The Sharenet Daily 
Tuesday, 22 March 2011 - 20:00
Sharenet is pleased to announce the launch of our new publication, The Sharenet Daily. We have built on the success of our Daily Equity Report, while adding more content and helpful information. The result is a publication that gives readers a quick, easy to read and informative synopsis of market activity, company results and news on the JSE for the day, as well as an overview of what transpired on important overseas markets.

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Top News
SA Business
Company News
Company Results
World Markets
JSE Today
JSE Trading Statistics
Major Moves
Spot Prices
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Soe thoughts on gold

Whenever we run presentations and have a time for questions, invariably there is one on the outlook for gold. While gold ownership in SA has typically not been an attractive investment, there remains a strong emotional attachment to this asset class.

But lets examine the case for this metal.

Gold has been in a steady upward price pattern for the last 12 years. After falling to a low of around $250/oz in mid 1999, the price of this yellow metal has been steadily increasing.

Over the past 11 years, in US dollar terms, the price has compounded up at 15,3% per annum. Because gold pays no interest or dividends, this is the total return for an investor holding this asset. This return has actually been very good compared to say global equities, which gave investors a dollar return of 4,8% for the last 10 years.

Investors into local shares achieved a dollar return of approximately 18% over the last 10 years – so this puts some perspective on gold’s 11 year run.

US investment bank, Goldman Sachs has a current forecast for gold bullion at $1480/oz. in 3 months, a 6 month forecast of $1565 and 12 months out at $1690/oz.

One main reason for them remaining upbeat on the price is the fact that the Federal Reserve continues to keep the interest rate below the rate of inflation – i.e. running negative rates of interest. This tends to be dollar negative and asset price positive.

Gold producer, AngloGold reported to Reuters that they are looking for a price of $1600/oz. towards the end of 2012.

Investors that are bullish on the price have the option of buying either the metal itself, or investing into a mining producer. Over the years, except for certain spikes, mining companies have generally not been fantastic investments. In general their costs have continued to rise and given the fact that they mine a wasting asset, a large component of their costs is on exploration and new acquisition. This in order to replenish a wasting asset.

Today Goldfields announced a voluntary purchase offer in Lima, Peru to buy shares that it does not already own. If the offer is taken up in full the cost will be $420 million.

AngloGold reported that their all in cost of producing an ounce of gold is already higher than $1000/oz. and this is likely to increase by more than $100/oz. year in year.

At these and higher gold prices, gold producers can be profitable and should the price continue to rise and companies start to demonstrate a willingness to pay out higher dividends, then these businesses can be attractive investments. At current price multiples, investors are already pricing in high expectations.

Our view is that while the dollar price of bullion will remain volatile, we have not yet seen the top. We continue to hold a small portion within the Seed Flexible Fund, but not as yet any gold producer.

Kind regards

Ian de Lange
021 9144 966

Tue, 22 Mar 2011
Top News
Selling gold output forward will not guarantee greater profitability for a mining company, but this does not mean the now-unfashionable practice of hedging won't make a comeback, says South Africa's Gold Fields.  Full story

South Africa's antitrust watchdog postponed hearings into Wal-Mart's $2.3 billion bid for a controlling stake in domestic retailer Massmart after the government and unions asked for more time to submit additional information.  Full story
Markets took a breather on Tuesday after days of volatility, as uncertainty over the fighting in Libya kept both stocks and U.S. government debt in a narrow range  Full story
Muammar Gaddafi's forces attacked two west Libyan towns, killing dozens while rebels were pinned down in the east and NATO tried to resolve a heated row over who should lead the Western air campaign.  Full story
Yemen's president said on Tuesday his country would descend into civil war if he were forced to quit and Washington voiced concern about instability in the Arabian state that has become an al Qaeda stronghold.  Full story
U.S. stocks edged lower on Tuesday following three days of gains, but the recent rally has investors feeling less edgy about crises in. . .  Full story
Gold was little changed on Tuesday as interest-rate hike worries prompted the market to take a breather, but Western air strikes on Libya. . .  Full story
Britain's top share index fell on Tuesday, snapping a three-session rally, as further airstrikes against Libya and disruption caused by the earthquake in Japan. . .  Full story
U.S. stocks edged lower on Tuesday following three days of gains, but further losses may be limited as investors have adapted to a. . .  Full story

