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 The Sharenet Daily 
Thursday, 23 February 2012 - 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)

Budget Speech 2012

Being a country’s Finance Minster is never an easy task. It is one of those jobs where you’re only able to please some of the people some of the time. With many world economies currently struggling with sluggish growth and high debt levels, this job is understandably not on the top of everyone’s list of most desirable job list.

South Africa is fortunate in that it doesn’t have high debt levels and growth is at least expected to be positive, but the levels of unemployment require that we grow at rates not often seen in South Africa. Public debt is expected to rise to 38% of GDP in 2014/2015 and then fall from there, this is much more sustainable than the figures closer to (and in some cases above) triple figures in Europe. Economic growth is expected to come in at 2.7% for 2012 which compares unfavourably to Sub Sahara Africa (5.5%) and developing Asia (7.3%), but is better than Developed economies at 1.2%. With inflation to the end of January coming in at 6.3%, South Africans should see nominal economic growth of around 9% in 2012.

The budget contained the usual target areas, but it was noticeable that there was a slight shift in focus from spending on consumption to spending on development of infrastructure. Pravin Gordhan wants government departments to rein back on salaries and focus instead on improving efficiency of delivery – it is estimated that only 68% of planned expenditure was spent in the current financial year! Social spending currently comprises 58% of government expenditure – up from 49% a decade ago – and the Minster admitted that the best way to reduce this dependence is through job creation and economic growth, not just increasing the subsidies.

In tough economic times there is extra focus on revenue collection and in this instance SARS (which Mr Gordhan used to be head of) has assisted in bringing in 5 million tax returns in the most recent tax season – this is some 23% more than the prior year. There was also an extra R 1 billion in tax revenue from the recent Voluntary Disclosure Programme. By widening the tax net the government is hopefully able to keep tax increases to a minimum by spreading the burden across a bigger income pool.

Personal Income Tax

There was the usual bracket creep for income tax rates. The chart below shows the monthly tax payable and average tax rate for the new (2013) tax year for tax payers under 65. It also shows the tax saving made at various income levels – you will notice that there are bigger percentage savings for the lower income levels.

The change in medical expense treatment has been discussed before by Treasury. Previously, qualifying medical expenditure came off your income (and in essence was credited at your marginal rate) this has been now been changed to a tax credit system. This change has the effect of giving a bigger tax break to those with marginal tax rates below 30% and reduces the deduction from those with higher marginal rates. R230 per month for the first two beneficiaries and R154 per month for each beneficiary thereafter from qualifying medical spend (medical aid contributions) will be taken off your tax bill from 1 March 2012.

Two of the bigger announcements that will particularly affect high net worth individuals with large discretionary savings are the increase in the tax on dividends to 15% (remember this tax is moving from the company’s responsibility to the tax payer’s responsibility from 1 April 2012). Secondly the inclusion rate on capital gains will be increased from 25% to 33.3% for individuals and special trusts and 50% to 66.6% for companies and other trusts. This will make the effective tax rate on capital gains just over 13% for individuals in the top income bracket (from 10%) and nearly 27% for family (and other) trusts (from the previous 20%). To help alleviate some of the pain the annual CGT threshold has been increased to R 30 000 (from R 20 000) the exclusion on death to R 300 000 (R 200 000) and on primary residences to R 2m (R 1.5m).

As savers in recognised retirement products (pension, provident, retirement funds) get relief from dividend tax and capital gains, the Treasury is, in essence, trying to make these regulated savings mechanisms more attractive. Naturally you do pay income tax rates when they mature, so each individual would need to look at their own specific situation. There is also consideration being given to savings products that would provide tax exempt growth for the short to medium term – with limits being imposed to avoid high net worth investors getting any undue benefit.

The annual budget is an opportune time for investors to relook at their investments to determine whether they have taken advantage of the breaks offered by government and optimised their portfolio based on the current and proposed legislation.

