Having trouble reading this email? View in your web browser
 The Sharenet Daily 
Thursday, 27 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)

Sector Diversification

All of the companies on the JSE are grouped into industry sectors based on the business sector that they fall into, e.g. Standard Bank falls into Financials and MTN into Telecommunications. As much as it’s unwise to invest all your money in one share it’s also unwise to invest all your money into one sector. The average investor might believe that his portfolio is diversified if he is invested into different companies, but if he is invested into only one sector he will face similar risks as if he’s invested into one share (although slightly less amplified).

Companies in the same sector or industry are typically driven by the same economic factors and experience similar business cycles. An example of this is when we experience periods with high interest rates, banks come under pressure due to households borrowing less money, and more people default on their current loans. In the same period food retailers with low profit margins generate high turnover as a result of higher inflation that typically leads to an increase in revenue.

Below is a graph of the rolling 12 month returns of the 9 major sectors on the JSE.

It is logical (and evident from the chart above) that there are periods when certain sectors outperform the others. For an example Technology, from mid 2007 to the end of 2008, underperformed most sectors, but for the most of 2010 it outperformed the other sectors.

The graph below shows the ranking of the different sectors compared against each other. They are ranked according to their 12 month rolling return. The sectors with the highest ranking (i.e. best performance) are on top and the worst performers are at the bottom.

From this chart you can see that there are certain sectors that are more cyclical than others. Consumer Goods is an example of a sector that isn’t very cyclical, which would be expected as it is comprised of shares like SABMiller, Richemont, Tiger Brands, and Clover.

For this reason it is better to invest across all of the different sectors, although you can still manage your level of exposure to each of the different sectors. If you believe that one sector will outperform the other sectors you can increase your weighting to that specific sector to capture some of the expected excess return and vice versa.

While this article has purely focused on share portfolios, for most investors a share portfolio will only form a portion of your total investable assets. A similar principle can be used for your investments into the other asset classes and for your other investments.

If you have any questions or require any assistance with wealth or asset management please feel free to contact us on 021 9144 966 or info@seedinvestments.co.za

We can also be reached through Facebook or Twitter (@Seed_Invest).

Kind regards,

Gerbrandt Kruger
021 9144 966

Thu, 27 Oct 2011
Top News
South Africa's blue-chip index surged to its highest level in nearly five months on Thursday, with miners adding the most points on rallying metal prices as investors welcomed Europe's plan to tackle its debt crisis.  Full story

South Africa's rand extended its gains against the dollar on Thursday as investors flocked to higher-risk assets in a positive response to an overnight deal on the euro zone debt crisis.  Full story
Egypt released an American-Israeli it held as an alleged spy and Israel freed 25 Egyptians in a prisoner swap Thursday that will ease strains between Cairo's new rulers and the United States and Israel.  Full story
Rescue workers pulled a man from the rubble alive Thursday, more than four days after a huge quake killed at least 534 in Turkey, while homeless survivors fearing death from cold begged for aid and some accused the government of a slow response.  Full story
Thailand's prime minister said Bangkok was fighting the forces of nature on Thursday as residents fled, rivers swelled and floodwater threatened to burst through dikes protecting the capital.  Full story
U.S. stocks surged more than 2 percent on Thursday after European leaders reached a long-awaited agreement to boost the region's bailout fund and struck. . .  Full story
European shares soared to their highest close in 12 weeks on Thursday, with banks surging after European Union leaders struck a deal to. . .  Full story
Gold rose 1.5 percent on Thursday, fueled by a dollar drop, commodities rally and uncertainty over the details of a deal struck by. . .  Full story
World stocks surged and the euro jumped to a seven-week high against the dollar on Thursday after European leaders agreed on a sweeping. . .  Full story

