Thursday, 23 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 support@sharenet.co.za
Charts
Investing R 1 000 000 For us at Seed, investing is all about asking the right questions first and only then making an appropriate investment. We believe that in making an investment you need to start from the top (long term strategy) and then move down to deciding on which investments (stocks, unit trusts, etc.) need to be in the portfolio.
We don’t believe that an investment process should be onerous, but we definitely think that one should follow a structured process when deciding how to invest R 1 million.
At Seed we implement a three step value add process.
Step 1: We need to understand your long term strategy in order to attain the desired result for you.
Step 2: We need to understand the current valuations of the asset classes included in your portfolio to decide on your asset allocation.
Step 3: We need to make the relevant investments in shares, unit trusts, etc. to get to the desired position.
Let us look at a simple example.
Step 1:
Therefore, if:
• you want to target a return of CPI + 4% per annum, and
• you are prepared to lose between 5% - 10% over a one year period, if the market drops significantly, but
• you are prepared to invest for at least 3 years in the portfolio to ensure that the portfolio has enough time to recover from any potential short term losses,
then you should invest into a MODERATE portfolio that will look similar to this allocation:
Step 2:
Now that we have an understanding of your risk profile, and therefore know more or less how to invest your R1m but we still need to do the ground work and determine whether each asset is expensive or cheap (and therefore whether to under or over weight the asset classes).
At Seed we don’t believe in forecasting, instead, we prefer to invest into assets that offer good value and sell assets that offer no (or little) value. Based on our research we have the following views of the current valuations of the different asset classes:
Step 3:
We believe that only once steps 1 and 2 have been completed is it prudent to make a long lasting investment.
Based on the above assessment, we have a large overweight investment in offshore blue chip equities but avoid developed market cash and bonds (or funds that offer similar). On the local side, most assets aren’t offering much value and we are therefore underweight.
Our focus on local equities is companies offering high dividend yields priced at low PEs as they offer a margin of safety. We would also allocate a portion of high net worth client assets to hedge funds. Finally property offers investors a decent initial yield with prospects of growth in excess of inflation. Here the investor should focus on the yield, and be less concerned about capital fluctuations.
To be kept up to date with current investments views and news click here and become a Fan of Seed Investment Consultants on Facebook by clicking 'Like' at the top of the page.
Kind regards,
Vincent Heys
info@seedinvestments.co.za
www.seedinvestments.co.za
021 9144 966
Thu, 23 Jun 2011
Top News
South African markets fell more than 1.5 percent on Thursday as investors dumped high risk assets in favour of the dollar on worries that the global economic recovery may be stalling. Full story
Revenue declined to R318.5 million (R394.3 million) and gross profit fell to R99 million (R170.8 million). The operating loss for the period widened to R124.1 million (loss of R34.6 million), while a total loss for the period grew to R110.2 million (loss of R39.7 million). In addition, headl Full story |
