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Wednesday, 30 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.The Sharenet Daily includes helpful charts that give a graphical impression of events, and our news content is sourced from a number of contributors, including Reuters. In addition, Sharenet's popular price information is available in our Spot Price format which provides a snapshot of the JSE and world indices, currencies and commodities.
All the JSE trading statistics; major movers; latest dividends; upcoming AGM dates and more are provided to insure that you keep abreast of market developments. The Sharenet Daily is published at 8pm each day on the website and also distributed via email for your convenience. As always, we welcome your comments, feedback and suggestions at support@sharenet.co.za
Charts
Inflation continues to head higher around the world
Current and impending inflation levels are getting to the stage where major central banks need to start hiking their ultra-low interest rates. The general outlook is that the European Central Bank will hike its interest rates next week by 0,25% after the ECB President made a surprise announcement earlier in the month.
The ECB base interest rate is currently at 1%.
At this stage the US is likely to remain cautious on hiking interest rates, given the low core inflation rate that it tracks. CPI is at 2,1% and core (see definition below) at 1,1%
The UK has inflation running at 4,4% and this is putting pressure on the Bank of England to raised rates from their ultra-low 0,5%
Chinese inflation
Add to this the inflation problem in China. Food inflation has been culprit, although prices of some of the main components like corn and rice are down about 10% from their highs. However it’s not only food prices that have been the issue. Excluding food, inflation rose 2,6% in January, which is the fastest in 10 years.
Overall inflation has risen from 1,5% at the beginning of 2010 to the current 5%.
Chinese inflation starts to become a global issue given that China is a large exporter of finished goods. Over the last two decades wage price hikes have not really taken hold, countered to a large degree by productivity gains. However this is not necessarily going to be the case in future.
A recent report from Standard Chartered Bank of its clients in China said that they expect wages to increase between 9% and 15% this year. The report also indicated that 45% of firms are finding it harder to recruit workers despite generally paying more than the minimum wages.
Source: Wells Fargo
Inflation in the US
Monetary authorities in the US target core CPI. This is inflation excluding food and energy costs. In the US food is a relatively small component of the inflation basket – just 15%. Housing is the biggest component at 42% and this weak market post the financial crisis is helping inflation at the lower levels.
While headline inflation is currently running ahead of core, over time the spikes in headline have not passed through to core inflation.
However there are definite components of inflation that hurt. The chart below reflects the massive hike in energy and education costs in the US over the last 10 years. While these 2 items are not direct components, they are included into 2 of the components.
Source : Dshort
With massive doses of global money creation, higher inflation into the future is almost certainty. The world has experienced the positive influence of deflation from China over the past 2 decades, but even if this persists, it is unlikely to be at the same level over the next 2 decades.
When it comes to identifying investment risk, one of the bigger risks is that inflation will persist at higher rates into the future . Accordingly investment portfolios and asset allocation must take this possibility into account.
Kind regards
Ian de Lange
info@seedinvestments.co.za
www.seedinvestments.co.za
021 9144 966
Top News
![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-03-30T151329Z_01_AJOE72T16AI00_RTROPTP_3_OZABS-SAFRICA-RAND-20110330.JPG "A bank teller looks at South African rand note, October 1, 2003. The volatile rand is trading at its..") South Africa's rand firmed to its strongest level in more than two months on Wednesday, partly on hawkish comments by central bank Governor Gill Marcus. Full story ![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-03-30T151650Z_01_AJOE72T16G400_RTROPTP_3_OZABS-EASTAFRICA-RETAIL-20110330.JPG "To match interview DEACONS-KENYA/") Shopping malls are springing up across east Africa faster than ever before as retailers seek to tap into a swelling middle class with growing disposable incomes and a limited choice of leisure activities. Full story |
