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 The Sharenet Daily 
Wednesday, 28 September 2011 - 20:00
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)

Exchange, Inflation, and Interest Rates

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Last week saw the release of the latest inflation numbers and the Monetary Policy Committee’s (MPC) pronouncement on interest rates. On Wednesday, inflation came out at 5.3% year on year (no change from the 12 months to the end of July). Thursday’s MPC pronouncement was for no change in interest rates, with the repo rate remaining at 5.5% and the prime lending rate at 9%.

At the same time since the beginning of the month (less than 3 weeks ago) we have seen the rand lose considerable value to developed market currencies. At the end of August, US$1 would have cost just under R7, it now costs over R8 (over 15% depreciation).

These three indicators are useful in most of our lives. Interest rates dictate our monthly repayments on home, car and other loans if we have any debt, or the rate we receive on any fixed income savings. While the inflation rate can vary widely from individual to individual, the national inflation rate gives us a sense of how fast prices of goods and services are rising. It sometimes appears that the exchange rate doesn’t have a direct impact on us unless we’re involved in the import and export business or are planning an overseas trip, but the chart below shows just interlinked all these indicators actually are.

In a country with inflation targeting (such is the case in South Africa), changing the repo rate is the main method to guide inflation. Raising the rate increases the interest/debt burden for companies and individuals, and generally results in debt being paid down, the economy slowing, and inflation falling (and vice versa with falling rates). As a lot of inflation is imported (through global pricing for commodities, goods, and services) the level of the rand has a direct impact on the inflation rate and by extension interest rates.

With the head of the MPC, Gill Marcus, seemingly placing more of a priority on economic growth than her predecessor Tito Mboweni did, it will be interesting to see if and when she changes interest rates should the weaker rand translate into higher inflation. The argument until now for leaving rates at 30 year lows is that the inflation in the economy is cost push inflation as opposed to demand pull inflation (i.e. inflation isn’t as a result of strong economic growth, but rather external factors that can’t be controlled by the repo rate).

For now there hasn’t been much debate about interest rates as the inflation rate has stayed within the target range of 3% - 6%, but there will no doubt be some interesting debate if/when inflation moves out of this range. If the rand stays above R8/$ (or weaker) for an extended period this debate will most likely happen sooner than expected.

Take care,

Mike Browne
021 9144 966

Wed, 28 Sep 2011
Top News
The rand inched up against the dollar on Wednesday after South Africa's finance minister said he was seeking ways to stabilise the currency, and longer-end government bonds came under pressure on oversupply concerns.  Full story

The global economy is close to another "Lehman-type" event, and South Africa needs to cushion itself by reducing its dependence on European export markets, South African Reserve Bank Governor Gill Marcus said on Wednesday.  Full story
Chinese authorities came under fire on Wednesday after the worst subway train accident in 42 years raised fresh concerns that the world's second biggest economy was sacrificing safety in the rush to develop.  Full story
NATO peacekeepers in Kosovo (KFOR) reinforced troops at a border crossing in the ethnic Serb north on Wednesday, a day after more than a dozen people were injured in clashes.  Full story
Muammar Gaddafi is believed to be hiding near the western town of Ghadames near the Algerian border under the protection of Tuareg tribesmen, the Libyan official leading the hunt for the deposed leader said.  Full story
Gold fell 1.5 percent on Wednesday as the U.S. dollar gained on doubts over the progress of Europe's efforts to tackle its debt. . .  Full story
Caution as Greece faces its next hurdle to avoid a default drove stocks and commodity prices lower on Wednesday and capped gains in. . .  Full story
U.S. stocks were little changed on Wednesday after a three-day rally as investors waited to see if an audit of Greece's finances would. . .  Full story
Britain's top shares ended lower after a choppy session on Wednesday, with investors nervous ahead of an audit of Greece's finances to determine. . .  Full story