Take care,

Mike Browne
021 9144 966

Thu, 23 Feb 2012
Top News
South Africa's rand gained against the dollar on Thursday, taking its cue from a euro that hit multi-week highs on German data that eased concerns about growth in the euro zone.  Full story

South African stocks rose 0.38 percent on Thursday as shares of Africa's largest furniture retailer Steinhoff surged after it said it expects sharply higher H1 earnings and plans to list its European unit.  Full story
Afghanistan wants NATO to put on public trial those who burned copies of the Koran at a NATO base, President Hamid Karzai's office said on Thursday, after a third day of bloody protests over the incident.  Full story
Syrian tanks pushed into a rebel stronghold in the battered city of Homs on Thursday and U.N. investigators accused President Bashar al-Assad's government of crimes against humanity.  Full story
Simultaneous early morning attacks on mostly Shi'ite targets across Iraq killed at least 60 people and wounded dozens on Thursday in one of the bloodiest days of violence since U.S. troops pulled out in mid-December.  Full story
Brent oil priced in euros hit a record high on Thursday on heightened tension between Iran and the West while U.S. stocks struggled. . .  Full story
Britain's top shares rose on Thursday as investors welcomed robust corporate earnings newsflow, with Royal Bank of Scotland spearheading an advance in banking stocks. . .  Full story
U.S. stocks rose on Thursday after a labor market report indicated the economy was slowly recovering, but the data was not enough. . .  Full story
Gold rose to a three-month high on Thursday and headed for its biggest one-week rally in a month as Europe's bailout deal with. . .  Full story

U.S. stocks opened little changed on Thursday after labor market data indicated that while the economy continued to recover, progress was slow.. . .  Full story
European equities edged lower on Thursday on the back of poor earnings from Commerzbank and Dexia and a gloomy report on the. . .  Full story
Britain's leading share index pushed higher on Thursday, with investors cheering shoots of improvement in bluechip earnings and balance sheets, as well as in. . .  Full story
The Euro STOXX 50 volatility index, Europe's main gauge of equity market investor anxiety, known as the VSTOXX index, dropped to a seven-month. . .  Full story
SA Business
South Africa's Steinhoff International could raise at least $2 billion when it eventually floats its European unit, the furniture maker's head. . .  Full story
Major South African coal producers that own shares in the Richards Bay Coal Terminal (RBCT) may invest to expand the terminal. . .  Full story
South Africa's biggest-listed clothes retailer Truworths reported a 14 percent increase in first-half profit, lifted by higher prices and new stores.. . .  Full story
South Africa's top two lenders said on Thursday they expected profits to rise by around 20 percent, the latest sign banks. . .  Full story

Major South African coal producers that own shares in the Richards Bay Coal Terminal (RBCT) may invest to expand the terminal to handle. . .  Full story
Profit prospects are poor for South Africa's platinum miners as they collectively hold back from making the deep production cuts necessary to reduce a. . .  Full story
South African logistics firm Imperial reported a flat first-half profit, after last year's results were lifted by a black empowerment deal,. . .  Full story
South African paper maker Mondi reported a 49 percent rise in full-year profit on Thursday, buoyed by recovering demand and said. . .  Full story

