The Sharenet Daily 
Thursday, 02 June 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)

Foreign Flows and Currencies

When looking at the strength or weakness of the rand over the long term (10 years) we believe that it will revert to its Purchasing Power Parity (PPP) level, but over the short to medium term it will be heavily influenced by other factors that may or may not have the same drivers as the long term inflation differential of two countries (essentially the method used to calculate PPP exchange rate).

One such factor that has a large impact on any currency is flows into (out of) a country. These can typically be split into two categories: portfolio flows and Foreign Direct Investment (FDI). Naturally flows into a country help to strengthen the currency. From Economics 101 we know that increased demand for a product (in this case a currency), with a stable supply, will lead to an increase in price (in this case currency strength).

FDI is typically preferred to portfolio flows as it’s stickier. With FDI, the investor is generally making a long term investment, as there are large transaction costs – i.e. it would be very expensive to repatriate the investment over the short term. FDI is a good indicator that the investor has faith in the country’s economy and growth prospects. The acquisition of a controlling interest in Massmart by Walmart is an example of FDI.

On the other hand portfolio flows (investments into security markets – i.e. share and bond purchases) are more fluid. Here the investor is looking for a good return on investment, but either doesn’t have the resources or mandate for direct investment, or doesn’t have confidence in the long term prospects of the country, and wants to have the ability to withdraw the investment on short notice. South Africa is an easy target for so called ‘hot money’ as we have highly developed and liquid capital markets (i.e. it is easy for investors to get in and out quickly) when compared to other emerging markets and have favourable trading hours when compared to most of Europe which makes it easier for them to trade in and out of our market on an intraday basis.

Over the past seven or eight years we have seen net capital inflows into our equity market, although there have been periods of heightened volatility where capital has been rapidly withdrawn from our market. In the chart below showing monthly net purchases of local equity versus the movement of the rand we can see that there is a high correlation between money flowing into our equity market and the rand strengthening, and vice versa.

Source: I-Net

These types of investments are typically dependant on the risk appetite of the large global investors and shorter term news flow which is difficult or even impossible to predict. We therefore stick to our valuation based approach of looking at the rand, fully cognisant that it may not revert to fair value over the short term – as a result of the above mentioned factors – but confident that over the longer term valuation will trump sentiment.

For regular updates on economic and investment news become a Fan of Seed Investment Consultants on Facebook by clicking here and ‘Liking’ our Fan page.

Take care,

Mike Browne
021 9144 966

Thu, 02 Jun 2011
Top News
The South African rand gained 1.4 percent on the dollar to hit a fresh 3-week high on Thursday as soft U.S. data kept the greenback weak and offshore bond buying lent support to the local currency.  Full story

South Africa's wheat futures closed flat in quiet local trade on Thursday and in line with U.S. prices, while maize and soybeans futures edged up.  Full story
Japanese Prime Minister Naoto Kan on Thursday survived a no-confidence vote by offering to resign once he has overcome the worst of the country's nuclear crisis, a last-minute deal with ruling party rebels who had threatened to oust him from office.  Full story
Forces loyal to President Ali Abdullah Saleh battled with tribal fighters in Yemen's capital on Thursday in overnight clashes that killed dozens as a U.S. envoy flew around the region to try and stop a civil war.  Full story
Syrian forces killed at least 13 civilians in the central town of Rastan on Thursday, activists said, in the latest attempt to quell a revolt against the 11-year rule of President Bashar al-Assad.  Full story
Gold slid more than 1 percent on Thursday to post its biggest one-day decline in a month as the yellow metal was sold. . .  Full story
The S&P 500 rebounded from earlier losses on Thursday following news of a fresh funding plan to help Greece pay off its mountain. . .  Full story
European shares fell sharply for a second straight session to a six-week closing low on Thursday as more U.S. data raised concerns about. . .  Full story
World stocks and oil slumped for a second straight day on Thursday as U.S. data kept investors on edge, with a slight drop. . .  Full story

Britain's top shares slid for a second day as worries over weak economic data drove investors from risky assets ahead of Friday's. . .  Full story
Japanese share prices fell sharply on Thursday, after disappointing U.S. data added to suspicions that the global economy may be losing traction, prompting traders. . .  Full story
Australian stocks fell 2.3 percent on Thursday, the largest one-day percentage fall in a year, after disappointing U.S. economic signs sent global share markets. . .  Full story
Asian stocks slid on Thursday, with a steady stream of weak U.S. data putting a damper on risk taking ahead of Friday's payrolls. . .  Full story
SA Business
. . .  Full story
South Africa's rand firmed slightly against the dollar on Thursday and could re-test stronger levels in the mid-6.70's if the greenback remains on the back foot.. . .  Full story

