The Sharenet Daily 
Wednesday, 20 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)

Inflation and the long term gold price

In previous months, inflation data has tended to surprise on the downside. I.e. monthly inflation has come in lower than analyst’s expectations. Today it was slightly higher than the consensus forecast. In March inflation rose by 1,2% against an expectation of 1%, and for the 12 months it rose 4,1% against a 4% consensus.

Consumer inflation

This inflation data had very little to no impact on either the equity market or the bond market.

The bond market break even inflation is running at around 6%. i.e. nominal bonds are pricing in inflation at the top end of the Reserve Bank’s inflation target. i.e. they are expecting a rise in inflation and interest rates to start being hiked later this year or beginning of 2012

Over 30 years, inflation in South Africa has run at just less than 10% per annum.


Gold bullion has continued to move up to new highs in most currency terms. Gold is quoted in US dollars. The price has now moved through the $1500/oz level.

The chart below reflects that although the rand is firm against the US dollar, in rand terms the price is now at R10190/oz. Against a backdrop of ongoing monetary stimulus, in general a lack of real interest rates, high inflationary expectations and downgrades to US debt outlook, the demand for gold has kept the price moving up steadily, especially over the last 10 years.

Looking back into history - gold in March 1971 traded at $38,87/oz and R27,65/oz. Over the 40 years the compounded growth in rands has been 15,9% to its current level. Over 30 years from near its peak the annual compounded return reduces to 11,45%.

If inflation was running at 10% over the last 30 years, then gold from its higher prices in early 1980’s has achieved annualised returns of only slightly ahead of inflation.

But over the last 10 years from its lower levels, gold, both in rand terms and in dollar terms has moved up very strongly.

With commodity assets becoming more common among investors as a means of achieving portfolio diversification, commodity assets under management have more than doubled between 2008 and 2010 to nearly US$380 billion - according to a recent World Gold Council report.

Gold is still relatively small in most commodity indices from 3% in the S&P Goldman Sachs Commodity Index to 7% in the Dow Jones UBS Commodity Index.

It is estimated that 168,300 tonnes of gold have been mined over the course of human history. 50% of this exists in the form of jewellery. Gold used in technology and dentistry and other fabrication accounts for 12%. Gold held in investments and official holdings (financial or investable) represent 36% of all above ground gold, or approximately 60,400 tonnes of gold.

Using the 2010 average price of $1224/oz, the size of financial gold holdings is equivalent to $2,4 trillion. The report puts this into context saying that this is larger than any single European sovereign debt market. But it does not represent any countries’ liability.

Total above ground stocks of gold in tonnes as of 2010

Naturally now one knows where this price can move to. Longer term the returns from gold should be ahead of inflation, but probably behind that of more riskier investments such as equities.

In a diversified portfolio we would advocate holding a portion of gold, and in the Seed Flexible Fund we have continued to hold a small allocation of just less than 5%.

Kind Regards

Ian de Lange
021 9144 966

Wed, 20 Apr 2011
Top News
South Africa's rand and mining stocks got a lift from record-high gold prices on Wednesday, while the broader stock market rebounded from a recent three-week low and tracked global markets higher.  Full story

South Africa's blue-chip index jumped more than 2 percent in late trade on Wednesday, tracking firmer global equity markets while higher commodity prices added to the positive sentiment.  Full story
Syrians took to the streets in large numbers again Wednesday in the central city of Homs where activists say more than 20 pro-democracy protesters have been shot dead since Monday by soldiers and irregular forces.  Full story
France promised Libyan rebels on Wednesday it would intensify air strikes on Muammar Gaddafi's forces and send military liaison officers to help them as fighting raged in the besieged city of Misrata.  Full story
Gulf Arab states trying to mediate a transition of power in Yemen will send the UAE foreign minister to Sanaa within days, a Yemeni official said, but President Ali Abdullah Saleh again refused to quit quickly.  Full story
Strong profits and outlooks from tech and manufacturing companies propelled U.S. stocks higher on Wednesday, delivering the biggest lift to sentiment since quarterly earnings. . .  Full story
Upbeat earnings and outlooks from companies including chipmaker Intel lifted global stocks and fueled risk appetite on Wednesday, driving commodities higher and the Australian. . .  Full story
Commodity stocks helped power Britain's top share index sharply higher on Wednesday, while earnings from Reckitt Benckiser and Home Retail, following U.S. tech bellwether. . .  Full story
Gold rose above $1,500 an ounce on Wednesday for the first time ever as the dollar wilted, oil rose, worries over the U.S.. . .  Full story