Spot gold edged lower on Thursday, taking a breather after hitting a three-month high in the previous session, while sentiment remains supported on hopes of further monetary easing after sluggish economic. . .  Full story
South Africa is under no pressure to issue a new global bond as proceeds from a well-subscribed sale in January will meet its foreign commitments in the first few months of. . .  Full story
Shares in Bharti Airtel Ltd fell as much as 4 percent on Thursday after South Africa-based Econet Wireless said it is seeking at least $3.1 billion in damages in a dispute. . .  Full story
Company News
Shareholders are advised that the Company expects earnings per share ("EPS") and headline earnings per share ("HEPS") for the 12 months. . .  Full story
Shareholders are referred to the cautionary announcements published on SENS on 17 October 2011, 28 November 2011 and 12 January 2012,. . .  Full story
As previously communicated to shareholders FirstRand considers diluted normalised earnings per share from continuing operations to most accurately represent operational performance. . .  Full story
Further to the cautionary announcements dated 12 January 2012, 28 November 2011, 28 September 2011, 18 August 2011, 23 May 2011. . .  Full story
Company Results
Turnover was up 21.2% to R552.8 million (R456.2 million). Operating profit increased by 4.2% to R63.3 million (R60.8 million). Net attributable. . .  Full story
Revenue increased to R302.8 million (R232.7 million). Gross profit rose to R52.9 million (R42.5 million), while operating profit grew to R31. . .  Full story
Revenue for the interim period increased by 14.9% to R31.5 billion (2010: R27.5 billion). Gross profit rose by 12.8% to R5.6. . .  Full story
Revenue increased by 22% to R38.4 billion (R31.4 billion) and operating profit rose to R2.6 billion (R2.2 billion). Net profit attributable. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0034108.20101.680.30%
JSE Top 4017:0030402.63113.740.38%
JSE Gold17:002822.249.310.33%
JSE Financial17:0024250.79210.690.88%
JSE Industrial17:0036499.1090.030.25%
JSE Indust 2517:0030606.4598.600.32%
JSE Resource17:0054103.40-8.22-0.02%
DJ Futures19:1612965.0048.000.37%
DJ Ind19:4512973.4134.740.27%
SP 50020:001360.652.990.22%
FTSE 10018:355937.8921.340.36%
All Ords07:374367.50-4.60-0.11%
NZSE 5006:463323.16-5.07-0.15%
NameTimeRPMove% Move
Gold/R kg20:0044087558861.35%
Brent Crude19:56124.891.501.22%
Rand / Dollar19:597.6768-0.0368-0.48%
Rand / Pound19:5512.0277-0.0405-0.34%
Rand / Euro19:5510.2291-0.00010.00%
Rand / NZD19:586.40080.01170.18%
Rand / AUD19:558.21180.00060.01%
Yen / Dollar19:5880.1400-0.1090-0.14%
Euro / Dollar19:550.7506-0.0039-0.52%
Dollar / Euro19:591.33160.00700.53%
Pound / Dollar19:550.6366-0.0014-0.22%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 KELLY  4004913.96.%29450
2 HOWDEN  1900955.26.%226
3 AVUSA  2050985.02.%76887
4 MAS  1100504.76.%500
5 STEINHOFF  26431164.59.%12383442
6 RAUBEX  1500654.53.%107808
7 CALGRO  425174.17.%29400
8 NORTHAM  32911304.11.%463483
9 VERIMARK  11943.48.%69133
10 FIRSTRAND  2348753.30.%36089128
11 IMPLATS  166205193.22.%3954654
12 ELLIES   29993.10.%414150
13 RMBH  3071752.50.%2399921
14 AMA  26162.35.%345591
15 DIGICOR  31872.25.%198809
16 BCX  455102.25.%45344
17 EHSV  3880802.11.%11971
18 SUPRGRP  1418292.09.%4134145
19 BLACKSTAR  990202.06.%27457
20 ABSA  153113012.01.%3046078

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Major Moves Down
SharenameSaleMove% MoveVolume
1 NICTUS  400-60-13.04.%2999
2 PUTPROP  620-60-8.82.%50000
3 ILIAD  450-38-7.79.%197168
4 AFRIMAT  560-40-6.67.%114919
5 OANDO  132-7-5.04.%6273
6 BEE-SASOL  26500-1000-3.64.%1845
7 SILVERB  135-5-3.57.%62065
8 AVENG  3460-128-3.57.%3208532
9 CIPLAMED  665-23-3.34.%3963981
10 ELBGROUP  2505-80-3.09.%5632
11 DCENTRIX  466-14-2.92.%2615
12 URONE  2450-65-2.58.%101631
13 KEATON   275-7-2.48.%142608
14 SUNINT  8517-213-2.44.%61710
15 TRUSTCO  120-3-2.44.%583411
16 JSE  7500-180-2.34.%1165627
17 AFGRI  605-14-2.26.%50229
18 PALLINGHT  279-6-2.11.%2693707
19 WESIZWE  145-3-2.03.%377372
20 ALTRON  2399-46-1.88.%88833

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New Highs
SharenameSaleHighMove% MoveVolume
1 FIRSTRAND  23482358753.30.%36089128
2 RMBH  30713101752.50.%2399921
3 AMA  26126162.35.%345591
4 ABSA  15311155333012.01.%3046078
5 ARROW-B  47047051.08.%146392
6 SYNERGY-A  88088091.03.%10000
7 PPC  31503161300.96.%1089422
8 ONELOGIX  19421110.52.%290377
9 TFG  1175011774430.37.%857570
10 SPAR  1167011824400.34.%148489
11 WOOLIES  43024340120.28.%3019984
12 NEDCOR  1612116250240.15.%1234065
13 REUNERT  6958699080.12.%202408
14 CIL  117012250.108810
15 MRPRICE  90009188-79-0.87.%670276

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New Lows
SharenameSaleLowMove% MoveVolume
1 ILIAD  450349-38-7.79.%197168
2 TELKOM  26482637-2-0.08.%284201

