The Sharenet Daily 
Thursday, 26 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)

One Last Look at ETFs

In a few of our recent reports we have taken a look at ETFs from a few different angles. Today we will have a look at the findings of research done on global ETFs by well respected investment house Sarasin & Partners.

It should come as no surprise to investors that the best ETFs are large and liquid. Large ETFs are able to minimise costs on a per unit basis and are therefore able to typically give investors a better total return. The shares that the ETF invests into should also be large and liquid to reduce frictional costs (especially in an ETF with large AUM).

There are cases of ETFs with many constituents in the underlying index not buying all the shares in the index (possibly to reduce costs). These ETFs look to mimic the index by using other methods to match the performance of the target index. A case of this is the iShares MSCI Emerging Markets underperforming its benchmark by 15% over 2 and a quarter years. The chart is shown below:

ETFs can trade at a premium or discount to NAV. This factor is mitigated in the local market as the product provider is typically compelled to provide a market in a close range around the NAV. Never the less there is a cost of getting in and out of an ETF that needs to be taken into account when using this investment product. Below is a chart of the daily premium/discount to NAV of the same iShares MSCI Emerging Market Index Fund:

Notice that in times of volatility (late 2008, early 2009) the ETF trades significantly above or below the NAV on a regular basis. Buying at a discount and selling at a premium will generate extra returns, but investors need to be aware of all the facts when transacting.

Investors should be particularly wary of certain ETFs/ETNs that track commodities. ETFs that buy the physical commodity (like the New Gold Issuer ETF) are a good way to track the spot price of commodity. Certain ETFs, however, don’t buy the physical commodity because it’s not feasible (often the commodity has high storage costs) but rather buy the underlying commodity future. Without getting technical, in the case where the commodity isn’t bought, performance of the ETF/ETN can vary significantly from the performance of the commodity as the future contracts need to be rolled on a regular basis. Sarasin cites the case of the Lean Hogs ETF underperforming the Lean Hogs generic futures price by 98.8% over a period of just over 3 years!

Clearly there is a time and a place for ETFs in client portfolios but, just like any financial product, investors need to do their homework before buying them.

Take care,

Mike Browne
021 9144 966

Thu, 26 May 2011
Top News
South Africa's rand firmed slightly against the dollar on Thursday but further gains will be limited by central bank buying and exporter demand below the 7.00 level.  Full story

South Africa is unlikely to impose local supply targets in its upcoming ruling on Wal-Mart's $2.4 billion bid for retailer Massmart because such demands could violate international trade rules.  Full story
More than 40 Yemenis were killed in pitched street battles in the capital on Thursday as fighting aimed at ending President Ali Abdullah Saleh's three-decade-long rule threatened to ignite civil war.  Full story
Bosnian Serb wartime general Ratko Mladic was arrested in Serbia Thursday after years on the run from international genocide charges, opening the way for the once-pariah state to approach the European mainstream.  Full story
A bicycle bomb wounded seven people including a police officer in Istanbul Thursday, the city's police chief said.  Full story
U.S. stocks rose for a second day, erasing early losses in a volatile day on Thursday as earnings helped technology and consumer discretionary. . .  Full story
European shares fell on Thursday after data showed sluggish growth in the U.S. economy in the first quarter and on doubts as to. . .  Full story
U.S. stocks lost early gains and oil prices fell as worries about an economic slowdown weighed on sentiment, while the euro hit a. . .  Full story
Strength in heavyweight mining stocks helped Britain's top share index edge higher on Thursday, countering slippage by banks on euro zone debt concerns.. . .  Full story

Gold fell on Thursday, led by a fall in euro-priced bullion and after the single European currency came under sudden pressure, but concern. . .  Full story
European shares were flat on Thursday in a choppy session as investors awaited U.S. GDP data which would shed light on the health. . .  Full story
Hong Kong shares held onto mild gains Thursday as large cap banks and oil producers supported the benchmark, although the gains came stubbornly tepid. . .  Full story
Australian shares rose 1.7 percent on Thursday for their biggest one-day percentage gain since Dec 2, recovering after four days of falls as short-covering. . .  Full story
SA Business
South Africa's freight logistics group Transnet has reached a deal with trade unions for an 8.5 percent rise in wages, the. . .  Full story
South Africa is in talks with energy intensive users to reduce demand by 5,000 MW or around 13 percent and prevent. . .  Full story
South Africa's maize, wheat and soybeans futures ended higher on Thursday, in line with a rise in U.S. grain prices, but. . .  Full story
South Africa's rand regained its footing against the dollar on Thursday, largely boosted by firmer commodity prices a day after hitting. . .  Full story

