The Sharenet Daily 
Tuesday, 19 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)

US equity and bond market

This week we had rating agency Standard and Poor revise its outlook on the United States sovereign credit rating of AAA from “stable” to “negative”. This had an immediate negative impact on the world equity markets – but the shock seems to have been short lived.

The rating report cited rising budget deficits and US debt levels – the US debt position is hardly new and so there are some question marks as to why this has been done at this stage.

The question though is if these same credit rating agencies could not be trusted in the credit crisis, why do so many investors continue to place such a high emphasis on them now.

Barry Ritholz of the Big Picture puts it succinctly saying “Who Cares. It’s not that I disagree with their assessment — I do not — but I pay it little heed. It was much more important to me as an investor that PIMCO’s Bill Gross was out of Treasuries a month ago (and indeed, is short) than what S&P says. That was all any bond investor needed to know — no ratings agency necessary.”

In February we commented on the fact that the US 10 year Treasury yield had moved back up through the 3,5% level, which according to BCA Research was an important technical signal, highlighting the fact that the macro picture is increasingly turning against the bond market.

US Bonds

There has been a lot of debate about what the US Federal Reserve will do when its current $600 billion in bond purchases comes to an end in June. At this stage it does not appear that it will be extended, but the Federal Reserve does have around $17 billion a month that is maturing from mortgage debt and reports indicate that the Fed will probably use this to keep buying US treasuries and so continue to support the US bond market in an ongoing attempt to keep a lid on rising yields.

Asset allocation in this market

GMO’s James Montier made the comment about the lack of value across most asset classes around the world in a recent report, saying, “This dearth of assets offering a margin of safety raises a conundrum for the asset allocation professional: what does one do in a world where nothing is cheap? Personally, I’d seek to raise cash. This is obvious not for its thoroughly uninspiring near-zero yield, but because it acts as dry powder – a store of value to deploy when the opportunity set offered by Mr. Market once again becomes more appealing.”

He put out this chart, which is a long term chart comparing yields on US bonds to yields on US equities. Looking at yields is one of the best ways to compare one asset class against another. From there an investor can adjust, compensating for the riskiness of the income stream.

The anomaly cited is the assertion that bond yields have been falling from high levels in the early 1980’s. The argument goes that the dispersion in yields that we are seeing now is more of a reversion to normal levels. i.e. looking back over 30 years, shares appear relatively cheap against bonds – but on a longer term basis, this is perhaps where yields should be trading.

Long term chart of relationship between bond and equity yields

Source: GMO

S&P 500 earnings

The chart below reflects the extremely sharp drop off in earnings reported by the 500 largest companies and the equally sharp reversion of these earnings to the end of 2010 back to the long term upward trend. These are 12 months earnings per share – constant March 2011 dollars.

Source : Standard and Poor and Robert Shiller

Companies are starting to report their first quarter numbers. Again it appears that these are coming in firmly – despite now off a much higher base.

Kind regards

Ian de Lange
021 9144 966

Tue, 19 Apr 2011
Top News
South African government bonds gained strongly on Tuesday after a weekly debt auction was successfully covered and demand for the front end of the curve picked up, while the rand was on a soft footing above Monday's three-week low against the dollar.  Full story

Revenue for the interim period decreased to R925 million (2010: R1 billion). Gross profit increased to R257 million (2010: R234.9 million), while operating profit fell to R35.9 million (2010: R39.3 million), and profit for the year lowering to R23.9 million (2010: R25.5 million). Furthermore  Full story
Medics in northern Nigeria on Tuesday treated hundreds of victims of rioting against President Goodluck Jonathan's election victory, some of them children with gunshot and machete wounds.  Full story
Syria's government passed a draft law on Tuesday to lift 48 years of emergency rule, a concession to unprecedented demands for greater freedom in the tightly-controlled Arab country.  Full story
The United Nations appealed on Tuesday for a cease-fire in the Libyan city of Misrata, saying at least 20 children had been killed in attacks by besieging government forces on rebel-held parts of the city.  Full story
World stocks rose on Tuesday, recouping the prior day's losses, but nagging debt worries both sides of the Atlantic and new signals of. . .  Full story
U.S. gold futures hit an all-time high above $1,500 an ounce on Tuesday on a combination of dollar decline, recovering crude oil prices. . .  Full story
Upbeat corporate results helped European shares to rebound on Tuesday from hefty falls a day earlier, led by strong sales figures from luxury. . .  Full story
U.S. stocks were little changed on Tuesday as sliding revenue in financial companies pointed to a struggling economy.. . .  Full story

