The Sharenet Daily 
Tuesday, 17 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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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)

PPC and Coronation

In investment markets the evidence points to company margins and returns on equity, reverting to a mean over varying periods of time. What this means is that company margins and returns don’t expand into infinity. Often a period of poor performance is followed by a period of good performance and vice versa.

Two companies that I looked at which reported half year results to March were PPC and Coronation. They have had polar opposite recent histories, with PPC struggling in the current environment, while Coronation has produced excellent results.


PPC is the country’s largest manufacturer of cement. Revenue for the 6 months fell by 5% to R3,2 billion, but margins were squeezed as cost of sales rose 7%, due in part to higher electricity costs, diesel costs and also depreciation. The company did well to have administration and other operating expenses increased only 1%, but given the decline in margins from 41,8% to 35%, operating profit fell 26% to R828 million.

At the EPS level, this declined from 114c to 71c, down 38%.

On an after tax basis profit declined 38% to R378 million – a margin of 11,8%. The commentary from the ceo reiterated the difficult trading conditions in the local building and construction industry, with sales volumes down, pressure on selling prices, and high input cost inflation.

Despite the tough conditions, they do see some light in that although cement sales for the year to date are negative, the rate of decline has been slowing and with month on month volume comparisons, total sales for 2011 could be similar to that of 2010.

The share price declined from a peak of R52 in July 2007 to R25 on October 2008. It has essentially moved sideways ever since.

The company had warned that earnings per share would decline by between 35% and 40% and with the price having already taken a sustained knock, the price gained 3,3% to 2615c.


This morning also saw local investment fund manager, Coronation report its interim results to March. Its revenue jumped 32% to R864 million. On an after tax basis, the company’s profits rose from R226m to R299m, a gain of 32%.

At a net after tax operating profit margin level, this remained steady from 34,6% to 34,5%.

Because there is a high translation of the accounting net profit into cash flow, and because the company has a relatively low cash requirement for future growth they can pay out at least 75% of the profits by way of dividend. With the increased profitability, the dividend was raised by 57% to 80cents a share.

These were excellent numbers, driven by a combination of local stock market gains over the last 2 years and excellent performance figures from Coronation.

Coronation has a market capitalisation of R6 billion. The share price is up 117% from the beginning of 2010.

Seed Presentation
Seed is having a presentation in Cape Town and Johannesburg on the 1st June and 7 June respectively. We will cover portfolio construction and our thoughts on the current market valuation. Seats are limited, so for those interested, please mail Myrna on

Kind regards

Ian de Lange
021 9144966

Tue, 17 May 2011
Top News
South Africa's annual inflation came in below expectations in April while retail sales growth slowed for a third month in a row, backing the case for leaving interest rates at a three-decades low for longer.  Full story

South African government bonds rallied on Tuesday, buoyed by softer-than-forecast April inflation data which supported the view the Reserve Bank might hold off raising interest rates for longer than expected.  Full story
Japan unveiled new plans on Tuesday to contain the crisis at a crippled nuclear plant after admitting it faced greater challenges than first disclosed, but it kept to a goal of bringing the reactors under control by January.  Full story
The chairman of Libya's National Oil Corporation has defected from Muammar Gaddafi's administration and fled to neighbouring Tunisia, a Tunisian security source said on Tuesday.  Full story
Italian Prime Minister Silvio Berlusconi has suffered a serious blow in local elections that punctured his image of political invincibility and could usher in a period of instability.  Full story
U.S. stocks fell on Tuesday, as a disappointing outlook from Hewlett-Packard Co and another batch of soft U.S. data added to growing trepidation. . .  Full story
World stocks fell to a one-month low on Tuesday as data spurred a new wave of doubts over the global economic recovery and. . .  Full story
European equities hit a four-week closing low on Tuesday as disappointing economic numbers hurt sentiment, while a cut in outlook by the world's. . .  Full story
Britain's leading share index was driven down by weakness in commodity issues and banks on concerns over global growth which countered resulsts-driven gains by. . .  Full story

