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Welcome to the Sharenet Daily Equity Report
 Issue: 27 January 2011 20:00

Short Term Thinking is the Enemy of Investments

Investors are best rewarded when they take a long term view. By cutting out the noise surrounding markets and economies, investors are able to focus on those items that matter. More specifically, what the market has done on a day to day basis should not affect how you invest. Researching a company’s fair value is a more productive use of your time than tracking the movement of its share price. Once you have an estimate of fair value, you can then look at its share price and decide whether or not to buy the share, not the other way around (i.e. look at share price and then decide on a fair value).

The same principle applies at the asset class level. News items coming out on a daily basis are unlikely to change the relative attractiveness of an asset class and on their own should therefore not influence your investment positions that much. Assembling a range of information in the form of a mosaic style picture is a better way to use economic and other information than merely trying to interpret each item in isolation.

While headlines sell newspapers and advertising online, I feel that financial news reporters also have the responsibility to avoid focusing on the short term when reporting on investments. On Monday morning (25 January), before the markets opened, I saw a headline that said “All Share Index falls the most since January 20”. Now if my calculations are correct the ALSI fell 1.6% on Thursday 20 January, rose 1% on Friday 21 January, and then fell 0.8% on Monday 25 January.

Essentially the headline was highlighting the fact that out of Friday 21 January and Monday 24 January (two days), the performance of the ALSI was negative on Monday, and worse than the performance on Friday. Is this news? Scanning the headline, without pausing to think what it was saying, could prompt the reader to incorrectly conclude that markets were having a rocky time.

It would help investors if financial news reporters cut down on the number of ‘news’ reports that they churned out and rather focused on adding value to the end user. News reports should not merely rehash SENS (Stock Exchange NewS) reports, but rather look at the report (and possibly other related reports/news items) and attempt to interpret how that news item will affect the company/industry/economy. Clearly in the age of data overload this is easier said than done.

We endeavour, in our daily reports, to remain focused on the longer term. We often discuss newsworthy items, but strive to frame them (often with other news items) in terms of how they will affect your investments over a long term horizon. It is only natural that, as humans, we will sometimes be overly influenced by short term factors, but we attempt to ensure that this is the exception rather than the norm.

If you want updates on articles that we believe are worthy of being called news, click through to our Facebook page, and click ‘Like’ at the top of the page.

Take care,

Mike Browne
021 9144 966

Thu, 27 Jan 2011

South Africa's rand firmed against the dollar on Thursday as the greenback lost a bit of ground while the bourse ended higher on mining shares' gains.  Full story
African economic growth is heading back to pre-crisis growth levels, propelled by strong demand for its resources and increased "South-South" investment, notably from China.  Full story
More governments around the world are moving to keep their currencies from strengthening or control the flow of money into their economies as investors pour money into higher-yielding markets, turning their backs on low interest rates in developed economies.  Full story
Africa should have a greater presence in the Group of 20 nations rather than be largely excluded and simply told how to run their economies, Botswana's central bank governor said on Thursday.  Full story

16h01 Anglo Platinum, the world's top platinum producer, said it will resume late on Thursday operations at its Thembelani mine in South. . .  Full story
14h17 South African food retailers have been cleared in a price-fixing probe launched by the country's competition watchdog nearly two years ago.. . .  Full story
12h51 South African truckers are threatening a nationwide strike from mid-February, a union official said on Thursday, which could snarl ports and. . .  Full story
12h04 Net insurance premium revenue increased by 3.6% to R4.3 billion (December 2008:R4.1 billion). Net profit attributable to members of the company. . .  Full story

Trading Statistics


Major Moves Up
SharenameSaleMove% MoveVolume
1 AMECOR  1762012.82.%73604
2 DAWN  850708.97.%2819
3 DIGICOR  320196.31.%28620
4 GOLDREEF  19601156.23.%13714
5 HUGE  11865.36.%4550
6 AMA  215104.88.%207087
7 MONDIPLCP  58652614.66.%2103614
8 LITHA  250104.17.%165530
9 MIXTEL  13054.00.%501500
10 GBGOLD  1832653.68.%21265
11 METOREX  565193.48.%2733228
12 AQUARIUS  40531293.29.%234067
13 ARB  315103.28.%29692
14 ANOORAQ  1094343.21.%66835
15 PETMIN  30493.05.%198231
16 AFRIMAT  340103.03.%11618
17 BARWORLD  69401902.81.%2422843
18 RMBH  39271072.80.%1699774
19 RAINBOW  1670452.77.%39408
20 OLDMUTUAL  1439382.71.%17648701