 Japan called on the world not to impose "unjustifiable" import curbs on its goods as French President Nicolas Sarkozy was due to arrive on Thursday, the first leader to visit since an earthquake and tsunami damaged a nuclear plant, sparking the worst nuclear crisis since Chernobyl in 1986. Full story  The prime ministers of nuclear-armed foes India and Pakistan stood side by side on Wednesday at a World Cup cricket match and clapped to each other's national anthems in a symbolic gesture aimed at rebuilding ties shattered by the 2008 Mumbai attacks. Full story  Libyan rebels fled in headlong retreat from the superior arms and tactics of Muammar Gaddafi's troops on Wednesday, exposing the insurgents' weakness without Western air strikes to tip the scales in their favour. Full story |
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Markets |
U.S. stocks rose on
Wednesday as investors positioned themselves for the quarter's
end and the S&P 500 attempted to hold above a key. . . Full story |
World stocks rose more than
1 percent on Wednesday as strong hiring by U.S. private
employers boosted both U.S. and European markets, while. . . Full story |
European shares hit a
three-week closing high on Wednesday after a U.S. labour report
revived confidence in a recovery in the world's largest. . . Full story |
Gold prices pared
gains on Wednesday as the metal struggled to rise toward
all-time highs, weighed down by profit taking amid an initial
decline. . . Full story | |||
The FTSE 100 closed higher for
a sixth consecutive session on Wednesday, its best run since
August 2010, as investors ditched retailers over. . . Full story |
Japan's Nikkei stock average
climbed 2.6 percent, hitting its highest level since a
post-quake panic sell-off as the yen softened against the
dollar, but. . . Full story |
Australian stocks jumped 1.4
percent to close at a 3-1/2 week high, with the miners leading
solid gains across the board at the. . . Full story |
Gold steadied on Wednesday
on firmer equities and upheaval in Libya, although further gains
could be capped by worries that some central banks. . . Full story | ||||
SA Business |
Botswana will introduce renewable energy feed-in tariffs for electricity generation by March next year, a senior government official said on Wednesday.. . . Full story |
Maize deliveries to South African silos rose to 11.894 million tonnes in the week to March 25 from 11.88 million tonnes. . . Full story |
Heineken NV, the world's third-largest brewer, said it had bid a total of $163 million for two breweries in Ethiopia as. . . Full story |
South Africa's rand firmed slightly against the dollar on Wednesday after comments from central bank governor Gill Marcus about not going. . . Full story | |||
Zimbabwean financial services
group Kingdom Bank posted a return to full-year profit on
Wednesday after splitting from Meikles Africa Limited and said
it plans. . . Full story | Shares in Kumba Iron Ore were up almost 4 percent on Wednesday, around three-week highs, as investors continued to digest a. . . Full story | South Africa's Richards Bay Coal Terminal (RBCT) has shelved plans to increase export volumes until 2015 due to the slow pace. . . Full story | Growth in credit demand by South Africa's private sector quickened to 5.43 percent year-on-year in February, compared with a 5.01 percent. . . Full story |
South Africa's central bank
will not be soft on inflation, Reserve Bank Governor Gill
Marcus said on Tuesday, reiterating the bank was concerned
about the impact on inflation from food and oil prices.. . . Full story |
Company News |
Shareholders are advised that the annual financial statements have been distributed to shareholders on or about 28 March 2011 and contain. . . Full story |
With reference to the announcement released on SENS on 17 March 2011, shareholders are advised that the Companies and Intellectual Property. . . Full story |
Shareholders are advised that the company's annual report will be lodged with the JSE Limited and posted to shareholders today, Wednesday,. . . Full story |
In terms of Bonatla's provisional reviewed condensed consolidated results for the year ended 31 December 2010 published on SENS on Friday,. . . Full story | |||
FUM
FIU. . . Full story |
BWI
BWI. . . Full story |
Further to the published Nedbank and Nedbank Ltd ("Nedbank-p") audited financial results for the year ended 31 December 2010, shareholders are. . . Full story |
Business Report noted that Nedbank officially introduced Africa's first wind powered banking branch operating from a 1 kilowatt wind turbine that. . . Full story | ||||