Strength in oversold commodity issues fuelled a modest rally by Britain's top share index on Tuesday, while sovereign debt worries continued to dog. . .  Full story
European shares rallied on Tuesday as fund managers said strong earnings would support markets in the short term, overshadowing economic risks, with LVMH and. . .  Full story
Tokyo stocks hit a three-week low on Tuesday after chipmaker Texas Instruments warned the impact from Japan's earthquake last month would result in. . .  Full story
Australian stocks stumbled 1.4 percent on Tuesday to a three-week low, led lower by banks and miners after the S&P downgrade of the. . .  Full story
SA Business
South Africa's economy has started to show positive signs of recovery but it will take time to recover from the job. . .  Full story
DRDGold, South Africa's fourth-largest gold producer, said on Tuesday it planned to sell its Blyvoor mine in a move that could. . .  Full story
South Africa expects 115 billion rand worth of investments flowing into Africa's biggest economy over the next three years, the trade. . .  Full story
South Africa exported 45,132 tonnes of white maize last week compared with 47,484 tonnes in the previous week, the South African. . .  Full story

Japan's Kansai Paint. . .  Full story
South Africa's Freeworld Coatings said on Tuesday its board will convene a meeting before the end of the week to discuss. . .  Full story
Zimbabwe will ban the export of chrome from Wednesday, and will look to build internal refinery capacity, the Ministry of Mines. . .  Full story
London Commodity Brokers (LCB), one of the world's biggest physical coal and iron ore brokerages, has opened an office in Johannesburg. . .  Full story

South Africa's National Union of Mineworkers (NUM) reiterated on Tuesday that it would take strike action against state power utility Eskom and said it was now demanding a 16 percent, one-year. . .  Full story
South Africa has lifted restrictions on red meat exports, but kept a ban on the movement of live animals following a suspected outbreak of foot and mouth disease in February, the. . .  Full story
Brewer SABMiller Plc beat forecasts with a 3 percent rise in beer volumes in the first three months of 2011, led by emerging markets in Africa and Asia as all its. . .  Full story
Company News
Crookes announced the following changes to the board of directors. * Phumla Mnganga (43) BA, BEd and MBL and; * Rodger. . .  Full story
Shareholders of Morvest are referred to the announcement released on SENS on 7 April 2011, wherein they were advised that Morvest. . .  Full story
Shareholders are advised that all of the resolutions tabled at the AGM on Tuesday, 19 April 2011, were passed by the. . .  Full story
Vukile linked unitholders ("Linked Unitholders") are referred to the circular dated 26 November 2009 in which details of the call option. . .  Full story

