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Welcome to the Sharenet Daily Equity Report
 Issue: 18 January 2011 20:00

Local economic news

Ahead of the monetary policy meeting on Wednesday, here is a summary of various economic indicators.

• Q3 household consumption expenditure gained 5,9% quarter on quarter seasonally adjusted and annualised.
• Real incomes grew 5,6%
• December passenger vehicle sales grew 38,9% year on year with total sales in 2010 up 24,7% after falling 25,9% in 2009.
• Household credit grew by 7,2% year on year in November 2010, up from 6,6% in November
• Manufacturing production growth for November grew 4,6% year on year, up from 2,3% year on year in October.
• Mining production data released today increased by a seasonally adjusted 9,6% year on year from 6,5% year on year in October.

The expectation is for November retail sales growth to be at 6,8% year on year in November, up from October’s 6,1% increase.

Generally these indicators reflect a steady improvement in the economy in 2010 and point to a continuation in 2011.

Country rating

Rating agency, Fitch announced this week that it had revised its economic outlook for South Africa from negative to stable.

Fitch is expecting GDP for 2010 to be at 2,8%, following the decline of 1,7% in 2009.

Some of the factors that supported the more positive outlook include low inflation, a strong policy framework, central bank independence, and a history of fiscal conservatism.

Net foreign purchases of SA Equities

The chart below reflects monthly net inflows or outflows into SA equities in R billion over a 10 year period.

Source : Old Mutual

The latest statistics indicate net purchases of R5,04 billion in December 2010, with the 10 year average at R2,48 billion per month.

According to JSE statistics, foreigners bought a net R36 billion in 2010, following the R75 billion in 2009. The economist, Kevin Lings notes that over the last 7 years foreigners have bought an accumulated R270 billion of SA equities. Since 1994, this number is a massive R437 billion.

According to JSE stats of net flows into bonds and equities, for the first time in 2010 since 1994, the bond market attracted bigger flows than local equities. JSE stats indicate that a net R58,6 billion flowed into local bonds.

These strong inflows naturally helped push the rand firmer during 2010.

Monetary policy

This week we will see the release of consumer inflation data. The expectation is that this should be up slightly from the 3,6% in November.

The Monetary policy committee meets for the first time in 2011 this week. They will announce on any changes to interest rates on Thursday. At this stage, the expectation is for there to be no change to the current repo rate of 5,5%, which in turn drives prime rate, currently at 9%.

The 10 year average inflation is at 6%.

While official inflation has remained in the 3-6% band, going forward however, there are some looming concerns, including the rising oil price which is close to $100/barrel and rising food prices, both of which have high weightings in the inflation basket.


The rand came under some pressure last week. A factor that may have contributed was the announcement coming out of China that it has increased the reserve requirements of its banks by an additional 0,5%. It is doing this to cool down its economy and ahead of the state visit by Chinese President this week to the US, which starts today.

An expanding economy is a prerequisite for long term growth on investments. But over any shorter period of time, there is a low correlation between investment performance and economic performance and so unfortunately trying to predict the performance of investments based on recent or even impending economic releases does not work.

In many ways both the strong level of the currency and the more expensive valuation of the local equity market have priced in a fair degree of anticipated good news.

Please do not hesitate to contact Vincent or Ian at Seed Investments, if you would like to discuss your investment planning and management.

Kind regards

Ian de Lange
021 9144 966

Tue, 18 Jan 2011

A Nigerian militant group on Tuesday threatened attacks on the fuel industry, telling residents to move away from storage depots and saying it would also target vehicles transporting petroleum products.  Full story
South African stocks hit their highest in 31 months on Tuesday, as stronger commodity prices helped boost shares of heavyweight miners and upbeat overseas markets added to the bullish tone.  Full story
Russian Vimpelcom's bid for Egyptian tycoon Naguib Sawiris' telecoms assets has reignited a feud between its two top shareholders -- Norway's Telenor and Russian billionaire Mikhail Fridman's Alfa Group.  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

13h26 South Africa petrochemicals group Sasol said on Tuesday it would not continue with a planned coal-to-liquids plant project in Indonesia as. . .  Full story
12h01 Brewer SABMiller beat forecasts with a 3 percent rise in quarterly volumes, boosted by growth in Africa and Asia, and said. . .  Full story
11h42 South Africa's gold output rose 2.1 percent year-on-year in volume terms in November while total mineral production rose 9.6 percent compared. . .  Full story
10h52 Gold output from Ghana, Africa's second largest producer of the precious metal, rose 3 percent during the first nine months of. . .  Full story

