The Sharenet Daily 
Thursday, 19 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.

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)

Investing in ETFs

There is a fair amount of literature out there that recommends that investors should rather invest into ETFs (Exchange Traded Funds) than actively managed funds. The theory is that active equity managers in general fail to beat their benchmarks and that ETFs, as the low cost option, will therefore outperform. While we agree with this theory, we disagree that investors should blindly allocate their investments to ETFs.

While the cost of ETFs in most developed markets is extremely low, the costs of ETF unit trusts in South Africa, in general, are comparable with many of the actively managed equity unit trusts. Investors investing through listed ETFs need to incur buy and sell spreads on purchasing and selling the ETFs (while most unit trusts don’t have initial or exit fees anymore) and also monthly fees for their stockbroker accounts. It only becomes feasible to use the listed option when you have a fairly sizable asset base. Purely from a cost basis we can see in the chart below that even over a fairly short period (just over 5 years) the ETF unit trust underperforms the index by 10%.

Our second issue with advising uneducated investors to allocate their investments to ETFs is the fact that there are many ETFs that investors need to choose between. It isn’t merely a passive decision anymore, but rather an active choice as to which index the investor wants to get exposure to. Below we have shown the difference between two indices and their respective ETFs over the past 5 years or so. Evidently the investor choosing the Indi Fund would be significantly happier than the Fini Fund investor.

We do feel that there is a place for ETFs in the investment landscape but, just like any investment product, the investor needs to ensure that they (or a trusted advisor) understand what they are invested into.

At Seed we do make selective use of ETFs in our investment portfolios. Key for us is to understand what the ETF is tracking, what the return drivers are, what role the ETF plays in the investment portfolio, and what the alternatives (if any) are.

If you have an opinion about the usage of ETFs in investment portfolios, click through to Seed’s Facebook Fan Page and have your say under this posted note.

Take care,

Mike Browne
021 9144 966

Thu, 19 May 2011
Top News
South African government bonds extended gains and yields fell to a 1-1/2 week low on Thursday as benign inflation data dented prospects of domestic interest rates rising earlier than expected.  Full story

Gold Fields maintained its bullion output target for 2011 and said it was confident gold would stay near current prices as it posted first-quarter earnings just below market expectations.  Full story
French Finance Minister Christine Lagarde emerged as frontrunner on Thursday to succeed Dominique Strauss-Kahn as head of the IMF after he resigned and vowed to fight charges of sexually assaulting a hotel maid.  Full story
Syrian troops backed by tanks deployed in a border village on Thursday, witnesses said, ignoring growing pressure from Washington, which has imposed sanctions on President Bashar al-Assad for rights abuses.  Full story
Three bombs targeting Iraqi security forces exploded near government buildings in the centre of Iraq's disputed northern oil city of Kirkuk Thursday, killing 27 people and injuring scores, health authorities said.  Full story
Discouraging U.S. housing and factory data weighed on oil and other commodity prices on Thursday while a lackluster day on Wall Street was. . .  Full story
European shares rose in a broad market rally on Thursday but ended off their highs after mixed U.S. economic data, and some strategists. . .  Full story
Energy and banking stocks propelled Britain's FTSE 100 higher on Thursday as commodities trading giant Glencore made its London Stock Exchange debut.. . .  Full story
Gold fell on Thursday as the euro edged up against the dollar and oil prices firmed, but prices were still set for a. . .  Full story

Wall Street stocks were set for a higher open on Thursday after weekly jobless claims data suggested the labor market was on track. . .  Full story
European shares rose on Thursday, led by commodity stocks after the initial public offering of Glencore helped sentiment in the sector, but ongoing. . .  Full story
Australian stocks rose 1.3 percent on Thursday to a 5-day high, driven up by heavyweight miners, banks and energy companies as commodity prices. . .  Full story
The Nikkei average slipped on Thursday as Tokyo Electric tumbled, dragging down other utilities after the government's chief spokesman said its shareholders will be. . .  Full story
SA Business
South African power utility Eskom said on Thursday it would auction up to 400 million rand of its ES23 bond on. . .  Full story
South Africa's maize futures recorded sharp gains on Thursday, in line with higher prices on the Chicago Board of Trade (CBOT),. . .  Full story
South African investment bank and asset manager Investec Ltd posted a surprise 5 percent decline in full-year profit, hit by a. . .  Full story
A looming power crunch in South Africa is likely to push global platinum prices higher by increasing costs for miners and. . .  Full story

