Thursday, 07 July 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
The Pain of Loss is Rational There are many articles that discuss the behavioural finance concept called prospect theory, or loss aversion. Essentially this concept refers to the tendency for investors to feel more pain per unit of loss than joy per unit of gain.
Behavioural finance is built around the notion that humans – and by extension investors – aren’t rational. The research of our irrationality should therefore lead to either better returns, or reduced anxiety, as we at better understand why our natural instincts are out of whack with rational behaviour.
Loss aversion could, however, have some of its roots in rational behaviour – at least along the lines of my thinking. This is because losses and gains in investments aren’t equal. For every unit (percentage) lost an investor requires an increasing gain in number of units (percentage) in order to get back to the original starting point.
An investment’s first 10% loss is pretty similarly matched by a required 11% gain (1% difference) to get back to the starting point. At a 20% loss this difference increases to 5%, and at a 50% loss the required differential increases to 50% - i.e. one needs a 100% gain to get back to square one. From this point the chart goes parabolic.
The chart gives some sort of explanation as to why investors (with investment horizons longer than 5 years) generally aren’t too fazed about losses of around 10%. 20% losses become a bit more of a problem and any loss in excess of 50% is a big cause for concern!
Naturally no investor wants to lose even 1%, but the reality is that one is required to take on risk when investing in order to grow wealth in real terms on a consistent basis. This will typically result in a portion of one’s capital being put at risk. Over periods of between 5 and 10 years an investment into growth assets should be able to withstand capital reductions of up to 20% - 30% and still beat inflation. When the drawdown is much more than this, investors will have difficulty getting back to respectable real returns.
At Seed we stress the importance of having growth assets in your portfolio (although each client is different) but at the same time we ensure that all our portfolios guard against permanent capital destruction. Ideally clients won’t lose more than 20% of their capital over any period, but in extreme situations this could increase slightly further.
Take care,
Mike Browne
info@seedinvestments.co.za
www.seedinvestments.co.za
021 9144 966
Thu, 07 Jul 2011
Top News
The South African rand climbed nearly 1 percent against the dollar on Thursday, ranking among the top performers out of 20 emerging market currencies as investor fears of contagion from debt woes in Europe ebbed. Full story
South African unions on Thursday threatened strike action in the coal mining sector and against the world's top platinum producer, moves that may threaten the country's exports to resource-hungry Asia. Full story |
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British police have arrested a suspected member of the Basque separatist group ETA wanted in connection with a plot to assassinate the King of Spain in 1997, authorities in both countries said on Thursday. Full storyOne construction worker was killed and 14 others injured by falling steel and rubble when part of a Dutch football stadium's roof in the city of Enschede collapsed during renovation work on Thursday. Full storySupport for the red-shirt protest movement that rallied behind Thai Prime minister-elect Yingluck Shinawatra, helping her win elections by a landslide, could splinter if demands for justice over deadly protests last year are not met, its leader said. Full story |