European shares snapped a three-day winning streak on Wednesday as hopes for imminent political action to contain the region's debt crisis were capped by. . .  Full story
Australian shares rose 0.9 percent to a one-week high on Wednesday, boosted by gains in big miners and some banks in follow-through buying. . .  Full story
Japanese shares inched up on Wednesday but struggled to hold gains with traders selling into strength as optimism over Europe's efforts to resolve. . .  Full story
China's stock market dropped 1 percent on Wednesday to nearly a 15-month closing low, weighed down by financial and property stocks, as investors. . .  Full story
SA Business
South Africa needs to work harder to boost the current sluggish rate of creating jobs, with the employment still well below. . .  Full story
Ghana annual producer price inflation index rose 17.24 percent in August, from a revised July figure of 13.94 percent, with mining. . .  Full story
Maize deliveries to South African silos rose to 9.295 million tonnes in the week to September 23, up from a revised. . .  Full story
South Africa's rand held its gains of the past two sessions against the dollar on Wednesday and could struggle to firm. . .  Full story

South African stocks fell 1.6 percent on Wednesday, failing to sustain a rally from the previous session as uncertainty about a. . .  Full story
Denmark-based LM Wind Power, the world's largest manufacturer of turbine blades, is considering establishing a plant in South Africa to supply. . .  Full story
South African power utility Eskom said on Wednesday it had sold 250 million rand of its ES26 bond due in 2026. . .  Full story
It is a project that should symbolize the transformational benefits of hosting the 2014 World Cup -- a sleek new monorail. . .  Full story
Company News
Shareholders are referred to the announcement released on SENS on 23 September 2011 ("the announcement") which, inter alia, detailed Putprop's annual. . .  Full story
Omnia shareholders are advised that at the duly constituted annual general meeting of Shareholders held on Wednesday, 28 September 2011, all. . .  Full story
The board of directors of Lonfin advise that its earnings per share for the year ended 30 June 2011 are expected. . .  Full story
Further to the cautionary announcements dated 18 August 2011, 23 May 2011 and 6 July 2011, shareholders are advised that Wescoal. . .  Full story

The directors of Pinnacle Point have applied to the JSE for suspension of its securities with immediate effect following the notice of motion received by the company on Monday, 26 September. . .  Full story
Central Rand Gold Ltd is disappointed by the South African Department of Mineral Resources' ("DMR`s") decision to cancel the company's mining right, notification of which was received by the company on. . .  Full story
Shareholders were advised that following the announcements on SENS on 4 August 2011 and 30 August 2011, the company posted a circular to shareholders on 28 September 2011 , relating to. . .  Full story
Company Results
The results showed that revenue increased by 38.2% to R773 million, compared to June 2010 of R559.3 million. Net attributable profit. . .  Full story
Revenue for the quarter increased to R221.9 million (2010: R174.7 million). Gross profit grew to R34.9 million (2010: R28.2 million), operating. . .  Full story
Maiden interim results for Holdsport as a listed company showed sales of R547 million. Gross profit amouted to R270.7 million and. . .  Full story
Revenue declined to R1 351.3 million (R1 356.3 million). Net attributable profit surged to R117.2 million (loss of R7.4 million). In. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0030339.03-413.37-1.34%
JSE Top 4017:0027053.23-440.40-1.60%
JSE Gold17:002814.83-69.34-2.40%
JSE Financial17:0021045.8021.560.10%
JSE Industrial17:0032362.75-259.79-0.80%
JSE Indust 2517:0027273.02-243.63-0.89%
JSE Resource17:0048908.66-1400.50-2.78%
DJ Futures20:0011070.00-53.00-0.48%
DJ Ind19:4511109.40-81.29-0.73%
SP 50020:001161.95-13.43-1.14%
FTSE 10016:425222.96-71.09-1.34%
All Ords08:384097.7034.200.84%
NZSE 5007:063298.7243.351.33%
NameTimeRPMove% Move
Gold/R kg20:00407520-12124-2.89%
Brent Crude19:56106.79-1.65-1.52%
Rand / Dollar19:597.88160.01640.21%
Rand / Pound19:5512.2376-0.0254-0.21%
Rand / Euro19:5510.6788-0.0106-0.10%
Rand / NZD19:586.1377-0.0691-1.11%
Rand / AUD19:557.7372-0.0573-0.74%
Yen / Dollar19:5876.4340-0.2970-0.39%
Euro / Dollar19:550.73700.00130.18%
Dollar / Euro19:591.3563-0.0022-0.16%
Pound / Dollar19:550.64160.00210.33%