Dominique Strauss-Kahn has resigned as head of the International Monetary Fund after his arrest at the weekend on charges he sexually. . .  Full story
The "long-term play" mantra that accompanies equity investing in frontier Africa is wearing decidedly thin.. . .  Full story
Dominique Strauss-Kahn has resigned as head of the International Monetary Fund after his arrest at the weekend on charges he sexually assaulted a. . .  Full story
South Africa needs to start the international procurement for its planned nuclear plants early next year so it can build the. . .  Full story

Swaziland, one of Africa's poorest countries and its last absolute monarchy, is near financial collapse, with a budget deficit of 14.3 percent of GDP and rapidly dwindling foreign reserves, the IMF said.. . .  Full story
South Africa's Investec may need to raise as much as 75 million pounds in new capital to meet up-coming UK banking regulations, the lender's managing director told Reuters.. . .  Full story
Company News
Further to the detailed terms announcement released on the Securities Exchange News Service of the JSE Ltd ("JSE") on 21 April. . .  Full story
ARM would like to provide clarification on recent media coverage reporting on the performance of the Kenya Stock Exchange which has. . .  Full story
Discovery announced that it is set to revolutionise SA's short-term insurance market. Highlights include: * Discovery leverages Vitality, its proven behavioural economics. . .  Full story
Resgen has received strong interest from financiers following a process to secure debt funding for the construction of its Boikarabelo mine. . .  Full story

AngloPlat announced the appointment of Albertinah Kekana as an independent non-executive director, effective 1st July 2011. Her appointment brings the total number of independent non-executive directors on the AngloPlat board to. . .  Full story
Since the last company announcement dated 29 March 2011, the company together with other industry stakeholders have held four meetings with the South African Department of Water Affairs ("DWA"). The purpose. . .  Full story
Shareholders were advised that PSV is currently finalising its results for the year ended 28 February 2011 and anticipates that the group will reflect a basic loss per share of between. . .  Full story
Company Results
Sales. . .  Full story
Revenue increased to R243.5 million (R211.5 million). Gross profit rose to R70.1 million (R62.3 million). Net attributable profit declined to R29.1. . .  Full story
Revenue increased to USD19.4 billion (USD18 billion) while operating profit rose to USD3.1 billion (USD2.6 billion).Profit attributable to equity shareholders. . .  Full story
k. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0031918.9375.020.24%
JSE Top 4017:0028663.7662.080.22%
JSE Gold17:002564.1720.930.82%
JSE Financial17:0021545.20133.930.63%
JSE Industrial17:0032877.7885.260.26%
JSE Indust 2517:0027666.9180.860.29%
JSE Resource17:0054405.57-14.90-0.03%
DJ Futures20:0012585.0043.000.34%
DJ Ind19:3512598.2138.030.30%
SP 50018:501342.802.120.16%
FTSE 10017:355955.9932.500.55%
All Ords08:394828.2062.901.32%
NZSE 5007:323569.009.440.27%
NameTimeRPMove% Move
Gold/R kg20:0033000218670.57%
Brent Crude19:56112.21-.10-0.09%
Rand / Dollar19:596.8739-0.0239-0.35%
Rand / Pound19:5511.1004-0.0267-0.24%
Rand / Euro19:559.83690.00200.02%
Rand / NZD19:595.4309-0.0167-0.31%
Rand / AUD19:557.3205-0.0205-0.28%
Yen / Dollar19:5681.69000.02000.02%
Euro / Dollar19:570.6987-0.0031-0.44%
Dollar / Euro19:571.43160.00670.47%
Pound / Dollar19:550.6171-0.0011-0.18%

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

Major Moves Up
SharenameSaleMove% MoveVolume
1 BAUBA  200189.89.%2902
2 PALCAP  260208.33.%341912
3 CAPITEC  1950013007.14.%114735
4 AMECOR  16495.81.%8047
5 JASCO  10555.00.%15000
6 EASTPLATS  700304.48.%81907
7 DRDGOLD  357154.39.%183475
8 TRNSHEX  280114.09.%323492
9 TRADEH  624244.00.%7000
10 MMG  13553.85.%5000
11 BELL  1400503.70.%1184
12 PSG  46531533.40.%257553
13 REDEFINTL  640203.23.%388051
14 GOLDREEF  1625493.11.%10000
15 GROUP-5  2935812.84.%98026
16 PAN-AF  11232.75.%355184
17 INVPLC  54451382.60.%3381656
18 S-OCEAN  21052.44.%12700
19 PARACON  17142.40.%901511
20 MVELARES  431102.38.%1413703