European shares gained on Wednesday, with technology stocks buoyed by strong results from U.S. chip maker Intel ahead of Nokia's earnings on Thursday.. . .  Full story
Upbeat earnings from companies including chip maker Intel lifted stocks and boosted appetite for riskier assets on Wednesday, driving commodities higher and the Australian. . .  Full story
European shares rose sharply on Wednesday, tracking gains on Wall Street and in Asia, after strong sales at tech bellwether Intel and. . .  Full story
Australian shares rose 1.4 percent on Wednesday, nearly recouping Tuesday's loss, led by global miners BHP Billiton and Rio Tinto as renewed. . .  Full story
SA Business
South Africa's government on Wednesday raised its forecast of maize output for the 2010/11 season to 10.883 million tonnes from 10.831. . .  Full story
South African inflation was higher than expected in March while retail sales growth for February slowed, suggesting the central bank will. . .  Full story
Harmony Gold's chief executive said on Wednesday the cost of developing its Wafi-Golpu prospect in Papua New Guinea could top initial. . .  Full story
Zambia expects to agree on higher electricity prices with mining companies this year in a move that is likely to increase. . .  Full story

South African inflation was higher than expected in March while retail sales growth for February slowed, suggesting the central bank will have to. . .  Full story
South Africa has appointed Lungisa Fuzile as National Treasury's director general from May 16, Finance Minister Pravin Gordhan said on Wednesday.. . .  Full story
Canadian gold and uranium producer First Uranium Corp said its South African tailings recovery unit has commissioned a storage facility a. . .  Full story
South Africa's Treasury said on Wednesday it would issue 1.3 billion rand worth of the 2018 government bond and 800 million. . .  Full story

South African power utility Eskom said on Wednesday it had sold 300 million rand of its ES23 bond due in 2023 at a clearing yield of 9.155 percent.. . .  Full story
South Africa's financial services industry watchdog FSB is drafting new capital rules for insurers, aimed at protecting consumers and strengthening the sector, the central bank said on Wednesday.. . .  Full story
South Africa is planning to shift black economic empowerment (BEE) rules away from equity investment and ownership towards productive activities, Business Day newspaper reported on Wednesday.. . .  Full story
Company News
Adcock shareholders were referred to the announcements released by Adcock on 10 December 2010 relating to the recommendation by the Medicines. . .  Full story
Shareholders were advised that on 19 April 2011 the company received the results of its arbitration hearing on its right to. . .  Full story
Shareholders were advised that on 19 April 2011 the company received the results of its arbitration hearing on its right to. . .  Full story
Shareholders were referred to the various SENS announcements, first published on 3 December 2009 and the last on 28 February 2011,. . .  Full story