U.S. stocks fell on Tuesday, with the Dow dropping more than 1 percent as a disappointing outlook from Hewlett-Packard Co and weak U.S.. . .  Full story
Gold reversed course on Tuesday to fall after a rally in the dollar exacerbated a sell-off in the already-fragile commodity complex and offset. . .  Full story
Japan's Nikkei average was nearly flat on Tuesday after slipping earlier as a weaker yen offset losses in the utility sector which was. . .  Full story
Australian stocks rose 0.7 percent on Tuesday, hauled off an eight-week low by the miners, which found support following a one-month slide as. . .  Full story
SA Business
Kumba Iron Ore said on Tuesday it would extend its interim iron ore supply agreement with ArcelorMittal South Africa until July next year to conclude arbitration between the two firms.. . .  Full story
Growth in South Africa's retail sales slowed to 5.1 percent year-on-year in March at constant prices, compared with a slightly downwardly revised 5.5 percent increase in February, Statistics South Africa said. . .  Full story
South Africa's rand firmed against the dollar on Tuesday, rebounding from 8-week lows after the greenback softened and metal prices edged up.. . .  Full story

Pretoria Portland Cement, South Africa's biggest cement producer, is eyeing expansion elsewhere in Africa to counteract flagging sales at home, its. . .  Full story
Vodafone, the world's largest mobile operator by revenue, surprised investors with an upbeat outlook for 2012 on Tuesday after posting resilient results driven by. . .  Full story
South African government bonds firmed slightly on Tuesday, after softer-than-expected inflation data backed some analysts' views that interest rates will remain. . .  Full story
Shares of South Africa's Pretoria Portland Cement opened down nearly 3 percent on Tuesday after the cement firm reported a 38. . .  Full story

Shares of Barloworld rose more than 3 percent in early trade on Tuesday after the South African automotive and mining equipment leasing firm reported a sharp recovery in first earnings, aided by an upswing in demand from miners.. . .  Full story
Company News
The company announced that in relation to the cautionary announcements dated 24 December 2010, 04 February 2011, 18 March 2011 and. . .  Full story
Anglo announced provisional interim dividend dates: * Announcement date (amount declared in USD with ZAR equivalent): Friday 29 July * Last. . .  Full story
Further to the trading statement released on SENS on 13 May 2011, a review of the financial results for the twelve. . .  Full story
Afdawn advised shareholders that the company expects a turnaround in the loss per share ("LPS") and headline loss per share ("HLPS"). . .  Full story

David Graham Jones was appointed as financial director to the board of ELB with effect from 17 May 2011. Anthony Garth. . .  Full story
Shareholders were previously advised that Sishen Iron Ore Company (Pty) Ltd ("SIOC") and ArcelorMittal South Africa Ltd ("AMSA") had on 22. . .  Full story
At the ninety fourth (94th) annual general meeting of the shareholders of Delta held on 17 May 2011, all the ordinary. . .  Full story
Shareholders of Ceramic ("shareholders") are advised that the board of directors of Ceramic ("the board") has declared a special dividend of. . .  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 Overall17:0031843.91-312.10-0.97%
JSE Top 4017:0028601.68-327.98-1.13%
JSE Gold17:002543.24-31.22-1.21%
JSE Financial17:0021411.27-90.60-0.42%
JSE Industrial17:0032792.52-247.96-0.75%
JSE Indust 2517:0027586.05-246.70-0.89%
JSE Resource17:0054420.47-813.13-1.47%
DJ Futures19:2012380.00-95.00-0.76%
DJ Ind19:4512443.02-105.35-0.84%
SP 50019:461324.54-4.93-0.37%
FTSE 10017:355861.00-62.69-1.06%
All Ords08:384753.0028.800.61%
NZSE 5007:323558.0514.190.40%
NameTimeRPMove% Move
Gold/R kg20:00331729-5687-1.69%
Brent Crude19:56109.58-2.30-2.06%
Rand / Dollar19:596.9651-0.0280-0.40%
Rand / Pound19:5511.2840-0.0180-0.16%
Rand / Euro19:559.8986-0.0079-0.08%
Rand / NZD19:585.4339-0.0265-0.49%
Rand / AUD19:557.3683-0.0320-0.43%
Yen / Dollar19:5981.46000.62000.77%
Euro / Dollar19:550.7036-0.0023-0.33%
Dollar / Euro19:541.42070.00490.35%
Pound / Dollar19:550.6154-0.0017-0.28%

