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 The Sharenet Daily 
Thursday, 17 November 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)

Credit Ratings: What Do They Mean?

News broke on Wednesday last week that the US credit rating agency Moody’s has downgraded the outlook on South Africa’s local and foreign currency government debt from stable to negative. This announcement resulted in the rand and local bonds weakening immediately on Wednesday, highlighting once again the significant effect these credit ratings have on market sentiment.

But how do these ratings work in practice?

There are three top credit rating agencies globally: Standard & Poor’s (S&P’s), Moody’s, and Fitch IBCA. These agencies assign ratings to most major investment instruments issued by both corporations and sovereigns, including short and long term debt obligations, securities and other loans. The ratings assigned are designed to inform potential investors of the risks associated with a particular credit issue, especially the issuer’s ability to repay the debt.

Moody’s uses a multidisciplinary or “universal” approach to credit analysis, trying to effectively combine qualitative and quantitative factors in their methods. A quantitative computer model provides an objective and factual starting point, and this initial rating is then discussed further by a diverse panel of credit risk professionals. This panel considers factors unique to the particular instrument, issuer, industry, and country in order to adjust the rating.

They follow these basic principles:
• Focus on the long term, looking through the next economic cycle or longer and not adjusting ratings based on business cycles and other short-term factors.
• Global consistency, ensuring that ratings are comparable across countries and industries and ensuring that a company’s debt rating can never exceed that of the country in which it is based.
• Level and predictability of cash flow, analysing strategic factors that drive the generation of cash flows that can be used to repay interest and capital.
• Reasonable adverse scenarios are analysed to try and determine if a company will still be able to meet its debt obligations under difficult conditions.
• “Seeing through” local accounting practices, in order to determine how different accounting practices can influence true economic value. Their focus when valuing assets are on future cash flows as opposed to balance sheet values.

The table below compares the 3 main rating agencies’ different ratings:

South Africa’s government debt currently carries an A3 rating from Moody’s, signifying they are upper medium grade obligations subject to low credit risk. Moody’s didn’t downgrade the actual rating on Wednesday, but rather the outlook which might indicate a future downgrade if certain factors in our economy don’t improve.

They indicated the following reasons for adjusting the outlook:
• Rising pressure from society at large, as well as from within the ANC, to ease fiscal policy and address SA’s high levels of poverty and unemployment. Spending more in order to deal with these socio-economic challenges could force debt levels higher.
• Moody’s expects economic growth to be lower than previously expected, limiting it to about 3% to 3.5% over the medium term. This is mostly a result of an overall weaker global economy. If this lower growth rate results in further increases in unemployment, risks of political instability may be increased.
• The ongoing debate regarding nationalisation of mines or other sectors may harm the future flow of private investment into SA.

The National Treasury responded quickly to these arguments, confirming that they are committed to a sustainable fiscal policy and low inflation targets. They also stated that they are managing their debt efficiently and although their budget deficit is widening they are not borrowing more.

It is agreed that the next two years will be especially challenging for SA’s political system, and the influence on our economy will be significant. Any downgrade will increase the rate at which the government can borrow, which in turn puts more pressure on the fiscus.

Kind regards,

Cor van Deventer
021 9144 966

Sources: Moody’s, Fin24

Thu, 17 Nov 2011
Top News
Disappointing figures from South African firms such as Impala Platinum and investment bank Investec put a dampener on stock prices, dragging the blue-chip top-40 index nearly 1 percent lower on Thursday.  Full story

