The Sharenet Daily 
Monday, 16 May 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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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)

Structured products

An investment product that we have not really discussed is that of a structured product. In this first article, I provide a brief outline and introduction to just what is a structured product.

With the array of financial instruments available nowadays, including options, futures, forward rate contracts, zero coupon bonds, etc. There is any combination of payoff profiles that can be structured.

A typical scenario in creating and selling these structured products, is for an independent investment team outside or within a bank to design a certain payoff profile structure and for the bank or insurance company to then take this product to the retail market.

While the underlying workings of a structured product may be complex, these are not typically disclosed to the investor, nor indeed does he even need to understand them. This is because the bank or life company marketing the product, will package the product in such a way that it will create certain defined outcomes for the investor that are usually, but not always, relatively easy to understand.

By way of example, a typical retail structured product has an investor put down a lump sum for a period of 4 or 5 year with a financial institution. The payoff profile guaranteed back to the investor after the period of this time is the higher of the original capital and the return of a market index –usually capped at say 75%.

In this way these products appeal to investors looking for capital protection (i.e. capital remains intact in nominal terms over the defined period). At the same time it also appeals to the investor’s requirement for some growth linked to a specific equity index.

By interposing a financial institution between the underlying risky markets, investors have a greater sense of security and confidence in making this type of investment. For interest sake, take a look very briefly at how these structures are possible.

A typical structure


• An investor puts down R100 000 for a period of 5 years into a structured product. The example above uses R1000 over a 3 year period.

• The bank will use approximately 70% of the funds to buy a zero coupon bond. i.e. a bond that rolls up all its coupons to maturity so that after 4 or 5 years, the R70 000 is back to the nominal R100 000. This is the component that allows the bank to provide the guarantee on the initial capital.

• A smaller portion of the capital is then used to buy a call option (or various combinations) on a specific equity index. Should the market move up, value will accrue to the purchase of the equity option. This provides for the capped upside performance.

• Where however the particular index moves only nominally up, sideways or down, then the option will expire worthless, leaving the investor with his original capital – thanks to the zero coupon bond.

• Obviously within the defined payoff guaranteed, the bank or insurance company builds in its own fee.

This is very simply what can be achieved behind the scenes.

Kind regards

Ian de Lange
021 9144 966

Mon, 16 May 2011
Top News
Red Crescent Resources said on Monday that South African miner Petmin has agreed to acquire a 10.1 percent stake in the Canadian exploration company for C$4.64 million.  Full story

South Africa's rand ended firmer on Monday, recouping losses after earlier hitting a two-month low, as the dollar weakened against emerging market currencies.  Full story
IMF chief Dominique Strauss-Kahn was denied bail on Monday on attempted rape and other criminal charges, and prosecutors said they are investigating whether he may have engaged in similar conduct once before.  Full story
A war crimes prosecutor on Monday sought an arrest warrant for Muammar Gaddafi accusing him of killing protesters against his 41-year rule as NATO stepped up air strikes on Libyan forces.  Full story
A visiting senior United States senator warned Pakistan on Monday that future relations would be determined by its actions, not words, after controversy over the killing of Osama bin Laden on Pakistani soil.  Full story
Technology and consumer discretionary stocks tumbled on Monday as investors fretted about signs of weakness in the economy that are likely to put a. . .  Full story
The euro rose on Monday on optimism that a meeting of European finance ministers will offer more clarity on euro zone debt aid. . .  Full story
European shares closed lower on Monday with banks most exposed to peripheral euro zone debt pressured by the region's debt crisis as finance. . .  Full story
Britain's top shares closed flat on Monday as weakness from banks was offset by an aggressive rebound from mining stocks, helping the index. . .  Full story

Gold held steady on Monday as the euro lifted off seven-week lows, but the currency remained vulerable to uncertainty about indebted euro zone. . .  Full story
U.S. stock index futures fell on Monday as investors shed riskier assets before euro zone finance ministers meet to discuss the region's debt. . .  Full story
Japan's Nikkei stock average hit a 1-month low to end just under a key technical level on Monday, hurt by volatile commodities as. . .  Full story
Australian stocks lost 1.3 percent on Monday to cling to support at 4,650, led lower by resource shares as worries about global growth. . .  Full story
SA Business
U.S. retailer Wal-Mart Stores said it could walk away from a 16.5 billion rand deal to buy a 51 percent stake. . .  Full story
South Africa's Vodacom beat expectations with both its full-year profit and dividend, helped by a surge in mobile data usage that. . .  Full story
Diamond producer De Beers has named industry outsider Philippe Mellier, a senior executive at French engineering group Alstom, as its new. . .  Full story
South African power utility Eskom said on Monday it has lifted restrictions at its Medupi construction site following protests, but many. . .  Full story