Trading Statistics


Major Moves Up
SharenameSaleMove% MoveVolume
1 ONELOGIX  1592014.39.%203887
2 MMG  11665.45.%12965
3 OPTIMUM  31981484.85.%33370
4 AFOVR-N  1150504.55.%4524
5 IQUAD  324144.52.%2000
6 JUBILEE  363154.31.%188668
7 ARGENT  980404.26.%58405
8 UCS  24093.90.%45790
9 VERIMARK  17063.66.%10000
10 BARWORLD  68392343.54.%761999
11 GRANPRADE  300103.45.%166263
12 ROLFES  19163.24.%55233
13 KUMBAIO  4665014253.15.%625238
14 ARM   221406573.06.%435151
15 RAINBOW  1650402.48.%22
16 MVELASERV  1300302.36.%1036505
17 GBGOLD  1770402.31.%9506
18 BILLITON  275006002.23.%2977805
19 VALUE  38582.12.%490
20 SABMILLER  243114932.07.%1880344

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Major Moves Down
SharenameSaleMove% MoveVolume
1 ELLIES   218-12-5.22.%83195
2 HUGE  105-5-4.55.%65000
3 ANOORAQ  1060-50-4.50.%3000
4 OANDO  335-15-4.29.%1006926
5 WOOLIES  2529-106-4.02.%4313414
6 GROUP-5  3515-142-3.88.%375698
7 PLATMIN  650-25-3.70.%2585
8 TRUWTHS  6800-250-3.55.%1782472
9 CML  1755-60-3.31.%321093
10 MT-EGLE  1160-39-3.25.%100000
11 CLICKS  4199-136-3.14.%1575216
12 MRPRICE  6200-200-3.13.%2077034
13 ALTRON-P  2641-84-3.08.%81601
14 DCENTRIX  544-16-2.86.%4200
15 COMAIR  240-7-2.83.%2000
16 KELLY  425-12-2.75.%155220
17 JDGROUP  5530-145-2.56.%575377
18 SENTULA  281-7-2.43.%498977
19 MERAFE  162-4-2.41.%6101491
20 VUKILE  1401-34-2.37.%185402

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New Highs
SharenameSaleHighMove% MoveVolume
1 ONELOGIX  1591602014.39.%203887
2 AFOVR-N  11501150504.55.%4524
3 ARGENT  9801000404.26.%58405
4 BARWORLD  683968392343.54.%761999
5 KUMBAIO  466504718814253.15.%625238
6 BILLITON  27500276706002.23.%2977805
7 SABMILLER  24311245744932.07.%1880344
8 URONE  39704075751.93.%14964
9 SASOL  35600359504891.39.%1419710

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New Lows
SharenameSaleLowMove% MoveVolume

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Spot Prices
NameTimeRPMove% Move
JSE Overall17:0032559.72243.520.75%
JSE Top 4017:0029192.55299.391.04%
JSE Gold17:002556.84.570.02%
JSE Financial17:0021883.7442.150.19%
JSE Industrial17:0032315.39105.440.33%
JSE Indust 2517:0026823.34126.990.48%
JSE Resource17:0058004.29829.371.45%
DJ Futures19:3011795.0084.000.72%
DJ Ind19:4111851.4064.020.54%
SP 50019:361292.76-0.48-0.04%
FTSE 10018:356056.4370.731.18%
All Ords07:384911.6039.000.80%
NZSE 5006:323343.74-10.56-0.31%
NameTimeRPMove% Move
Gold/R kg19:5630417725800.86%
Brent Crude19:5697.57.370.38%
Rand / Dollar19:596.91200.03530.51%
Rand / Pound19:5511.01150.10070.92%
Rand / Euro19:559.24380.09651.05%
Rand / NZD19:585.32360.01590.30%
Rand / AUD19:556.90150.05620.82%
Yen / Dollar19:5682.71000.06000.07%
Euro / Dollar19:550.7477-0.0053-0.70%
Dollar / Euro19:581.33650.00830.62%
Pound / Dollar19:550.6258-0.0035-0.56%