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The JSE Today
Trading Statistics

Major Moves Up
SharenameSaleMove% MoveVolume
1 SPURCORP  1395604.49.%700
2 CERAMIC  143005063.67.%4498
3 BARWORLD  69292293.42.%10071702
4 SENTULA  26183.16.%321615
5 VIVIDEND  484142.98.%617600
6 O-LINE  11032.80.%25197
7 YORK  375102.74.%29100
8 ELBGROUP  2000502.56.%1500
9 FAMBRANDS  43061062.52.%66418
10 AFRIMAT  40092.30.%96818
11 CBH  445102.30.%1708238
12 PSG  45001002.27.%22221
13 PALCAP  24052.13.%56703
14 ACUCAP  3540732.11.%33034
15 CAPITEC  182003752.10.%89059
16 LIFEHC  1684342.06.%18835946
17 KAP  25052.04.%398701
18 PPC  2575451.78.%1670618
19 OPTIMUM  2950501.72.%71018
20 LIB-HOLD  71811211.71.%284674

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Major Moves Down
SharenameSaleMove% MoveVolume
1 GOLIATH  375-65-14.77.%67180
2 BAUBA  182-18-9.00.%305
3 PLATMIN  510-40-7.27.%40
4 GRANPRADE  300-20-6.25.%45600
5 VALUE  422-28-6.22.%500
6 ANOORAQ  570-33-5.47.%63813
7 GBGOLD  1404-65-4.42.%19250
8 KEATON   311-14-4.31.%10
9 AFEAGLE  115-5-4.17.%6200
10 REBOSIS  999-41-3.94.%2058070
11 TRNSHEX  269-11-3.93.%89766
12 JDGROUP  4385-170-3.73.%447944
13 TELKOM  3710-139-3.61.%796230
14 PALLINGHT  405-15-3.57.%25960
15 MRPRICE  6370-209-3.18.%5612531
16 COAL  855-27-3.06.%153711
17 PETMIN  285-9-3.06.%542158
18 SANTAM  12805-395-2.99.%19635
19 PREMIUM  1550-45-2.82.%106822
20 URONE  2634-76-2.80.%16875

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New Highs
SharenameSaleHighMove% MoveVolume
1 CAPITEC  18200193993752.10.%89059
2 CML  19051920231.22.%1402302
3 RICHEMONT  44154457-14-0.32.%9873507
4 REBOSIS  9991040-41-3.94.%2058070

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New Lows
SharenameSaleLowMove% MoveVolume
1 GOLIATH  375330-65-14.77.%67180
2 ANOORAQ  570550-33-5.47.%63813
3 JUBILEE  285285-7-2.40.%19878