At the forty-sixth annual general meeting of the shareholders of Zurich held on 20 April 2011, all the ordinary and special. . .  Full story
Shareholders are advised that EcoLife, the joint venture between Econet Wireless Zimbabwe, First Mutual Life Zimbabwe and Trustco Mobile ("Trustco Mobile"),. . .  Full story
Further to the cautionary announcement dated Monday, 24 January 2011, and the further cautionary announcement dated 8 March 2011, shareholders are. . .  Full story
Shareholders are referred to the cautionary announcements dated 18 May 2010, 3 June 2010, 3 August 2010, 27 October 2010, 7. . .  Full story
Company Results
Gold and silver revenue for the quarter ended 31 march 2011 increased slightly to R655.9 million (2010: R655.6 million). Operating profit. . .  Full story
Revenue rose to R14.8 million (R9.4 million), but trading loss worsened to R6.5 million (loss of R3.7 million). Profit attributable to. . .  Full story
Revenue for the year ended 28 February 2010 increased by 13% to R7.4 billion (2010: R6.5 billion). Gross profit rose by. . .  Full story
Revenue for the period ended 28 February 2011 increased to R1.6 billion (2010: R1.3 million). Operating profit grew to R124.4 million. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0032526.30689.242.16%
JSE Top 4017:0029337.05705.682.46%
JSE Gold17:002845.9665.932.37%
JSE Financial17:0021475.93305.041.44%
JSE Industrial17:0032466.05714.802.25%
JSE Indust 2517:0027222.76696.122.62%
JSE Resource17:0057907.581402.352.48%
DJ Futures19:5012380.00135.001.10%
DJ Ind19:4512449.04182.291.49%
SP 50019:301328.5915.971.22%
FTSE 10017:356022.26125.392.13%
All Ords08:384940.2065.901.35%
NZSE 5007:323472.8032.820.95%
NameTimeRPMove% Move
Gold/R kg20:003273237410.23%
Brent Crude19:56123.672.492.05%
Rand / Dollar19:586.7977-0.0175-0.26%
Rand / Pound19:5511.11510.00350.03%
Rand / Euro19:559.86120.08490.87%
Rand / NZD19:575.40780.03560.66%
Rand / AUD19:557.25670.08121.13%
Yen / Dollar19:5882.4100-0.1400-0.17%
Euro / Dollar19:550.6891-0.0084-1.20%
Dollar / Euro19:581.45020.01721.20%
Pound / Dollar19:550.6096-0.0030-0.49%

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The JSE Today
Trading Statistics

Major Moves Up
SharenameSaleMove% MoveVolume
1 ALTRON  297027710.29.%76486
2 DAWN  720609.09.%100105
3 PLATMIN  595458.18.%5000
4 ANOORAQ  750557.91.%20040
5 CADIZ  275155.77.%791977
6 COAL  875475.68.%224571
7 NASPERSN  3835019515.36.%2539707
8 BIDVEST  149747245.08.%1356301
9 IMPLATS  194958954.81.%1400997
10 URONE  28761304.73.%30031
11 MTN  139696234.67.%6842597
12 ALTECH  57602394.33.%177078
13 OMNIA  75003094.30.%75641
14 REUNERT  62402404.00.%810288
15 EASTPLATS  836323.98.%252869
16 SHOPRIT  101003773.88.%1999649
17 ABSA  137505103.85.%556875
18 DRDGOLD  384143.78.%1548299
19 RICHEMONT  41371473.68.%9780761
20 RAINBOW  1780603.49.%28400

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Major Moves Down
SharenameSaleMove% MoveVolume
1 AME  2100-1901-47.51.%7
2 OANDO  285-34-10.66.%9030
3 VALUE  341-29-7.84.%660
4 CMH  1150-70-5.74.%22469
5 DATATEC  3414-202-5.59.%214547
6 ARGENT  850-50-5.56.%17227
7 CBH  410-20-4.65.%21500
8 PPC  2450-99-3.88.%2376835
9 SANTAM  12310-440-3.45.%36974
10 MARSHALL  580-20-3.33.%3000
11 HCI  7700-260-3.27.%5577
12 PNR-FOODS  5623-180-3.10.%28936
13 EHSV  5500-150-2.65.%70152
14 JUBILEE  303-8-2.57.%327382
15 FREEWORLD  1151-29-2.46.%9211
16 ONELOGIX  124-3-2.36.%53119
17 COMAIR  220-5-2.22.%124304
18 CASHBIL  9050-200-2.16.%11440
19 PSG  4256-93-2.14.%18034
20 KAP  235-5-2.08.%425

