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 The Sharenet Daily 
Tuesday, 18 October 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)

Some Thoughts for Retirement

Coronation recently published their Corolab booklet with quite a few interesting articles that are summarized here.

1. Plan for higher inflation:
Over the last 10 years South Africa mostly experienced low inflation. However, we often feel that our personal inflation rates are a lot higher than the published rate (currently 5.3%). The reason for this is because the 5.3% is the average rate across South Africans’ basket of goods, but each individual’s basket is made up differently. E.g. Recreational equipment had a negative inflation rate of 5% for the past 12 months while electricity stands at 18% and private transport (including petrol) at 17%. Inflation of individual sectors ranges between -5% and +18%, which means your own inflation rate is as personal as your own investment strategy.

It is therefore important to look at your inflation rate and how your investment strategy should be developed to incorporate that.

2. The returns from the last decade versus the longer term history:

The graph below shows the annualised real returns of the last decade relative to long term average returns (last 111 years of data).

Clearly, local assets have done extremely well compared to the longer term averages while offshore equities in rand terms have been dismal. However, if you purely use the returns of the last decade as a proxy of what might happen in the future then you could well be disappointed.

Coronation set out their 10 year forecast of the various asset classes. Naturally these returns don’t materialize in linear format but could be lumpy. From the table below it is clear that the returns from local asset classes could be muted despite a bleaker inflation outlook. It is also evident that history might not repeat itself, with future returns most likely coming from offshore assets.

Coronation makes the point that at a 6% inflation rate you probably require nearly 6 times the level of income at the end of say 25 years to be able to buy the same basket of goods.

This makes it important to invest in growth assets that are able to grow faster than inflation over a longer period.

3. Life expectancy:

Finally, the change in life expectancy because of better healthcare technology could mean that the average person is going to live longer. The table below illustrates the life expectancy of people at certain ages. For example, a female that is currently 65 years old is expected to live a further 20 years (age 85)

Therefore, your personal inflation rate, changes in future returns and life expectancy all influence the investment strategy you need to follow.

Kind regards,

Vincent Heys
021 9144 966

Tue, 18 Oct 2011
Top News
Yields on South African government bonds rose to their highest in more than a week on Tuesday after a weekly auction that saw investors dump the longer end of the curve ahead of a budget speech next week in which more issuance is expected to be announced.  Full story

South African stocks ended slightly lower on Tuesday with miners among the worst performers as growth worries in China hit industrial metal prices.  Full story
Israeli soldier Gilad Shalit and hundreds of Palestinians crossed Israel's borders in opposite directions on Tuesday as a thousand-for-one prisoner exchange brought joy to families but did little to ease decades of conflict.  Full story
U.S. Secretary of State Hillary Clinton visited Libya on Tuesday to urge its disparate militias to unite around their new leaders, while loyalists of ousted Muammar Gaddafi launched a counter-attack in his hometown of Sirte.  Full story
A Milan judge on Tuesday cleared Silvio Berlusconi in a fraud and embezzlement case related to his private broadcaster Mediaset, a rare legal victory for the weakened Italian prime minister who is a defendant in three other trials.  Full story
U.S. stocks rose on Tuesday as bank earnings, though unspectacular, were strong enough to reassure investors about the sector and overshadow debt worries and. . .  Full story
European shares fell on Tuesday, led by French banking stocks after a Moody's warning about France's credit rating fuelled worries about possible contagion in. . .  Full story
U.S. shares rose on Tuesday, buoyed by a jump in financial shares on results from Bank of America and other big banks, bucking. . .  Full story
U.S. stocks rose on Tuesday, led by financials, as better-than-expected bank earnings overshadowed new worries about the crisis in Europe, fueled by a warning. . .  Full story

Gold dropped more than 1 percent on Tuesday, on track for its largest decline in two weeks, as investors worried about slowing Chinese. . .  Full story
Britain's leading share index ended lower on Tuesday as nervous investors retreated from riskier assets, forcing the FTSE 100 below a significant technical level. . .  Full story
European shares fell on Tuesday, with French banks among the worst hit after Moody's warned over the outlook for France's rating, the latest. . .  Full story
U.S. stocks opened little changed on Tuesday after Moody's said it would review France's credit rating and investors grappled with less-than-stellar earnings from some. . .  Full story
SA Business
President Jose Eduardo Dos Santos cut Angola's growth forecast for 2011 to 3.7 percent on Tuesday due mainly to lower crude production but the economy should bounce back with a 12 percent expansion next year.. . .  Full story
South Africa's rand softened against the dollar on Tuesday and was seen coming under pressure as investors steered clear of risky assets, disappointed by comments that European leaders are unlikely to come up with a quick solution to the debt crisis.. . .  Full story