Click here for the Sharenet Spot Price page
Index Summary
Index NameRPMove% Move
Top 4029,192.55299.391.04%
Mid Cap42,796.81-373.97-0.87%
Small Cap33,633.99-137.66-0.41%
Resource 2058,004.29829.371.45%
Industrial 2526,823.34126.990.48%
Financial 158,288.9242.220.51%
Financial & Ind. 3030,244.84193.760.64%
All Share32,559.72243.520.75%
Oil & Gas 26,985.68368.741.39%
Mining 38,331.37551.121.46%
Gold Mining2,556.84.570.02%
Platinum Mining87.19.921.07%
Oil & Gas Producers 14,509.70198.261.39%
Basic Materials 32,188.64453.541.43%
Chemicals 13,569.7654.770.41%
Forestry & Paper 13,342.31-65.06-0.49%
Industrial Metals 29,963.68682.652.33%
Industrials 29,836.35-29.64-0.10%
General Industrials 77,974.72596.490.77%
Consumer Goods 26,375.73332.831.28%
Automobiles & Parts 2,898.51.000.00%
Household Goods152.84-1-0.42%
Health Care 32,613.81-115.03-0.35%
Beverages 83,075.301684.672.07%
Food Producers 49,134.62138.700.28%
Index NameRPMove% Move
Personal Goods 395.213.200.82%
Consumer Services 53,778.65-240.79-0.45%
General Retailers 39,942.99-993.79-2.43%
Travel & Leisure 4,192.00-30.88-0.73%
Media 88,762.421324.511.51%
Support Services 2,679.5423.560.89%
Telecommunications 63,381.67-183.56-0.29%
Financials 21,883.7442.150.19%
Banks 41,445.25151.440.37%
Non-life Insurance 31,560.19-84.88-0.27%
Life Insurance 15,811.51118.350.75%
General Financial 2,430.993.890.16%
Technology 20,986.11-126.56-0.60%
SHARIAH TOP40 3,285.09371.15%
FTSE/JSE SHARIAH ALL3,349.83351.05%
COAL MINING21,472.795682.72%
FTSE JSE Fledgling 4,788.6260.12%
FTSE/JSE Alt X 1,136.0750.46%
CAPPED PROPERTY 311.49-1.21%
RESOURCE 31,912.284561.45%
DIVIDEND PLUS176.00-0-0.16%
FTSE/JSE RAFI 406,787.25650.97%
Capped Top 4015,162.191400.94%
Capped All Share16,368.011120.69%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
17 Jan 2011SPESCOMSeptember 2010 (Final)
18 Jan 2011NET1UEPSDecember 2010 (Interim)
18 Jan 2011NET1UEPSPDecember 2010 (Interim)
18 Jan 2011NET1UEPSPPDecember 2010 (Interim)
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 6.510-12-0911-01-2111-01-31R 0.0650
NAMPAK 6%P10-12-0911-01-2111-01-31R 0.0600
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
POYPoynting Holdings Ltd19/01/2011Confirmed
CMLCoronation Fund Managers Ltd20/01/2011Confirmed
CMLPCoronation Fund Managers Ltd20/01/2011Confirmed
NTCPNetcare Ltd21/01/2011Confirmed
CVNConvergeNet Holdings Ltd21/01/2011Confirmed

Stock Exchange News Service
18/01/201117:50OML - OLD MUTUAL plc - Public opening position disclosure/dealing disclosure by
18/01/201117:43ATN/ ATNP - Allied Electronics Corporation Limited - Dealing in securities
18/01/201117:14 Rockwell Diamonds Incorporated - Rockwell announces results for Third
18/01/201117:00 Rockwell Diamonds Incorporated - Rockwell to file amended unaudited
18/01/201116:56 SilverBridge - Change to the board of Directors
18/01/201116:52 PSV Holdings Limited - Financial effects of the acquisition of Turbo
18/01/201116:35 Statement by the executive chairman of MICROmega Holdings Limited
18/01/201116:21 MICROmega - Change to Director`s Responsibilities
18/01/201116:05 Imperial Holdings Limited - Changes to the Imperial Holdings Executive
18/01/201114:32 Group Five Limited - Trading Statement
18/01/201114:25 Clicks Group Limited - Results of annual general meeting and general
18/01/201114:18CPI - Capitec Bank Holdings Limited - Transactions in securities by an associate
18/01/201114:07 Simeka Business Group Limited - Results of the general meeting
18/01/201113:20 Simeka Business Group Limited - Results of the Annual General Meeting
18/01/201112:46 Sea Kay Holdings Limited - Proxy form in respect of The Annual General
18/01/201112:45MOB - Mobile Industries Limited - Finalisation announcement
18/01/201112:45 Trencor Limited - Finalisation Announcement
18/01/201112:26 Workforce Holdings Limited - Further Cautionary Announcement
18/01/201111:35 PBT Group Limited - Results of annual general meeting
18/01/201111:22 SacOil Holdings Limited - Renewal of cautionary announcement
18/01/201110:35 Stellavista Technologies Limited - Correction to the notice of annual
18/01/201110:19SCIB - The Standard Bank Of South Africa Limited - Notice of expiry of Standard
18/01/201110:09 Acucap Properties Limited - Dealing In Securities By Directors
18/01/201110:00 Clicks Group Limited - Trading Update
18/01/201109:29 Calgro M3 Holdings Limited - Changes to the board of directors
18/01/201109:00 SABMiller Plc - Trading Update
18/01/201108:50 Famous Brands Limited - Dealings in Securities
18/01/201108:49 Famous Brands Limited - Dealings in securities
18/01/201108:32 Compu-Clearing Outsourcing Limited - Renewal of Cautionary Announcement
18/01/201108:00 Reinet Investments S.C.A. Depositary Receipts - Management statement for
18/01/201107:28INVS - Investec Bank Limited - The issue of barrier put warrants
18/01/201107:19RDFIHD - Investec Bank Limited - Announcement to warrant holders of their new
18/01/201107:05 BHP Billiton Plc - Transaction in shares
18/01/201107:05OML - Old Mutual Plc - Form 8.3

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