Brazil is launching a top-level drive to expand its economic ties with Africa, a sign of how crises in the rich world are pushing faster-growing emerging economies to trade and invest among themselves.  Full story
Major powers closed ranks on Thursday to increase pressure on Iran to address fears about its atomic ambitions, and the U.N. nuclear chief said it was his duty to "alert the world" about suspected Iranian efforts to develop atom bombs.  Full story
Greek police fired tear gas against black-clad youths protesting against austerity on Thursday, one day after a national unity government took office charged with imposing painful tax rises and spending cuts to save Greece from bankruptcy.  Full story
Italy is facing a serious emergency, new Prime Minister Mario Monti said on Thursday as he promised rigour and fairness in painful reforms to dig the country out of a financial crisis that threatens the entire euro zone.  Full story
U.S. stocks dropped sharply in early afternoon trading on Thursday, with the Nasdaq down about 2 percent, as investors pulled out of risky. . .  Full story
European shares hit their lowest close in six weeks on Thursday on concerns a debt crisis in the euro zone could spiral out. . .  Full story
The Nasdaq fell more than 1 percent while other major indexes added to losses on Thursday amid concerns over rising yields on euro. . .  Full story
Gold fell around 1.5 percent on Thursday as investors sold the precious metal to cover sharp losses in other commodity markets, and selling accelerated. . .  Full story

Britain's top share index retreated on Thursday, with nervous investors ditching riskier assets such as banks and retailers, as corporates showed signs of stress. . .  Full story
European shares hit their six-week closing low on Thursday on concerns that a debt crisis in the euro zone will spiral out of. . .  Full story
The euro gained on Thursday after Italy's new prime minister pledged additional economic reforms, but rising yields on euro zone debt kept alive. . .  Full story
U.S. stocks edged lower at the opening on Thursday as another round of improved U.S. economic data was offset by concerns over rising. . .  Full story
SA Business
Harmony Gold said on Thursday it was still searching for a trapped miner at its Kusasalethu mine in South Africa and. . .  Full story
South African petrochemicals group Sasol plans to build a 140 MW gas-to-power plant in Mozambique, with first power from the project. . .  Full story
. . .  Full story
South Africa's mines minister said on Thursday that her department would be increasing health and safety audits of mines in the. . .  Full story

Tax hikes on mining companies in Ghana's 2012 budget could discourage investment in Africa's second-largest gold producer, the West African country's mining body warned. . .  Full story
South Africa's rand nudged higher against the dollar in late Johannesburg trade on Thursday as risk appetite received a boost from. . .  Full story
Brazil is launching a top-level drive to expand its economic ties with Africa, a sign of how crises in the rich. . .  Full story
Impala Platinum, the world's second-largest platinum producer, said on Thursday first-quarter gross platinum production declined by 12 percent to 388,000 ounces. . .  Full story

Swaziland's King Mswati III, Africa's last absolute monarch, is personally funding a bailout of his government in a manoeuvre to acquire control of the local arm of mobile phone firm MTN and SwaziBank at knock-down. . .  Full story
South Africa's benchmark white maize futures eased slightly on Thursday on profit taking after a rally the previous day on the back of prolonged, strong export demand saw the contract hit. . .  Full story
Statistics South Africa unveiled major changes to its producer price index (PPI) on Thursday that will reduce the weighting of mining output and make it a more relevant lead indicator of. . .  Full story
Company News
Shareholders are advised that AMAPs hosted a number of analysts for a half-day site visit at their offices is Johannesburg on. . .  Full story
Further to the cautionary announcement dated 25 August 2011 and 06 October 2011 shareholders are advised that negotiations are still in. . .  Full story
AC Towers is in strategic discussions regarding its going concern prospects as well as funding requirements. Accordingly, shareholders are advised to. . .  Full story
Shareholders are advised that the company is in the process of finalising its results for the six months ended 31 August. . .  Full story