Business Day reported that Pick n Pay chairman Gareth Ackerman announced that the company would not change its dividend policy despite criticism from analysts who say the policy is stunting the. . .  Full story
Business Day reported that Pick n Pay chairman Gareth Ackerman announced that the company would not change its dividend policy despite criticism from analysts who say the policy is stunting the. . .  Full story
Calgro is successfully leveraging its recognised expertise to capitalise on the recent improvement in the housing market, specifically the affordable housing segment. A relative minnow in the broader construction industry with. . .  Full story
Company Results
Contract revenue rose significantly to R386.6 million (R248.6 million), but gross profit dropped to R43.8 million (R57.1 million). Operating profit fell. . .  Full story
Headline earnings for the year amount to R423.4 million (R549.9 million). As a result, headline earnings per share from continuing operations. . .  Full story
Turnover. . .  Full story
The net profit for the period amounted to R31 million (profit of R2.6 million). In addition, a headline loss per share. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0031837.06448.431.43%
JSE Top 4017:0028631.37467.951.66%
JSE Gold17:002780.038.890.32%
JSE Financial17:0021170.89248.191.19%
JSE Industrial17:0031751.25468.281.50%
JSE Indust 2517:0026526.64465.281.79%
JSE Resource17:0056505.23846.931.52%
DJ Futures19:4012185.0054.000.45%
DJ Ind19:4112258.6657.070.47%
SP 50019:201308.933.790.29%
FTSE 10017:355896.8726.790.46%
All Ords08:414874.30-71.10-1.44%
NZSE 5007:323439.98-25.19-0.73%
NameTimeRPMove% Move
Gold/R kg19:56327198-689-0.21%
Brent Crude19:56121.98.210.17%
Rand / Dollar19:596.8062-0.0250-0.37%
Rand / Pound19:5511.0781-0.0044-0.04%
Rand / Euro19:559.75900.03800.39%
Rand / NZD19:575.3652-0.0252-0.47%
Rand / AUD19:557.1685-0.0080-0.11%
Yen / Dollar19:5882.4400-0.0600-0.07%
Euro / Dollar19:550.6971-0.0055-0.78%
Dollar / Euro19:581.43390.01130.79%
Pound / Dollar19:550.6124-0.0020-0.33%

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The JSE Today
Trading Statistics

Major Moves Up
SharenameSaleMove% MoveVolume
1 ARGENT  900708.43.%82048
2 RANGOLD  286217.92.%450
3 TRUSTCO  10555.00.%1224850
4 KEATON   345133.92.%18739
5 EQSTRA  675253.85.%58056
6 NASPERSN  3639912993.70.%1708872
7 SANTAM  127504553.70.%26447
8 RICHEMONT  39901373.56.%7557606
9 HCI  79602713.52.%7353
10 ITLTILE  450153.45.%235190
11 PINNACLE  696233.42.%157638
12 VERIMARK  15653.31.%8810
13 SENTULA  29493.16.%759900
14 ANGLO  342709702.91.%2589010
15 CIPLAMED  698192.80.%956728
16 DRDGOLD  370102.78.%1465219
17 ILLOVO  2803732.67.%382817
18 RMBH  2618682.67.%2696376
19 FREEWORLD  1180302.61.%8554
20 MONDIPLCP  63801622.61.%784964

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Major Moves Down
SharenameSaleMove% MoveVolume
1 DAWN  660-70-9.59.%47571
2 AFRO-C  186-19-9.27.%11679
3 ANOORAQ  695-60-7.95.%24600
4 MAZOR  140-9-6.04.%31000
5 DELTA  730-45-5.81.%1000
6 CADIZ  260-15-5.45.%4749
7 PIKWIK  1700-85-4.76.%1746208
8 PBT  126-6-4.55.%22829
9 EHSV  5650-239-4.06.%90357
10 ELLIES   192-8-4.00.%78800
11 NICTUS  120-5-4.00.%2109
12 RAINBOW  1720-70-3.91.%87
13 JASCO  101-4-3.81.%20405
14 TREMATON  140-5-3.45.%30000
15 PETMIN  285-10-3.39.%776966
16 MIXTEL  121-4-3.20.%12096
17 PICKNPAY  4055-125-2.99.%2698328
18 CAT  1401-39-2.71.%110441
19 REDEFINTL  620-17-2.67.%220280
20 ASSORE  21070-518-2.40.%34773

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New Highs
SharenameSaleHighMove% MoveVolume

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New Lows
SharenameSaleLowMove% MoveVolume
1 CADIZ  260260-15-5.45.%4749
2 EHSV  56505000-239-4.06.%90357