European shares were higher at midday on Tuesday in a continuation of a rebound from last week's hefty falls, with gains limited by. . .  Full story
Australian stocks gave up morning gains to end steady on Tuesday, as materials stocks weakened and weighed on the broader market as worries. . .  Full story
Japan's Nikkei average is set on Tuesday to recoup some of last week's 10 percent loss after reports of progress to contain radiation. . .  Full story
Global stocks rose on Monday as risk appetite returned after Japan had some success controlling a crippled nuclear plant, while the yen slipped. . .  Full story
SA Business
South Africa's bonds rallied on Tuesday and the rand touched a week-high against the dollar, both partly supported by data showing. . .  Full story
Africa's biggest brewer SABMiller Plc underlined its confidence in the continent on Tuesday by raising its revenue and margin targets after. . .  Full story
The number of people employed in South Africa's non-agricultural sectors increased by 1.2 percent in the fourth quarter of 2010 compared. . .  Full story
The rand firmed to a week-high against the dollar on Tuesday and South African government bonds nudged higher as the global. . .  Full story

Selling gold output forward will not guarantee greater profitability for a mining company, but this does not mean the now-unfashionable practice of hedging won't. . .  Full story
Industrial giant Renova, controlled by Russian tycoon Viktor Vekselberg, said on Tuesday its joint venture in South Africa had launched a. . .  Full story
South Africa should not replicate Australia's controversial resource tax, which is likely to hurt investment and push capital elsewhere, the head. . .  Full story
AngloGold Ashanti's top executive said on Tuesday the company hoped to keep its global cost increases to half the industry average. . .  Full story

AngloGold Ashanti's top executive said on Tuesday the company hoped to keep its global cost increases to half the industry average but the situation in South Africa was "a lot tougher.". . .  Full story
South African government bonds edged higher and the rand held earlier gains against the dollar on Tuesday after Reserve Bank data showed the current account deficit narrowed sharply in the fourth. . .  Full story
South Africa's current account gap narrowed to a seven-year-low in the fourth quarter of 2010, while expenditure slowed, partly due to a moderation in household spending, the Reserve Bank said on. . .  Full story
Company News
Shareholders were advised that the company expected to report basic earnings per share attributable to ordinary shareholders for the twelve months. . .  Full story
Shareholders are referred to the trading statement released on SENS today, 22 March 2011. The comparative diluted earnings per share ("EPS"). . .  Full story
Shareholders are advised that the group expects diluted earnings per share ("EPS") and diluted headline EPS for the period to be. . .  Full story
Textainer Group Holdings Ltd, in which Trencor has a 61.2% interest, has filed its Form 20-F (annual report for the year. . .  Full story