Amplats shareholders were referred to the announcement by Amplats released on SENS on 7 November 2011 and published in the press on 8 November 2011 ("announcement") regarding the proposed community development transaction involving certain Amplats' mine host communities ("transaction"). Shareholders are hereby advised that a circular containing full details of the transaction and incorporating a notice of general meeting ("circular") was posted to shareholders on Monday 14 November 2011.. . .  Full story
Company Results
Net revenue dropped marginally to R383.9 million (R384 million) but operating profit rose enormously to R27.8 million (R9.7 million). Net profit. . .  Full story
Revenue rose to CAD46.7 million (September 2010: CAD12.2 million). The loss from operating activities improved to CAD8.6 million (September 2010: loss. . .  Full story
Revenue declined slightly to R59.6 million (R59.7million). The profit before interest, depreciation and amortisation was recorded at R8.4 million (loss of. . .  Full story
Revenue increased by 11.7% to R9 812 million (September 2010: R8 786 million), while operating profit was rose by 16.4%. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0032438.05-234.62-0.72%
JSE Top 4017:0029057.13-251.36-0.86%
JSE Gold17:003204.49-14.45-0.45%
JSE Financial17:0021605.46-81.00-0.37%
JSE Industrial17:0034139.05-157.86-0.46%
JSE Indust 2517:0028724.39-168.42-0.58%
JSE Resource17:0054244.91-677.45-1.23%
DJ Futures20:0011710.00-135.00-1.14%
DJ Ind19:4511752.79-152.80-1.28%
SP 50020:001217.43-19.48-1.57%
FTSE 10018:355423.14-85.88-1.56%
All Ords07:454324.1010.300.24%
NZSE 5006:463280.74-.68-0.02%
NameTimeRPMove% Move
Gold/R kg20:00454435-7935-1.72%
Brent Crude19:56108.89-2.21-1.99%
Rand / Dollar19:598.22180.03270.40%
Rand / Pound19:5512.91340.08850.69%
Rand / Euro19:5511.06310.07470.68%
Rand / NZD19:586.2345-0.0330-0.53%
Rand / AUD19:558.2213-0.0282-0.34%
Yen / Dollar19:5976.9600-0.0450-0.06%
Euro / Dollar19:550.7422-0.0009-0.12%
Dollar / Euro19:591.34700.00150.11%
Pound / Dollar19:550.6343-0.0014-0.22%

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

Major Moves Up
SharenameSaleMove% MoveVolume
1 AMECOR  218125.83.%30100
2 S-OCEAN  14075.26.%888
3 PAN-AF  18584.52.%6139131
4 WESIZWE  14064.48.%895292
5 VILLAGE  18884.44.%2707628
6 VIVIDEND  480204.35.%16000
7 ONELOGIX  13453.88.%134079
8 CERAMIC  108004003.85.%800
9 MMG  275103.77.%7500
10 NICTUS  22662.73.%49011
11 CAT  1450382.69.%249932
12 LEWIS  76391892.54.%370746
13 ILIAD  511112.20.%3477
14 INVICTA  51001002.00.%4489
15 REUNERT  62871171.90.%330639
16 PICKNPAY  4201761.84.%1215969
17 CML  2369391.67.%872252
18 VERIMARK  12421.64.%61200
19 PIKWIK  1758281.62.%292224
20 AMA  19031.60.%72300

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Major Moves Down
SharenameSaleMove% MoveVolume
1 PLATMIN  185-35-15.91.%346296
2 MAZOR  136-22-13.92.%9500
3 OANDO  125-10-7.41.%9758
4 AFRIMAT  441-28-5.97.%22415
5 IMPLATS  18015-886-4.69.%2089461
6 DORBYL  225-10-4.26.%1000
7 AFRO-C  225-10-4.26.%27400
8 GOLIATH  345-15-4.17.%46000
9 URONE  1972-80-3.90.%95529
10 EASTPLATS  507-20-3.80.%41204
11 SENTULA  196-7-3.45.%538777
12 JUBILEE  172-6-3.37.%189402
13 INVLTD  4580-155-3.27.%1864648
14 ROLFES  300-10-3.23.%56000
15 METROFILE  241-8-3.21.%16293
16 HOLDSPORT  3231-103-3.09.%53107
17 TSOGO-SUN  1605-50-3.02.%36702
18 GBGOLD  1079-32-2.88.%10868
19 HULAMIN  680-20-2.86.%96793
20 TRNSHEX  355-10-2.74.%493070