Coal India, the world's largest coal miner, is in advanced talks to buy up to 40 percent of Indonesian low-grade coal producer Golden. . .  Full story
South Africa's second-biggest clothing retailer, Foschini, posted a 19.6 rise in full-year profit as consumer spending recovered in Africa's biggest economy.. . .  Full story
Mr Price, South Africa's third-biggest listed clothing retailer, plans to raise its dividend payout in 2012 as cash-strapped shoppers flocked to. . .  Full story
Brent crude rose above $115 a barrel on Thursday due to a softer dollar and as an unexpected drop in U.S. distillate stocks. . .  Full story

Standard Bank, Africa's largest lender by assets, said earnings for the first four months of the year showed a slight decline as demand for credit remains weak and interest rates low.. . .  Full story
Brent crude held steady around $115 a barrel on Thursday due to a softer dollar and as an unexpected drop in U.S. distillate stocks overshadowed gains in gasoline and crude inventories.. . .  Full story
Company News
Shareholders are advised that the company's earnings per share for the twelve month period ended 31 March 2011 is expected to. . .  Full story
Trencor has distributed its annual financial statements in respect of the year ended 31 December 2010 and they are unchanged from. . .  Full story
Trading update for the nine months ended 31 March 2011: Merger update *All management reporting is currently prepared on a segmental. . .  Full story
Grindrod Limited shareholders are adiised that at the annual general. . .  Full story

Unitholders are advised that Mr Laurence Rapp has been appointed as executive director and Chief Executive Officer ("CEO") of Vukile with effect from 1 August 2011. Mr Rapp's appointment follows Mr Gerhard van Zyl's resignation announced on 28 May 2010 which was effective on 31 March 2011. Mr van Zyl's term was extended with the company, by mutual agreement with the board, until a new CEO was appointed. Mr van Zyl leaves Vukile at the end of July 2011.. . .  Full story
Company Results
Revenue for the interim period ended 31 March 2011 increased to R7.985 billion (2010: R7.983 billion). Operating profit rose by 15.9%. . .  Full story
Revenue increased from R5 050 million to R5 384 million in 2011.Gross profit increased to R1 119 million (2010: R1 097. . .  Full story
Revenue decreased to R1.4 billion (R1.9 billion). Gross profit declined to R161.4 million (R496.8 million) and results from operating activities showed. . .  Full story
Despite Southern Africa's slow emergence from the global recession, historical low interest rates and severe flooding in northern Namibia, Trustco was. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0031980.11186.520.59%
JSE Top 4017:0028743.53180.210.63%
JSE Gold17:002578.17-45.17-1.72%
JSE Financial17:0021625.49224.061.05%
JSE Industrial17:0032687.07113.180.35%
JSE Indust 2517:0027484.0486.720.32%
JSE Resource17:0054965.31388.150.71%
DJ Futures20:0012395.0065.000.53%
DJ Ind19:3112412.7947.760.39%
SP 50019:501324.669.980.76%
FTSE 10017:355880.9910.850.18%
All Ords08:374735.1073.501.58%
NZSE 5009:523527.59-26.78-0.75%
NameTimeRPMove% Move
Gold/R kg20:00340177-4312-1.25%
Brent Crude19:56115.22.750.66%
Rand / Dollar19:586.9583-0.0708-1.01%
Rand / Pound19:5511.3806-0.0278-0.24%
Rand / Euro19:559.8321-0.0687-0.69%
Rand / NZD19:585.63650.03340.60%
Rand / AUD19:557.3985-0.0055-0.07%
Yen / Dollar19:5681.2400-0.7500-0.91%
Euro / Dollar19:580.7085-0.0016-0.23%
Dollar / Euro19:591.41200.00340.24%
Pound / Dollar19:550.6102-0.0040-0.65%

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

Major Moves Up
SharenameSaleMove% MoveVolume
1 PETMIN  290259.43.%849677
2 SPANJRD  425245.99.%6565
3 COAL  910404.60.%230273
4 VERIMARK  19084.40.%251296
5 PALCAP  250104.17.%32300
6 BELL  1470553.89.%44492
7 HULAMIN  725243.42.%79683
8 DATATEC  39001243.28.%102247
9 ILIAD  700202.94.%274790
10 LITHA  24062.56.%58288
11 CIPLAMED  680172.56.%443506
12 LONMIN  175754322.52.%1649968
13 ABSA  136503202.40.%1062109
14 CBH  450102.27.%34700
15 CASHBIL  91501952.18.%6719
16 RMBH  2745552.04.%2842296
17 ABIL  3520702.03.%2849991
18 ELLIES   20442.00.%21405
19 NEDCOR  144852791.96.%328820
20 KUMBAIO  452008501.92.%575003