South African paper maker Sappi plans to invest more in pulp production as its paper business remains under pressure from soft. . .  Full story
Diageo Plc, the world's biggest spirits group, expects 10 percent plus sales and profit growth in Latin America and Africa this. . .  Full story
South Africa will bid to host the 2022 Commonwealth Games having last week pulled out of the race to stage the 2020 summer. . .  Full story
South African power utility Eskom said on Thursday it would auction up to 300 million rand of its ES23 bond due. . .  Full story
Company News
Shareholders are advised that Mr. Graham Edward Ferns has resigned with effect from 31 May 2011. With effect from 1 June. . .  Full story
Further to the cautionary announcement on 13 September 2010 and subsequent renewals of the cautionary announcement released on the SENS, shareholders. . .  Full story
Mr. Edward Pan has decided to relinquish his role as the CEO of SOH with effect 1 July 2011. Mr Paul. . .  Full story
Shareholders are referred to the announcement released by BCX on SENS on Thursday 24 May 2011 and in the press on. . .  Full story

Ms Karabo Nondumo has resigned from the board as non-executive director with immediate effect. Mr. Nico de Waal ("Nico") has been. . .  Full story
The JSE advised that the auditors' reviewed reports on the PSV's provisional results for the year ended 28 February 2011 contain. . .  Full story
JSE BIK PSV TCS GEN. . .  Full story
The company's audited results for the year ended 31 March 2011 are expected to be published on or about 9 June. . .  Full story
Company Results
Revenue improved by 14.2% to R4.5 billion (R4 billion) and operating profit rose by 11.5% to R505.5 million (R453.3 million). Net. . .  Full story
Investment income for the year ended 28 February 2011 fell to R11.8 million (2010: R32.3 million). Operating loss rose to R3. . .  Full story
Interest income declined by 32% to R309 million (R454.1 million). Operating income decreased by 44% to R303.5 million (R544.9 million). The. . .  Full story
Revenue. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0031877.77-444.33-1.37%
JSE Top 4017:0028572.67-461.16-1.59%
JSE Gold17:002557.65-59.99-2.29%
JSE Financial17:0021681.05-165.39-0.76%
JSE Industrial17:0033052.17-292.25-0.88%
JSE Indust 2517:0027819.80-267.11-0.95%
JSE Resource17:0053698.12-1254.57-2.28%
DJ Futures19:5612240.00-21.00-0.17%
DJ Ind19:3112243.67-46.47-0.38%
SP 50019:501312.84-1.71-0.13%
FTSE 10017:355847.92-80.69-1.36%
All Ords08:414683.20-105.40-2.20%
NZSE 5007:263525.82-25.72-0.72%
NameTimeRPMove% Move
Gold/R kg19:56331547-5265-1.56%
Brent Crude19:56115.09.410.36%
Rand / Dollar19:586.7184-0.1102-1.61%
Rand / Pound19:5510.9702-0.1478-1.33%
Rand / Euro19:559.7419-0.0436-0.45%
Rand / NZD19:585.4875-0.0705-1.27%
Rand / AUD19:557.1733-0.0767-1.06%
Yen / Dollar19:5780.8700-0.0100-0.01%
Euro / Dollar19:580.6898-0.0081-1.16%
Dollar / Euro19:581.44980.01731.21%
Pound / Dollar19:550.6108-0.0015-0.24%

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

Major Moves Up
SharenameSaleMove% MoveVolume
1 GBGOLD  14931339.78.%36820
2 INVICTA  45702956.90.%82002
3 BELL  1520704.83.%1214
4 ARB  345154.55.%250
5 AFRIMAT  418184.50.%15000
6 ZEDER  250104.17.%1771423
7 HOSP-A  1450503.57.%500
8 TRNSHEX  31492.95.%102251
9 RAUBEX  1897442.37.%55952
10 CAT  1525251.67.%15191
11 VERIMARK  19031.60.%63480
12 WOOLIES  3005451.52.%4475516
13 S-OCEAN  20931.46.%20435
14 PALLINGHT  42561.43.%50350
15 CIPLAMED  68991.32.%1565319
16 IMPERIAL  118001491.28.%2325557
17 FREEWORLD  1200151.27.%6567
18 WINHOLD  16721.21.%13200
19 MEDCLIN  3110371.20.%1019882
20 ADCOCK  6204691.12.%2377240