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New Highs
SharenameSaleHighMove% MoveVolume
1 AMECOR  218218125.83.%30100
2 PAN-AF  18519084.52.%6139131
3 MMG  275275103.77.%7500
4 NICTUS  22622662.73.%49011
5 CML  23692375391.67.%872252
6 MRPRICE  809081611251.57.%1534210
7 TIGBRANDS  23597236851290.55.%233661
8 SHOPRIT  1260012729340.27.%1754840

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New Lows
SharenameSaleLowMove% MoveVolume
1 PLATMIN  185180-35-15.91.%346296
2 DORBYL  225225-10-4.26.%1000

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Index Summary
Index NameRPMove% Move
Top 4029,057.13-251.36-0.86%
Mid Cap43,200.0025.650.06%
Small Cap31,860.39-76.95-0.24%
Resource 2054,244.91-677.45-1.23%
Industrial 2528,724.39-168.42-0.58%
Financial 158,079.85-39.07-0.48%
Financial & Ind. 3031,551.47-176.38-0.56%
All Share32,438.05-234.62-0.72%
Oil & Gas 29,062.32-77.04-0.26%
Mining 35,333.53-475.29-1.33%
Gold Mining3,204.49-14.45-0.45%
Platinum Mining65.53-2.32-3.42%
GENERAL MINING8,522.03-104.83-1.22%
Oil & Gas Producers 15,626.27-41.43-0.26%
Basic Materials 29,728.74-385.07-1.28%
Chemicals 13,050.80-18.60-0.14%
Forestry & Paper 11,680.11-29.66-0.25%
Industrial Metals 29,313.68-336.18-1.13%
Industrials 28,223.5913.110.05%
General Industrials 78,905.43-47.13-0.06%
Consumer Goods 29,562.89-293.11-0.98%
Automobiles & Parts 3,872.22.000.00%
Household Goods150.49-1-0.50%
Health Care 34,759.66-389.84-1.11%
Beverages 97.18-1.31-1.33%
Index NameRPMove% Move
Food Producers 52,515.3458.200.11%
Personal Goods 431.47-3.99-0.92%
Consumer Services 57,146.83-14.02-0.02%
General Retailers 47,829.97-141.89-0.30%
Travel & Leisure 3,685.6734.250.94%
Media 80.30-.03-0.04%
Support Services 2,202.478.060.37%
Telecommunications 67,315.56-8.50-0.01%
Financials 21,605.46-81.00-0.37%
Banks 39,889.64-175.82-0.44%
Non-life Insurance 34,424.01-252.19-0.73%
Life Insurance 16,315.646.950.04%
General Financial 2,165.35-33.73-1.53%
Technology 24,387.44-103.03-0.42%
SHARIAH TOP40 3,166.56-31-0.96%
FTSE/JSE SHARIAH ALL3,221.93-28-0.87%
COAL MINING24,723.73-204-0.82%
FTSE JSE Fledgling 4,579.2430.07%
FTSE/JSE Alt X 1,313.4970.54%
CAPPED PROPERTY 318.15-0.17%
RESOURCE 30,030.09-358-1.18%
DIVIDEND PLUS175.60-0-0.10%
FTSE/JSE RAFI 406,677.86-53-0.79%
Capped Top 4015,279.34-128-0.83%
Capped All Share16,389.57-116-0.70%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
18 Nov 2011FINBONDAugust 2011 (Interim)
18 Nov 2011PBTAugust 2011 (Final)
18 Nov 2011SABMILLERSeptember 2011 (Interim)
18 Nov 2011SABMILLER DEFSeptember 2011 (Interim)
18 Nov 2011SABMILLERPSeptember 2011 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
REX TRUE -N-11-11-1611-12-0211-12-12R 0.5200
CONDUIT11-11-1611-12-0211-12-12R 0.1000
AFOVR-N11-11-1611-12-0211-12-12R 0.3200
AF - OVR11-11-1611-12-0211-12-12R 0.3200
LIFEHC11-11-1611-12-0211-12-12R 0.3600
Ex Div**
Share NameDec-DateLDTPay-DateAmount
REMGRO11-09-2011-11-1111-11-21R 2.1300
OCTODEC11-10-2111-11-1111-11-21R 0.6430
PREMIUM11-10-2111-11-1111-11-21R 0.5580
MVELASV11-09-1511-11-1111-11-21R 0.3600
CBH11-08-2311-11-1111-11-21R 0.1084

