price page
Index Summary
Index NameRPMove% Move
Top 4028,893.16-333.80-1.14%
Mid Cap43,170.78-252.80-0.58%
Small Cap33,771.65-190.34-0.56%
Resource 2057,174.92-623.22-1.08%
Industrial 2526,696.35-313.26-1.16%
Financial 158,246.70-92.02-1.10%
Financial & Ind. 3030,051.08-357.02-1.17%
All Share32,316.20-344.86-1.06%
Oil & Gas 26,616.94-445.86-1.65%
Mining 37,780.25-380.52-1.00%
Gold Mining2,556.27-1.28-0.05%
Platinum Mining86.27-1.42-1.62%
Oil & Gas Producers 14,311.44-239.73-1.65%
Basic Materials 31,735.10-294.22-0.92%
Chemicals 13,514.99-175.73-1.28%
Forestry & Paper 13,407.37-21.64-0.16%
Industrial Metals 29,281.03110.240.38%
Industrials 29,865.99-302.02-1.00%
General Industrials 77,378.23-1079.79-1.38%
Consumer Goods 26,042.90-341.32-1.29%
Automobiles & Parts 2,898.5190.583.23%
Household Goods153.48-4-2.82%
Health Care 32,728.84-98.08-0.30%
Beverages 81,390.63-85.43-0.10%
Food Producers 48,995.92-685.55-1.38%
Index NameRPMove% Move
Personal Goods 392.01-10.79-2.68%
Consumer Services 54,019.44-252.62-0.47%
General Retailers 40,936.78-177.96-0.43%
Travel & Leisure 4,222.88-7.17-0.17%
Media 87,437.91-406.38-0.46%
Support Services 2,655.9816.360.62%
Telecommunications 63,565.23-1336.89-2.06%
Financials 21,841.59-228.84-1.04%
Banks 41,293.81-531.33-1.27%
Non-life Insurance 31,645.07-206.11-0.65%
Life Insurance 15,693.16-145.10-0.92%
General Financial 2,427.10-12.74-0.52%
Technology 21,112.67-285.39-1.33%
SHARIAH TOP40 3,247.67-39-1.19%
FTSE/JSE SHARIAH ALL3,315.08-37-1.12%
COAL MINING20,904.96-2-0.01%
FTSE JSE Fledgling 4,782.85-6-0.13%
FTSE/JSE Alt X 1,130.87-5-0.43%
CAPPED PROPERTY 315.29-0.90%
RESOURCE 31,456.27-343-1.08%
DIVIDEND PLUS176.28-1-0.72%
FTSE/JSE RAFI 406,722.23-78-1.15%
Capped Top 4015,021.70-174-1.15%
Capped All Share16,255.93-173-1.05%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
18 Jan 2011NET1UEPSDecember 2010 (Interim)
18 Jan 2011NET1UEPSPDecember 2010 (Interim)
18 Jan 2011NET1UEPSPPDecember 2010 (Interim)
19 Jan 2011SPESCOMSeptember 2010 (Final)
20 Jan 2011FOORDDecember 2010 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
DIALOGUE11-01-1311-02-1811-02-28R 0.1238
REUNERT5.511-01-0511-01-2111-01-31R 0.0550
SBRJSEP1110-12-1511-03-0411-03-15R 1.4100
NAMPAK 6%P10-12-0911-01-2111-01-31R 0.0600
NAMPAK 6.510-12-0911-01-2111-01-31R 0.0650
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ASTRAL10-11-1511-01-1411-01-24R 4.7000
REUNERT10-11-1711-01-1411-01-24R 2.2000
LEWIS10-11-0811-01-1411-01-24R 1.5600
NETCARE10-11-1511-01-1411-01-24R 0.2750
MERCHANT10-12-1711-01-1411-01-24R 0.1100

Upcoming AGMs**
CodeCompany NameDateStatus
WLP1PBT Group Ltd18/01/2011Confirmed
WLOPPBT Group Ltd18/01/2011Confirmed
PBTPBT Group Ltd18/01/2011Confirmed
WLNPBT Group Ltd18/01/2011Confirmed
SBGSimeka Business Group Ltd18/01/2011Confirmed

Stock Exchange News Service
17/01/201117:30 Taste Holdings Limited - Dealings in Securities
17/01/201116:40 OneLogix Group Limited - Trading statement
17/01/201116:39 MICROmega - Changes to the Board of Directors
17/01/201116:36 m Cubed Holdings Limited - Retirement of non-executive director
17/01/201116:31 Palabora Mining Company Limited - Fourth quarter 2010 - operations
17/01/201115:49 PSG Group Limited - Dealing in PSG Group Limited shares by an associate
17/01/201115:07 Bell Equipment Limited - Passing away of alternate director
17/01/201113:36 Freeworld Coatings Limited - Posting of circular and withdrawal of
17/01/201113:34 Massmart Holdings Limited - Results of the general meeting and scheme
17/01/201113:25 Optimum Coal Holdings Limited - Trading statement and operational update
17/01/201113:00 Impala Platinum Holdings Limited - Resignation of Implats Director
17/01/201112:57 BSI Steel Limited - Director`s dealing in securities
17/01/201112:38 Remgro Limited - Dealing in securities by a director
17/01/201111:45 IQuad Group Limited - Dealing in securities
17/01/201111:38 Cashbuild Limited - Second Quarter Operational Update - Fy 2011
17/01/201111:34 Sentula Mining Limited - Raising of new senior debt facility
17/01/201111:15 The Foschini Group Limited - Sales Update
17/01/201110:09SCIB/INPSTF - The Standard Bank Of South Africa Limited - Issue of Share
17/01/201109:27KIH - Kairos Industrial Holdings Limited - Renewal of cautionary announcement
17/01/201108:35 Rockwell diamonds incorporated - Interim consolidated financial statements
17/01/201108:26 Firestone Energy Limited - Initial Director`s Interest Notice
17/01/201108:07 Kumba Iron Ore Limited - Trading statement for the twelve months ended 31
17/01/201108:00 Compagnie Financiere Richemont SA Depositary Receipts - Trading statement
17/01/201107:15 Anglo American plc - Treasury Shares - Transfers
17/01/201107:05SOLIRS - Investec Bank Limited - Notice of barrier for the barrier put warrant
17/01/201107:05 BHP Billiton Plc - Transaction in shares
17/01/201107:05 Reinet Investments S.C.A. Depositary Receipts - Net asset value of Reinet

Click here for more SENS news