Britain's top share index jumped to a near three-month high on Thursday as bullish investors uncorked their champagne bottles and toasted Europe's plan. . .  Full story
European shares soared to their highest close in 12 weeks on Thursday, with banks surging, after European Union leaders struck a deal to. . .  Full story
U.S. stocks jumped more than 2 percent at the open on Thursday after European leaders agreed to boost the region's bailout fund and. . .  Full story
European shares extended gains on Thursday afternoon, with banks surging after European Union leaders struck a deal to help resolve the euro zone. . .  Full story
SA Business
MTN Group, Africa's largest mobile operator, reported a 4 percent rise in third-quarter subscribers on Thursday and said it had been. . .  Full story
South Africa's white maize futures fell on Thursday weighed down by a strong rand after hitting an all-time high the previous. . .  Full story
World no.3 gold producer AngloGold Ashanti is set to report a solid third-quarter result tied to record gold prices for the. . .  Full story
South Africa's banks will face a "significant challenge" to meet tougher liquidity requirements under new global banking regulations, the Reserve Bank. . .  Full story

South Africa said on Thursday it would further relax foreign exchange controls to allow companies to top up capital in their offshore businesses and. . .  Full story
Toyota Motor Corp said it would keep its Thai production suspended for a fourth week and reduce output in North America and South. . .  Full story
South Africa's 180,000 barrels-per-day SAPREF refinery shut one of its process units for repairs after a problem was discovered during a. . .  Full story
Toyota Motor Corp said on Thursday it would keep its Thai production suspended through next week and reduce output at more. . .  Full story

Global miner Anglo American is mulling a $10-$15 billion expansion of its coal operations in Australia's Queensland state despite plans for "unfair" taxes. . .  Full story
South Africa's rand opened firmer and gained nearly two percent on the dollar in early trade on Thursday as emerging markets. . .  Full story
South Africa's Royal Bafokeng Platinum said on Thursday a wage strike by contract miners at its Bafokeng Rasimone Platinum mine had. . .  Full story
DRDGold, South Africa's fourth-largest gold producer, said on Thursday first-quarter headline earnings more than doubled as it reaped the benefits of. . .  Full story
Company News
Chemspec advised shareholders that the company expects an improvement in the company's loss and headline loss per share for the six. . .  Full story
Shareholders are advised that all of the resolutions proposed in the Notice to Members, dated 28 September 2011 incorporated in the. . .  Full story
The company is pleased to report that having completed the acquisition of the Tirisano project, with effect from September 1, 2011,. . .  Full story
At the 45th annual general meeting of the shareholders of Rainbow held on 27 October 2011, all the ordinary and special. . .  Full story

Notice was given that preference dividend number 151 at a rate of 6% per annum for the period ended 30 September. . .  Full story
A review of the financial results for the year ended 31 August 2011 by management has indicated that the loss and. . .  Full story
Shareholders were advised that, at the annual general meeting of Sentula held on 27 October 2011, all the resolutions as set. . .  Full story
Shareholders are advised that the company's annual report, incorporating the audited financial statements for the year ended 31 May 2011, was. . .  Full story
Company Results
Revenue increased to R50.5 million (August 2010: R48.5million) and gross profit rose to R19.5 million (August 2010: R17.9 million). Net attributable. . .  Full story
Revenue for the period decreased to USD144.6 million (2010: USD149.1 million). Gross loss was recorded at USD1.6 million (2010: profit of. . .  Full story
Gold and silver revenue increased to R806.2 million (September 2010: R623.6 million). Operating profit more than doubled to R202.5 million (September. . .  Full story
Revenue for the year ended 31 August 2011 increased to R1.4 billion (2010: R1.2 billion). Gross profit rose to R409.5 million. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0032452.55715.932.26%
JSE Top 4017:0029159.47723.102.54%
JSE Gold17:002996.4528.270.95%
JSE Financial17:0021778.52273.621.27%
JSE Industrial17:0034288.39504.501.49%
JSE Indust 2517:0029052.72464.621.63%
JSE Resource17:0053975.871958.433.76%
DJ Futures19:4612120.00268.002.26%
DJ Ind19:4112197.96328.922.77%
SP 50019:561282.5740.573.27%
FTSE 10017:355713.82160.582.89%
All Ords07:364403.90103.102.40%
NZSE 5006:463303.476.490.20%
NameTimeRPMove% Move
Gold/R kg19:56432639-5885-1.34%
Brent Crude19:56113.191.891.70%
Rand / Dollar20:007.6895-0.2746-3.45%
Rand / Pound19:5512.3659-0.3098-2.44%
Rand / Euro19:5510.9431-0.1182-1.07%
Rand / NZD19:596.3137-0.0581-0.91%
Rand / AUD19:558.2635-0.0193-0.23%
Yen / Dollar20:0075.9020-0.3340-0.44%
Euro / Dollar19:550.7030-0.0164-2.28%
Dollar / Euro19:561.42330.03312.38%
Pound / Dollar19:550.6202-0.0061-0.97%