Company Results | Business Day reported that Pallinghurst is looking for coking coal and copper assets to add to its diversified asset base as. . . Full story | Revenue for the half-year increased by 7% to R3 billion (R2.8 billion), whilst operating profit decreased by 1% to R116.1 million. . . Full story | Revenue for the interim period ended 31 December 2010 improved to R40.5 million (R38.6 million), but operating profit dropped to R11.4. . . Full story | Revenue for the interim period decreased to R148.5 million (2009: R155.5 million). Gross profit lowered to R72 million (2009: R81.5 million),. . . Full story |
World Markets (Spot Prices)
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Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics| Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
|---|---|---|---|---|---|---|---|---|
| 30/03/2011 | 280 | 92 | 72 | 444 | 292,592,061 | R16,907,826,853 | 134331 | 2036044 |
| 29/03/2011 | 198 | 121 | 77 | 396 | 228,178,567 | R10,740,638,240 | 88171 | 1886262 |
| 28/03/2011 | 137 | 179 | 82 | 398 | 203,154,801 | R8,181,057,585 | 74139 | 1841863 |
| 25/03/2011 | 186 | 148 | 92 | 426 | 213,958,141 | R10,669,727,515 | 90869 | 1897200 |
| 24/03/2011 | 220 | 115 | 78 | 413 | 265,580,050 | R13,365,618,952 | 99780 | 2220689 |
Major Moves Up
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Major Moves Down
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Index Summary
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Stock Exchange News Service
| Date | Time | Headline |
| 30/03/2011 | 17:49 | Bauba Platinum Limited - Trading Statement |
| 30/03/2011 | 16:47 | Zurich Insurance Company South Africa Limited - No change statement and |
| 30/03/2011 | 16:45 | Old Mutual plc - Public opening position disclosure/dealing disclosure |
| 30/03/2011 | 16:45 | IFA Hotels & Resorts Limited - Condensed consolidated results for the six |
| 30/03/2011 | 16:31 | Rainbow Chicken Limited - Change in financial year-end: Cipro approval |
| 30/03/2011 | 16:14 | ADvTECH Limited - Dealing in securities by a director |
| 30/03/2011 | 16:11 | Platfields Limited - Change to the board of directors |
| 30/03/2011 | 16:00 | ABSA Group Limited - Posting of the Absa Group 2010 annual report and |
| 30/03/2011 | 16:00 | Wits Gold announces initiation of independent scoping study and further |
| 30/03/2011 | 15:51 | Bonatla Property Holdings Limited - Unmodified Review Opinion |
| 30/03/2011 | 15:30 | New Europe Property Investments plc - No change statement and notice of |
| 30/03/2011 | 15:17 | FFA/FFB - Fortress Income Fund Limited - Dealing in securities |
| 30/03/2011 | 15:06 | SCIB - The Standard Bank of South Africa Limited - Issue of Knockout Warrants |
| 30/03/2011 | 15:05 | SCIB - The Standard Bank of South Africa Limited - Issue of stock warrants |
| 30/03/2011 | 15:00 | Pioneer Food Group Limited - Trading update |
| 30/03/2011 | 14:48 | SOL Sasol Limited - Dealing in securities by a director of a major subsidiary of |
| 30/03/2011 | 14:23 | Wesizwe Platinum Limited - Audited abridged year-end results for the year |
| 30/03/2011 | 14:11 | SELCo - Reviewed interim results for the six months ended 31 December |
| 30/03/2011 | 14:00 | Hardware Warehouse Limited - Unaudited interim results for the six |
| 30/03/2011 | 14:00 | NED/NBKP - Nedbank Group/Nedbank Limited - Issue of Audited AFS, No Change |
| 30/03/2011 | 13:56 | ABL/ABLP - African Bank Investments Limited - Resignation of company secretary |
| 30/03/2011 | 13:55 | ABL/ABLP - African Bank Investments Limited - Report on proceedings at the |
| 30/03/2011 | 11:31 | DiamondCorp Plc - Notification of major interest in shares |
| 30/03/2011 | 11:23 | VN - Sabvest Limited - No change statement and notice of annual general |
| 30/03/2011 | 11:17 | BRT / BRN - Brimstone Investment Corporation Limited - Posting of Brimstone`s |
| 30/03/2011 | 11:16 | Exxaro Resources Limited - Trading of Exxaro ordinary shares on behalf of |
| 30/03/2011 | 11:11 | Primeserv Group Limited - Directors dealing in securities |
| 30/03/2011 | 11:00 | Capital Shopping Centres Group PLC - Annual Information Update |
| 30/03/2011 | 10:28 | ARB Holdings Limited - Dealing in securities by a director |
| 30/03/2011 | 10:23 | Awethu Breweries Limited - Trading Statement |
| 30/03/2011 | 10:00 | The Foschini Group Ltd - Director Dealing in Securities |
| 30/03/2011 | 09:38 | Remgro Limited - Change in financial year-end: Cipro approval |
| 30/03/2011 | 09:14 | TAW - Tawana Resources NL - Issued shares |
| 30/03/2011 | 08:00 | SABMiller plc - Bavaria S.A. - Bond and Commercial Paper Programme and |
| 30/03/2011 | 08:00 | CPI / CPIP - Capitec Bank Holdings Limited - Summarised audited financial |
| 30/03/2011 | 08:00 | STXRES - Satrix Resi Portfolio - Listing of additional securities |
| 30/03/2011 | 07:47 | Gold One International Limited - Gold One to present at The Paydirt`s Gold |
| 30/03/2011 | 07:30 | RBA Holdings Limited - Audited provisional annual financial statements for |
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