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

Major Moves Up
SharenameSaleMove% MoveVolume
1 AFEAGLE  1103037.50.%3000
2 BAUBA  2302110.05.%52806
3 CARGO  1050505.00.%50
4 INVICTA  47042044.53.%101
5 KAP  240104.35.%4500
6 URONE  1775683.98.%31201
7 UNIVERSAL  24783.35.%5000
8 PARACON  18552.78.%2000
9 ACUCAP  3646962.70.%245353
10 AMA  19052.70.%650372
11 NICTUS  19552.63.%3392
12 AFRO-C  23052.22.%30000
13 PSG  4600902.00.%22450
14 ILIAD  520101.96.%19500
15 VUKILE  1430251.78.%264551
16 RMBH  2610451.75.%1717124
17 DIGICOR  30051.69.%2000
18 ALTECH  5900981.69.%233830
19 ASSORE  213503501.67.%148854
20 HOLDSPORT  3200521.65.%34568

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Major Moves Down
SharenameSaleMove% MoveVolume
1 OANDO  130-30-18.75.%27664954
2 ANOORAQ  435-59-11.94.%1050
3 EHSV  3655-345-8.63.%2600
4 TRNSHEX  310-19-5.78.%23008
5 GBGOLD  1415-85-5.67.%12930
6 EASTPLATS  565-25-4.24.%6293
7 TASTE  115-5-4.17.%57093
8 KUMBAIO  44800-1869-4.00.%618681
9 BILLITON  22100-849-3.70.%6497752
10 LITHA  240-9-3.61.%327277
11 ANGLO  28614-1071-3.61.%4127833
12 MARSHALL  590-20-3.28.%1000
13 CIL  900-30-3.23.%12920
14 HARMONY  9275-300-3.13.%1525809
15 EXXARO  18134-526-2.82.%1000427
16 HULAMIN  730-20-2.67.%4733
17 ILLOVO  2389-60-2.45.%47346
18 MVELAGP-P  1000-25-2.44.%3981
19 ANGGOLD  33850-830-2.39.%1475504
20 GRANPRADE  288-7-2.37.%18500

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New Highs
SharenameSaleHighMove% MoveVolume
1 AFRO-C  23023052.22.%30000
2 LIB-HOLD  811082611101.38.%515825
3 TIGBRANDS  20821212952771.35.%631108
4 SANTAM  13990139901531.11.%86856
5 METROFILE  24024020.84.%63073
6 BATS  34219350002300.68.%802048

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New Lows
SharenameSaleLowMove% MoveVolume
1 OANDO  130125-30-18.75.%27664954
2 ADCORP  24382438-28-1.14.%59957
3 HOSP-B  525525-5-0.94.%30000
4 DIPULA-A  851851-6-0.70.%300
5 SUNINT  82758220-40-0.48.%207265

