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 The Sharenet Daily 
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
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)

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
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
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 story
One 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 story
Support 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
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

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
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

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

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
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

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)
NameTimeRPMove% Move
JSE Overall17:0032296.07165.360.51%
JSE Top 4017:0028928.73153.630.53%
JSE Gold17:002387.28.950.04%
JSE Financial17:0021873.5030.710.14%
JSE Industrial17:0033479.8840.820.12%
JSE Indust 2517:0028089.9819.470.07%
JSE Resource17:0054700.36634.281.17%
DJ Futures19:5012675.0089.000.71%
DJ Ind19:4112727.97101.950.81%
SP 50018:401351.7712.550.94%
FTSE 10017:356054.5551.630.86%
All Ords08:384666.102.500.05%
NZSE 5007:463460.56-.27-0.01%
NameTimeRPMove% Move
Gold/R kg19:56328683-2263-0.68%
Brent Crude19:56117.914.824.26%
Rand / Dollar19:586.6743-0.0624-0.93%
Rand / Pound19:5810.6207-0.1350-1.26%
Rand / Euro19:589.5744-0.0747-0.77%
Rand / NZD19:585.5467-0.0245-0.44%
Rand / AUD19:587.1898-0.0232-0.32%
Yen / Dollar19:5581.21000.27000.33%
Euro / Dollar19:580.69730.69730.00%
Dollar / Euro19:581.43450.00250.17%
Pound / Dollar19:580.62630.00160.26%

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

Major Moves Up
SharenameSaleMove% MoveVolume
1 EASTPLATS  6806610.75.%539718
2 WESIZWE  180105.88.%106071
3 PAN-AF  13075.69.%5757096
4 PETMIN  322175.57.%1032560
5 PALCAP  280145.26.%107000
6 CLIENTELE  1000454.71.%5775
7 JUBILEE  245114.70.%105575
8 EQSTRA  749304.17.%18196
9 BRAIT  1763684.01.%4503903
10 CASHBIL  94403353.68.%42017
11 IQUAD  310103.33.%14000
12 BASREAD  1429463.33.%192028
13 PSG  51501653.31.%199607
14 DATATEC  39701203.12.%296417
15 URONE  2077542.67.%37003
16 BCX  472122.61.%830984
17 MERAFE  11932.59.%8865331
18 RANGOLD  24562.51.%290433
19 ONELOGIX  12332.50.%279651
20 PBT  12332.50.%8200

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Major Moves Down
SharenameSaleMove% MoveVolume
1 WINHOLD  170-10-5.56.%36
2 PARACON  195-9-4.41.%2530
3 ADCORP  2875-125-4.17.%105139
4 DELRAND  290-10-3.33.%5008
5 CERAMIC  12100-400-3.20.%200
6 TRADEH  605-20-3.20.%4553
7 ANOORAQ  430-14-3.15.%172118
8 ITLTILE  431-14-3.15.%30835
9 COAL  930-29-3.02.%781591
10 CAPCO  2112-63-2.90.%164903
11 GRANPRADE  300-8-2.60.%332000
12 ESORFRANK  188-5-2.59.%20603
13 CMH  1100-24-2.14.%4427
14 RA-HOLD  376-8-2.08.%16399
15 AFRIMAT  387-8-2.03.%1431506
16 STEINHOFF  2305-43-1.83.%1882482
17 ARCMITTAL  7885-145-1.81.%329201
18 MEDCLIN  3058-47-1.51.%205590
19 ABSA  13500-200-1.46.%359043
20 HULAMIN  750-10-1.32.%257849

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New Highs
SharenameSaleHighMove% MoveVolume
1 BASREAD  14291433463.33.%192028
2 PSG  515052931653.31.%199607
3 DATATEC  397040931203.12.%296417
4 KUMBAIO  500005036511002.25.%515607
5 EXXARO  18475184903071.69.%845316
6 CML  19791999281.44.%484900
7 GROWPNT  18901900150.80.%5118526
8 A-V-I  32753367240.74.%3397983
9 MONDILTDP  68907000500.73.%463498
10 WOOLIES  30403082180.60.%914374
11 ASSORE  2265023000650.29.%92547

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New Lows
SharenameSaleLowMove% MoveVolume
1 ANOORAQ  430430-14-3.15.%172118
2 ILIAD  645600-2-0.31.%1000
3 CITYLDG  640063990.85680