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

Major Moves Up
SharenameSaleMove% MoveVolume
1 EASTPLATS  5095712.61.%373678
2 BAUBA  229199.05.%1500
3 OANDO  140107.69.%10000
4 AQUARIUS  24491647.18.%326057
5 ANGLOPLAT  5660030905.77.%675827
6 URONE  22401195.61.%219432
7 INVLTD  50252555.35.%1387341
8 KGMEDIA  1740855.14.%93778
9 INVPLC  49402405.11.%1877546
10 AMA  19994.74.%35600
11 BILLITON  2600011704.71.%7903311
12 VALUE  408184.62.%19230
13 ANGLO  3040013214.54.%5834823
14 COAL  678294.47.%490930
15 LONMIN  142506004.40.%152574
16 EHSV  37801504.13.%9995
17 DORBYL  280114.09.%15200
18 AFGRI  535214.09.%23873
19 IMPLATS  180006954.02.%1586671
20 ARM   185506713.75.%337542

Click here for more Major Moves...
Major Moves Down
SharenameSaleMove% MoveVolume
1 ROCKWELL  390-125-24.27.%667
2 CALGRO  162-18-10.00.%102200
3 RANGOLD  215-15-6.52.%6000
4 DAWN  520-30-5.45.%51859
5 OCTODEC  1560-90-5.45.%207842
6 COMAIR  190-10-5.00.%233
7 ESORFRANK  146-6-3.95.%30472
8 VILLAGE  154-6-3.75.%2038098
9 GBGOLD  1180-45-3.67.%12825
10 HOWDEN  1400-50-3.45.%36010
11 ARB  349-11-3.06.%16917
12 PREMIUM  1460-39-2.60.%2173941
13 BASREAD  1430-30-2.05.%59409
14 BATS  35995-744-2.03.%754253
15 WESIZWE  152-3-1.94.%334122
16 MEDCLIN  3487-63-1.77.%278543
17 ALTRON  2350-40-1.67.%862296
18 MUSTEK  540-9-1.64.%5400
19 ACUCAP  3832-53-1.36.%405144
20 PHUMELELA  1100-15-1.35.%3000

Click here for more Major Moves...

New Highs
SharenameSaleHighMove% MoveVolume
1 CML  22602315753.43.%641942
2 AMECOR  20020052.56.%21500
3 REMGRO  12000120502542.16.%1157720
4 DRDGOLD  521536112.16.%3658345
5 CAPCO  22362259452.05.%127426
6 CASHBIL  10400107852001.96.%31059
7 PAN-AF  17217531.78.%2560023
8 SANLAM  29352948411.42.%9194938
9 WOOLIES  39974040370.93.%5921968
10 OCEANA  42274400260.62.%62121
11 TIGBRANDS  22995234451150.50.%465005

Click here for more Major Moves...
New Lows
SharenameSaleLowMove% MoveVolume
1 COMAIR  190190-10-5.00.%233
2 ALTECH  53505252-20-0.37.%150975

Click here for more Major Moves...