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Index Summary
Index NameRPMove% Move
Top 4030,402.63113.740.38%
Mid Cap46,451.12-57.34-0.12%
Small Cap35,019.0046.000.13%
Resource 2054,103.40-8.22-0.02%
Industrial 2530,606.4598.600.32%
Financial 159,201.72104.351.15%
Financial & Ind. 3034,232.11212.160.62%
All Share34,108.20101.680.30%
Oil & Gas 30,156.31-189.19-0.62%
Mining 34,940.7355.000.16%
Gold Mining2,822.249.310.33%
Platinum Mining62.981.642.67%
GENERAL MINING8,727.39-25.39-0.29%
Oil & Gas Producers 16,214.49-101.72-0.62%
Basic Materials 29,700.8950.830.17%
Chemicals 15,007.01-26.40-0.18%
Forestry & Paper 13,786.01172.761.27%
Industrial Metals 31,266.47-56.83-0.18%
Industrials 31,417.46190.950.61%
General Industrials 87,612.521049.271.21%
Consumer Goods 31,543.8986.230.27%
Automobiles & Parts 4,925.20.000.00%
Household Goods173.7184.59%
Health Care 37,839.3152.690.14%
Beverages 105.04-.18-0.17%
Index NameRPMove% Move
Food Producers 56,228.88-185.24-0.33%
Personal Goods 463.233.800.83%
Consumer Services 62,117.34230.700.37%
General Retailers 51,992.13-20.48-0.04%
Travel & Leisure 3,683.91-43.79-1.17%
Media 89.19.650.73%
Support Services 2,364.882.240.09%
Telecommunications 66,355.73-230.19-0.35%
Financials 24,250.79210.690.88%
Banks 45,853.77763.341.69%
Non-life Insurance 36,623.40371.011.02%
Life Insurance 19,404.41119.520.62%
General Financial 2,314.4514.620.64%
Technology 26,834.0564.530.24%
SHARIAH TOP40 3,205.6960.19%
FTSE/JSE SHARIAH ALL3,289.4250.15%
COAL MINING27,244.55-201-0.73%
FTSE JSE Fledgling 5,219.27-9-0.16%
FTSE/JSE Alt X 1,253.3230.28%
CAPPED PROPERTY 330.48-0.19%
RESOURCE 29,905.11120.04%
DIVIDEND PLUS193.8500.18%
FTSE/JSE RAFI 407,133.35370.52%
Capped Top 4016,013.77660.41%
Capped All Share17,244.53530.31%
JSE TABACO 4,782.51-44-0.92%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
24 Feb 2012DELTADecember 2011 (Final)
24 Feb 2012KIBOSeptember 2011 (Final)
24 Feb 2012LIB-HOLDDecember 2011 (Final)
24 Feb 2012LIBHOLD-PDecember 2011 (Final)
24 Feb 2012LIBHOLD-P1December 2011 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
SA CORP12-02-2212-03-1512-03-26R 0.1448
IMPERIALP12-02-2212-03-1512-03-26R 3.3843
ROLFES12-02-2212-03-0912-03-19R 0.0500
TRNPACO12-02-2212-03-1512-03-26R 0.3100
MASSMART12-02-2212-03-0912-03-19R 2.5200
Ex Div**
Share NameDec-DateLDTPay-DateAmount
FIRSTRANDB-P12-02-0312-02-1712-02-27R 3.0516
CAPITAL12-02-0112-02-1712-02-27R 0.3427
CULINAN5.512-02-0312-02-1712-02-27R 0.0550

Upcoming AGMs**
CodeCompany NameDateStatus
CULCullinan Holdings Ltd.23/02/2012Confirmed
CULPCullinan Holdings Ltd.23/02/2012Confirmed
KELKelly Group Ltd23/02/2012Confirmed
CUP3Cullinan Holdings Ltd.23/02/2012Confirmed
CUP2Cullinan Holdings Ltd.23/02/2012Confirmed