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Index Summary
Index NameRPMove% Move
Top 4028,928.73153.630.53%
Mid Cap42,817.12157.170.37%
Small Cap32,646.79225.610.70%
Resource 2054,700.36634.281.17%
Industrial 2528,089.9819.470.07%
Financial 158,222.24-3.20-0.04%
Financial & Ind. 3031,229.7011.910.04%
All Share32,296.07165.360.51%
Oil & Gas 27,680.04501.811.85%
Mining 35,770.35363.631.03%
Gold Mining2,387.28.950.04%
Platinum Mining68.44-.07-0.10%
Oil & Gas Producers 14,883.05269.821.85%
Basic Materials 30,369.52298.490.99%
Chemicals 14,157.91-21.28-0.15%
Forestry & Paper 14,927.6760.350.41%
Industrial Metals 30,769.95313.061.03%
Industrials 28,649.81-6.95-0.02%
General Industrials 78,707.27-143.61-0.18%
Consumer Goods 27,852.5638.270.14%
Automobiles & Parts 3,509.9156.611.64%
Household Goods146.49-3-1.83%
Health Care 33,429.13-150.19-0.45%
Food Producers 49,347.10353.180.72%
Index NameRPMove% Move
Personal Goods 452.94.700.15%
Consumer Services 53,874.5789.660.17%
General Retailers 42,404.02309.920.74%
Travel & Leisure 3,755.205.770.15%
Support Services 2,457.53-42.65-1.71%
Telecommunications 69,783.53-14.87-0.02%
Financials 21,873.5030.710.14%
Banks 40,680.82-75.89-0.19%
Non-life Insurance 32,493.78133.370.41%
Life Insurance 16,112.4471.550.45%
General Financial 2,329.6122.470.97%
Technology 22,821.73494.792.22%
SHARIAH TOP40 3,198.48280.89%
FTSE/JSE SHARIAH ALL3,262.31270.84%
COAL MINING24,314.803651.53%
FTSE JSE Fledgling 4,604.65-63-1.35%
FTSE/JSE Alt X 1,097.28181.68%
RESOURCE 30,145.253391.14%
DIVIDEND PLUS170.6710.44%
FTSE/JSE RAFI 406,733.58260.39%
Capped Top 4015,083.09660.44%
Capped All Share16,268.55780.48%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
13 Jul 2011AQUARIUSJune 2011 (Q)
13 Jul 2011AQUARIUSCVTJune 2011 (Q)
15 Jul 2011ROCKWELLMay 2011 (Q)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
NICTUS11-06-3011-07-1511-07-25R 0.0950
BEIGE11-06-3011-07-1511-07-25R 0.0015
AMECOR11-06-2911-07-1511-07-25R 0.0800
HUDACO11-06-2911-08-1211-08-22R 1.3000
PRIMESERV11-06-2911-07-1511-07-25R 0.0250
Ex Div**
Share NameDec-DateLDTPay-DateAmount
TFG11-05-2611-07-0111-07-11R 2.1200
TELKOM11-06-1311-07-0111-07-11R 1.4500
INVICTA11-06-0111-07-0111-07-11R 1.2600
CROOKES11-05-3111-07-0111-07-11R 0.6500
ILLOVO11-05-3011-07-0111-07-11R 0.3400

Upcoming AGMs**
CodeCompany NameDateStatus
VMKVerimark Holdings Ltd08/07/2011Unconfirmed
SPASpanjaard Ltd08/07/2011Confirmed
STAStratCorp Ltd08/07/2011Confirmed
SOVSovereign Food Investments Ltd13/07/2011Confirmed

Stock Exchange News Service
07/07/201117:50 Zeder Investments Limited - Disclosure of acquisition of shares in
07/07/201117:45NAI/NAN - NAIL - Acquisition of Ordinary Shares and "N" ordinary shares by
07/07/201117:43GEN - FTSE/JSE Africa Index Series - Rare Holdings (South Africa): Shares in
07/07/201117:41CCO - Capital & Counties Properties PLC - Notification of major interests in
07/07/201117:40CCO - Capital & Counties Properties PLC - Notification of major interests in
07/07/201117:36ESPIBQ - Investec Bank Limited - Adjustment to the terms and conditions of
07/07/201117:30 Imuniti - JSE - AltX 15 Index
07/07/201117:09 Lonmin Plc - Notification of major interest in shares
07/07/201116:24 WG Wearne Limited - Further cautionary announcement
07/07/201115:45MND/MNP - Mondi Limited/Mondi plc - Employee share plans
07/07/201114:13BBTNIA - Nedbank Limited - Expiry of share instalments
07/07/201113:48 Alert Steel Holdings Limited - Results of general meeting
07/07/201113:36 British American Tobacco P.l.c. - Notification of transactions of
07/07/201113:00MND/MNP - Mondi Limited/Mondi plc - Transaction in Mondi Plc Ordinary Shares of
07/07/201112:57 Gooderson Leisure Corporation Limited - No change statement and notice of
07/07/201112:33PTXSPY/ PTXTEN - PROPTRAX SAPY/ PROPTRAX TEN - Changes to the board of directors
07/07/201112:32 Assore Limited - Revised salient dates and times relating to the
07/07/201112:26SCIB : INPSTF - The Standard Bank Of South Africa Limited - Dividend
07/07/201112:23 Keaton Energy Holdings Limited - Keaton Energy receives Competition
07/07/201112:01 Taste Holdings Limited - Posting of annual report and notice of Annual
07/07/201110:06 RGT Smart Market Intelligence Limited - Clarification of dates for the
07/07/201110:01 Old Mutual Plc - Trading Statement for Nedbank Group Limited
07/07/201110:00 Nedbank Group Limited - Trading Statement
07/07/201110:00 Bell Equipment Limited - Further cautionary announcement
07/07/201109:19 Vunani Limited - Revised Proxy Form
07/07/201109:00 Wescoal Holdings Limited - Wescoal intends opposing application to
07/07/201108:47 Massmart Holdings Limited - Sales Update for the 52 weeks to June 2011
07/07/201108:37 Argent Industrial Limited - Dealing in securities by director
07/07/201108:01DBXUS - db x-trackers MSCI USA Index EFT - Listing of additional 3 000 000 db X-
07/07/201108:00DBXWD - DB X-trackers MSCI World Index EFT - Listing of additional 6 000 000 DB
07/07/201107:10 British American Tobacco p.l.c.- Transaction in own shares
07/07/201107:06 Pretoria Portland Cement Company Limited - PPC appoints new Chief
07/07/201107:06 Gold One International Limited - Appendix 3B new issue announcement,
07/07/201107:05 Gold One International Limited - June 2011 Quarterly Gold Production
07/07/201107:05 JD Group - Competition Tribunal approval of the transaction between JD
07/07/201107:05 Pretoria Portland Cement Company Limited - Appointment of new Chief
07/07/201107:05 Kumba Iron Ore Limited - Trading statement for the six months ended 30

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