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Major Moves Down
SharenameSaleMove% MoveVolume
1 BEE-SASOL  26500-4500-14.52.%5000
2 GOLIATH  335-40-10.67.%13000
3 SACOIL  133-15-10.14.%3244140
4 BEIGE-PR2  136-14-9.33.%1532
5 AFEAGLE  105-10-8.70.%17498
6 SPURCORP  1331-64-4.59.%1267
7 PINNACLE  781-31-3.82.%203367
8 CBH  430-15-3.37.%4100
9 ROLFES  165-5-2.94.%7500
10 LITHA  233-7-2.92.%95900
11 ACUCAP  3440-100-2.82.%244186
12 MIXTEL  122-3-2.40.%50000
13 RICHEMONT  4312-103-2.33.%21347363
14 COMAIR  220-5-2.22.%64524
15 RAUBEX  1907-43-2.21.%68129
16 ALTRON  2800-60-2.10.%20826
17 OCEANA  3750-80-2.09.%23990
18 METROFILE  192-4-2.04.%38750
19 BLUETEL  585-12-2.01.%473114
20 TONGAAT  9100-160-1.73.%321749

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New Highs
SharenameSaleHighMove% MoveVolume
1 CAPITEC  195001950013007.14.%114735
2 PSG  465347701533.40.%257553
3 CML  1907192220.10.%1682984

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New Lows
SharenameSaleLowMove% MoveVolume
1 BEE-SASOL  2650026500-4500-14.52.%5000
2 BEIGE-PR2  136136-14-9.33.%1532
3 TONGAAT  91009029-160-1.73.%321749
4 JUBILEE  281281-4-1.40.%79202
5 MAZOR  1401300.81704
6 DELTA  7607250.4650

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Index Summary
Index NameRPMove% Move
Top 4028,663.7662.080.22%
Mid Cap41,655.94164.320.40%
Small Cap32,172.09-4.67-0.01%
Resource 2054,405.57-14.90-0.03%
Industrial 2527,666.9180.860.29%
Financial 158,139.7651.860.64%
Financial & Ind. 3030,808.87116.920.38%
All Share31,918.9375.020.24%
Oil & Gas 27,084.80291.931.09%
Mining 35,752.85-49.22-0.14%
Gold Mining2,564.1720.930.82%
Platinum Mining70.17.260.37%
Oil & Gas Producers 14,563.00156.971.09%
Basic Materials 30,223.82-19.39-0.06%
Chemicals 13,701.68-62.98-0.46%
Forestry & Paper 14,776.0744.990.31%
Industrial Metals 28,373.79369.361.32%
Industrials 27,536.6487.410.32%
General Industrials 75,775.74353.630.47%
Consumer Goods 27,600.20-145.48-0.52%
Automobiles & Parts 3,181.5622.640.72%
Household Goods154.5031.68%
Health Care 32,422.9195.830.30%
Beverages 86.66.350.41%
Food Producers 47,040.2863.800.14%
Index NameRPMove% Move
Personal Goods 430.67-10.28-2.33%
Consumer Services 53,642.61319.250.60%
General Retailers 41,107.02174.650.43%
Travel & Leisure 3,670.59-16.86-0.46%
Media 86.13.991.16%
Support Services 2,399.9611.590.49%
Telecommunications 68,558.00826.071.22%
Financials 21,545.20133.930.63%
Banks 40,465.90292.040.73%
Non-life Insurance 30,917.59-133.37-0.43%
Life Insurance 15,913.2394.230.60%
General Financial 2,274.0233.531.50%
Technology 21,293.58-215.32-1.00%
SHARIAH TOP40 3,165.5780.26%
FTSE/JSE SHARIAH ALL3,226.2680.26%
COAL MINING22,089.48-6-0.03%
FTSE JSE Fledgling 4,542.7720.03%
FTSE/JSE Alt X 1,024.20100.98%
CAPPED PROPERTY 311.31-0.08%
RESOURCE 30,046.2460.02%
DIVIDEND PLUS168.5910.60%
FTSE/JSE RAFI 406,666.47230.35%
Capped Top 4014,953.06450.30%
Capped All Share16,072.78440.28%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
20 May 2011ACTOWERSFebruary 2011 (Final)
20 May 2011MIRANDAFebruary 2011 (Interim)
20 May 2011SABMILLERMarch 2011 (Final)
20 May 2011SABMILLER DEFMarch 2011 (Final)
20 May 2011SABMILLERPMarch 2011 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
REUNERT11-05-1711-06-0911-06-20R 0.7700
PPC11-05-1711-06-0311-06-13R 0.3500
CORONAT11-05-1711-06-0311-06-13R 0.8000
BARWORLD11-05-1711-06-0311-06-13R 0.5000
MAZOR11-05-1711-06-0911-06-20R 0.0280
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
BRTBrimstone Investment Corporation Ltd19/05/2011Confirmed
HULAHulamin Ltd19/05/2011Unconfirmed
HLMHulamin Ltd19/05/2011Unconfirmed
AFXAfrican Oxygen Ltd19/05/2011Confirmed
BRNBrimstone Investment Corporation Ltd19/05/2011Confirmed