Wal-Mart may drop its $2.4 billion bid for South Africa's Massmart if the government demands targets on using local suppliers, a. . .  Full story
Agri-processing business Tongaat Hulett said on Monday it expects to post lower full-year profit, partly hit by last year's drought in. . .  Full story
Outspoken former Treasury chief Lesetja Kganyago arrival on Monday may stiffen South Africa's central bank's resolve to do what is needed to bring inflation. . .  Full story
Wal-Mart and South African takeover target Massmart, a major retailer, said on Monday there would be no retrenchments for at least. . .  Full story

Sugar production at Zambia's largest sugar producer rose 22 percent to 385,000 tonnes in its financial year which ended March 31, the company said on Monday.. . .  Full story
South Africa's Illovo Sugar Ltd said on Monday it has raised 940 million emalangeni to finance expansion at its unit in Swaziland.. . .  Full story
Company News
HCI shareholders are informed that it is expected that for the year ended 31 March 2011, HCI's headline earnings will be. . .  Full story
Following the company's annual general meeting on 12 May 2011, the changes to the Board described below have now taken effect,. . .  Full story
According to The Sunday Times Business Times, Massmart Holdings Ltd was only Walmart's third choice, with the international retailer preferring to. . .  Full story
Great Basin announced the appointment of Anu Dhir, Octavia Matloa, Mametja Moshe, to the board of directors and one new director,. . .  Full story

The past year continued to be characterised by counteractive factors. Progress towards fully utilising Tongaat's installed sugar milling capacity of some. . .  Full story
At the annual general meeting of the company held on 11 November 2010, the requisite majority of shareholders approved a resolution. . .  Full story
Anglo American wished to draw attention to an announcement by De Beers in relation to the appointment of Philippe Mellier as. . .  Full story
Business Day reported that, Liberty has reported a surge in sales and corporate business during the first quarter of this year. . .  Full story
Company Results
Revenue for the year ended 28 February 2011 improved to R281.8 million (February 2010: R188.7 million) and gross profit rose to. . .  Full story
Revenue decreased slightly, by 2%, to R4.2 billion (R4.3 billion). Operating profit was up 23% to R375.4 million (R304.3 million) and. . .  Full story
Revenue increased marginally by 3.2% to R11.4 billion (R11 billion) and gross profit also grew by 1.7% to R4.7 billion (R4.6. . .  Full story
Revenue for the year ended 31 March 2011 increased to R61.2 billion (2010: R58.5 billion). Operating profit rose to R13.7 billion. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0032156.01196.080.61%
JSE Top 4017:0028929.66206.770.72%
JSE Gold17:002574.46-4.32-0.17%
JSE Financial17:0021501.87103.780.48%
JSE Industrial17:0033040.48122.440.37%
JSE Indust 2517:0027832.75140.560.51%
JSE Resource17:0055233.60536.370.98%
DJ Futures20:0012553.00-3.00-0.02%
DJ Ind19:0112574.03-21.72-0.17%
SP 50019:501336.24-1.53-0.11%
FTSE 10017:355923.69-2.18-0.04%
All Ords08:444724.20-63.10-1.32%
NZSE 5007:323543.878.080.23%
NameTimeRPMove% Move
Gold/R kg20:00335086-4674-1.38%
Brent Crude19:56111.88-.66-0.59%
Rand / Dollar19:576.9812-0.0381-0.54%
Rand / Pound19:5511.2974-0.0271-0.24%
Rand / Euro19:559.92030.03760.38%
Rand / NZD19:575.4660-0.0536-0.97%
Rand / AUD19:557.4055-0.0163-0.22%
Yen / Dollar19:5780.7400-0.1000-0.12%
Euro / Dollar19:580.7037-0.0067-0.94%
Dollar / Euro19:581.42090.01330.94%
Pound / Dollar19:550.6160-0.0019-0.31%

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The JSE Today
Trading Statistics

Major Moves Up
SharenameSaleMove% MoveVolume
1 HUGE  1281816.36.%7820
2 GOLDONE  368339.85.%8819570
3 VALUE  450276.38.%4805
4 RANGOLD  270155.88.%7113
5 KEATON   325144.50.%165451
6 MIXTEL  12554.17.%16000
7 KGMEDIA  1750643.80.%480943
8 GRANPRADE  320103.23.%748800
9 BCX  495153.13.%651239
10 ALTRON  2880802.86.%2587
11 PALLINGHT  420102.44.%195196
12 SENTULA  25362.43.%18797805
13 COMAIR  22552.27.%700
14 ABSA  136032922.19.%806034
15 VIVIDEND  470102.17.%2676
16 NASPERSN  394008242.14.%1349717
17 JSE  67921372.06.%139080
18 O-LINE  10721.90.%105000
19 ARB  33061.85.%25687
20 PNR-FOODS  5700991.77.%36511