Canadian miner Eastern Platinum reported a 29 percent drop in third-quarter production at its flagship Crocodile River mine in South Africa. . .  Full story
The rand fell 1.3 percent against the dollar to an eight day low as negative sentiment linked to the euro zone. . .  Full story
Global miner Xstrata said on Tuesday that its South African coal operations were severely affected by a strike over an employee. . .  Full story
South Africa raised 2.1 billion rand in a sale of 2017 and 2041 bonds on Tuesday although demand for the longer-dated. . .  Full story

South Africa exported 86,567 tonnes of white maize last week compared with 40,204 tonnes in the previous week, the South African Grain Information Service (SAGIS) said on Tuesday.. . .  Full story
Company News
At the annual general meeting of the shareholders of the Value held on 18 October 2011, all the ordinary and special. . .  Full story
The company is proud to report that Scooters Pizza (a subsidiary of Taste) won the brand builder of the year award. . .  Full story
The board of directors of KAP announces that in-principle agreement has been reached between KAP and Steinhoff International Holdings Ltd ("Steinhoff"),. . .  Full story
The board of directors of Steinhoff announced that in-principle agreement (the "Agreement") has been reached between Steinhoff and KAP. . .  Full story

Delta shareholders are referred to the group's unaudited results announcement for the six months ended 27 June 2011 and the comments on prospects contained therein dated 4 August 2011. The group expects its 2011 second half sales revenue and volumes to. . .  Full story
In the third quarter of 2011, weaker market conditions and scheduled maintenance during the high electricity tariff winter months, resulted in an operating capacity utilisation of 52%. Ferrochrome production was 18% lower in the third quarter of 2011, compared to the. . .  Full story
Company Results
Revenue for the interim period skyrocketed to R209 million (2010: R96.2 million). Gross profit increased to R35.1 million (2010: R19.9 million),. . .  Full story
Revenue for the year ended 30 June 2011 dropped to R770 million (R818.6 million) and gross profit fell to R135.1 million. . .  Full story
Revenue for the interim period ended 31 August 2011 decreased to R19.1 million (2010: R23.1 million). Gross profit fell to R18.7. . .  Full story
Profit from operations soared to R744 million (loss of R1 million). Net attributable profit surged to R744 million (R103 million). However,. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0031054.20-41.03-0.13%
JSE Top 4017:0027762.88-35.43-0.13%
JSE Gold17:002786.52-48.69-1.72%
JSE Financial17:0021255.78-74.68-0.35%
JSE Industrial17:0033234.19198.040.60%
JSE Indust 2517:0028061.94220.410.79%
JSE Resource17:0050325.89-410.35-0.81%
DJ Futures19:5611400.00142.001.26%
DJ Ind19:4511489.3792.370.81%
SP 50020:001214.8113.951.16%
FTSE 10017:355410.35-26.35-0.48%
All Ords07:404249.50-88.40-2.04%
NZSE 5006:463279.11-37.85-1.14%
NameTimeRPMove% Move
Gold/R kg20:00425577-6520-1.51%
Brent Crude19:56112.17-.48-0.43%
Rand / Dollar19:598.00960.02770.35%
Rand / Pound19:5512.5415-0.0030-0.02%
Rand / Euro19:5510.99820.02590.24%
Rand / NZD19:586.35420.02990.47%
Rand / AUD19:558.19250.06670.82%
Yen / Dollar19:5976.8070-0.0050-0.01%
Euro / Dollar19:550.7278-0.0001-0.01%
Dollar / Euro19:581.3728-0.0004-0.03%
Pound / Dollar19:550.63660.00160.25%

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

Major Moves Up
SharenameSaleMove% MoveVolume
1 FREEWORLD  115019920.93.%29829
2 KAP  2422210.00.%1033103
3 IQUAD  225209.76.%568
4 SASFIN  30991996.86.%6100
5 EASTPLATS  580285.07.%83087
6 MARSHALL  575254.55.%28836
7 KEATON   290124.32.%7500
8 TRADEH  600244.17.%400
9 BEE-SASOL  2600010004.00.%1000
10 ALTRON  2380903.93.%76387
11 PBT  14053.70.%157500
12 TFG  92703053.40.%899723
13 NEPI  33901093.32.%13876
14 STEFSTOCK  1100353.29.%1452109
15 YORK  325103.17.%9600
16 FAMBRANDS  44831333.06.%18074
17 MVELAGRP  345102.99.%234197
18 BASREAD  1399392.87.%70023
19 TRNSHEX  32892.82.%18185
20 TRUWTHS  73991992.76.%756901