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Syrian troops massed near the Turkish border, witnesses said on Thursday, raising tensions with Ankara as President Bashar al-Assad uses increasing military force against a popular revolt. Full storyThe planned U.S. troop reduction in Afghanistan does not mean any relaxation in pressure on the insurgency, Prime Minister David Cameron said on Thursday, while his government resisted calls to detail its own withdrawal timeline. Full storyThe International Red Cross called on Hamas Thursday to provide proof that Israeli soldier Gilad Shalit is still alive nearly five years after his capture by Palestinian militants. Full story |
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Markets | European shares fell to a fresh
three-month closing low on Thursday, as higher-than-expected
weekly U.S. jobless claims intensified doubts about the strength
of the. . . Full story | | Crude prices plunged, global
stocks tumbled and the euro shed more than 1 percent on
Thursday after an unexpected announcement that strategic oil
reserves. . . Full story | | U.S. stocks slid on Thursday
as a sharp drop in oil triggered a sell-off in an already
fragile market that was staggered by. . . Full story | | Miners and energy stocks were
the worst hit members of Britain's sharply lower FTSE 100 index
on Thursday, hit by heightened fears of. . . Full story |
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| Gold fell 2 percent on
Thursday, set for its biggest one-day fall in more than a
month, after a surprise increase in U.S.. . . Full story | | U.S. stock index futures fell
on Thursday, adding to weakness from the previous session,
after the Federal Reserve gave a more pessimistic outlook. . . Full story | | Commodity stocks and banks
suffered the biggest losses as investors fled from risk on
Thursday, driving Britain's FTSE 100 back towards the 5,700
level. . . Full story | | Investors pulled in their horns
on Thursday in reaction to a relatively downbeat outlook from
the U.S. Federal Reserve, sending world stocks and. . . Full story |
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SA Business | South Africa's Standard Bank has appointed a new head of corporate and investment banking and will shift the position to Johannesburg. . . Full story | | South Africa slightly raised its May 2010-April 2011 maize output forecast on Thursday, beating market expectations, boosted by a rise in. . . Full story | | South Africa's rand tumbled more than 1.5 percent against the dollar on Thursday, with dealers saying the Reserve Bank was in. . . Full story | | South Africa grain prices tumbled after recent gains on Thursday, in line with a slump in global markets and ahead of. . . Full story |
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| DRDGold, South Africa's fourth-largest gold producer, said on Thursday that it was suspending financial assistance to its troubled Blyvoor mine which. . . Full story | | | | Like reformed alcoholics
slipping off the wagon, frontier African economies are sliding
back into bad old ways, with yawning deficits, double-digit
inflation and plunging. . . Full story | | South African mobile phone operators MTN Group and Vodacom are on track to meet a deadline this month for registering users. . . Full story |
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| South African monetary policy may remain favourable to the economy and inflation expectations are still "anchored well within" the central bank's target range, chief economist Monde Mnyande said on Thursday.. . . Full story |
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Company News | Shareholders are advised that the Nu-World share incentive and option trust deed established on 17 March 1993 caters for both the. . . Full story | | DRDGOLD shareholders are advised that the board of directors of DRDGOLD ("DRDGOLD Board") has decided to suspend financial assistance to DRDGOLD's. . . Full story | | Shareholders are referred to the cautionary announcement, dated 22 June 2011, and were advised that Ideco has entered into negotiations with. . . Full story | | Shareholders are advised that the salient dates of the claw back offer have been withdrawn due to the fact that the. . . Full story |