Stock Exchange News Service
19/05/201117:40 Thabex Limited - Summarised audited results for the year ended 28 February
19/05/201117:25 Resilient Property Income Fund Limited - Dealing in securities
19/05/201117:07 1time holdings Limited - Dealings in securities by a director of a major
19/05/201116:55 Exxaro Resources Limited - Trading of Exxaro ordinary shares on behalf of
19/05/201116:37 The Bidvest Group Limited - Directors` dealings in securities
19/05/201116:25 Old Mutual Plc - Form 8.3
19/05/201116:22 Iliad Africa Limited - Results of Annual General Meeting
19/05/201115:54 Hosken Consolidated Investments - Reviewed consolidated results for the
19/05/201115:30 Old Mutual plc - Total voting rights and shares in issue
19/05/201115:15 African Oxygen Limited - Results of Annual General Meeting
19/05/201115:14 Sentula Mining Limited - Posting of the circular to shareholders in
19/05/201115:01 Gold Reef - Change in directorate
19/05/201115:00 Gold Reef Resorts Limited - Reviewed consolidated financial results for
19/05/201114:59GEN - FTSE/JSE Africa Index Series - Wesizwe Platinum (South Africa): Shares in
19/05/201114:31 Metmar Limited - Audited abridged financial results for the year ended
19/05/201114:30 MAS PLC - Notice of final dividend
19/05/201114:29 Sappi - Sappi Fine Paper Europe announces cessation of coated graphic
19/05/201113:56 W G Wearne Limited - Trading Statement
19/05/201113:43 African Rainbow Minerals Limited - Clarification on recent media
19/05/201111:50 Mercantile Bank Holdings Limited - Company Announcement
19/05/201111:42 Discovery Holdings Limited - Discovery set to revolutionise SA Short-
19/05/201111:35 New Europe Property Investments plc - Update regarding NEPI`S prospective
19/05/201111:32 IQuad Group Limited - Dealing in securities
19/05/201111:30 Resource Generation Limited - Update on debt funding
19/05/201111:24 Gold One International Limited - Results of Gold One 2011 annual general
19/05/201110:47SCIB/PPCSTF - The Standard Bank of South Africa Limited - Dividend announcement
19/05/201110:46SCIB - The Standard Bank of South Africa Limited - Issue of stock warrants
19/05/201110:32 Country Bird Holdings Limited - Dealings in securities
19/05/201110:07 Resilient Property Income Fund Limited - Change to the board of directors,
19/05/201109:48 Brikor - Renewal of Cautionary Announcement regarding Disposals
19/05/201109:39 Anglo American Platinum Limited - Change to the board of directors
19/05/201109:20 Metmar - Correction to Trading Statement
19/05/201109:10 O-line Holdings Limited - Notification of Share Dealing by O-line
19/05/201109:01INLP - Investec Bank Limited - Reviewed preliminary condensed consolidated
19/05/201109:00INP/INL - Investec plc/Investec Limited - Unaudited combined consolidated
19/05/201108:43 O-line Holdings Limited - Notification of Share Dealing by Directors
19/05/201108:05 SABMiller Plc - SABMiller plc announces the appointment of two new non-
19/05/201108:00 SABMiller Plc - Preliminary Announcement
19/05/201108:00 Infrasors - Reviewed Condensed Group Consolidated Results for the year
19/05/201108:00 Gold Fields Limited - Costs contained despite seasonal decline in
19/05/201108:00 Central Rand Gold Limited - Interim Management Statement
19/05/201107:32 Compagnie Financiere Richemont SA Depositary Receipts - Richemont
19/05/201107:31 Compagnie Financiere Richemont SA Depositary Receipts - Richemont
19/05/201107:30 Compagnie Financiere Richemont SA Depositary Receipts - Richemont, the
19/05/201107:15 Anglo American plc - Treasury Shares - Transfers
19/05/201107:12 British American Tobacco p.l.c - Transaction in own shares
19/05/201107:11 British American Tobacco p.l.c - Notification of transactions by
19/05/201107:10 British American Tobacco p.l.c - Transaction in own shares
19/05/201107:06 BHP Billiton Plc - Transaction in shares
19/05/201107:05 Oando PLC - Oando earnings forecast for the second quarter ending
19/05/201107:05 BHP Billiton Plc - Transaction in shares
19/05/201107:05 Old Mutual plc - Form 8.3
19/05/201107:05CCO - Capital & Counties Properties PLC - Notification of major interests in
19/05/201107:05 PSV Holdings Limited - Trading Update

Click here for more SENS news