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Markets | European shares climbed to a
five-week high on Thursday as an encouraging U.S. private sector
jobs report and data showing American jobless benefits. . . Full story | | Commodity stocks led Britain's
FTSE 100 sharply higher on Thursday, as U.S. jobs data boosted
confidence that the world's biggest economy was showing. . . Full story | | Gold prices held just below
$1,530 an ounce on Thursday after the European Central Bank
signalled it would continue to raise rates and. . . Full story | | Gold prices held just below
$1,530 an ounce on Thursday ahead of a statement on monetary
policy from the European Central Bank, having. . . Full story |
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| The euro fell broadly on Thursday
as investors looked beyond a well-flagged interest rate hike by
the European Central Bank to focus on. . . Full story | | U.S. stock index futures rose
on Thursday before data that may provide investors clues about
Friday's key U.S. government monthly payrolls report.. . . Full story | | Australian shares pared early
losses to end dead flat on Thursday after local jobs jumped more
than expected in June, but caution prevailed. . . Full story | | Tokyo stocks snapped a seven-day
winning streak on Thursday as utilities tumbled after the
government proposed stress tests on nuclear reactors, sparking
fears their. . . Full story |
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SA Business | South Africa's National Union of Mineworkers (NUM) threatened strike action against world number one platinum producer Anglo American Platinum (Amplats) on. . . Full story | | South Africa's coal exports from the Richards Bay Coal Terminal (RBCT) rose to 4.78 million tonnes in June from 3.57 million. . . Full story | | Workers in South Africa's petroleum, pharmaceutical, and chemicals sectors will go on strike on July 11 over wages, union officials said. . . Full story | | South African government bonds firmed on Thursday, enjoying heavy offshore buying from investors concerned about elevated levels of risk in developed. . . Full story |
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| After a stellar run in the
months leading up to U.S. retailer Wal-Mart's $2.4
billion bid for Massmart , South African retailers are
now. . . Full story | | South Africa's white maize futures ended slightly up on Thursday helped by technical factors and sluggish silo deliveries while yellow maize. . . Full story | | Furniture retailer JD Group said on Thursday it would now complete its acquisition of Steinhoff's South African retail assets after the. . . Full story | | Kumba Iron Ore said on Thursday it expects a rise in first-half earnings lifted by higher iron ore export prices.. . . Full story |
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| South Africa's net gold and foreign exchange reserves rose to $47.162 billion at the end of June from $45.864 billion in May, data from the Reserve Bank showed on Thursday.. . . Full story |
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Company News | Keaton Energy receives Competition Commission approval for the LME acquisition. Shareholders are referred to the announcement released on SENS on 14. . . Full story | | Shareholders are advised that the annual report for the year ended 28 February 2011 will be dispatched to shareholders today (7. . . Full story | | The following statement is made with reference to paragraph 3.4 (b) of the JSE Listings Requirements that companies are required to. . . Full story | | In February 2011 Nedbank reported it was well placed for earnings growth in the year ahead and that it remained on. . . Full story |