Upcoming AGMs**
CodeCompany NameDateStatus
SCLSacOil Holdings Ltd17/11/2011Confirmed
FVTPFairvest Property Holdings Ltd17/11/2011Confirmed
FVTFairvest Property Holdings Ltd17/11/2011Confirmed
WHLPWoolworths Holdings Ltd17/11/2011Confirmed
WHLWoolworths Holdings Ltd17/11/2011Confirmed

Stock Exchange News Service
17/11/201117:44 First Uranium Corporation - Mining operations resume at Ezulwini Mine
17/11/201117:38 Cargo Carriers Limited - Trading statement
17/11/201117:29GND & GNDP - Grindrod Limited - Directorate
17/11/201117:20 Steinhoff International Holdings Limited - Issue price and ratio of
17/11/201117:19 Hosken Consolidated Investments Limited - Unaudited group interim results
17/11/201116:48SER/SRN - Seardel Investment Corporation Limited - Unaudited Group Interim
17/11/201116:47 William Tell Holdings Limited - Results of the Annual General Meeting
17/11/201116:45 Dorbyl Limited - Interim group results for the six months ended 30
17/11/201116:20 African Media Entertainment Limited - Unaudited interim results for the
17/11/201116:15 Sacoil Holdings Limited - Results of general meeting and annual general
17/11/201116:00 Ideco Group Limited - Posting of circular and notice of General
17/11/201115:50 Buildmax Limited - Reviewed consolidated financial results for the six
17/11/201115:39 The Don Group Limited - Renewal of cautionary announcement
17/11/201115:31 Wescoal Holdings Limited - On-going legal dispute with Sutha and
17/11/201115:30CLN000156 - The Standard Bank Of South Africa Limited - Interest Rate
17/11/201115:30 Masonite (Africa) Limited - Further cautionary announcement
17/11/201115:27CLN000157 - The Standard Bank Of South Africa Limited - Interest Rate
17/11/201115:26CLN000163 - The Standard Bank Of South Africa Limited - Interest Rate
17/11/201115:25CLN000179 - The Standard Bank Of South Africa Limited - Interest Rate
17/11/201115:24CLN000143 - The Standard Bank of South Africa Limited - Interest Rate
17/11/201115:23CLN000155 - The Standard Bank Of South Africa Limited - Interest Rate
17/11/201115:22CLN000154 - The Standard Bank of South Africa Limited - Interest Rate
17/11/201115:21CLN000188 - The Standard Bank of South Africa Limited - Interest Rate
17/11/201115:20CLN000170 - The Standard Bank Of South Africa Limited - Interest Rate
17/11/201115:15 Kumba Iron Ore Limited - Exercise of options and subsequent sale of shares
17/11/201115:05 Pinnacle Technology Holdings - Dealing in securities by director
17/11/201114:53IVA208 - iVuzi Investments Limited - Listing of Tap Issue
17/11/201114:32 SA French Limited - Disclosure of disposal and acquisition of
17/11/201114:28 Woolworths Holdings Limited - Results of Annual General Meeting and
17/11/201114:14 Nutritional Holdings Limited - Notice to shareholders of nutritional
17/11/201114:08 Fairvest Property Holdings Limited - Results of the Annual General Meeting
17/11/201114:05INL/INP - Investec Limited/Investec plc - Form 8 (DD)
17/11/201114:03 Impala Platinum Holdings Limited - First quarter production report
17/11/201114:01INL/INP - Investec Limited/Investec plc - Form 8 (DD)
17/11/201114:00 Pan African Resources plc - Cautionary announcement
17/11/201114:00DLP1/DLVP - Dorbyl Limited - Declaration of preference dividends
17/11/201113:45 South African Coal Mining Holdings Limited - Change to the board
17/11/201113:44 Netcare Limited - Dealings in securities by director
17/11/201113:37 Harmony Gold Mining Company Ltd - Dealing in securities by directors