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Index Summary
Index NameRPMove% Move
Top 4027,053.23-440.40-1.60%
Mid Cap41,227.73-1.39-0.00%
Small Cap31,155.6911.610.04%
Resource 2048,908.66-1400.50-2.78%
Industrial 2527,273.02-243.63-0.89%
Financial 157,877.991.110.01%
Financial & Ind. 3030,175.41-201.50-0.66%
All Share30,339.03-413.37-1.34%
Oil & Gas 25,403.26-167.04-0.65%
Mining 32,019.85-1012.00-3.06%
Gold Mining2,814.83-69.34-2.40%
Platinum Mining62.41-.95-1.50%
GENERAL MINING7,704.75-284.59-3.56%
Oil & Gas Producers 13,658.86-89.82-0.65%
Basic Materials 27,075.57-829.81-2.97%
Chemicals 12,414.03-48.94-0.39%
Forestry & Paper 12,366.67-171.54-1.37%
Industrial Metals 26,673.75-774.12-2.82%
Industrials 26,785.57-201.49-0.75%
General Industrials 74,490.30-576.21-0.77%
Consumer Goods 27,427.74-339.48-1.22%
Automobiles & Parts 3,598.22-24.91-0.69%
Household Goods145.72-0-0.22%
Health Care 33,932.21-30.47-0.09%
Beverages 89.45-1.25-1.38%
Index NameRPMove% Move
Food Producers 48,548.24186.800.39%
Personal Goods 402.70-7.09-1.73%
Consumer Services 53,452.8620.100.04%
General Retailers 42,816.54-210.41-0.49%
Travel & Leisure 3,464.87-1.53-0.04%
Media 79.60-.01-0.01%
Support Services 2,177.90.660.03%
Telecommunications 67,010.34-486.59-0.72%
Financials 21,045.8021.560.10%
Banks 39,612.1552.080.13%
Non-life Insurance 33,924.48371.011.11%
Life Insurance 15,547.86-47.28-0.30%
General Financial 2,072.46-2.95-0.14%
Technology 22,927.90-143.34-0.62%
SHARIAH TOP40 2,907.47-69-2.32%
FTSE/JSE SHARIAH ALL2,976.45-64-2.11%
COAL MINING24,753.63-629-2.48%
FTSE JSE Fledgling 4,473.45-9-0.20%
FTSE/JSE Alt X 1,114.57-1-0.11%
RESOURCE 27,076.44-762-2.74%
DIVIDEND PLUS165.3300.09%
FTSE/JSE RAFI 406,282.83-81-1.27%
Capped Top 4014,259.78-213-1.47%
Capped All Share15,342.93-202-1.30%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
29 Sep 2011FIRESTONEJune 2011 (Final)
29 Sep 2011FIRESTONE OPTJune 2011 (Final)
29 Sep 2011FORBESAugust 2011 (Interim)
29 Sep 2011HARDWAREJune 2011 (Final)
29 Sep 2011LONFINJune 2011 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PAN-AF11-09-2811-11-0411-11-25R 0.0051
EXCELL11-09-2811-10-2811-11-07R 0.0400
CAPITEC11-09-2811-11-2511-12-05R 1.2500
AFRO-C11-09-2711-11-1811-11-28R 0.0900
BSI STEEL11-09-2711-10-1411-10-24R 0.0200
Ex Div**
Share NameDec-DateLDTPay-DateAmount
A-V-I11-09-0511-09-2311-10-03R 0.7500
BIPSTOP4011-08-3111-09-2311-10-03R 0.2904
GROUP 511-08-1511-09-2311-10-03R 0.2000
MUSTEK11-08-2611-09-2311-10-03R 0.1700
BIPINF11-08-3111-09-2311-10-03R 0.1433

Upcoming AGMs**
CodeCompany NameDateStatus
SKWSkinwell Holdings Ltd28/09/2011Confirmed
ZCIZCI Ltd28/09/2011Confirmed
ARTArgent Industrial Ltd29/09/2011Confirmed
CSPChemical Specialities Ltd29/09/2011Confirmed
PSVPSV Holdings Ltd29/09/2011Confirmed