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Major Moves Down
SharenameSaleMove% MoveVolume
1 ANOORAQ  603-47-7.23.%92123
2 SOVFOOD  550-25-4.35.%987
3 AMECOR  155-7-4.32.%25814
4 ITLTILE  432-18-4.00.%4103
5 IQUAD  240-10-4.00.%2787
6 COAL  882-35-3.82.%54986
7 PAN-AF  110-4-3.51.%356375
8 ARGENT  840-30-3.45.%16034
9 DRDGOLD  349-12-3.32.%302488
10 GOLDREEF  1551-49-3.06.%94001
11 PARACON  165-5-2.94.%30099
12 NUWORLD  2100-60-2.78.%695
13 ESORFRANK  175-5-2.78.%112597
14 PLATMIN  550-15-2.65.%1400
15 CAPCO  1910-51-2.60.%43917
16 ELBGROUP  1950-50-2.50.%67262
17 S-OCEAN  210-5-2.33.%51136
18 CAPEVIN  8600-198-2.25.%4443
19 GOLIATH  440-10-2.22.%4980
20 JUBILEE  292-6-2.01.%17250

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New Highs
SharenameSaleHighMove% MoveVolume
1 GOLDONE  368375339.85.%8819570
2 CBH  43545051.16.%26046

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New Lows
SharenameSaleLowMove% MoveVolume
1 ANOORAQ  603595-47-7.23.%92123
2 TONGAAT  92419100-115-1.23.%611211
3 BRAIT  16701659-19-1.12.%907598

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Index Summary
Index NameRPMove% Move
Top 4028,929.66206.770.72%
Mid Cap41,516.1317.160.04%
Small Cap32,223.74-8.68-0.03%
Resource 2055,233.60536.370.98%
Industrial 2527,832.75140.560.51%
Financial 158,133.1043.460.54%
Financial & Ind. 3030,944.86160.810.52%
All Share32,156.01196.080.61%
Oil & Gas 27,335.1037.810.14%
Mining 36,306.52378.651.05%
Gold Mining2,574.46-4.32-0.17%
Platinum Mining71.34.901.28%
Oil & Gas Producers 14,697.5820.330.14%
Basic Materials 30,652.82285.630.94%
Chemicals 13,863.14-46.80-0.34%
Forestry & Paper 14,843.96-57.29-0.38%
Industrial Metals 28,229.19-34.75-0.12%
Industrials 27,412.03-52.83-0.19%
General Industrials 75,487.37-270.44-0.36%
Consumer Goods 27,911.68-11.02-0.04%
Automobiles & Parts 3,
Household Goods155.0010.37%
Health Care 32,251.60242.630.76%
Beverages 86.94-.13-0.15%
Food Producers 47,096.26-88.16-0.19%
Index NameRPMove% Move
Personal Goods 442.35.400.09%
Consumer Services 53,998.50465.060.87%
General Retailers 41,391.5848.740.12%
Travel & Leisure 3,672.43-32.31-0.87%
Media 86.871.792.10%
Support Services 2,401.6313.120.55%
Telecommunications 68,676.41799.461.18%
Financials 21,501.87103.780.48%
Banks 40,410.12360.130.90%
Non-life Insurance 32,008.80-194.00-0.60%
Life Insurance 15,897.61-22.45-0.14%
General Financial 2,251.567.590.34%
Technology 21,443.21161.410.76%
SHARIAH TOP40 3,202.57280.89%
FTSE/JSE SHARIAH ALL3,259.58260.79%
COAL MINING22,223.75-28-0.12%
FTSE JSE Fledgling 4,520.87-16-0.35%
FTSE/JSE Alt X 1,010.60-20-1.90%
RESOURCE 30,486.972820.93%
DIVIDEND PLUS168.3200.21%
FTSE/JSE RAFI 406,712.85380.57%
Capped Top 4015,075.49970.65%
Capped All Share16,182.05920.57%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
17 May 2011CORONATMarch 2011 (Interim)
17 May 2011CORONATPMarch 2011 (Interim)
17 May 2011GB LDMarch 2011 (Q)
17 May 2011GB LD OPTMarch 2011 (Q)
17 May 2011KELLYMarch 2011 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
AFRIMAT11-05-1211-05-2711-06-06R 0.1100
SPAR11-05-1111-06-0311-06-13R 1.4200
OASIS11-05-1111-05-2711-06-03R 0.4616
OCEANA11-05-1111-06-2411-07-04R 0.3700
DATATEC11-05-1111-07-0111-07-11R 0.1300
Ex Div**
Share NameDec-DateLDTPay-DateAmount
OCTODEC11-04-2611-05-1211-05-23R 0.6500
PREMIUM11-04-2611-05-1211-05-23R 0.5820
AFGRI11-03-0211-05-1211-05-23R 0.2415