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Index Summary
Index NameRPMove% Move
Top 4028,601.68-327.98-1.13%
Mid Cap41,491.62-24.51-0.06%
Small Cap32,176.76-46.98-0.15%
Resource 2054,420.47-813.13-1.47%
Industrial 2527,586.05-246.70-0.89%
Financial 158,087.90-45.20-0.56%
Financial & Ind. 3030,691.95-252.91-0.82%
All Share31,843.91-312.10-0.97%
Oil & Gas 26,792.87-542.23-1.98%
Mining 35,802.07-504.45-1.39%
Gold Mining2,543.24-31.22-1.21%
Platinum Mining69.91-1.43-2.00%
Oil & Gas Producers 14,406.03-291.55-1.98%
Basic Materials 30,243.21-409.61-1.34%
Chemicals 13,764.66-98.48-0.71%
Forestry & Paper 14,731.08-112.88-0.76%
Industrial Metals 28,004.43-224.76-0.80%
Industrials 27,449.2337.200.14%
General Industrials 75,422.11-65.26-0.09%
Consumer Goods 27,745.68-166.00-0.59%
Automobiles & Parts 3,
Household Goods151.95-3-1.97%
Health Care 32,327.0875.480.23%
Beverages 86.31-.63-0.72%
Food Producers 46,976.48-119.78-0.25%
Index NameRPMove% Move
Personal Goods 440.95-1.40-0.32%
Consumer Services 53,323.36-675.14-1.25%
General Retailers 40,932.37-459.21-1.11%
Travel & Leisure 3,687.4515.020.41%
Media 85.14-1.73-1.99%
Support Services 2,388.37-13.26-0.55%
Telecommunications 67,731.93-944.48-1.38%
Financials 21,411.27-90.60-0.42%
Banks 40,173.86-236.26-0.58%
Non-life Insurance 31,050.96-957.84-2.99%
Life Insurance 15,819.00-78.61-0.49%
General Financial 2,240.49-11.07-0.49%
Technology 21,508.9065.690.31%
SHARIAH TOP40 3,157.30-45-1.41%
FTSE/JSE SHARIAH ALL3,218.04-42-1.27%
COAL MINING22,095.03-129-0.58%
FTSE JSE Fledgling 4,541.22200.45%
FTSE/JSE Alt X 1,014.2840.36%
RESOURCE 30,039.78-447-1.47%
DIVIDEND PLUS167.59-1-0.43%
FTSE/JSE RAFI 406,643.03-70-1.04%
Capped Top 4014,908.49-167-1.11%
Capped All Share16,028.31-154-0.95%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
18 May 2011ANSYSFebruary 2011 (Final)
18 May 2011RAC PREFSMarch 2011 (Final)
18 May 2011RECMMarch 2011 (Final)
18 May 2011TIGBRANDSMarch 2011 (Interim)
19 May 2011AUSTROFebruary 2011 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ASTRAL11-05-1611-06-0911-06-20R 3.0500
VODACOM11-05-1611-06-2411-07-04R 2.8000
RAUBEX11-05-1611-06-0311-06-13R 0.6800
NETCARE11-05-1611-07-1511-07-25R 0.2200
JDGROUP11-05-1611-06-1711-06-27R 1.0000
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
DTADelta EMD Ltd17/05/2011Confirmed
ADHADvTECH Ltd17/05/2011Confirmed
SACSA Corporate Real Estate Fund17/05/2011Confirmed
RESResilient Property Income Fund Ltd17/05/2011Confirmed
GFIGold Fields Ltd17/05/2011Confirmed