According to Business Report, Ciplamed has lined up a new oncology division expansion outside the country and two new ventures as. . .  Full story
Business Day reported that Pick n Pay has raised R500 million to fund expansion as it looks to gain traction over. . .  Full story
Business Day reported that Pick n Pay has raised R500 million to fund expansion as it looks to gain traction over. . .  Full story
South African cement sales continue to decline. Industry figures released for the five months from October 2010 to February 2011 show. . .  Full story
Company Results
Revenue grew to R1.2 billion (R1 billion) and gross profit rose to R278.6 million (R247.2 million). However, earnings before interest, taxation, depreciation and amortisation (EBITDA) fell marginally to R36 million (R36.4 million), while operating profit also fell to R28.8 million (R29.6 million). Net profit attributable to ordinary equity holders jumped to R15.3 million (R11.4 million). Furthermore, headline earnings per share increased slightly to 6.7cps (6.4cps). Dividend No div. . .  Full story
World Markets
NameTimeRPMove% Move
JSE Overall17:0030868.31191.230.62%
JSE Top 4017:0027790.80177.890.64%
JSE Gold17:002574.37-9.21-0.36%
JSE Financial17:0020679.95184.830.90%
JSE Industrial17:0030648.54426.271.41%
JSE Indust 2517:0025646.78419.671.66%
JSE Resource17:0055008.82-192.62-0.35%
DJ Futures19:5011950.00-6.00-0.05%
DJ Ind18:4512021.92-14.61-0.12%
SP 50020:001295.61-2.77-0.21%
FTSE 10018:355762.71-23.38-0.40%
All Ords07:374737.703.600.08%
NZSE 5006:263365.2316.860.50%
NameTimeRPMove% Move
Gold/R kg20:00314778-4295-1.35%
Brent Crude19:46115.051.481.30%
Rand / Dollar19:586.8650-0.0775-1.12%
Rand / Pound19:5511.2512-0.0447-0.40%
Rand / Euro19:559.7919-0.0884-0.89%
Rand / NZD19:585.0893-0.0166-0.33%
Rand / AUD19:556.9730-0.0240-0.34%
Yen / Dollar19:5680.9500-0.2000-0.25%
Euro / Dollar19:580.70340.70340.00%
Dollar / Euro19:581.4216-0.0001-0.01%
Pound / Dollar19:550.6103-0.0029-0.47%

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The JSE Today
Trading Statistics

Major Moves Up
SharenameSaleMove% MoveVolume
1 HWANGE  56011525.84.%100
2 URONE  323060122.86.%274778
3 BAUBA  2503013.64.%2010
4 PETMIN  2882710.34.%447670
5 ANOORAQ  830617.93.%38093
6 CAPEVIN  85665116.34.%112
7 JUBILEE  319196.33.%21336
8 CML  1700955.92.%313805
9 TRNSHEX  265145.58.%20905
10 NASPERSN  3704518505.26.%3723858
11 ZURICHSA  2100010005.00.%3530
12 CROOKES  40001904.99.%7000
13 IMPERIAL  107954954.81.%1006566
14 RICHEMONT  39531684.44.%11432945
15 ELLIES   21083.96.%11000
16 BLUETEL  575203.60.%536424
17 MASONITE  29001003.57.%1103
18 ILIAD  724243.43.%222051
19 BARWORLD  69502243.33.%1257822
20 EQSTRA  652213.33.%121121

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Major Moves Down
SharenameSaleMove% MoveVolume
1 INDEQTY  120-25-17.24.%400
2 UCS  190-29-13.24.%429070
3 CLOVER  1061-84-7.34.%21548
4 BCX  530-35-6.19.%2963349
5 ROLFES  160-10-5.88.%8010
6 GRANPRADE  265-15-5.36.%36000
7 STEFSTOCK  1075-45-4.02.%61132
8 SASFIN  3600-150-4.00.%1552
9 PBT  125-5-3.85.%4169
10 GOLDONE  253-10-3.80.%424130
11 PPC  2500-97-3.74.%2504337
12 CADIZ  285-10-3.39.%105016
13 MIXTEL  115-4-3.36.%758500
14 MEDCLIN  2850-99-3.36.%760099
15 DCENTRIX  485-15-3.00.%260731
16 NUWORLD  2600-80-2.99.%78710
17 DAWN  670-20-2.90.%15
18 METROFILE  185-5-2.63.%109919
19 KEATON   348-9-2.52.%45500
20 MASSMART  13037-334-2.50.%712120

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New Highs
SharenameSaleHighMove% MoveVolume
1 HWANGE  56056011525.84.%100
2 ZURICHSA  210002100010005.00.%3530
3 CAPCO  17991900-2-0.11.%569353
4 CLOVER  10611150-84-7.34.%21548