Upcoming AGMs**
CodeCompany NameDateStatus
ADHADvTECH Ltd17/05/2011Confirmed
RESResilient Property Income Fund Ltd17/05/2011Confirmed
SACSA Corporate Real Estate Fund17/05/2011Confirmed
GFIGold Fields Ltd17/05/2011Confirmed
DTADelta EMD Ltd17/05/2011Confirmed

Stock Exchange News Service
16/05/201117:50 Silverbridge Holdings Limited - Condensed group interim financial
16/05/201117:45 Datatec Limited - Grant and acceptance of rights to participate in share
16/05/201117:45CCO - Capital & Counties Properties PLC - Voting Rights and Capital
16/05/201117:43 Erbacon Investment Holdings Limited - Audited condensed provisional
16/05/201117:34 Premium Properties Limited - Dealing In Securities By Directors
16/05/201117:22 Platfields Limited - Supplementary Trading Statement
16/05/201117:12 Hosken Consolidated Investments - Trading Statement
16/05/201117:05 Avusa Limited - Update on the receipt of an unsolicited expression of
16/05/201116:53SPPNIG - Nedbank Limited - Dividend distribution announcement in relation to The
16/05/201116:52PIKNIG - Nedbank Limited - Dividend Distribution Announcement in relation to The
16/05/201116:35 Old Mutual Plc - Board changes after the 2011 Annual General Meeting
16/05/201116:29 OLD MUTUAL plc - Rule 8.3 of the Takeover Code
16/05/201114:45CCO - Capital & Counties Properties PLC - Notification of major interests in
16/05/201114:38 Paladin Capital Limited - Announcement in respect of the rights offer by
16/05/201114:30 Great Basin Gold Limited - Great Basin Gold announces the appointment of
16/05/201114:07 Tongaat Hulett Limited - Trading statement for the year to 31 March 2011
16/05/201114:00 Sanyati Holdings Limited - Condensed consolidated audited results for the
16/05/201113:44ABSW16 - ABSA Bank Limited - Notice of expiry and maturity
16/05/201113:36 Beige Holdings Limited - Results of rights offer
16/05/201113:30 JSE Limited - JSE 2006 Black Shareholder Retention Scheme - exercise of
16/05/201113:15SCIB - The Standard Bank of South Africa Limited - Issue of Africa Total
16/05/201113:00MND/MNP - Mondi - Notification of Major Interests in Shares
16/05/201112:30 Sephaku Holdings - General issue of shares for cash
16/05/201111:56 Interwaste Holdings Limited - Director`s dealings in securities
16/05/201111:15 Anglo American plc - De Beers announces appointment of Phillppe Mellier
16/05/201111:10 British American Tobacco p.l.c - Management Board Appointment at British
16/05/201110:25 IQuad Group Limited - Dealing in securities
16/05/201110:24 Bauba Platinum Limited - Director`s dealings in securities
16/05/201110:15 Afrimat Limited - Director`s Dealings
16/05/201109:13 Exxaro Resources Limited - Trading of Exxaro ordinary shares on behalf of
16/05/201109:01 Kelly Group - Transformation strategy positions Kelly Group for Growth
16/05/201109:00 Kelly Group - Unaudited interim results for the six months ended 31 March
16/05/201109:00 Real Africa Holdings Limited - Withdrawal of cautionary announcement
16/05/201108:27 Firestone Energy Limited - Change of Director`s Interest Notice
16/05/201108:05 Petmin Limited - Petmin to invest in Red Crescent Resources and its
16/05/201108:00 GPI - Salient features of the restructure
16/05/201108:00 Petmin Limited - Investment in Red Crescent Resources and withdrawal of
16/05/201108:00 Sun International Limited - Restructure of Sun International and GPI`S
16/05/201107:47 Gold One International Limited - Lifting of Trading Halt of Gold One
16/05/201107:30 Gold One International Limited - Gold One Presentation
16/05/201107:18 Gold One International Limited - Media Release
16/05/201107:17 Gold One International Limited - Recommended offer
16/05/201107:15 Raubex Group Limited - Audited results for the year ended 28 February
16/05/201107:10 British American Tobacco p.l.c - Transaction in own shares
16/05/201107:05 BHP Billiton Plc - Transaction in shares
16/05/201107:05 JD Group - Reviewed results for the six months ended 28 February 2011
16/05/201107:05 Vodacom Group Limited - Preliminary results for the year ended 31 March
16/05/201107:05 Netcare Limited - Unaudited Group interim results for the six months
16/05/201107:05 Astral Foods Limited - Unaudited interim results and dividend
16/05/201107:05 Calgro M3 - Audited abridged results for the year ended 28 February 2011

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