The Sharenet Daily 
Thursday, 07 April 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
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Rand Fair Value

Talk to anyone who’s been investing for longer than 10 years and you will no doubt get to hear their views on the rand. The performance of their offshore investments over this period will no doubt heavily bias their views. Many investors got burned at the turn of the century mainly as a result of three factors:
• Selling cheaply priced local assets (i.e. local equity market cheap)
• Selling cheaply priced currency (i.e. rand at extremely weak levels versus most currencies)
• Buying expensive foreign assets (i.e. ploughing money into the top of the tech boom in developed markets)

This scarring often heavily influences investors’ decision making going forward. The poor returns were amplified because both asset returns AND currency movements worked against those investors with money in developed market equities over the past 10 years or so.

One of investing good lessons is that you can’t change what’s happened in the past, and that all investment decisions should be based on future return expectations. Investors should therefore try, as best as possible, to forget previous successes and failures without forgetting the lessons learnt along the way.

Another investment lesson is that performance is never in a straight line.

Below is a chart of the ZAR v USD over the past 26 or so years. The black smoothed line is the value of 1 USD on Purchasing Power Parity (PPP) basis. The theory behind PPP is that over the long term currencies should move relative to one another based on the inflation differential, so that over time goods and services will have a similar cost across countries to avoid arbitrage of goods and services between countries. The chart clearly shows that this is the trend over time.

Clearly there are some flaws with this process as different countries have different skill sets, there are transportation costs and import duties, etc. For this reason when looking at this method one needs to take a long term outlook (i.e. longer than 5 years) and only act when there is a sufficient margin of safety. Furthermore, investors should ensure that the assets that they are investing into in the foreign currency are fairly or attractively priced.

On this chart it is clear that December 2001 wasn’t a great time to be expatriating ZAR, but what is also clear is that the ZAR can trade in cheap or expensive territory for an extended period. The ZAR stayed one standard deviation too strong for a decade from the end of 1986 to the end of 1996, but over this period still depreciated from R2.26 per USD to R4.68 per USD (7.6% per annum) as a result of the inflation differentials between the two countries.

An investor looking to take money offshore one would rather be taking it over now than at the end of 2001 or even 2008. At current levels there is a margin of safety built into return assumptions, one doesn’t need to forecast significant rand strength, and if the rand does trade back to fair value (currently sitting at R8.71) over the next 10 years (an extremely long period) then investors would gain real increase of 3.5% per annum to their USD returns, and 5.4% per annum should fair value be reached in 5 years. Should the ZAR stay strong, investors should only expect the inflation differential (likely to be around 3% per annum for the next 5 years or so).

As always, investing is a long term pursuit (speculators operate over the shorter term). Being a long term investor doesn’t preclude you from transacting over shorter term periods should circumstances warrant (i.e. if the ZAR weakened to R10 to the USD overnight we’d be looking to repatriate offshore assets), but does require that you think for the longer term.

To vote in our poll on where you think/want the ZAR to end the year vs the USD click through to our Facebook page and find the question on our Fan Page’s wall.

Take care,

Mike Browne
021 9144 966

Thu, 07 Apr 2011
Top News
South Africa's rand steadied near three-month highs against the dollar on Thursday after strong output data supported expectations for an interest rate rise by the end of the year.  Full story

Kenya has licensed HSBC Limited to open a representative office for marketing and liaison purposes in the country, the east African nation's central bank said on Thursday.  Full story
A major aftershock rocked northeast Japan on Thursday and a tsunami warning was issued for the coast devastated by last month's massive quake and tsunami that crippled a nuclear power plant.  Full story
An anti-tank missile fired from Gaza hit an Israeli school bus on Thursday, wounding two people, and Israeli forces retaliated by shelling the territory, killing three Palestinians, Palestinian medics said.  Full story
With time running short, Democratic and Republican leaders in the U.S. Congress said on Thursday they were pessimistic about budget talks and blamed each other for the looming threat of a government shutdown.  Full story
Gold was little changed on Thursday afternoon, retreating from a record high after another strong earthquake hit Japan.. . .  Full story
European stocks ended lower on Thursday, as a new earthquake and a tsunami alert in northeastern Japan sparked a late-session bout of profit. . .  Full story
Global equities fell after a strong earthquake shook Japan and the euro fell against the dollar as the European Central Bank raised rates. . .  Full story
Britain's top share index fell on Thursday after a second large earthquake to strike Japan within a month knocked investor confidence, with traders. . .  Full story