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Index Summary
Index NameRPMove% Move
Top 4028,631.37467.951.66%
Mid Cap41,161.1048.100.12%
Small Cap32,137.56106.130.33%
Resource 2056,505.23846.931.52%
Industrial 2526,526.64465.281.79%
Financial 157,989.12102.331.30%
Financial & Ind. 3029,738.77517.531.77%
All Share31,837.06448.431.43%
Oil & Gas 27,785.30476.051.74%
Mining 37,205.06524.821.43%
Gold Mining2,780.038.890.32%
Platinum Mining71.05.360.51%
Oil & Gas Producers 14,939.64255.961.74%
Basic Materials 31,345.84433.971.40%
Chemicals 13,288.4440.760.31%
Forestry & Paper 13,993.80226.731.65%
Industrial Metals 29,739.72279.490.95%
Industrials 27,084.93134.000.50%
General Industrials 74,028.22823.341.12%
Consumer Goods 26,530.62545.512.10%
Automobiles & Parts 3,057.0211.320.37%
Household Goods155.7000.00%
Health Care 31,291.2315.750.05%
Beverages 84,336.251465.981.77%
Food Producers 46,907.34248.560.53%
Index NameRPMove% Move
Personal Goods 398.5113.693.56%
Consumer Services 51,792.27658.571.29%
General Retailers 40,671.2948.430.12%
Travel & Leisure 3,627.62-5.71-0.16%
Media 80,426.992812.543.62%
Support Services 2,410.07-20.85-0.86%
Telecommunications 64,853.791255.981.97%
Financials 21,170.89248.191.19%
Banks 39,180.36560.801.45%
Non-life Insurance 30,917.591103.333.70%
Life Insurance 16,040.95172.391.09%
General Financial 2,210.0819.830.91%
Technology 20,543.949.730.05%
SHARIAH TOP40 3,234.61491.53%
FTSE/JSE SHARIAH ALL3,288.45461.41%
COAL MINING22,653.162231.00%
FTSE JSE Fledgling 4,490.58-33-0.72%
FTSE/JSE Alt X 999.2590.88%
RESOURCE 31,208.204521.47%
DIVIDEND PLUS165.4100.08%
FTSE/JSE RAFI 406,636.59971.49%
Capped Top 4014,869.272421.65%
Capped All Share15,995.322241.42%

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Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
20 Apr 2011ALTECHFebruary 2011 (Final)
20 Apr 2011CONDUITFebruary 2011 (Interim)
20 Apr 2011DRDLDMarch 2011 (Q)
20 Apr 2011DRDLDCPMarch 2011 (Q)
20 Apr 2011PBTFebruary 2011 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PSG11-04-1811-05-0611-05-16R 0.4700
PIKWIK11-04-1811-06-0311-06-13R 0.5134
PICKNPAY11-04-1811-06-0311-06-13R 1.0550
CLICKS11-04-1411-06-2411-07-04R 0.3700
ZEDER11-04-1111-04-2811-05-09R 0.0400
Ex Div**
Share NameDec-DateLDTPay-DateAmount
NTC PREF11-04-0111-04-1911-05-03R 3.4161
CASHBIL11-03-2911-04-1411-04-26R 1.5700
SBR00311-04-0511-04-1911-05-05R 1.4100
SANLAM11-03-1011-04-1911-05-10R 1.1500
NAIL -N-11-04-0511-04-1911-05-03R 0.1760

Upcoming AGMs**
CodeCompany NameDateStatus
IDEIdeco Group Ltd19/04/2011Confirmed
ZPTZaptronix Ltd19/04/2011Confirmed
ZSAZurich Insurance Company South Africa Lt...20/04/2011Confirmed
FCCPFoord Compass Ltd21/04/2011Unconfirmed
ASAAbsa Group Ltd21/04/2011Confirmed