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New Highs
SharenameSaleHighMove% MoveVolume
1 GOLDONE  33133561.85.%1062863
2 BATS  28850290604701.66.%298874
3 TRUSTCO  1051100.828000

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New Lows
SharenameSaleLowMove% MoveVolume
1 AME  21002100-1901-47.51.%7
2 MASONITE  27022702-49-1.78.%10

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Index Summary
Index NameRPMove% Move
Top 4029,337.05705.682.46%
Mid Cap41,374.42213.320.52%
Small Cap32,238.80101.240.32%
Resource 2057,907.581402.352.48%
Industrial 2527,222.76696.122.62%
Financial 158,137.67148.551.86%
Financial & Ind. 3030,480.56741.792.49%
All Share32,526.30689.242.16%
Oil & Gas 28,412.18626.882.26%
Mining 38,109.81904.752.43%
Gold Mining2,845.9665.932.37%
Platinum Mining73.752.703.80%
Oil & Gas Producers 15,276.70337.062.26%
Basic Materials 32,076.59730.752.33%
Chemicals 13,428.40139.961.05%
Forestry & Paper 14,158.81165.011.18%
Industrial Metals 30,133.51393.791.32%
Industrials 27,589.45504.521.86%
General Industrials 76,055.332027.112.74%
Consumer Goods 26,912.46381.841.44%
Automobiles & Parts 3,090.9933.971.11%
Household Goods158.8832.04%
Health Care 31,350.1358.900.19%
Beverages 84,243.98-92.27-0.11%
Food Producers 47,466.72559.381.19%
Index NameRPMove% Move
Personal Goods 413.1914.683.68%
Consumer Services 53,418.471626.203.14%
General Retailers 41,100.35429.061.05%
Travel & Leisure 3,673.9746.351.28%
Media 84,601.654174.665.19%
Support Services 2,417.957.880.33%
Telecommunications 67,635.782781.994.29%
Financials 21,475.93305.041.44%
Banks 40,293.241112.882.84%
Non-life Insurance 29,850.63-1066.96-3.45%
Life Insurance 16,094.7153.760.34%
General Financial 2,237.5227.441.24%
Technology 19,818.94-725.00-3.53%
SHARIAH TOP40 3,320.60862.66%
FTSE/JSE SHARIAH ALL3,368.62802.44%
COAL MINING22,725.37720.32%
FTSE JSE Fledgling 4,446.46-44-0.98%
FTSE/JSE Alt X 999.5600.03%
CAPPED PROPERTY 310.11-0.12%
RESOURCE 31,960.027522.41%
DIVIDEND PLUS167.8621.48%
FTSE/JSE RAFI 406,785.241492.24%
Capped Top 4015,240.113712.49%
Capped All Share16,341.693462.17%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
21 Apr 2011IQUADFebruary 2011 (Final)
21 Apr 2011PLATFIELDFebruary 2011 (Final)
21 Apr 2011REDEFINTLFebruary 2011 (Interim)
22 Apr 2011AFEAGLEDecember 2010 (Final)
22 Apr 2011OANDODecember 2010 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PBT11-04-1911-05-2011-05-30R 0.0300
CMH11-04-1911-06-0311-06-13R 0.3000
PICKNPAY11-04-1811-06-0311-06-13R 1.0550
PSG11-04-1811-05-0611-05-16R 0.4700
PIKWIK11-04-1811-06-0311-06-13R 0.5134
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
ZSAZurich Insurance Company South Africa Lt...20/04/2011Confirmed
FCOFoord Compass Ltd21/04/2011Unconfirmed
FCCPFoord Compass Ltd21/04/2011Unconfirmed
ASAAbsa Group Ltd21/04/2011Confirmed
FCPDFoord Compass Ltd21/04/2011Unconfirmed