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Major Moves Down
SharenameSaleMove% MoveVolume
1 LONFIN  240-55-18.64.%560000
2 SPURCORP  1301-194-12.98.%5192
3 ELLIES   181-13-6.70.%35600
4 OPTIMUM  3450-240-6.50.%1506
5 ROLFES  225-14-5.86.%10930
6 COMPCLEAR  300-15-4.76.%8300
7 MRHLD  2560-100-3.76.%1266313
8 ONELOGIX  130-5-3.70.%127951
9 COAL  615-23-3.61.%397180
10 RAUBEX  1300-48-3.56.%75964
11 SAPPI  2363-82-3.35.%1817359
12 ADCOCK  6192-210-3.28.%180624
13 HULAMIN  702-23-3.17.%9694761
14 CROOKES  4225-125-2.87.%138
15 TRENCOR  3400-100-2.86.%11159
16 MUSTEK  525-15-2.78.%38324
17 PALLINGHT  320-9-2.74.%158090
18 PNR-FOODS  5906-164-2.70.%69544
19 HARMONY  9549-251-2.56.%897073
20 KUMBAIO  46000-1200-2.54.%1081789

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New Highs
SharenameSaleHighMove% MoveVolume
1 CIL  950950202.15.%113762
2 MEDCLIN  34903504501.45.%140099
3 GOLDONE  43343440.93.%1577673
4 TIGBRANDS  2191122393920.42.%373869
5 BATS  3496535505-60-0.17.%638901

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New Lows
SharenameSaleLowMove% MoveVolume
1 ARGENT  600600-9-1.48.%3597
2 TELKOM  32163132140.44.%2389380

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Index Summary
Index NameRPMove% Move
Top 4027,762.88-35.43-0.13%
Mid Cap41,630.66-82.73-0.20%
Small Cap31,520.2333.300.11%
Resource 2050,325.89-410.35-0.81%
Industrial 2528,061.94220.410.79%
Financial 157,938.34-34.05-0.43%
Financial & Ind. 3030,894.70124.250.40%
All Share31,054.20-41.03-0.13%
Oil & Gas 26,517.44118.090.45%
Mining 32,795.57-358.51-1.08%
Gold Mining2,786.52-48.69-1.72%
Platinum Mining62.21-1.06-1.68%
GENERAL MINING8,020.44-61.27-0.76%
Oil & Gas Producers 14,257.9463.500.45%
Basic Materials 27,714.19-310.55-1.11%
Chemicals 12,838.79-6.35-0.05%
Forestry & Paper 12,137.83-140.19-1.14%
Industrial Metals 27,619.66-530.16-1.88%
Industrials 27,231.9454.630.20%
General Industrials 76,901.84184.870.24%
Consumer Goods 29,025.26154.740.54%
Automobiles & Parts 3,725.03-11.33-0.30%
Household Goods142.93-1-0.79%
Health Care 34,472.0381.410.24%
Beverages 97.26.720.75%
Index NameRPMove% Move
Food Producers 49,820.44-43.44-0.09%
Personal Goods 418.482.690.65%
Consumer Services 54,638.12745.571.38%
General Retailers 44,609.65722.561.65%
Travel & Leisure 3,478.59-25.28-0.72%
Media 80.531.111.40%
Support Services 2,253.38-.70-0.03%
Telecommunications 65,900.03646.390.99%
Financials 21,255.78-74.68-0.35%
Banks 39,562.87-291.12-0.73%
Non-life Insurance 33,449.20-21.82-0.07%
Life Insurance 15,761.5557.490.37%
General Financial 2,105.822.410.11%
Technology 23,615.2134.870.15%
SHARIAH TOP40 2,974.92-13-0.43%
FTSE/JSE SHARIAH ALL3,038.71-13-0.43%
COAL MINING23,942.92-624-2.54%
FTSE JSE Fledgling 4,476.45-8-0.19%
FTSE/JSE Alt X 1,104.8450.42%
CAPPED PROPERTY 318.49-0.44%
RESOURCE 27,805.78-244-0.87%
DIVIDEND PLUS166.9700.12%
FTSE/JSE RAFI 406,423.99-8-0.12%
Capped Top 4014,607.18-13-0.09%
Capped All Share15,690.90-19-0.12%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
19 Oct 2011ANSYSAugust 2011 (Interim)
19 Oct 2011MASAugust 2011 (Interim)
19 Oct 2011ODERSONAugust 2011 (Interim)
19 Oct 2011PICKNPAYAugust 2011 (Interim)
19 Oct 2011PIKWIKAugust 2011 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PSG11-10-1411-10-2811-11-07R 0.2600
LONFIN11-10-1411-10-2811-11-25R 0.0030
DATATEC11-10-1211-11-1811-11-28R 0.0700
CMH11-10-1211-12-0811-12-19R 0.1300
ADCORP11-10-1211-11-0411-11-14R 0.5700
Ex Div**
Share NameDec-DateLDTPay-DateAmount
WBHO11-09-0511-10-1411-10-24R 2.2000
PHUMELELA11-09-3011-10-1411-10-24R 0.4300
AFROX11-07-1911-10-1411-10-24R 0.2200
PUTPROP11-09-2311-10-1411-10-24R 0.1500
AMAPS11-09-2611-10-1411-10-24R 0.0800