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Major Moves Down
SharenameSaleMove% MoveVolume
1 MMG  105-45-30.00.%321000
2 SACOIL  103-7-6.36.%3704164
3 PHUMELELA  1140-69-5.71.%105268
4 MAZOR  132-7-5.04.%7000
5 EASTPLATS  685-35-4.86.%64090
6 DAWN  631-29-4.39.%14277
7 TRENCOR  3516-159-4.33.%42029
8 PLATMIN  520-20-3.70.%3500
9 KUMBAIO  44400-1600-3.48.%436306
10 ARM   19720-705-3.45.%829141
11 PAN-AF  113-4-3.42.%3408036
12 DELTA  754-26-3.33.%5071
13 AQUARIUS  3731-128-3.32.%2690
14 URONE  2380-75-3.05.%68619
15 GFIELDS  10851-328-2.93.%2414072
16 BILLITON  25870-746-2.80.%4725168
17 STEINHOFF  2392-67-2.72.%3094165
18 EXXARO  15375-425-2.69.%1668358
19 AFRO-C  190-5-2.56.%6785
20 MRHLD  2751-70-2.48.%1750884

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New Highs
SharenameSaleHighMove% MoveVolume
1 WOOLIES  30053019451.52.%4475516
2 CML  19751989-5-0.25.%636253
3 TIGBRANDS  1924019785-250-1.28.%634179

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New Lows
SharenameSaleLowMove% MoveVolume
1 DAWN  631510-29-4.39.%14277

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Index Summary
Index NameRPMove% Move
Top 4028,572.67-461.16-1.59%
Mid Cap42,090.02-100.80-0.24%
Small Cap32,184.06-14.22-0.04%
Resource 2053,698.12-1254.57-2.28%
Industrial 2527,819.80-267.11-0.95%
Financial 158,178.07-72.00-0.87%
Financial & Ind. 3030,952.26-316.78-1.01%
All Share31,877.77-444.33-1.37%
Oil & Gas 26,696.97-615.31-2.25%
Mining 35,334.09-797.29-2.21%
Gold Mining2,557.65-59.99-2.29%
Platinum Mining71.76-.70-0.97%
Oil & Gas Producers 14,354.47-330.84-2.25%
Basic Materials 29,903.37-658.61-2.15%
Chemicals 13,845.23-67.05-0.48%
Forestry & Paper 14,837.46-86.07-0.58%
Industrial Metals 28,268.51-775.24-2.67%
Industrials 27,980.69-153.58-0.55%
General Industrials 76,793.42-478.06-0.62%
Consumer Goods 27,383.59-449.49-1.61%
Automobiles & Parts 3,
Household Goods152.02-4-2.72%
Health Care 33,303.5511.170.03%
Beverages 83.89-1.72-2.01%
Food Producers 47,606.89-477.15-0.99%
Index NameRPMove% Move
Personal Goods 439.46-4.99-1.12%
Consumer Services 54,007.43-225.42-0.42%
General Retailers 41,353.40-26.16-0.06%
Travel & Leisure 3,636.57-13.07-0.36%
Media 88.08-.15-0.17%
Support Services 2,372.691.180.05%
Telecommunications 69,783.44-102.20-0.15%
Financials 21,681.05-165.39-0.76%
Banks 40,545.13-419.53-1.02%
Non-life Insurance 30,311.37121.250.40%
Life Insurance 15,904.34-128.17-0.80%
General Financial 2,321.76-5.06-0.22%
Technology 21,413.00-215.87-1.00%
SHARIAH TOP40 3,147.45-62-1.92%
FTSE/JSE SHARIAH ALL3,210.80-58-1.78%
COAL MINING21,022.03-472-2.20%
FTSE JSE Fledgling 4,634.46-2-0.04%
FTSE/JSE Alt X 1,042.46-22-2.03%
CAPPED PROPERTY 315.05-0.52%
RESOURCE 29,684.07-672-2.21%
DIVIDEND PLUS169.63-1-0.40%
FTSE/JSE RAFI 406,665.64-87-1.29%
Capped Top 4014,937.95-224-1.48%
Capped All Share16,072.29-213-1.31%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
03 Jun 2011BJMMarch 2011 (Final)
03 Jun 2011BRAITMarch 2011 (Final)
03 Jun 2011BRC DIAMMarch 2011 (Q)
03 Jun 2011HUGEFebruary 2011 (Final)
03 Jun 2011INVPROPMarch 2011 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
INVICTA11-06-0111-07-0111-07-11R 1.2600
PERGRIN11-06-0111-07-1511-07-25R 0.3500
CROOKES11-05-3111-07-0111-07-11R 0.6500
TONGAAT11-05-3011-07-0811-07-21R 1.4000
TIGBRANDS11-05-3011-06-2411-07-04R 2.8100
Ex Div**
Share NameDec-DateLDTPay-DateAmount
OASIS11-05-1111-05-2711-06-03R 0.4616
MVELA RES11-05-2011-05-2711-06-06R 0.3100
BASREAD11-03-2411-05-2711-06-06R 0.3000
LIFEHC11-05-1011-05-2711-06-06R 0.2000
ELBGROUP11-03-1611-05-2711-06-06R 0.1500