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Major Moves Down
SharenameSaleMove% MoveVolume
1 MMG  200-20-9.09.%35000
2 WESCOAL  116-8-6.45.%683508
3 ERBACON  125-8-6.02.%12587
4 PLATMIN  597-38-5.98.%53500
5 PBT  110-6-5.17.%14733374
6 PHUMELELA  1105-45-3.91.%1215826
7 UNIVERSAL  140-5-3.45.%6488
8 ROLFES  185-6-3.14.%1142
9 CADIZ  342-11-3.12.%3654
10 WINHOLD  158-5-3.07.%5000
11 AFRO-C  160-5-3.03.%22615
12 IMPLATS  20804-647-3.02.%6574904
13 IQUAD  301-9-2.90.%636
14 CMH  1361-39-2.79.%1906
15 DCENTRIX  529-15-2.76.%13745
16 JUBILEE  364-10-2.67.%67887
17 HCI  7950-198-2.43.%544031
18 UCS  225-5-2.17.%74619
19 VILLAGE  230-5-2.13.%30100
20 SENTULA  270-5-1.82.%3931428

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New Highs
SharenameSaleHighMove% MoveVolume
1 AMECOR  1761762012.82.%73604
2 AMA  215215104.88.%207087
3 BARWORLD  694069611902.81.%2422843
4 OPTIMUM  32903500371.14.%92984
5 BILLITON  27728279231750.64.%3472072
6 SASFIN  390040100.12553

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New Lows
SharenameSaleLowMove% MoveVolume

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Spot Prices
NameTimeRPMove% Move
JSE Overall17:0032138.54173.300.54%
JSE Top 4017:0028812.39164.990.58%
JSE Gold17:002542.2331.251.24%
JSE Financial17:0021781.57222.981.03%
JSE Industrial17:0031901.42149.680.47%
JSE Indust 2517:0026478.30128.010.49%
JSE Resource17:0057025.70218.110.38%
DJ Futures19:4611945.009.000.08%
DJ Ind19:4512001.8616.420.14%
SP 50020:001298.932.300.18%
FTSE 10018:355965.08-4.13-0.07%
All Ords07:384907.00-2.00-0.04%
NZSE 5006:323350.93-3.79-0.11%
NameTimeRPMove% Move
Gold/R kg20:00298199-3515-1.17%
Brent Crude19:5697.08.490.51%
Rand / Dollar19:587.0380-0.0267-0.38%
Rand / Pound19:5511.1690-0.0542-0.48%
Rand / Euro19:559.6410-0.0474-0.49%
Rand / NZD19:575.4356-0.0202-0.37%
Rand / AUD19:556.9848-0.0782-1.11%
Yen / Dollar19:5882.95000.74000.90%
Euro / Dollar19:550.72990.00030.04%
Dollar / Euro19:591.36990.00030.02%
Pound / Dollar19:550.62830.00030.05%

Click here for the Sharenet Spot Price page
Index Summary
Index NameRPMove% Move
Top 4028,812.39164.990.58%
Mid Cap42,352.23158.640.38%
Small Cap32,804.5871.590.22%
Resource 2057,025.70218.110.38%
Industrial 2526,478.30128.010.49%
Financial 158,268.00101.041.24%
Financial & Ind. 3029,955.61223.520.75%
All Share32,138.54173.300.54%
Oil & Gas 26,752.79-166.79-0.62%
Mining 37,639.37198.130.53%
Gold Mining2,542.2331.251.24%
Platinum Mining79.40-1.36-1.68%
Oil & Gas Producers 14,384.48-89.68-0.62%
Basic Materials 31,670.49206.840.66%
Chemicals 13,504.99-81.72-0.60%
Forestry & Paper 13,554.26456.323.48%
Industrial Metals 30,015.68557.661.89%
Industrials 29,747.99157.430.53%
General Industrials 78,117.86542.070.70%
Consumer Goods 26,066.39132.780.51%
Automobiles & Parts 2,830.5711.320.40%
Household Goods149.9831.99%
Health Care 32,343.42-33.03-0.10%
Beverages 80,628.60321.220.40%
Food Producers 48,131.8461.850.13%
Index NameRPMove% Move
Personal Goods 402.502.200.55%
Consumer Services 52,343.8995.030.18%
General Retailers 39,418.64114.060.29%
Travel & Leisure 4,096.9119.240.47%
Media 84,420.32-44.60-0.05%
Support Services 2,570.5626.301.03%
Telecommunications 62,449.9273.700.12%
Financials 21,781.57222.981.03%
Banks 41,249.83601.661.48%
Non-life Insurance 30,529.61201.270.66%
Life Insurance 15,923.28231.281.47%
General Financial 2,368.2916.750.71%
Technology 20,602.28100.830.49%
SHARIAH TOP40 3,234.34150.45%
FTSE/JSE SHARIAH ALL3,299.65150.45%
COAL MINING20,930.961140.55%
FTSE JSE Fledgling 4,748.09-5-0.11%
FTSE/JSE Alt X 1,118.7040.35%
CAPPED PROPERTY 309.71-0.05%
RESOURCE 31,373.381200.38%
DIVIDEND PLUS174.1410.43%
FTSE/JSE RAFI 406,712.51520.77%
Capped Top 4014,945.24830.56%
Capped All Share16,143.05860.54%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
25 Jan 2011SPESCOMMarch 2011 (Interim)
26 Jan 2011CBHDecember 2010 (Interim)
28 Jan 2011HUDACONovember 2010 (Final)
31 Jan 2011CAPITALDecember 2010 (Final)
02 Feb 2011GIJIMADecember 2010 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
FOORDCMPS11-01-2011-02-0411-02-14R 0.5385
DIALOGUE11-01-1311-02-1811-02-28R 0.1238
SBRJSEP1110-12-1511-03-0411-03-15R 1.4100
WINHOLD10-11-2911-02-1111-02-21R 0.1000
UCS10-11-2311-02-0411-02-14R 0.0500
Ex Div**
Share NameDec-DateLDTPay-DateAmount
CLICKS10-10-2111-01-2111-01-31R 0.7570
FREEWORLD10-11-2411-01-2111-01-31R 0.0700
NAMPAK 6.510-12-0911-01-2111-01-31R 0.0650
NAMPAK 6%P10-12-0911-01-2111-01-31R 0.0600
REUNERT5.511-01-0511-01-2111-01-31R 0.0550