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New Lows
SharenameSaleLowMove% MoveVolume
1 UCS  190150-29-13.24.%429070
2 BCX  530500-35-6.19.%2963349
3 SASFIN  36003350-150-4.00.%1552
4 PPC  25002448-97-3.74.%2504337
5 GOLDREEF  14181411-32-2.21.%112052
6 ADCOCK  54015100-19-0.35.%1176878

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Index Summary
Index NameRPMove% Move
Top 4027,790.80177.890.64%
Mid Cap39,690.46239.960.61%
Small Cap30,825.94-27.58-0.09%
Resource 2055,008.82-192.62-0.35%
Industrial 2525,646.78419.671.66%
Financial 157,842.0272.210.93%
Financial & Ind. 3028,866.33435.671.53%
All Share30,868.31191.230.62%
Oil & Gas 28,177.76454.161.64%
Mining 35,868.73-205.07-0.57%
Gold Mining2,574.37-9.21-0.36%
Platinum Mining73.651.572.18%
Oil & Gas Producers 15,150.66244.191.64%
Basic Materials 30,223.37-131.20-0.43%
Chemicals 13,033.03-18.79-0.14%
Forestry & Paper 13,925.76155.771.13%
Industrial Metals 28,007.12367.231.33%
Industrials 26,429.09250.590.96%
General Industrials 72,444.631068.051.50%
Consumer Goods 25,222.50458.041.85%
Automobiles & Parts 3,032.1120.380.68%
Household Goods152.8442.56%
Health Care 30,561.94-131.03-0.43%
Beverages 77,146.48290.460.38%
Food Producers 45,494.0921.900.05%
Index NameRPMove% Move
Personal Goods 394.8116.784.44%
Consumer Services 50,572.421097.832.22%
General Retailers 38,070.64128.580.34%
Travel & Leisure 3,582.1712.560.35%
Media 81,471.313958.555.11%
Support Services 2,407.658.820.37%
Telecommunications 62,796.82391.640.63%
Financials 20,679.95184.830.90%
Banks 38,663.24384.171.00%
Non-life Insurance 29,731.81-264.32-0.88%
Life Insurance 15,643.33155.921.01%
General Financial 2,177.118.890.41%
Technology 20,231.82-403.06-1.95%
SHARIAH TOP40 3,139.97-1-0.04%
FTSE/JSE SHARIAH ALL3,190.74-0-0.00%
COAL MINING21,279.153831.83%
FTSE JSE Fledgling 4,510.7240.09%
FTSE/JSE Alt X 1,043.8970.67%
RESOURCE 30,289.83-84-0.28%
DIVIDEND PLUS160.1620.97%
FTSE/JSE RAFI 406,479.60490.77%
Capped Top 4014,463.021280.89%
Capped All Share15,530.301160.75%

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Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
23 Mar 2011ADVTECHDecember 2010 (Final)
23 Mar 2011GB LDDecember 2010 (Final)
23 Mar 2011GB LD OPTDecember 2010 (Final)
23 Mar 2011GIJIMADecember 2010 (Interim)
23 Mar 2011JASCODecember 2010 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
AMAPS11-03-0411-03-2511-04-01R 0.0400
ASTRAPAKP11-03-0411-03-2511-04-04R 3.4269
STANBANK11-03-0311-04-0111-04-11R 2.4500
STANBANK6.511-03-0311-03-2511-04-04R 0.0325
STANBANK-P11-03-0311-03-2511-04-04R 3.3790
Ex Div**
Share NameDec-DateLDTPay-DateAmount
SASFIN-P11-03-0211-03-1711-03-28R 3.6205
IMPERIALP11-02-2311-03-1711-03-28R 3.6123
CAPITEC-P11-02-2811-03-1711-03-28R 3.4377
PSGFIN PREF11-03-0111-03-1711-03-28R 3.4377
SANTAM11-03-0111-03-1711-03-28R 3.2500