Upcoming AGMs**
CodeCompany NameDateStatus
HWNHowden Africa Holdings Ltd02/06/2011Confirmed
UNIUniversal Industries Corporation Ltd02/06/2011Confirmed
CPICapitec Bank Holdings Ltd03/06/2011Confirmed
CPIPCapitec Bank Holdings Ltd03/06/2011Confirmed
SLMBSanlam Ltd08/06/2011Confirmed

Stock Exchange News Service
02/06/201117:50 Freeworld Coatings Limited - Retirement of Mr Lamprecht as Chief Executive
02/06/201117:05 Command Holdings Limited - Further Update Announcement
02/06/201117:01 Chemspec - Changes to the Board of Directors
02/06/201117:00 Vox Telecom - Renewal of Cautionary announcement
02/06/201117:00 African Rainbow Minerals Limited - Director`s dealings in ARM securities
02/06/201117:00 Brait S.A. Societe Anonyme - Audited condensed consolidated financial
02/06/201116:58 African Media Entertainment Limited - Reviewed results for the year ended
02/06/201116:51 Universal Industries Corporation - Results of Annual General Meeting
02/06/201116:40 South Ocean Holdings Limited - Change in directorate
02/06/201116:39 Wilderness Holdings Limited - Voluntary Announcement- Dealing in
02/06/201116:37 BCX Business Connexion Group Limited - Pro Forma financial effects of
02/06/201116:30FR1 - FirstRand Bank Limited - Partial Capital Redemption
02/06/201116:00 Top Fix Holdings Limited - Changes to the board of directors
02/06/201116:00INL/INP - Investec Limited/Investec Plc - Notification of Major Interest in
02/06/201115:55 Convergenet Holdings Limited - Director`s dealings in securities
02/06/201115:52 RGT Smart Market Intelligence - Directors` dealings in securities
02/06/201115:08GEN - General - BIK, TCS & PSV - Emphasis of matter
02/06/201115:07GEN - GENERAL - KIR - Qualified audit opinion and emphasis of matter
02/06/201115:00CLRP - Clover Industries Limited - Dealing in securities by a director
02/06/201114:57 Capitec Bank Holdings Limited - Dealing in securities by a director
02/06/201114:45 British American Tobacco p.l.c. - Notification of transactions of
02/06/201114:44 Iliad Africa Limited - Director`s dealings
02/06/201114:40RESB01 - Resilient Property Income Fund Limited - New Financial Instrument
02/06/201114:31STXIDF - Investec Bank Limited - Distribution announcement on SATRIX 40 enhanced
02/06/201114:30 Kibo Mining Plc - Issue of Equity
02/06/201114:14 Sentula - Change to the board of Directors
02/06/201114:06 RGT Smart - Appointment of Non-Executive Director
02/06/201114:00 SABMiller Plc - Notification of transactions
02/06/201113:45 Keaton Energy Holdings Limited - Trading Statement
02/06/201113:27 Howden Africa Holdings Limited - Results of AGM
02/06/201113:18 Vukile - Dealing in securities by a director and company secretary
02/06/201113:11 Sephaku Holdings Limited - Notification of Share Dealing by an Associate
02/06/201113:10 Curro Holdings Limited - Curro Rights Offer Finalisation Announcement
02/06/201112:38TRA - Transnet SOC Limited - Change of Name
02/06/201112:35RAFRES - Newfunds Erafi(TM) Sa Resource 20 Index ETF - Distribution announcement
02/06/201112:33RAFIND - Newfunds Erafi(TM) Sa Industrial 25 Index ETF - Distribution
02/06/201112:30NRD - Trackhedge (Proprietary) Limited - Distribution Announcement - Salient
02/06/201112:26RAFFIN - NEWFUNDS eRAFI(TM)SA Financial 15 Index Etf - Distribution Announcement
02/06/201112:25RAFISA - NewFunds eRAFI(TM) Overall SA Index ETF Portfolio - Distribution
02/06/201112:20 Cape Empowerment Limited - Results of general meeting - partial disposal
02/06/201112:19 Spanjaard Limited - Dealings in securities by a director