U.S. stocks fell on Thursday shortly after an earthquake with a magnitude of 7.4 hit Japan and a tsunami warning was issued.. . .  Full story
Banks led European shares to their highest level in nearly a month on Thursday as strategists said interest rate rises would not derail. . .  Full story
Australian stocks eased 0.1 percent on Thursday, breaking a 7-day winning streak, as some heavyweight stocks such as BHP Billiton slipped after sustaining a. . .  Full story
Gold ticked lower to hover below a record on Thursday ahead of an expected euro zone interest rate hike, while ETF holdings dropped. . .  Full story
SA Business
Major rich and developing countries need to press ahead with economic reforms to ensure a global recovery becomes self-sustaining despite the. . .  Full story
South Africa's maize, wheat and soybeans futures edged up on Thursday, with the maize contracts recording the biggest gains in line. . .  Full story
Growth in South Africa's manufacturing output quickened to 6.0 percent year-on-year in volume terms in February compared with a revised 1.6. . .  Full story
Zambia's export earnings surged more than 67 percent in 2010 as mining companies in Africa's top copper producer expanded output as. . .  Full story

South Africa's Reserve Bank will base its future policy action on its assessment of second round effects of higher oil and. . .  Full story
Harmony Gold said on Thursday that a bond issue was one option to fund development of its promising Wafi-Golpu prospect in. . .  Full story
South Africa's power, iron and steel workers want a 20 percent wage hike this year, suggesting unions will use high world. . .  Full story
Gold Fields, the world's fourth largest gold producer, said on Thursday the shaft at its KDC mine in South Africa that. . .  Full story

South Africa's government bonds retreated on Thursday and yields climbed in profit-taking after strong demand over the past week, but the. . .  Full story
South Africa's net gold and foreign exchange reserves stood at $44.725 billion at the end of March from $44.775 billion in. . .  Full story
South Africa is to build a 15 billion rand rare metals processing complex, Business Report newspaper reported on Thursday.. . .  Full story
Paper maker Mondi said on Thursday it plans to spin off its South African packaging business from the group and list. . .  Full story
Company News
Shareholders of Glenrand ("Glenrand shareholders") are referred to the announcement released by Glenrand on SENS on 24 March 2011 and published. . .  Full story
Further to the announcement released on SENS this morning, the company advised that The distribution ratio for the proposed distribution of. . .  Full story
Further to the announcement of 29 March 2011 regarding the proposed transactions, the Registrar of Companies has registered the following in. . .  Full story
Old Mutual announced that, following receipt of the remaining regulatory approval from the New York State Insurance Department, completion of the. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0032633.25-254.22-0.77%
JSE Top 4017:0029389.94-264.62-0.89%
JSE Gold17:002819.62-31.78-1.11%
JSE Financial17:0021898.50-81.19-0.37%
JSE Industrial17:0032337.66-170.14-0.52%
JSE Indust 2517:0027006.23-198.82-0.73%
JSE Resource17:0058048.17-723.47-1.23%
DJ Futures20:0012316.00-39.00-0.32%
DJ Ind19:3512365.86-60.89-0.49%
SP 50018:401334.15-1.39-0.10%
FTSE 10017:356007.37-33.76-0.56%
All Ords08:375005.50-5.90-0.12%
NZSE 5007:263450.36.480.01%
NameTimeRPMove% Move
Gold/R kg20:00312293-1582-0.50%
Brent Crude19:56122.661.000.82%
Rand / Dollar19:586.6653-0.0138-0.21%
Rand / Pound19:5510.8683-0.0123-0.11%
Rand / Euro19:559.5523-0.0245-0.26%
Rand / NZD19:575.1880-0.0065-0.13%
Rand / AUD19:556.98000.00250.04%
Yen / Dollar19:5884.9400-0.4400-0.52%
Euro / Dollar19:550.69950.00200.29%
Dollar / Euro19:571.4290-0.0039-0.27%
Pound / Dollar19:550.61310.00090.15%

Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics

Major Moves Up
SharenameSaleMove% MoveVolume
1 COMPCLEAR  270208.00.%1000
2 WILDRNESS  533336.60.%9004
3 BLUETEL  640396.49.%2303184
4 ESORFRANK  173106.13.%1807060
5 EOH  1899995.50.%289219
6 OANDO  300144.90.%6626
7 RAUBEX  2050854.33.%632798
8 LONAFRIC  13054.00.%207
9 MIXTEL  13553.85.%151500
10 SACOIL  20573.54.%2999456
11 PREMIUM  1720502.99.%12376
12 GROUP-5  3050852.87.%357105
13 PHUMELELA  1150302.68.%12900
14 DRDGOLD  36492.54.%1480579
15 PINNACLE  680131.95.%311598
16 CMH  1275241.92.%140952
17 GOLDONE  32061.91.%437877
18 PUTPROP  550101.85.%3000
19 MRHLD  2800501.82.%890546
20 ASTRAL  129302181.71.%94933

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Major Moves Down
SharenameSaleMove% MoveVolume
1 PLATMIN  608-52-7.88.%192807
2 GRANPRADE  295-25-7.81.%67970
3 WITSGOLD  5000-400-7.41.%6000
4 REXTRU-N  1200-80-6.25.%1926
5 ADCORP  2550-150-5.56.%18500
6 AMA  176-8-4.35.%200662
7 RMBH  2806-122-4.17.%1764026
8 KAP  240-10-4.00.%14191
9 HCI  7400-306-3.97.%3274
10 PICKNPAY  4440-172-3.73.%2162284
11 PIKWIK  1860-70-3.63.%1060447
12 URONE  2776-93-3.24.%118474
13 COAL  958-31-3.13.%94860
14 PARACON  155-5-3.13.%116500
15 ASSORE  20869-631-2.93.%15654
16 UNIVERSAL  180-5-2.70.%3400
17 SASFIN  3500-90-2.51.%3939
18 OPTIMUM  3275-75-2.24.%159675
19 BATS  27200-620-2.23.%527603
20 EXXARO  16858-367-2.13.%981890

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New Highs
SharenameSaleHighMove% MoveVolume
1 EOH  18991900995.50.%289219
2 GOLDONE  32032061.91.%437877
3 BARWORLD  76557785500.66.%1909617
4 MONDIPLCP  65506710-51-0.77.%1721469
5 SASOL  3980040355-401-1.00.%4315623

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New Lows
SharenameSaleLowMove% MoveVolume
1 DELTA  7957300.840

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Index Summary
Index NameRPMove% Move
Top 4029,389.94-264.62-0.89%
Mid Cap41,906.00-61.10-0.15%
Small Cap32,397.2673.180.23%
Resource 2058,048.17-723.47-1.23%
Industrial 2527,006.23-198.82-0.73%
Financial 158,331.22-32.37-0.39%
Financial & Ind. 3030,508.36-188.64-0.61%
All Share32,633.25-254.22-0.77%
Oil & Gas 30,178.46-300.43-0.99%
Mining 37,894.15-474.98-1.24%
Gold Mining2,819.62-31.78-1.11%
Platinum Mining75.92-.84-1.09%
Oil & Gas Producers 16,226.40-161.54-0.99%
Basic Materials 31,986.81-376.78-1.16%
Chemicals 13,501.25-22.41-0.17%
Forestry & Paper 14,639.91-152.66-1.03%
Industrial Metals 31,052.307.360.02%
Industrials 28,123.9621.180.08%
General Industrials 77,137.68-147.47-0.19%
Consumer Goods 26,202.89-239.48-0.91%
Automobiles & Parts 3,170.2422.640.72%
Household Goods160.02-1-0.55%
Health Care 31,571.41-223.54-0.70%
Beverages 83,382.85-758.62-0.90%
Food Producers 47,659.89250.090.53%
Index NameRPMove% Move
Personal Goods 386.02-5.89-1.50%
Consumer Services 53,885.862.520.00%
General Retailers 41,650.75-5.05-0.01%
Travel & Leisure 3,638.2716.330.45%
Media 84,232.44229.920.27%
Support Services 2,389.25-47.39-1.94%
Telecommunications 66,688.26-686.27-1.02%
Financials 21,898.50-81.19-0.37%
Banks 41,537.57-153.71-0.37%
Non-life Insurance 31,523.82484.981.56%
Life Insurance 16,471.96-32.76-0.20%
General Financial 2,306.02-16.34-0.70%
Technology 21,055.74182.580.87%
SHARIAH TOP40 3,326.75-37-1.11%
FTSE/JSE SHARIAH ALL3,379.95-34-1.00%
COAL MINING23,030.84-506-2.15%
FTSE JSE Fledgling 4,512.17-25-0.56%
FTSE/JSE Alt X 1,023.5030.30%
CAPPED PROPERTY 307.05-0.26%
RESOURCE 32,059.89-391-1.20%
DIVIDEND PLUS170.2400.04%
FTSE/JSE RAFI 406,853.21-51-0.74%
Capped Top 4015,298.61-132-0.85%
Capped All Share16,415.47-124-0.75%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
08 Apr 2011PHUMELELAJanuary 2011 (Interim)
11 Apr 2011FAIRVESTDecember 2010 (Interim)
11 Apr 2011FAIRVESTPDecember 2010 (Interim)
11 Apr 2011ZEDERFebruary 2011 (Final)
11 Apr 2011ZEDERPFebruary 2011 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
NAIL -N-11-04-0511-04-1911-05-03R 0.1760
NAIL11-04-0511-04-1911-05-03R 0.1760
SBR00311-04-0511-04-1911-05-05R 1.4100
NTC PREF11-04-0111-04-1911-05-03R 3.4161
TELEMASTR11-04-0111-04-1911-05-03R 0.0400
Ex Div**
Share NameDec-DateLDTPay-DateAmount
SASOL11-03-0711-04-0111-04-11R 3.1000
EXXARO11-02-2411-04-0111-04-11R 3.0000
NEDBANK11-02-2811-04-0111-04-11R 2.6800
STANBANK11-03-0311-04-0111-04-11R 2.4500
BOWCALF11-03-0911-04-0111-04-11R 0.1560