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| Further to the announcement released on SENS on 25 May 2011 and in the press on 26 May 2011, shareholders were. . . Full story | | Shareholders are referred to Wescoal's financial results published on SENS on 29 June 2011 ("results announcement") and the announcement on 14. . . Full story | | The board of directors of PPC announced the appointment of Ms Tryphosa Ramano to the board as an executive director and. . . Full story | | Kumba is finalising its results for the six months ended 30 June 2011 ("the period"), which will be released on SENS. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 32296.07 | 165.36 | 0.51% | JSE Top 40 | 17:00 | 28928.73 | 153.63 | 0.53% | JSE Gold | 17:00 | 2387.28 | .95 | 0.04% | JSE Financial | 17:00 | 21873.50 | 30.71 | 0.14% | JSE Industrial | 17:00 | 33479.88 | 40.82 | 0.12% | JSE Indust 25 | 17:00 | 28089.98 | 19.47 | 0.07% | JSE Resource | 17:00 | 54700.36 | 634.28 | 1.17% | DJ Futures | 19:50 | 12675.00 | 89.00 | 0.71% | DJ Ind | 19:41 | 12727.97 | 101.95 | 0.81% | SP 500 | 18:40 | 1351.77 | 12.55 | 0.94% | Nasdaq | 18:40 | 2870.65 | 36.63 | 1.29% | FTSE 100 | 17:35 | 6054.55 | 51.63 | 0.86% | DAX | 18:00 | 7471.44 | 40.25 | 0.54% | CAC40 | 17:46 | 3979.96 | 18.62 | 0.47% | Nikkei | 08:26 | 10071.14 | -11.34 | -0.11% | Shanghai | 09:22 | 2794.27 | -16.21 | -0.58% | Hang-Seng | 10:26 | 22530.18 | 12.63 | 0.06% | All Ords | 08:38 | 4666.10 | 2.50 | 0.05% | NZSE 50 | 07:46 | 3460.56 | -.27 | -0.01% |
| | Name | Time | RP | Move | % Move | Gold | 19:58 | 1530.90 | 1.93 | 0.13% | Gold/Rand | 19:58 | 10218.62 | 10218.62 | 0.00% | Gold/R kg | 19:56 | 328683 | -2263 | -0.68% | Silver | 19:58 | 36.5450 | .7000 | 1.95% | Platinum | 19:56 | 1736.75 | 13.75 | 0.80% | Palladium | 19:57 | 782.80 | 17.80 | 2.33% | R157 | 15:06 | 7.42 | -.03 | -0.40% | R204 | 17:06 | 8.19 | -.04 | -0.49% | Brent Crude | 19:56 | 117.91 | 4.82 | 4.26% | Rand / Dollar | 19:58 | 6.6743 | -0.0624 | -0.93% | Rand / Pound | 19:58 | 10.6207 | -0.1350 | -1.26% | Rand / Euro | 19:58 | 9.5744 | -0.0747 | -0.77% | Rand / NZD | 19:58 | 5.5467 | -0.0245 | -0.44% | Rand / AUD | 19:58 | 7.1898 | -0.0232 | -0.32% | Yen / Dollar | 19:55 | 81.2100 | 0.2700 | 0.33% | Euro / Dollar | 19:58 | 0.6973 | 0.6973 | 0.00% | Dollar / Euro | 19:58 | 1.4345 | 0.0025 | 0.17% | Pound / Dollar | 19:58 | 0.6263 | 0.0016 | 0.26% |
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Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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07/07/2011 | 195 | 123 | 97 | 415 | 284,554,617 | R10,054,214,121 | 78407 | 1438236 | 06/07/2011 | 157 | 168 | 76 | 401 | 225,062,207 | R10,551,858,895 | 85952 | 1576062 | 05/07/2011 | 212 | 129 | 74 | 415 | 262,304,751 | R10,924,490,943 | 89611 | 1557205 | 04/07/2011 | 192 | 132 | 75 | 399 | 184,268,903 | R7,359,421,889 | 65021 | 1105529 | 01/07/2011 | 194 | 127 | 73 | 394 | 250,806,973 | R10,279,147,226 | 89688 | 1841376 |