Index Summary
Index NameRPMove% Move
Top 4029,159.47723.102.54%
Mid Cap42,413.08314.280.75%
Small Cap31,858.77232.650.74%
Resource 2053,975.871958.433.76%
Industrial 2529,052.72464.621.63%
Financial 158,152.58119.021.48%
Financial & Ind. 3031,919.88504.331.61%
All Share32,452.55715.932.26%
Oil & Gas 28,188.63719.502.62%
Mining 35,190.241295.633.82%
Gold Mining2,996.4528.270.95%
Platinum Mining65.482.664.23%
GENERAL MINING8,644.36380.714.61%
Oil & Gas Producers 15,156.51386.862.62%
Basic Materials 29,575.351049.073.68%
Chemicals 12,885.4993.160.73%
Forestry & Paper 12,069.97127.521.07%
Industrial Metals 27,922.68813.843.00%
Industrials 27,967.11455.151.65%
General Industrials 79,330.991468.821.89%
Consumer Goods 30,328.62417.841.40%
Automobiles & Parts 3,845.0543.021.13%
Household Goods153.1042.77%
Health Care 34,733.02353.101.03%
Beverages 98.41-.06-0.06%
Index NameRPMove% Move
Food Producers 51,661.79349.730.68%
Personal Goods 458.8316.183.66%
Consumer Services 57,059.87699.671.24%
General Retailers 46,946.02454.690.98%
Travel & Leisure 3,508.8246.681.35%
Media 85.381.932.31%
Support Services 2,
Telecommunications 66,521.891241.531.90%
Financials 21,778.52273.621.27%
Banks 40,272.33334.360.84%
Non-life Insurance 34,433.71606.231.79%
Life Insurance 16,405.91322.572.01%
General Financial 2,204.7463.332.96%
Technology 23,400.54-.97-0.00%
SHARIAH TOP40 3,160.311023.35%
FTSE/JSE SHARIAH ALL3,211.85963.08%
COAL MINING23,975.705992.56%
FTSE JSE Fledgling 4,547.7020.05%
FTSE/JSE Alt X 1,188.8650.42%
RESOURCE 29,797.1110503.65%
DIVIDEND PLUS172.1321.29%
FTSE/JSE RAFI 406,707.751552.37%
Capped Top 4015,309.203602.41%
Capped All Share16,382.793542.21%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
28 Oct 2011FINBONDAugust 2011 (Interim)
28 Oct 2011FPTSeptember 2011 (Final)
28 Oct 2011METMARAugust 2011 (Interim)
28 Oct 2011TCSAugust 2011 (Interim)
28 Oct 2011TCSPAugust 2011 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PREMIUM11-10-2111-11-1111-11-21R 0.5580
OCTODEC11-10-2111-11-1111-11-21R 0.6430
OASIS11-10-2011-11-0411-11-14R 0.4710
FAMBRANDS11-10-2011-12-0811-12-19R 0.8000
CLICKS11-10-2012-01-2012-01-30R 0.8800
Ex Div**
Share NameDec-DateLDTPay-DateAmount
NTC PREF11-10-0311-10-2111-10-31R 3.3842
SHFINV-PREF11-09-0611-10-2111-10-31R 3.3500
EOH11-09-1211-10-2111-10-31R 0.4800
ELBGROUP11-09-2111-10-2111-10-31R 0.4000
OPTIMUM11-08-2511-10-2111-10-31R 0.3000

Upcoming AGMs**
CodeCompany NameDateStatus
PNGPinnacle Point Group Ltd27/10/2011Unconfirmed
RBW1Rainbow Chicken Ltd27/10/2011Confirmed
RBWRainbow Chicken Ltd27/10/2011Confirmed
SNUSentula Mining Ltd27/10/2011Confirmed
TCSTotal Client Services Ltd28/10/2011Confirmed