Upcoming AGMs**
CodeCompany NameDateStatus
MMHMiranda Mineral Holdings Ltd07/04/2011Confirmed
MRFMerafe Resources Ltd13/04/2011Unconfirmed

Stock Exchange News Service
07/04/201117:34 Miranda Mineral Holdings Limited - Results of annual general meeting
07/04/201117:33 Exxaro Resources Limited - Dealings by a director of an Exxaro major
07/04/201117:32 Exxaro Resources Limited - Trading of Exxaro ordinary shares on behalf of
07/04/201117:14 Glenrand M I B Limited - Fulfilment and/or waiver of the remaining
07/04/201117:05MVG / MVGP - Mvelaphanda Group Limited - Disposal of life healthcare group
07/04/201116:34SCIB : SLMSTE - The Standard Bank Of South Africa Limited - Dividend
07/04/201116:20MND / MNP - Mondi Limited / Mondi plc - Employee share plans
07/04/201116:15 Naspers Limited - Director Dealing in Securities
07/04/201116:15 Old Mutual plc - Notification of transactions of directors, persons
07/04/201116:00 Trustco Group Holdings Limited - Voluntary announcement: Trustco "Land
07/04/201115:47 Bell Equipment Limited - Acceptance of options by a director of a major
07/04/201115:31 Redefine Properties International - Acquisition of St Georges Shopping
07/04/201115:00MVL/NHM - Mvelaphanda Resources / Northam Platinum - Final Northam
07/04/201114:47 Gold Fields Limited - Media Release -Fatalities at KDC Mine
07/04/201113:49 British American Tobacco p.l.c.- Notification of transactions of
07/04/201113:40THEE - The Competition Commission - Statement by the Competition Tribunal on
07/04/201112:32 Combined Motor Holdings Limited - Trading Statement
07/04/201112:30 Keaton Energy - Operational update for the six months ended 31 March 2011
07/04/201112:16 Steinhoff International Holdings Limited - Agreed terms and expected
07/04/201112:00 Phumelela Gaming & Leisure Limited - Phumelela and Tabcorp to grow
07/04/201112:00MVL/NHM - Mvela Resources/Northam - Finalisation information and revised
07/04/201109:59 Miranda Mineral Holdings Limited - Finalisation Announcement Regarding the
07/04/201109:25 Nampak Limited - Nampak Wiegand Glass Invests R500m in Glass Bottle
07/04/201109:01 Bidvest share buy-back unlocks significant value for Dinatla BEE
07/04/201109:00 Bidvest - Repurchase of Shares from Dinatla Investment Holdings
07/04/201108:00 OLD Mutual plc - Completion of sale of US Life
07/04/201108:00MND/ MNP - Mondi Group announces the proposed demerger of Mondi Packaging
07/04/201108:00GLD - NewGold Issuer Limited - Listing of additional Newgold debentures
07/04/201107:10 British American Tobacco p.l.c - Transaction in own shares
07/04/201107:05NEDB - Nedbank Limited - Issue of share instalments

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