Upcoming AGMs**
CodeCompany NameDateStatus
HDCHudaco Industries Ltd24/03/2011Confirmed
AMSPAnglo Platinum Ltd28/03/2011Confirmed
AMSAnglo Platinum Ltd28/03/2011Confirmed
OREOrion Real Estate Ltd29/03/2011Confirmed

Stock Exchange News Service
22/03/201117:50CCO - Capital & Counties Properties Plc - Acquisition of Shares by Person
22/03/201117:17 Wesizwe - Trading Statement
22/03/201116:37 Capital Property Fund - Dealing In Securities
22/03/201116:15 Tiger Brands - Presentation on Africa Strategy
22/03/201116:07 Kumba - Grant and Acceptance of Share Options by Company Secretary,
22/03/201116:06 Aveng Limited - Appointment of an independent non-executive director
22/03/201116:03 Nampak Limited - Presentation at Investec Securities 2011 Consumer
22/03/201115:45BIPS40 - Bips Top 40 - Distribution finalisation announcement
22/03/201115:42BIPINF - Bips Government Inflation Linked Bond Fund - Distribution Finalisation
22/03/201115:08Limited (HYP) Variable Strike Warran tHYPIVB - Investec Warrants - announcement
22/03/201115:06HYPIVB - Investec Warrants - Declaration of a distribution announcement on
22/03/201115:00 SABMiller Plc - Notification of transactions of directors, persons
22/03/201114:57 Emira Property Fund - Dealings in securities by a director
22/03/201114:38 Business Connexion Group Limited - Correction on trading statement
22/03/201114:28JOZI03 - The City Of Johannesburg Metropolitan Municipality - Interest Rate
22/03/201113:57SCIB - The Standard Bank of South Africa Limited - Notice of expiry of standard
22/03/201113:18 Bauba Platinum Limited - Lifting of voluntary suspension of trading of
22/03/201112:51 SA French Limited - Appointment of Financial Director
22/03/201112:50 Business Connexion Group Limited - Trading Statement
22/03/201112:48 Trencor - Trencor`s Textainer: Annual Report for 2010
22/03/201112:28 Metmar Limited - Trading statement
22/03/201112:27 DRDGOLD - Dealing in securities by a Director
22/03/201112:14TOPDWF - Deutsche Bank AG - Notice: Termination of listing - Index Wave
22/03/201112:11TOPDWH - Notice : Termination of Listing - TOPDWH - Index Wave (Call)
22/03/201111:40 Growthpoint Properties Limited - Results of distribution re-
22/03/201111:27TOPDWF - Deutsche Bank AG - Notice: Termination of listing
22/03/201111:26 Gold One International Limited - Goliath Gold Transaction Approved by
22/03/201111:24TOPDWH - Deutsche Bank AG - Notice : Termination Of Listing - TOPDWT - Index
22/03/201111:21 White Water Resources - Results of General Meeting, Change to the Board of
22/03/201110:12 JSE Limited - Dealing in securities by a Director
22/03/201110:08 Tawana Resources NL - Placement
22/03/201110:04 Workforce - Audited condensed financial results for the year ended 31
22/03/201108:47 Uranium one announces amended option agreement to Acquire Mantra Resources
22/03/201108:05 Decillion Limited - Renewal of cautionary announcement
22/03/201108:00 Pretoria Portland Cement Company Limited - Trading statement
22/03/201107:57 Orion Real Estate Limited - Withdrawal of Cautionary Announcement
22/03/201107:55 Gold Fields Limited - Press release
22/03/201107:30 Firestone Energy Limited - Operational update
22/03/201107:12 British American Tobacco P.l.c - Transaction in own shares
22/03/201107:11 British American Tobacco p.l.c - Notification of transactions of
22/03/201107:10 British American Tobacco P.l.c - Transaction in own shares
22/03/201107:07 BHP Billiton Plc - Transaction in shares
22/03/201107:05 Lonmin Plc - Blocklisting

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