Index Summary Index Name | RP | Move | % Move | Top 40 | 28,928.73 | 153.63 | 0.53% | Industrial | 33,479.88 | 40.82 | 0.12% | Mid Cap | 42,817.12 | 157.17 | 0.37% | Small Cap | 32,646.79 | 225.61 | 0.70% | Resource 20 | 54,700.36 | 634.28 | 1.17% | Industrial 25 | 28,089.98 | 19.47 | 0.07% | Financial 15 | 8,222.24 | -3.20 | -0.04% | Financial & Ind. 30 | 31,229.70 | 11.91 | 0.04% | All Share | 32,296.07 | 165.36 | 0.51% | Oil & Gas | 27,680.04 | 501.81 | 1.85% | Mining | 35,770.35 | 363.63 | 1.03% | Gold Mining | 2,387.28 | .95 | 0.04% | Platinum Mining | 68.44 | -.07 | -0.10% | Oil & Gas Producers | 14,883.05 | 269.82 | 1.85% | Basic Materials | 30,369.52 | 298.49 | 0.99% | Chemicals | 14,157.91 | -21.28 | -0.15% | Forestry & Paper | 14,927.67 | 60.35 | 0.41% | Industrial Metals | 30,769.95 | 313.06 | 1.03% | Industrials | 28,649.81 | -6.95 | -0.02% | General Industrials | 78,707.27 | -143.61 | -0.18% | Consumer Goods | 27,852.56 | 38.27 | 0.14% | Automobiles & Parts | 3,509.91 | 56.61 | 1.64% | Household Goods | 146.49 | -3 | -1.83% | Health Care | 33,429.13 | -150.19 | -0.45% | Beverages | 84.58 | .18 | 0.21% | Food Producers | 49,347.10 | 353.18 | 0.72% |
| | Index Name | RP | Move | % Move | Personal Goods | 452.94 | .70 | 0.15% | Consumer Services | 53,874.57 | 89.66 | 0.17% | General Retailers | 42,404.02 | 309.92 | 0.74% | Travel & Leisure | 3,755.20 | 5.77 | 0.15% | Media | 83.65 | .23 | 0.28% | Support Services | 2,457.53 | -42.65 | -1.71% | Telecommunications | 69,783.53 | -14.87 | -0.02% | Financials | 21,873.50 | 30.71 | 0.14% | Banks | 40,680.82 | -75.89 | -0.19% | Non-life Insurance | 32,493.78 | 133.37 | 0.41% | Life Insurance | 16,112.44 | 71.55 | 0.45% | General Financial | 2,329.61 | 22.47 | 0.97% | Technology | 22,821.73 | 494.79 | 2.22% | SHARIAH TOP40 | 3,198.48 | 28 | 0.89% | FTSE/JSE SHARIAH ALL | 3,262.31 | 27 | 0.84% | COAL MINING | 24,314.80 | 365 | 1.53% | FTSE JSE Fledgling | 4,604.65 | -63 | -1.35% | FTSE/JSE Alt X | 1,097.28 | 18 | 1.68% | SA LISTED PROPERTY | 391.76 | | 0.75% | CAPPED PROPERTY | 321.93 | | 0.07% | RESOURCE | 30,145.25 | 339 | 1.14% | DIVIDEND PLUS | 170.67 | 1 | 0.44% | FTSE/JSE RAFI 40 | 6,733.58 | 26 | 0.39% | Capped Top 40 | 15,083.09 | 66 | 0.44% | Capped All Share | 16,268.55 | 78 | 0.48% |
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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 | 04 Jul | SBK | STANDARD BANK GROUP LIMIT... | SELL | 04 Jul | AIP | ADCOCK INGRAM HLGS LD | HOLD | 04 Jul | LHC | LIFE HEALTHCARE GRP HLDG ... | BUY | 04 Jul | EQS | EQSTRA HOLDINGS LTD | HOLD | 04 Jul |
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Results Expected** Expected | Company Name | Fin. Date | 13 Jul 2011 | AQUARIUS | June 2011 (Q) | 13 Jul 2011 | AQUARIUSCVT | June 2011 (Q) | 15 Jul 2011 | ROCKWELL | May 2011 (Q) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | NICTUS | 11-06-30 | 11-07-15 | 11-07-25 | R 0.0950 | BEIGE | 11-06-30 | 11-07-15 | 11-07-25 | R 0.0015 | AMECOR | 11-06-29 | 11-07-15 | 11-07-25 | R 0.0800 | HUDACO | 11-06-29 | 11-08-12 | 11-08-22 | R 1.3000 | PRIMESERV | 11-06-29 | 11-07-15 | 11-07-25 | R 0.0250 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | TFG | 11-05-26 | 11-07-01 | 11-07-11 | R 2.1200 | TELKOM | 11-06-13 | 11-07-01 | 11-07-11 | R 1.4500 | INVICTA | 11-06-01 | 11-07-01 | 11-07-11 | R 1.2600 | CROOKES | 11-05-31 | 11-07-01 | 11-07-11 | R 0.6500 | ILLOVO | 11-05-30 | 11-07-01 | 11-07-11 | R 0.3400 |
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Upcoming AGMs** Code | Company Name | Date | Status | VMK | Verimark Holdings Ltd | 08/07/2011 | Unconfirmed | SPA | Spanjaard Ltd | 08/07/2011 | Confirmed | STA | StratCorp Ltd | 08/07/2011 | Confirmed | SOV | Sovereign Food Investments Ltd | 13/07/2011 | Confirmed |
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