02/06/201112:15INVS - Investec Bank Limited - Announcement to warrant holders of their new
02/06/201112:11NFSH40 - Newfunds Shariah Top 40 Index ETF - Distribution announcement - Salient
02/06/201112:05 SABMiller plc - Share award plan
02/06/201112:00 Howden - Voluntary announcement - Chairman`s Statement
02/06/201111:57NEWFSA - Newfunds Newsa Index Portfolio - Distribution announcement - salient
02/06/201111:51BBET40 - The BettaBeta Equally Weighted Top 40 portfolio - Distribution
02/06/201111:42 Quantum Property Group - Change To The Board Of Directors
02/06/201111:27 Keaton Energy Holdings Limited - Appointment of non-executive director
02/06/201111:01CLRP - Clover Industries Limited - Dealing in securities by a director
02/06/201111:00 The Foschini Group Ltd - Directors Dealing in Securities
02/06/201111:00CLRP - Clover Industries Limited - Dealing in securities by a director
02/06/201110:53 ISA Holdings Limited - No change statement and notice of Annual General
02/06/201110:51STAN40 - Stanlib Top 40 Fund - Distribution announcement - Salient Dates
02/06/201110:50STANSX - Stanlib Swix 40 Fund - Distribution Announcement - Salient Dates
02/06/201110:45 Rare Holdings Limited - Finalisation announcement in respect of claw-back
02/06/201110:30 Exxaro Resources - Trading of Exxaro ordinary shares on behalf of The
02/06/201110:28 Gold Fields Limited - Appointment of Mr Delfin Lapus Lazaro to the Gold
02/06/201110:11 Trencor - Trencor`s textainer to present at the KBW Investment Management
02/06/201110:00CLR/CLRP - Clover Industries Limited - Declaration of Preference Share Dividend
02/06/201109:09SCIB - The Standard Bank Of South Africa Limited - Notice of Rollover Ratios of
02/06/201108:39SCIB - The Standard Bank of South Africa Limited - Notice of expiry of
02/06/201108:36SCIB - TOPSKG - The Standard Bank of South Africa Limited - Notice Of Expiry
02/06/201108:11DBXJP - db x-trackers MSCI Japan Index ETF - Distribution announcement - Salient
02/06/201108:10DBXEU - db x-trackers DJ Euro Stoxx 50 ETF - Distribution announcement - Salient
02/06/201108:09DBXUK - db x-trackers FTSE 100 ETF - Distribution announcement - Salient dates -
02/06/201108:08DBXUS - db x-trackers MSCI USA Index ETF - Distribution announcement - Salient
02/06/201108:07DBXWD - db x-trackers MSCI World Index ETF - Distribution announcement - Salient
02/06/201108:06STXSWX - SATRIX SWIX TOP 40 PORTFOLIO - Distribution Announcement - Salient
02/06/201108:05STXRES - Satrix Resi Portfolio - Distribution announcement - Salient dates -
02/06/201108:04STXIND - Satrix Indi Portfolio - Distribution announcement - Salient dates -
02/06/201108:03STXRAF - SATRIX RAFI 40 - Distribution announcement - for the six months ended
02/06/201108:02STX40 - SATRIX 40 PORTFOLIO - Distribution Announcement - Salient Dates -
02/06/201108:01STXFIN - Satrix Fini Portfolio - Distribution Announcement - Salient dates -
02/06/201108:00 Redefine Properties International Limited - Completion of the acquisition
02/06/201108:00STXDIV - Satrix Dividend Plus Portfolio - Distribution Announcement - Salient
02/06/201107:48 John Daniel Holdings Limited - Press release relating to Cryo-Save
02/06/201107:15 Anglo American plc - Director`s / PDMR`s interests
02/06/201107:10 British American Tobacco p.l.c. - Transaction in own shares
02/06/201107:05 BHP Billiton Plc - Transaction in shares
02/06/201107:05 Intertrading Limited - Acquisition of a 60% shareholding in Connectnet
02/06/201107:05 Trans Hex Group Limited - Audited annual results for the year ended 31

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