Click here for more Major Moves...
Major Moves Down
SharenameSaleMove% MoveVolume
1 GBGOLD  1311-69-5.00.%6640
2 EASTPLATS  719-36-4.77.%77677
3 HUGE  120-5-4.00.%10000
4 PBT  120-5-4.00.%157643
5 MIXTEL  120-4-3.23.%29000
6 HARMONY  9101-290-3.09.%917215
7 RAUBEX  1808-55-2.95.%204377
8 BLUETEL  565-15-2.59.%2244324
9 CLIENTELE  950-25-2.56.%2361
10 CAT  1466-34-2.27.%31770
11 AMA  179-4-2.19.%196514
12 OANDO  250-5-1.96.%3106
13 SACOIL  103-2-1.90.%1895044
14 ANGGOLD  30910-570-1.81.%649346
15 PLATMIN  491-9-1.80.%12826
16 IMPLATS  18321-284-1.53.%2402817
17 WBHO  10505-155-1.45.%290376
18 PALLINGHT  410-5-1.20.%417096
19 URONE  2600-30-1.14.%45707
20 RICHEMONT  4240-46-1.07.%5852493

Click here for more Major Moves...

New Highs
SharenameSaleHighMove% MoveVolume
1 SPANJRD  425425245.99.%6565
2 VERIMARK  19019084.40.%251296
3 CML  19251925251.32.%4500259
4 BATS  30926309941570.51.%1232957

Click here for more Major Moves...
New Lows
SharenameSaleLowMove% MoveVolume

Click here for more Major Moves...

Index Summary
Index NameRPMove% Move
Top 4028,743.53180.210.63%
Mid Cap41,532.19147.490.36%
Small Cap32,115.0988.830.28%
Resource 2054,965.31388.150.71%
Industrial 2527,484.0486.720.32%
Financial 158,175.8597.411.21%
Financial & Ind. 3030,714.20192.850.63%
All Share31,980.11186.520.59%
Oil & Gas 27,112.87263.860.98%
Mining 36,131.45203.280.57%
Gold Mining2,578.17-45.17-1.72%
Platinum Mining70.70-.61-0.86%
Oil & Gas Producers 14,578.09141.870.98%
Basic Materials 30,526.63179.150.59%
Chemicals 13,778.71-25.30-0.18%
Forestry & Paper 14,796.8181.570.55%
Industrial Metals 28,532.94377.021.34%
Industrials 27,598.44234.460.86%
General Industrials 75,917.66806.831.07%
Consumer Goods 27,267.10-16.33-0.06%
Automobiles & Parts 3,
Household Goods151.5700.00%
Health Care 32,420.6237.900.12%
Beverages 85.85.560.66%
Food Producers 46,746.393.500.01%
Index NameRPMove% Move
Personal Goods 423.48-4.59-1.07%
Consumer Services 53,084.09212.170.40%
General Retailers 40,638.92225.040.56%
Travel & Leisure 3,683.352.670.07%
Media 85.62.740.87%
Support Services 2,379.057.520.32%
Telecommunications 68,554.54331.570.49%
Financials 21,625.49224.061.05%
Banks 40,570.63623.201.56%
Non-life Insurance 31,160.08121.240.39%
Life Insurance 15,866.2477.520.49%
General Financial 2,296.4825.181.11%
Technology 21,605.61372.071.75%
SHARIAH TOP40 3,189.38190.61%
FTSE/JSE SHARIAH ALL3,247.47190.60%
COAL MINING21,232.571620.77%
FTSE JSE Fledgling 4,629.80471.02%
FTSE/JSE Alt X 1,027.74222.17%
RESOURCE 30,326.821870.62%
DIVIDEND PLUS167.6510.52%
FTSE/JSE RAFI 406,684.31480.72%
Capped Top 4014,975.59830.55%
Capped All Share16,093.01880.55%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
27 May 2011AMEMarch 2011 (Final)
27 May 2011BRC DIAMMarch 2011 (Q)
27 May 2011INSIMBIFebruary 2011 (Final)
27 May 2011KAIROSFebruary 2011 (Final)
27 May 2011MIRANDAFebruary 2011 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ADCORP11-05-2511-07-0811-07-18R 1.2100
SALLIES-C11-05-2511-06-2411-07-04R 0.0248
NAMPAK11-05-2511-07-0111-07-11R 0.3400
MEDCLIN11-05-2411-06-1711-06-27R 0.5000
TASTE11-05-2411-07-0111-07-11R 0.0300
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ALTECH11-04-2011-05-2011-05-30R 3.5600
JSE11-03-1511-05-2011-05-30R 2.1000
FPT11-05-0611-05-2011-05-30R 0.2771
SPANJAARD11-02-2511-05-2011-05-30R 0.1600
REDEFINE11-05-0411-05-2011-05-30R 0.1600