Stock Exchange News Service
28/09/201117:40 Putprop Limited - Update to the Notice of Annual General Meeting
28/09/201117:40 Village Main Reef Limited - Correction to the reviewed results for
28/09/201117:05 Avusa Limited - Resignation of group chief executive officer
28/09/201116:47 Growthpoint Properties Limited - Dealing in securities by executive
28/09/201116:40BIIIPL - iNguza Investments (Proprietary) Limited - Listing of New Financial
28/09/201116:38 Gold Fields Limited - Dealing in securities by Director
28/09/201116:26 ArcelorMittal South Africa Limited - Exercise of share options and
28/09/201116:15ACL141 - Absa Bank Limited - New Financial Instrument Listing
28/09/201116:00OML - Old Mutual plc - Form 8.3
28/09/201116:00 Dorbyl Limited - No change statement, posting of annual financial
28/09/201116:00 Masonite (Africa) Limited - Unaudited interim results for the six months
28/09/201115:47 Massmart Holdings Limited - Notification of director`s dealing in
28/09/201115:44 Murray & Roberts Holdings Limited - Annual integrated report and
28/09/201115:31 Naspers - Notification in terms of Section 122(3) Of The Companies Act And
28/09/201115:30 Naspers Limited - Directors dealings
28/09/201115:26 Massmart Holdings Limited - Results of General Meeting
28/09/201115:24 Sable Holdings Limited - Reviewed provisional consolidated condensed group
28/09/201115:11 Moneyweb Holdings Limited - No change statement and notice of
28/09/201115:03 Adaptit Holdings Limited - Dealings in securities by a director
28/09/201114:59IVA203- iVuzi Investments Limited - New Financial Instrument Listing
28/09/201114:56 Universal Industries Corporation Limited - Results of General Meeting
28/09/201114:51 Pan African Resources PLC - Further announcement regarding the posting of
28/09/201114:10 Excellerate Holdings Limited - Reviewed consolidated results for the year
28/09/201114:00 Avusa Limited - Exercise of share-based incentives by, and delivery
28/09/201113:40AA02 - Anglo American SA Finance Limited - Interest Rate Reset announcement
28/09/201113:25 Iliad Limited - Appointment of Chris Booyens as an executive director
28/09/201113:24 Rare Holdings Limited - Voluntary announcement -trading statement
28/09/201112:56 Murray & Roberts Holdings Limited - Dealing in securities: announcement in
28/09/201112:24INL/INP - Investec Limited/Investec plc - Form 8 (DD)
28/09/201112:22INL/INP - Investec - FORM 8 (DD)
28/09/201112:14 Omnia Holdings Limited - Results of the Annual General Meeting
28/09/201112:10SCIB - The Standard Bank of South Africa Limited - Notice of expiry of
28/09/201112:00 Sea Kay Holdings Limited - Trading Update
28/09/201112:00 London Finance & Investment Group P.L.C. - Trading statement
28/09/201111:51 Foneworx Holdings Limited - Dealings in securities by director
28/09/201111:29 Skinwell Holdings Limited - Results of the Annual General Meeting
28/09/201110:23 Wescoal Holdings Limited - Renewal of cautionary announcement
28/09/201110:21 Simmer and Jack Mines Ltd - Disclosure of significant holding of Simmer
28/09/201109:50INL/INP - Investec Limited/Investec plc - Disclosure in accordance with Rule
28/09/201109:30 Pan African Resources PLC - Posting of Annual Report and Notification of
28/09/201108:14 Pinnacle Point Group Limited - Request for voluntary suspension
28/09/201108:00 Central Rand Gold Limited - Response to cancellation of mining right
28/09/201108:00 Caxton And CTP Publishers - Annoucement to shareholders
28/09/201107:59GLD - NewGold Issuer Limited - Partial De-Listing of Newgold Debentures
28/09/201107:47GDO/GGM - Gold One/Goliath Gold - Further update on the acquisition by Goliath
28/09/201107:46 Hwange Colliery Company Limited - Statement to shareholders (For the six
28/09/201107:30CPI/CPIP - Capitec Bank Holdings Limited - Unaudited financial results for
28/09/201107:30 Growthpoint Properties Limited - Annual financial statements and
28/09/201107:30 Cadiz Holdings Limited - Notice of General Meeting
28/09/201107:24 Allied Technologies Limited - Summarised consolidated unaudited interim
28/09/201107:10 British American Tobacco p.l.c.- Transaction in own shares
28/09/201107:06INVS - Investec Bank Limited -Issue of stock warrants
28/09/201107:05INVS - Investec Bank Limited - Issue Of Stock Warrants

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