Stock Exchange News Service
27/10/201117:44 Chemspec - Trading statement
27/10/201117:35GEN - FTSE/JSE Africa Index Series - JD Group Ltd (South Africa): Shares in
27/10/201117:27 Metmar Limited - Unaudited interim financial results for the six
27/10/201117:20 British American Tobacco p.l.c. - Notification of transactions by
27/10/201117:17 Pinnacle - Pinnacle Repurchase from Amabubesi Technology Holdings (Pty)
27/10/201117:13 Ellies Holdings Limited - Dealing in Securities
27/10/201117:02 Cadiz Holdings Limited - Results of general meeting of shareholders and
27/10/201117:00 Nu-World - Audited Financial Statements for the year ended 31 August 2011
27/10/201116:49BIDEN - Denel SOC Limited - Listing of New Financial Instrument
27/10/201116:37OML - Old Mutual Plc - Form 8.3
27/10/201116:31 AH-Vest Limited - Renewal of cautionary announcement
27/10/201116:31PGS - PSG Group Limited - Dealing in PSG Group Limited shares
27/10/201116:25OML - Old Mutual plc - Form 8.3
27/10/201116:12 Sea Kay Holdings Limited - Updated trading statement
27/10/201116:10 Rockwell Diamonds Incorporated - Rockwell provides update on Tirisano
27/10/201115:29 Rainbow Chicken Limited - Report on proceedings at annual general meeting
27/10/201115:15BAW/BAWP - Barloworld Limited - Preference dividend no. 151
27/10/201115:13 1time holdings Limited - Changes to the board of directors
27/10/201114:56RLO/RLZP - Reunert Limited - Trading statement
27/10/201114:50 B & W Instrumentation and Electrical Limited - Trading update
27/10/201114:30 SABMiller plc - Altria financial data disclosure
27/10/201114:18 Hardware Warehouse Limited - Dealings in securities by a director
27/10/201113:47FRS49 - FirstRand Bank Limited - Interest rate reset announcement
27/10/201113:39 Telemasters Holdings Limited - Changes to the board of directors
27/10/201113:37 Northam Platinum Limited - Unions intransigent in dispute with Zondereinde
27/10/201113:18 Growthpoint Properties Limited - Dealing in securities by an
27/10/201113:17IPL/IPLP - Imperial Holdings Limited - Dealing in securities by director of
27/10/201112:53 Sentula Mining Limited - Results of Annual General Meeting
27/10/201112:31 Onelogix Group Limited - No change statement and notice of Annual
27/10/201112:30NFSH40 - NewFunds Shariah TOP 40 Index ETF - Announcement regarding
27/10/201112:27 MTN Group Limited - Release of subscriber numbers for the quarter ended 30
27/10/201112:25 Iliad Africa Limited - Dealing by director of a major subsidiary
27/10/201112:02 Premium Properties Limited - Dealing in securities by associate of a
27/10/201112:00 Murray & Roberts Holdings Limited - Dealing in securities:
27/10/201112:00NBAGL2 - Nedbank - Expiry and delisting announcement in relation to the
27/10/201111:49BINRA - South African National Roads Agency Soc Limited - Statement
27/10/201111:35 Ububele Holdings Limited - Withdrawal of cautionary
27/10/201111:34INL/INP - Investec Limited/Investec plc - Form 8 (DD
27/10/201111:33INL/INP - Investec - FORM 8 (DD)
27/10/201111:30 Brait SE - Notice of extraordinary General Meeting
27/10/201111:15 Gold One - Notice of Variation Extending Offer Period and Notice Under
27/10/201111:14 Gold One International Limited - Notice of fulfilment of condition
27/10/201111:01 Howden Africa Holdings Limited - Notice of general meeting
27/10/201110:54 PSV Holdings Limited - Unaudited Condensed Financial Results for the
27/10/201110:45MND/MNP - Mondi Limited/Mondi plc - Cancellation of Mondi Limited`s
27/10/201110:44 Bonatla Property Holdings Limited - Further trading statement
27/10/201110:29 Remgro Limited - Dealings in securities by a director
27/10/201110:23BIIVU - iVuzi Investments Limited - Listing of New Financial Instrument and Tap
27/10/201110:20 Resilient Property Income Fund Limited - Results of resolutions of
27/10/201110:13 Clientele Limited - Results of Annual General Meeting
27/10/201110:03FRC81 - FirstRand Bank Limited - Listing of new financial instrument
27/10/201110:02 Tawana Resources NL - Len Kolff appointed as Managing Director
27/10/201109:51BIDC17 - Bidvestco Limited - Listing of new financial instrument
27/10/201109:50INL/INP - Investec Limited/Investec plc - Disclosure in accordance with
27/10/201109:48 Consolidated Infrastructure Group Limited - Consolidated
27/10/201109:14 Brikor Limited - Results of the Annual General Meeting
27/10/201109:00DENG19 - Denel SOC Limited - Full Capital Redemption
27/10/201108:17 Eastern Platinum Limited - JIC and NUM reach settlement
27/10/201108:00 Aquarius Platinum Limited - Financial and production results to 30
27/10/201108:00 Royal Bafokeng Platinum Limited - Update on industrial action at RBPLAT`s
27/10/201108:00 DRDGold Limited - Report to shareholders for the 1st quarter ended 30
27/10/201107:17 Hyprop Investments Limited - Placing of Hyprop Investments Limited
27/10/201107:15 Spanjaard Limited - Unaudited interim group results for the six

Click here for more SENS news