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| Pinpoint gave notice that it withdrew its application for business rescue.. . . Full story | | Further to the announcement made on 28 February 2011 titled "Commencement of Chief Executive Officer Succession Process" ARM announces the completion. . . Full story | | Anglo drew attention to the announcement made by Collahuasi, its 44% owned copper mine in Chile, relating to the approval of. . . Full story | | Application has been made to the UK Listing Authority and the London Stock Exchange for an additional listing of 5 199. . . Full story |
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Company Results | Revenue increased to R35.2 million (R22 million). Gross profit soared to R12.1 million (R0.8 million) and the operating loss was lower at R18.1 million (loss of R25.4 million). Net attributable profit. . . Full story | | Revenue for the interim period ended 31 March 2011 increased to R158 million (2010: R117.5 million). Gross profit rose to R26.3 million (2010: R19.4 million), operating profit improved to R10.2 million. . . Full story | | Revenue for the year ended 31 March 2011 increased to R1.8 billion (R1.5 billion) and operating profit before finance costs improved to R102 million (R46.5 million). Profit for the year, attributable. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 30326.54 | -466.33 | -1.51% | JSE Top 40 | 17:00 | 27026.92 | -448.48 | -1.63% | JSE Gold | 17:00 | 2309.14 | -84.16 | -3.52% | JSE Financial | 17:00 | 20851.99 | -171.69 | -0.82% | JSE Industrial | 17:00 | 31533.45 | -255.99 | -0.81% | JSE Indust 25 | 17:00 | 26382.31 | -201.02 | -0.76% | JSE Resource | 17:00 | 50723.61 | -1353.38 | -2.60% | DJ Futures | 19:10 | 11873.00 | -142.00 | -1.18% | DJ Ind | 19:31 | 11978.89 | -130.78 | -1.08% | SP 500 | 19:50 | 1273.95 | -13.19 | -1.02% | Nasdaq | 19:50 | 2664.34 | -4.85 | -0.18% | FTSE 100 | 17:35 | 5674.38 | -98.61 | -1.71% | DAX | 18:00 | 7149.44 | -128.75 | -1.77% | CAC40 | 17:46 | 3787.79 | -83.58 | -2.16% | Nikkei | 08:32 | 9596.74 | -32.69 | -0.34% | Shanghai | 13:00 | 2687.59 | 38.61 | 1.46% | Hang-Seng | 10:22 | 21759.14 | -100.83 | -0.46% | All Ords | 08:41 | 4561.40 | -29.40 | -0.64% | NZSE 50 | 07:32 | 3461.81 | 4.35 | 0.13% |
| | Name | Time | RP | Move | % Move | Gold | 19:59 | 1516.95 | -30.69 | -1.98% | Gold/Rand | 19:59 | 10394.10 | -81.80 | -0.78% | Gold/R kg | 19:56 | 334555 | -3625 | -1.07% | Silver | 19:59 | 34.9400 | -1.3730 | -3.78% | Platinum | 19:59 | 1691.25 | -55.20 | -3.16% | Palladium | 19:58 | 741.25 | -25.08 | -3.27% | R157 | 17:06 | 7.49 | .03 | 0.33% | R204 | 17:06 | 8.28 | .04 | 0.42% | Brent Crude | 19:56 | 108.60 | -5.84 | -5.10% | Rand / Dollar | 19:59 | 6.8517 | 0.0817 | 1.21% | Rand / Pound | 19:55 | 10.9110 | 0.0476 | 0.44% | Rand / Euro | 19:55 | 9.7156 | -0.0073 | -0.08% | Rand / NZD | 19:59 | 5.5488 | 0.0349 | 0.63% | Rand / AUD | 19:55 | 7.1835 | 0.0110 | 0.15% | Yen / Dollar | 19:58 | 80.6200 | 0.2700 | 0.34% | Euro / Dollar | 19:59 | 0.7050 | 0.0074 | 1.06% | Dollar / Euro | 19:59 | 1.4182 | -0.0151 | -1.05% | Pound / Dollar | 19:55 | 0.6259 | 0.0039 | 0.63% |
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The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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23/06/2011 | 93 | 239 | 78 | 410 | 263,723,203 | R11,996,827,092 | 92708 | 1918022 | 22/06/2011 | 127 | 166 | 77 | 370 | 280,830,128 | R14,080,192,811 | 97803 | 1584043 | 21/06/2011 | 201 | 94 | 86 | 381 | 275,608,223 | R13,327,517,704 | 90185 | 1350406 | 20/06/2011 | 108 | 198 | 91 | 397 | 273,846,093 | R11,522,259,799 | 98253 | 1527867 | 17/06/2011 | 111 | 228 | 87 | 426 | 425,394,346 | R19,574,229,411 | 120388 | 1764295 |