17/11/201112:55 Discovery Holdings Limited - Dealing in securities by a Director of a
17/11/201112:12FSR - FirstRand Limited - Quarterly disclosure on Basel ii Capital adequacy
17/11/201111:52 Famous Brands Limited - Dealings in securities
17/11/201111:15 The Foschini Group Ltd - Director dealing in securities
17/11/201111:14ERS3C2 - South African Securitisation Programme (RF) Limited - New Financial
17/11/201111:13ERS3B2 - South African Securitisation Programme (RF) Limited - New Financial
17/11/201111:11ERSA13 - South African Securitisation Programme (RF) Limited - New
17/11/201111:00INL/INP - Investec Limited / Investec plc - Investec plc and Investec Limited -
17/11/201110:50INL/INP - Investec Limited/Investec Plc - Disclosure in accordance with Rule
17/11/201110:44 Austro Group Limited - Audited financial results for the year ended
17/11/201110:38 Village Main Reef Limited - Report for the quarter ended 30 September
17/11/201110:21 Massmart Holdings Limited - Notification of Director`s dealing in Massmart
17/11/201110:20 Massmart Holdings Limited - Notification of Director`s dealing in Massmart
17/11/201110:01 Eqstra Holdings Limited - Results of Annual General Meeting and
17/11/201110:00 Tsogo Sun Holdings Limited - Condensed unaudited interim results For the
17/11/201109:47 Amalgamated Appliance Holdings Limited - Amalgamated Appliances
17/11/201109:30 Woolworths Holdings Limited - Trading update: 20 weeks to 13
17/11/201109:24 BHP Billiton - Results of BHP Billiton`s 2011 Annual General Meetings
17/11/201109:20FRC64 - FirstRand Bank Limited - Partial Capital Redemption
17/11/201109:16 Colliers South Africa Holdings - Renewal of Cautionary Announcement
17/11/201109:07IPL/IPLP - Imperial - Dealing in Securities by Director of Imperial
17/11/201109:07 BHP Billiton Plc - Results of BHP Billiton`s 2011 Annual General Meetings
17/11/201109:02INLP - Investec Bank Limited - Reviewed interim condensed consolidated financial
17/11/201109:02 New Europe Property Investments Plc - Proposed Development
17/11/201109:01 SAB Miller - Strong Developing Market Performance Drives Sales And
17/11/201109:00INP/INL - Investec plc/ Investec Limited - Unaudited consolidated financial
17/11/201108:56 Africa Cellular Towers Limited - Trading update and cautionary
17/11/201108:55 Investec Property Fund Limited - Reviewed interim condensed financial
17/11/201108:41 Sephaku Holdings Limited - Notification of share dealing by
17/11/201108:04 BHP Billiton Plc - BHP Billiton Limited 2011 AGM presentation
17/11/201108:01 Anglo American Platinum Limited - Posting of circular and the Notice of
17/11/201108:00 MiX Telematics Limited - Unaudited Group interim financial results for the
17/11/201108:00NET41 - Clindeb Investments - New Financial Instrument Listing Announcement
17/11/201107:26 BHP Billiton Plc - BHP BILLITON Prices US$3.0 Billion Bond
17/11/201107:14 Anglogold Ashanti - Announces results of General Meeting
17/11/201107:11 Anglo American plc - Treasury shares - transfers
17/11/201107:10 Anglo American plc - Director`s / PDMR`S interests
17/11/201107:10 British American Tobacco p.l.c. - Transaction in own shares
17/11/201107:06 Acucap Properties Limited - Unaudited Condensed Interim Results for the 6
17/11/201107:06GEN - FTSE/JSE Africa Index Series - Rolfes Technology Holdings (South Africa):
17/11/201107:05 Sycom Property Fund - Unaudited condensed interim financial statements

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