Stock Exchange News Service
19/04/201117:45 WBO-Wilson Bayly Holmes-Ovcon Ltd - Update on Competition Commission
19/04/201117:26 PBT Group Limited - Reviewed Interim Results for the six months ended 28
19/04/201117:11 Allied Technologies Limited - Appointment of COO
19/04/201117:08GEN - General - Kansai Paint Co., Ltd - Announcement Regarding Competition
19/04/201116:51 Crookes Brothers Limited - Changes to the board
19/04/201116:43 Vox Telecom Limited - Reviewed results for the six months ended 28
19/04/201116:29 Reunert Limited - Trading statement
19/04/201115:53 AG Industries Limited - Update on status of AGI and renewal of cautionary
19/04/201115:51 Capitec Bank Holdings Limited - Dealing in securities by a director
19/04/201115:50 Morvest Business Group Limited - Amendment to the sale of shares agreement
19/04/201115:38 FirstRand Limited - Dealings in securities by a director
19/04/201115:37 Firstrand Limited - Deferral of variable pay: acceptance by directors of
19/04/201115:27MMH - Miranda Mineral Holdings Limited - Halt in Trade in Letters of Allocation
19/04/201115:24 Ingenuity Property Investments Limited - Dealing in securities by a
19/04/201115:02 Ideco Group Limited - Results of annual general meeting
19/04/201114:59NFSH40 - Newfunds Shariah Top 40 Index ETF - Distribution finalisation
19/04/201114:46 Freeworld Coatings Limited - Competition commission`s decision
19/04/201114:19RAFISA - NewFunds eRAFI(TM) Overall SA Index ETF Portfolio - Distribution
19/04/201114:18THG - Trackhedge (Proprietary) Limited - Distribution finalisation announcement
19/04/201114:14 Metrofile Holdings Limited - Appointment of alternate director
19/04/201114:08RAFFIN - Newfunds eRAFI(TM)SA Financial 15 Index ETF - Distribution
19/04/201114:06RAFRES - Newfunds eRAFI(TM) SA Resource 20 Index ETF - Distribution finalisation
19/04/201114:00RAFIND - Newfunds eRAFI(TM) SA Industrial 25 Index ETF - Distribution
19/04/201113:53NEWFSA - Newfunds NEWSA Index Portfolio - Distribution Finalisation
19/04/201113:37 Vukile Property Fund Limited - Further update regarding the call option
19/04/201113:37THEE - The Competition Commission - Kansai`s acquisition of Freeworld
19/04/201113:37FCPD - Foord Compass Limited - Changes to the board of directors
19/04/201113:37FCPD - Foord Compass Limited - Results of Annual General Meeting of debenture
19/04/201113:18 Exxaro Resources - Trading of Exxaro ordinary shares on behalf of The
19/04/201113:16 Tradehold Limited - Trading statement
19/04/201113:06 Datacentrix Holdings Limited - Audited results for the financial year
19/04/201112:40 Anglo American plc - Anglo American Share Incentive Plan - SIP
19/04/201112:00 Old Mutual Plc - Notification of transactions of directors
19/04/201112:00 Combined Motor Holdings Limited - Audited results for the year ended
19/04/201111:49 Zaptronix Limited - Results of the Annual General Meeting
19/04/201111:48 New Europe Property Investments plc - Dealing in securities
19/04/201111:40 Eqstra Holdings Limited - Directors` dealings
19/04/201111:32 MMI Holdings Limited - Dealings in securities by a director
19/04/201111:28 Trematon Capital Investments Limited - Unaudited interim results for the
19/04/201110:49 Gold Fields Limited - Correction to media release
19/04/201110:19 Astral Foods Limited - Trading statement
19/04/201110:10 Calgro M3 - Press release - Calgro M3 is David taking on industry
19/04/201108:04 Sea Kay Holdings Limited - Further cautionary announcement
19/04/201108:00 Old Mutual plc - TR-1: Notification of major interest in shares
19/04/201108:00 SABMiller plc - SABMiller plc trading update
19/04/201108:00 DRDGold Limited - Report to shareholders for the quarter and nine months
19/04/201107:10 British American Tobacco p.l.c - Transaction in own shares
19/04/201107:06 Excellent March 2011 Quarter for Gold One
19/04/201107:05 Gold One International Limited - Quarterly Activities Report - Quarter
19/04/201107:05 BHP Billiton Plc - Transaction in shares

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