Index Summary Index Name | RP | Move | % Move | Top 40 | 27,026.92 | -448.48 | -1.63% | Industrial | 31,533.45 | -255.99 | -0.81% | Mid Cap | 41,210.69 | -409.92 | -0.98% | Small Cap | 31,822.98 | -132.36 | -0.41% | Resource 20 | 50,723.61 | -1353.38 | -2.60% | Industrial 25 | 26,382.31 | -201.02 | -0.76% | Financial 15 | 7,805.39 | -73.74 | -0.94% | Financial & Ind. 30 | 29,360.71 | -226.41 | -0.77% | All Share | 30,326.54 | -466.33 | -1.51% | Oil & Gas | 25,665.35 | -743.03 | -2.81% | Mining | 33,231.44 | -890.37 | -2.61% | Gold Mining | 2,309.14 | -84.16 | -3.52% | Platinum Mining | 67.26 | -1.10 | -1.61% | Oil & Gas Producers | 13,799.79 | -399.51 | -2.81% | Basic Materials | 28,263.40 | -723.87 | -2.50% | Chemicals | 13,557.27 | -197.58 | -1.44% | Forestry & Paper | 14,212.24 | -158.41 | -1.10% | Industrial Metals | 28,943.71 | -460.55 | -1.57% | Industrials | 27,076.24 | -246.48 | -0.90% | General Industrials | 73,330.88 | -564.73 | -0.76% | Consumer Goods | 25,921.79 | -200.23 | -0.77% | Automobiles & Parts | 3,337.81 | 4.53 | 0.14% | Household Goods | 141.09 | -2 | -1.29% | Health Care | 32,789.77 | -431.18 | -1.30% | Beverages | 78.25 | .04 | 0.05% | Food Producers | 46,766.56 | -545.11 | -1.15% |
| | Index Name | RP | Move | % Move | Personal Goods | 419.98 | -6.89 | -1.61% | Consumer Services | 50,777.36 | -886.43 | -1.72% | General Retailers | 39,162.73 | -830.60 | -2.08% | Travel & Leisure | 3,704.35 | -6.99 | -0.19% | Media | 79.77 | -1.48 | -1.82% | Support Services | 2,390.84 | -17.17 | -0.71% | Telecommunications | 66,190.88 | 470.06 | 0.72% | Financials | 20,851.99 | -171.69 | -0.82% | Banks | 38,549.65 | -308.20 | -0.79% | Non-life Insurance | 31,523.82 | .00 | 0.00% | Life Insurance | 15,287.99 | -209.49 | -1.35% | General Financial | 2,187.56 | -25.19 | -1.14% | Technology | 21,419.31 | -56.37 | -0.26% | SHARIAH TOP40 | 2,977.55 | -63 | -2.06% | FTSE/JSE SHARIAH ALL | 3,047.45 | -61 | -1.96% | COAL MINING | 21,895.90 | -279 | -1.26% | FTSE JSE Fledgling | 4,527.81 | -20 | -0.44% | FTSE/JSE Alt X | 1,062.46 | -15 | -1.43% | SA LISTED PROPERTY | 379.80 | | -0.04% | CAPPED PROPERTY | 314.49 | | -0.03% | RESOURCE | 27,998.27 | -758 | -2.64% | DIVIDEND PLUS | 161.98 | -2 | -1.14% | FTSE/JSE RAFI 40 | 6,310.72 | -92 | -1.44% | Capped Top 40 | 14,124.38 | -221 | -1.54% | Capped All Share | 15,291.07 | -230 | -1.48% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | NED | NEDBANK GROUP LTD | SELL | 21 Jun | SBK | STANDARD BANK GROUP LIMIT... | SELL | 21 Jun | AIP | ADCOCK INGRAM HLGS LD | HOLD | 21 Jun | LHC | LIFE HEALTHCARE GRP HLDG ... | BUY | 21 Jun | EQS | EQSTRA HOLDINGS LTD | HOLD | 21 Jun |
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Results Expected** Expected | Company Name | Fin. Date | 24 Jun 2011 | AVUSA | March 2011 (Final) | 24 Jun 2011 | DIAMONDCP | December 2010 (Final) | 24 Jun 2011 | FREEWORLD | March 2011 (Interim) | 24 Jun 2011 | TELEMASTR | March 2011 (Interim) | 27 Jun 2011 | NASPERS | March 2011 (Final) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | DCENTRIX | 11-06-20 | 11-07-08 | 11-07-18 | R 0.0918 | MERCHANT | 11-06-20 | 11-07-08 | 11-07-18 | R 0.1100 | SBRJSEP11 | 11-06-15 | 11-09-02 | 11-09-15 | R 1.4500 | MARSHALL | 11-06-15 | 11-07-01 | 11-07-15 | R 0.0150 | MIXTEL | 11-06-13 | 11-07-22 | 11-08-01 | R 0.0600 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | CAPITEC | 11-03-30 | 11-06-17 | 11-06-27 | R 2.0500 | MRPRICE | 11-05-26 | 11-06-17 | 11-06-27 | R 1.7530 | JDGROUP | 11-05-16 | 11-06-17 | 11-06-27 | R 1.0000 | ADCOCK | 11-05-24 | 11-06-17 | 11-06-27 | R 0.8100 | HCI | 11-05-19 | 11-06-17 | 11-06-27 | R 0.6000 |
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Upcoming AGMs** Code | Company Name | Date | Status | CRG | Cargo Carriers Ltd | 23/06/2011 | Confirmed | PNC | Pinnacle Technology Holdings Ltd | 24/06/2011 | Confirmed | IMU | Imuniti Holdings Ltd | 24/06/2011 | Confirmed | SVB | SilverBridge Holdings Ltd | 24/06/2011 | Unconfirmed | IMUP | Imuniti Holdings Ltd | 24/06/2011 | Confirmed |
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