Stock Exchange News Service
23/02/201217:45 Blackstar Group SE - Tr-1: Notification of major interest in shares
23/02/201217:29 PSG Group Limited - Dealing in PSG Group Limited shares by an associate of
23/02/201217:28 SELCo - Change to the Board of Directors
23/02/201217:15 Chemspec - Dealing in securities by a director
23/02/201217:05 William Tell - Unaudited Results for the six months ended
23/02/201216:39SCIB : GRTSIH - The Standard Bank Of South Africa Limited - Distribution
23/02/201216:31 Coronation Fund Managers Limited - Dealings in securities by a director
23/02/201216:30 Cipla Medpro South Africa Limited - Trading statement and clarification of
23/02/201216:30 Coronation Fund Managers Limited - Dealings in securities by a director
23/02/201216:28 O-line Holdings Limited - Trading Statement
23/02/201216:23 Capitec Bank Holdings Limited - Dealing in securities by a director and
23/02/201216:10GFINIH - Nedbank Limited - Dividend distribution announcement in relation to the
23/02/201216:09EXXNIF - Nedbank - Dividend distribution announcement in relation to the EXX
23/02/201216:08GFINNF - Nedbank Limited - Dividend distribution announcement in relation to the
23/02/201216:00 Kelly Group - Report on proceedings at Annual General Meeting
23/02/201215:03 Andulela Investment Holdings Limited - Posting of notice of general
23/02/201215:00 African Oxygen Limited - Audited group financial results and dividend
23/02/201214:52 Omnia Holdings Limited - Dealing in securities
23/02/201214:44 Mercantile - Financial Effects regarding the Proposed Specific Repurchase
23/02/201214:25 Truworths International Limited - Unaudited group Interim Results for the
23/02/201214:00MND/MNP - Mondi - Mondi Group - 2011 Final Dividend ZAR/euro Exchange Rate
23/02/201213:59 BHP Billiton Plc - Notification of Change of Interests of Directors
23/02/201213:58 BHP Billiton Plc - Notification of Change of Interests of Directors and
23/02/201212:50BTIIHA - Investec Warrants - Declared final dividend announcement on British
23/02/201212:49BTIIDA - Investec Warrants - Declared Final Dividend Announcement on British
23/02/201212:00AOO/AON/AOVP - African And Overseas Enterprises Limited - Trading Statement
23/02/201212:00RTO/RTN/RTOP - Rex Trueform - Trading Statement
23/02/201211:44HPA/HPB - Hospitality Property Fund Limited - Appointment of an acting
23/02/201211:21 Vunani Limited - Finalisation information relating to the conversion
23/02/201211:19 Brikor - Renewal of Cautionary Announcement
23/02/201210:36 RMBH - Trading Statement: Six Months ended 31 December 2011
23/02/201210:33CLN237 - The Standard Bank of South Africa Limited - Tap Issue Announcement
23/02/201210:30ACL159 - Absa Bank Limited - New Financial Instrument Listing
23/02/201210:29ACL158-Absa Bank Limited - New Financial Instrument Listing
23/02/201210:00DSY/DSBP - Discovery Holdings Limited - Unaudited interim results and cash
23/02/201209:50 Mercantile - Audited Condensed Annual Financial Statements for the year
23/02/201209:47BIEDC1 - Edcon (Proprietary) Limited - Release of quarterly results
23/02/201209:47 Metair - Renewal of Cautionary Announcement
23/02/201209:46 African Eagle Resources plc - African Eagle Announces Completion of
23/02/201209:25 British American Tobacco p.l.c. - Preliminary announcement - year ended 31
23/02/201209:07 Capital Shopping Centres Group Plc - Capital Shopping Centres Group plc
23/02/201208:54MND/MNP - Mondi Limited/ Mondi plc - Full year results for the year ended 31
23/02/201208:45 Petmin Limited - Petmin receives consent from the Department of Mineral
23/02/201208:38 Eqstra Holdings Limited - Renewal of cautionary announcement
23/02/201208:30 FirstRand Limited - Trading statement in respect of the six months to
23/02/201208:22BIIIPL - iNguza Investments (Proprietary) Limited - Full Capital Redemption
23/02/201208:00 Wescoal - Renewal of Cautionary Announcement
23/02/201207:50 Standard Bank Group Limited - Trading statement in respect of the year
23/02/201207:30 Uranium One Inc - Uranium One to Host 2011 Results Conference Call
23/02/201207:15 Convergenet Holdings Limited - Director`s dealings in securities
23/02/201207:13 Accentuate Limited - Reviewed results for the six months ended
23/02/201207:11 Exxaro Resources Limited - Audited group financial results and unaudited
23/02/201207:10SYN901 - Synthesis Funding Limited - New Financial Instrument Listing
23/02/201207:10 Convergenet Holdings Limited - Media statement
23/02/201207:05 Exxaro Resources Limited - Audited group financial results and
23/02/201207:05 Aveng Limited - Trading Statement

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