Upcoming AGMs**
CodeCompany NameDateStatus
MOBMobile Industries Ltd26/05/2011Unconfirmed
BSRBasil Read Holdings Ltd26/05/2011Confirmed
SBKStandard Bank Group Ltd26/05/2011Confirmed
SBKPStandard Bank Group Ltd26/05/2011Confirmed
TRETrencor Ltd26/05/2011Unconfirmed

Stock Exchange News Service
26/05/201117:50 Freeworld Coatings - Trading Statement
26/05/201117:48 Insimbi - Further Trading Update
26/05/201117:12 Basil Read Holdings Limited - Results of the annual general meeting
26/05/201117:10 Ingenuity Property Investments Limited - Dealing in securities by a
26/05/201117:03 Pinnacle Technology Holdings Limited - Posting of circular and Notice Of
26/05/201116:47COH - Curro Holdings Limited - Abridged pre-listing statement and rights offer
26/05/201116:21 Ingenuity Property Investments Limited - Dealing in securities by a
26/05/201116:14 Crookes Brothers Limited - Trading statement
26/05/201116:00 Lonmin Plc - Notification of major interest in shares
26/05/201115:40 William Tell Holdings Limited - Lifting of suspension of Mr. W. Van Coller
26/05/201115:30 WG Wearne Limited - Further cautionary announcement
26/05/201115:28SCIB : USDSCD - Standard Bank - Notice of expiry of Standard Bank currency
26/05/201115:12 Sephaku Holdings - Notification of share dealing by director and associate
26/05/201115:02 Platmin Limited - Platmin announces Board appointment
26/05/201115:01 Platmin Limited - Platmin Limited - Annual Report
26/05/201115:00 Platmin Limited - Notice of Annual General Meeting
26/05/201114:52 Mobile Industries Limited - Distribution of annual report, no change
26/05/201114:52 Trencor Limited - Distribution of annual report, no change statement and
26/05/201114:40 Taste Holdings Limited - Revised dealings in securities announcement
26/05/201114:35 Capitec Bank Holdings Limited - Dealing in securities by an associate of
26/05/201114:33 Brikor Limited - Appointment of independent non-executive chairman and
26/05/201114:31 Shoprite Holdings - Dealing in securities by a non-executive director
26/05/201114:27 Pinnacle Technology Holdings Limited - Dealing in securities by director
26/05/201114:27 Standard Bank Group Limited - Results of Annual General Meeting
26/05/201114:00TFG/TFGP - The Foschini Group Limited - Reviewed Preliminary Condensed
26/05/201113:49 Value Group Limited - Directors dealing in securities
26/05/201113:02 Petmin Limited - Directors` dealing in securities
26/05/201112:58 RMB Holdings Limited - Changes to the board of directors
26/05/201112:58 Rand Merchant Insurance Holdings Limited - Appointment to the board of
26/05/201112:43 Reunert Ltd - Appointments to the board Sub-committees
26/05/201112:29 Taste Holdings Limited - Dealings in securities
26/05/201111:31 Spanjaard Limited - Dealings in securities by a director
26/05/201111:30 Spanjaard Limited - Dealings in securities by a director
26/05/201111:19 MMI Holdings Limited - Trading update for the nine months ended 31 March
26/05/201111:10 Palabora Mining Company Limited - No change statement and notice of annual
26/05/201110:20GND & GNDP - Grindrod Limited - Results of Annual General Meeting
26/05/201110:00 Vukile Property Fund Limited - Change to the board of directors
26/05/201108:55 British American Tobacco p.l.c. - Agrees to acquire Protabaco
26/05/201108:00 Standard Bank Group Limited - Update on the group`s performance for the
26/05/201108:00 Mr Price - Audited group results and cash dividend declaration for the 53
26/05/201107:31 BHP Billiton Plc - Transaction in shares
26/05/201107:15 Anglo American plc - Treasury Shares - Transfers
26/05/201107:10 British American Tobacco p.l.c.- Transaction in own shares
26/05/201107:05 Trustco Group Holdings Limited - Reviewed Preliminary Consolidated
26/05/201107:05INVS - Investec Bank Limited - The issue of hot enhanced dividend securities
26/05/201107:05 Esorfranki Limited - Audited summarised consolidated annual financial

Click here for more SENS news