Stock Exchange News Service
20/04/201117:43 Skinwell Holdings Limited - Trading statement
20/04/201117:30 Anglo American plc - Treasury Shares - Transfers
20/04/201117:26 Capitec Bank Holdings Limited - Dealing in securities by a director
20/04/201117:23 Adcock Ingram Holdings Limited - Update on the MCC resolution to
20/04/201117:00 Clover Industries Limited - Competition commission`s withdrawal
20/04/201116:52 Intertrading Limited - Trading statement
20/04/201116:47 Miranda Mineral Holdings Limited - Change in designation of directors
20/04/201116:44PIK / PWK - Pick n Pay Stores / Pick n Pay Holdings - Results of the arbitration
20/04/201116:15 Sanlam Limited - Director`s dealings in Sanlam securities
20/04/201116:14 Sanlam Limited - Director`s dealings in Sanlam securities
20/04/201116:13 Sanlam Limited - Director`s dealings in Sanlam securities
20/04/201116:12 Sanlam Limited - Director`s dealings in Sanlam securities
20/04/201116:11 Conduit Capital Limited - Condensed consolidated unaudited results for
20/04/201116:00 Liberty Holdings Limited - Finalization of the acquisition by Liberty of a
20/04/201115:58 Zurich Insurance Company South Africa Limited - Report on proceedings at
20/04/201115:50CCO - Capital & Counties Properties PLC - Notification of interim management
20/04/201115:15 SABMiller plc - SABMiller plc
20/04/201115:00 Wits Gold granted additional uranium rights in the DBM and Beisa North
20/04/201114:50 Trustco Group Holdings Limited - Voluntary announcement relating to
20/04/201114:37 Sekunjalo Investments Limited - Unaudited interim results for the period
20/04/201113:03 Resilient Property Income Fund Limited - Dealing in securities
20/04/201112:52 Micromega Holdings Limited - Further cautionary announcement
20/04/201112:49 Exxaro Resources Limited - Trading of Exxaro ordinary shares on behalf of
20/04/201112:45 Capitec Bank Holdings Limited - Dealing in securities by associates of a
20/04/201112:38 Exxaro Resources Limited - Acceptance of conditional awards granted in
20/04/201112:33THEE - The Competition Commission - Commission withdraws case against Clover,
20/04/201112:32 Control Instruments Group Limited - Purchase of shares by directors
20/04/201112:12 Colliers South Africa Holdings Limited - Withdrawal of cautionary
20/04/201111:42 AngloGold Ashanti Limited - Anglogold Ashanti updates on North Africa
20/04/201111:20 Discovery Holdings Limited - Disclosure of dealing in securities by
20/04/201111:18 Tawana Resources NL - Notice of General Meeting
20/04/201111:00 SABMiller - Block listing six monthly return
20/04/201110:09 Intertrading Limited - Changes to the board of directors
20/04/201109:57 South African Coal Mining Holdings Limited - SRP appeal Committee
20/04/201108:54 Harmony Gold Mining Company Limited - Harmony hosting media on WAFI-GOLPU
20/04/201108:22 Sephaku Cement announces new project and confirms progress on track at
20/04/201108:12 Intertrading Limited - Renewal of cautionary annoucement
20/04/201108:00 Pretoria Portland Cement Company Limited - Trading statement
20/04/201108:00 Allied Technologies Limited - Summarised audited consolidated
20/04/201108:00STX40 - SATRIX 40 Portfolio - Partial Delisting of Satrix 40 Securities
20/04/201107:29 First Uranium Corporation - Commissioning of tailings storage facility
20/04/201107:15 White Water Resources Limited - Cancellation of Prospecting Rights
20/04/201107:10 British American Tobacco p.l.c - Transaction in own shares
20/04/201107:07 BHP Billiton plc - BHP Billiton production report for the nine months
20/04/201107:06 BHP Billiton plc - BHP Billiton exploration and development report for
20/04/201107:05 BHP Billiton plc - Transaction in shares

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