Upcoming AGMs**
CodeCompany NameDateStatus
LHCLife Healthcare Group Holdings Ltd27/01/2011Confirmed
AIPAdcock Ingram Holdings Ltd27/01/2011Confirmed
SLLStella Vista Technologies Ltd27/01/2011Confirmed
JDHJohn Daniel Holdings Ltd28/01/2011Confirmed
BAWBarloworld Ltd28/01/2011Unconfirmed

Stock Exchange News Service
27/01/201117:26 Adcock Ingram Holdings Limited - Results of annual general meeting
27/01/201117:25OML - Old Mutual plc - Form 8.3
27/01/201117:09ZGOVI - The ZSHARES ETF SCHEME - Withdrawal of ZGOVI participatory interests
27/01/201117:08 Capital Shopping Centres Group Plc - Notification of 2010 annual results
27/01/201117:08 Tiger Brands Limited - Acting Financial Director
27/01/201116:48 Africa Cellular Towers Limited - Changes to the board of directors
27/01/201116:20 Life Healthcare Group Holdings Limited - Report on proceedings at annual
27/01/201116:05 Chrometco Limited - Dealing in securities by director
27/01/201115:30 SABMiller Plc - Altria financial data disclosure
27/01/201115:03 BRC DiamondCore - Notice Of Special Meeting, Proposed Consolidation of
27/01/201114:58 Decillion Limited - Company Announcement
27/01/201114:46 Huge Group Limited - Director`s dealings in securities
27/01/201114:45 First Uranium Corporation - Q3 2011 Production results for the three
27/01/201114:45 Huge Group Limited - Directors dealings in securities
27/01/201114:12 PBT Group Limited - Dealings in securities by directors and associates
27/01/201113:21 Labat - Reversal of Change In Control, Change to the board of directors,
27/01/201113:16THEE - The Competition Commission - Competition Commission findings of the
27/01/201112:48 Ellies Holdings Limited - Dealing in securities
27/01/201112:45 Verimark - Resignation of the Financial Director
27/01/201112:01 Kelly Group Limited - Diversification into vertical markets positions
27/01/201112:00 Kelly Group Limited - No change statement and notice of annual general
27/01/201112:00 Wescoal Holdings Limited - Production at Blesboklaagte plant and Khanyisa
27/01/201111:53 Remgro Limited - Change to the board of directors
27/01/201111:48 AFGRI Limited - Change to the board of directors
27/01/201110:51 Vunani - Results of the General Meeting
27/01/201110:32 Zurich - Announcement of the reviewed group results for the year ended 31
27/01/201110:00 Taste Holdings Limited - Dealings in securities
27/01/201109:47 Uranium One Inc - Uranium One names Chris Sattler as New CEO
27/01/201109:34DBXUS - db x-trackers MSCI USA Index ETF - Distribution announcement - Six
27/01/201109:33DBXUK - db x-trackers FTSE 100 ETF - Distribution announcement - six months
27/01/201109:32DBXEU - db x-trackers DJ Euro Stoxx 50 ETF - Distribution announcement - six
27/01/201109:31DBXWD - Db x-trackers MSCI World Index ETF - Distribution announcement - six
27/01/201109:30DBXJP - Db x-trackers MSCI Japan Index ETF - Distribution announcement - Six
27/01/201109:25SCIB/TOPSKH - The Standard Bank Of South Africa Limited - Issue of Knockout
27/01/201109:24INPSTE - Standard Bank of South Africa Limited - Notice of rollover ratios of
27/01/201109:03FCPD - Foord Compass - Change to the board of directors
27/01/201109:00 Lonmin - Q1 2011 Production Report & Interim Management Statement
27/01/201109:00 Aquarius Platinum Limited - Second Quarter 2011: Production Results
27/01/201108:59 Kumba Iron Ore Limited - Proceedings in relation to the residual Sishen
27/01/201108:00 Merafe - Trading statement for the year ended 31 December 2010
27/01/201107:40 Gold One International Limited - Der East Mine not affected by flooding in
27/01/201107:24SPS - Spescom Limited - Termination of listings on the JSE Limited
27/01/201107:20 Capital Shopping Centres Group Plc - Results of extraordinary general
27/01/201107:05 BHP Billiton Plc - Transaction in shares
27/01/201107:05 JD Group Limited - Sales and debtors update for the four months ended

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