Stock Exchange News Service
17/05/201117:45 Datatec Limited - Dealing in securities by directors
17/05/201117:41 Pinnacle Point - Sale of Pinnacle Point Golf and Beach Resorts and
17/05/201117:12 Gold Fields Limited - Results of Annual General Meeting
17/05/201117:00 Reunert - Unaudited group results for the six months ended 31 March 2011
17/05/201116:58 Resilient - Dealing in securities
17/05/201116:56TOPDWX - Deutsche Bank AG - Issue of new Index Equity WAVEs
17/05/201116:54 Resilient - Results of Annual General Meeting and Change to the Board of
17/05/201116:52 Tiger Brands Limited - Voluntary Trading Statement
17/05/201116:49 Anglo American Plc - Provisional Interim Dividend Dates (Dividend no 22)
17/05/201116:47 Thabex Limited - Revised Trading Statement
17/05/201116:30 OLD MUTUAL plc - Rule 8.3 of the Takeover Code
17/05/201116:00 Vodacom Group - Change in directorate
17/05/201115:51 Sovereign Food Investments Limited - Appointment of Company Secretary
17/05/201115:30 ArcelorMittal South Africa Limited - Forfeiture of unclaimed dividends
17/05/201115:30 African Dawn Capital Limited - Trading Statement
17/05/201115:24 Bauba - Clarity - Director`s dealings in securities
17/05/201115:24 Buildmax Limited - Changes to the board of directors
17/05/201115:15ELR/ELRP - ELB Group Limited - Change to the board of directors
17/05/201115:00 ArcelorMittal South Africa Limited - Renewal of cautionary announcement:
17/05/201115:00 Datatec Limited - Notification of major interest in shares by shareholder
17/05/201115:00 Mazor Group Limited - Audited condensed consolidated results for the
17/05/201115:00 Kumba Iron Ore Limited - Sishen supply agreement
17/05/201114:56 Insimbi Refractory and Alloy Supplies Limited - Appointment to the Audit
17/05/201114:54 Delta EMD Limited - Report on proceedings at annual general meeting
17/05/201114:31 Great Basin Gold Limited - Great Basin Gold reports quarterly results
17/05/201114:30 Great Basin Gold Limited - Unaudited interim consolidated financial
17/05/201114:17 Ceramic Industries Limited - Declaration of a special dividend and a
17/05/201113:52 SA Corporate - Results of annual general meeting
17/05/201113:48SCIB - The Standard Bank of South Africa Limited - Notice Of Expiry Of Standard
17/05/201113:46SCIB - Standard bank of South Africa Limited - Notice of expiry of STANDARD
17/05/201113:45 Capital Shopping Centres Group PLC - Results of proxy voting at the annual
17/05/201113:30 Oando Plc - Unaudited results for the three months ended 31 March 2011
17/05/201113:12 RBA Holdings Limited - Director dealing in Securities
17/05/201113:02 Gooderson - Trading Update
17/05/201112:15 Metmar Limited - Revised Trading Statement
17/05/201112:14PTXSPY - Proptrax SAPY - Listing of Additional Proptrax SAPY Securities
17/05/201112:09 Discovery Holdings Limited - Voluntary disclosure of dealings in
17/05/201112:06 Telemasters Holdings Limited - Change in role and new appointment of a
17/05/201111:40 ADvTECH Limited - Results of Annual General Meeting
17/05/201111:30 Cape Empowerment Limited - Further Cautionary Announcement
17/05/201111:00 Old Mutual Plc - Listing Application for shares to be issued in
17/05/201110:40 Finbond Group Limited - Directors` share dealings
17/05/201110:20 Trencor Limited - Trencor`s Textainer to acquire containers from Buss
17/05/201109:41INVS - Investec Bank Limited - Expiry of hot enhanced dividend securities 1 June
17/05/201109:40INVS - Investec Bank Limited - Expiry of hot enhanced dividend securities
17/05/201109:31 Tawana Resources NL - Positive Scoping Study for the Meletse Iron Ore
17/05/201108:32 Santova - Updated trading statement
17/05/201108:21 Beige Holdings Limited - Following of rights offer by directors,
17/05/201108:12 Eastern Platinum Limited - Annual General Meeting Notification
17/05/201108:04 Afrimat Limited - Director`s dealings
17/05/201108:03 Firestone Energy Limited - Change of Director`s Interest Notice
17/05/201108:00CCO - Capital & Counties Properties PLC - Capco announces the acquisition of
17/05/201108:00 Capital Shopping Centres Group Plc - Interim management statement for the
17/05/201108:00 African Eagle Resources Plc - Communication with shareholders & notice of
17/05/201107:10 British American Tobacco p.l.c - Transaction in own shares
17/05/201107:06 Pretoria Portland Cement Company Limited - Unaudited interim results for
17/05/201107:06 BHP Billiton Plc - Transaction in shares
17/05/201107:06GEN - General - Debt Listings Requirements
17/05/201107:06 Ansys Limited - Reviewed provisional annual results for the year ended 28
17/05/201107:05BAW / BAWP - Barloworld Limited - Interim results for the six months ended 31
17/05/201107:05 Coronation Fund Managers Limited - Reviewed interim results for the six

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