Upcoming AGMs**
CodeCompany NameDateStatus
VLEValue Group Ltd18/10/2011Confirmed
AERAmalgamated Electronic Corporation Ltd18/10/2011Confirmed
PGRPeregrine Holdings Ltd18/10/2011Confirmed
BAUBauba Platinum Ltd19/10/2011Unconfirmed
DSTDistell Group Ltd19/10/2011Confirmed

Stock Exchange News Service
18/10/201117:35RACP - RECM and Calibre Limited - Unaudited Interim financial results for the
18/10/201116:37 Peregrine Holdings Limited - Results of Annual General Meeting
18/10/201116:36 Sovereign Food Investments Limited - Dealings in securities by director
18/10/201116:29OML - Old Mutual Plc - Form 8.3
18/10/201116:00 Witwatersrand Consolidated Gold Resources Limited - Unaudited financial
18/10/201115:57 Curro Holdings Limited - Acceptance of options by directors in terms of
18/10/201115:51 Value Group Limited - Results of Annual General Meeting
18/10/201115:39 Eastern Platinum Limited - Eastplats reports production results
18/10/201114:38 RMB Holdings Limited - Appointment of alternate directors and appointment
18/10/201114:37 Rand Merchant Insurance Holdings Limited - Appointment of
18/10/201113:37 Dorbyl Limited - Trading statement
18/10/201113:32 Gold Fields Limited - Gold Fields Investor Days in Johannesburg and
18/10/201113:30ING46 - iNguza Investments (Proprietary) Limited - Interest Rate Reset
18/10/201113:01 Forbes & Manhattan Coal Corp - Condensed interim consolidated financial
18/10/201113:00 Forbes & Manhattan Coal Corp - Forbes Coal Revenue increases 80% to
18/10/201112:44 Taste Holdings Limited - Brand builder of the year, fourth time in
18/10/201112:27 KAP International Holdings Limited - Proposed acquisition by KAP of
18/10/201112:26 Steinhoff International Holdings Limited - Proposed disposal of
18/10/201112:15 Value Group Limited - Unaudited interim financial results for the
18/10/201112:05BIRCS - RCS Investment Holdings (Proprietary) Limited - Interest rate
18/10/201112:05TFS78 - Toyota Financial Services (South Africa) (Proprietary) Limited -
18/10/201111:44NEDB - Nedbank Limited - Issue of Share Instalments
18/10/201111:16INL/INP - Investec Limited/ Investec plc - Form 8 (DD)
18/10/201111:15INL/INP - Investec Limited/Investec plc - Form 8 (DD)
18/10/201111:06 Petmin Limited - Directors` dealing in securities
18/10/201111:02 Investec Property Fund Limited - Results of General Meeting
18/10/201110:59 Country Bird Holdings Limited - Dealings in securities
18/10/201109:45DEUT - Deutsche Bank AG - Issue of new Index Equity WAVEs
18/10/201109:34NEDB - Nedbank Limited - Issue of Share Instalments
18/10/201109:24 Orion Real Estate Limited - Director`s dealings in linked units
18/10/201109:07IND142 - iNdwa Investments Limited - Full capital redemption
18/10/201109:00 Consolidated Infrastructure Group Limited - Resolutions of the
18/10/201108:45 Delta EMD Limited - Trading statement update for the year ending
18/10/201108:30GEN - General - AET - Emphasis of matter
18/10/201108:18GEN - General - AWT & SKY - Late submission of provisional financial
18/10/201108:07 John Daniel Holdings Limited - Results of the rights offer and withdrawal
18/10/201108:00AFE - African Eagle Resources plc - Finance Director Appointment
18/10/201108:00 Merafe Resources Limited - Third quarter 2011 ferrochrome production
18/10/201107:10 British American Tobacco p.l.c - Transaction in own shares
18/10/201107:05 John Daniel Holdings Limited - Results of General Meeting and Approval of
18/10/201107:05ESPIBV - Investec Bank Limited -Issue of equity structured products (ESP)
18/10/201107:05 Coal of Africa Limited - Appendix 3b new issue announcement,

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