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 The Sharenet Daily 
Tuesday, 24 July 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)

The Libor Debacle

Libor stands for London Interbank Offered Rate. This rate is determined daily at 11:00am by Thomson Reuters on behalf of the British Bankers Association by a process of polling leading UK banks and inquiring at what rate that bank could borrow funds from other banks in reasonable market sizes. From the range of rates received the top quarter highest and lowest are thrown out and the remaining rates averaged and fixed daily. The rates for various maturities are published ranging from 1 day to 12 months.

Libor is then used widely as the base reference for many types of derivatives (i.e. agreements between two or more parties referenced back to some underlying prices), such as interest rate swaps, various commercial agreements such as floating rate loans to simple mortgages. It is estimated that the Libor rate is the benchmark reference rate to at least $350 trillion in derivatives and other financial produces (a number as high as $800 trillion was quoted by the Economist) – giving a reflection of just how important this rate is to the global world of finance.

Despite the fact that the rates are collected daily by a polling process and there is a strong argument that these should be based on rates that are actually being paid by one bank to another, the reality is that especially during the global financial crisis the interbank market, where banks lend to one another, was not operating as it should, i.e. banks were not typically lending to one another but preferring to overnight deposits back with central banks. So in times of financial stress even actual numbers can be highly distorted.

It has recently been revealed that since the 2008 financial crisis and possibly before then, regulators have been both aware and in some cases concerned about the actual rate being set and the mechanisms of the Libor process. In June Barclays was fined $456millon by various regulators, including the FSA and the United States Department of Justice after admitting to inaccurately submitting Libor rates from 2005 to 2009.

The chart below from The Economist reflects actual rates submitted by Barclays and JP Morgan relative to the actual fixed Libor over the 2008 period. It gives a reflection of how far these two deviated from the other submitters.

Time magazine cover in July reads, “Barclays is just the beginning. Why London breeds financial scandals –and why this one could be the biggest yet.”

Locally the interbank rate quoted is the Jibar (Johannesburg Interbank Agreed Rate). This rate is quoted as a one, three, six, and twelve month interest rate and like Libor is the basis for various contracts. While the government via the Reserve bank Monetary Policy fixes the repo rate, Jibar is in essence an approximation of what the banks believe the repo should be, but is based on the average interest rate at which banks borrow and lend. Over time the repo rate and 3 month Jibar will move in sync. Where Jibar and Libor differ is that Jibar is based on actual agreed rates, whereas Libor is a submitted (but not verified) rate

Now various global non Libor submitting banks and other large institutions are considering litigation, should they be in a position to prove losses. Ultimately there is an undermining of confidence in the global banking and financial system, which has over the last few years suffered from a rather tarnished reputation.

Kind regards,

Ian de Lange

021 914 4966

Tue, 24 Jul 2012
Top News
South African stocks gained over half a percent on Tuesday, clawing back some of the previous session's steep losses, as investors cautiously waded back into the market ahead of a rush of corporate earnings.  Full story

South African stocks fell sharply on Monday, tracking lower global markets as concerns about Spain's finances weighed while tumbling commodity prices hit mining stocks.  Full story
Syrian troops backed by helicopter gunships fought rebels trying to seize central Aleppo on Tuesday and pursued a campaign to regain full control of the capital Damascus, residents and opposition activists said.  Full story
Romania's opposition asked its supporters on Tuesday not to vote in Sunday's referendum on impeaching President Traian Basescu, in an effort to keep turnout below 50 percent and invalidate the result.  Full story
C ongolese rebels and government forces traded heavy weapons fire around two eastern villages on Friday, forcing thousands of civilians to flee towards the provincial capital days ahead of a regional summit due to tackle the rebellion.  Full story
Gold traded nearly flat on Tuesday, supported by safe-haven buying on news Greece will need more debt restructuring, as the metal outperformed equities. . .  Full story
Stock markets fell and the euro hit a two-year low on Tuesday as rising Spanish bond yields drove Madrid closer to a full-scale. . .  Full story
European shares fell on Tuesday, extending the previous session's steep losses in choppy trade as investors grappled with fears Spain may require a. . .  Full story
Britain's top share index closed back below 5,500 for the first time this month on Tuesday, with financials among the worst off on. . .  Full story

For the complete report please see. . .  Full story
Italy's benchmark stock index fell to its lowest level since the launch of the euro on Tuesday, bruised by concerns about the euro. . .  Full story
U.S. stocks were little changed at the open o n T uesday as traders remained focused on high bond yields in Spain and. . .  Full story
U.S. stock index futures edged lower on Tuesday as traders remained focused on high bond yields in Spain and as a cautious outlook. . .  Full story

South Africa's rand fell to its weakest against the dollar in more than seven weeks on Tuesday and could attempt early. . .  Full story
Global coal output is set to shrink over the next year or two as miners grapple with a combination of low. . .  Full story
South Africa's Standard Bank said on Tuesday its Angolan unit has entered a strategic partnership with local insurance and fund management. . .  Full story
South Africa's government cut its forecast of maize output for 2012 to 10.836 million tonnes on Tuesday from 11.056 million tonnes. . .  Full story

Growth in South Africa for 2012 is likely to be lower than earlier expected, the World Bank said on Tuesday, a. . .  Full story
Growth in South Africa for 2012 is likely to be lower than earlier expected, the World Bank said on Tuesday, a day after. . .  Full story
Foreign investors have made gains of some 10 percent this year on emerging market bond portfolios but now dread future gains being eaten. . .  Full story
South Africa's national Union of Mineworkers (NUM) said on Tuesday it had declared a wage dispute with BHP Billiton's Hotazel manganese. . .  Full story
Company News
Shareholders are advised that Exxaro will release its reviewed financial results for the six-month period ended 30 June 2012 on 1 August 2012. It is expected that the mineral sands business. . .  Full story
Unitholders are advised that the requisite majority of unitholders approved all of the special and ordinary resolutions tabled at the annual general meeting of OCPF held on 23 July 2012.. . .  Full story
Anglo has agreed to acquire a 58.9% interest in the RevuboF metallurgical coal project in Mozambique ("the RevuboF project") from the Talbot Estate for a total cash consideration of AUD540 million. . .  Full story
Company Results
Dividend A final ordinary dividend of 10cps has been declared. Outlook Management remain optimistic on the growth prospects of the group through continued diversification into new product development and ventures, with a focus on. . .  Full story
Net sales revenue 19,410 24,805 (22). Gross profit on metal sales. . .  Full story
Gross income from operations and investments for the interim period more than doubled to R72.4 million (2011: R32.7 million), while net income for the period attributable to equity shareholders soared to. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0033998.00184.000.55%
JSE Top 4017:0029868.00186.000.63%
JSE Gold17:002305.0050.002.25%
JSE Financial17:0026175.0024.000.09%
JSE Industrial17:0039522.00239.000.61%
JSE Indust 2517:0033584.00226.000.68%
JSE Resource17:0045699.00332.000.73%
DJ Futures19:5612510.00-263.00-2.06%
DJ Ind19:5812560.97-261.60-2.04%
SP 50019:581333.76-28.90-2.12%
FTSE 10017:355499.23-34.64-0.63%
All Ords08:404161.202.000.05%
NZSE 5007:483460.70-4.66-0.13%
NameTimeRPMove% Move
Gold $19:591577.251.400.09%
Gold R19:5813462.89133.141.00%
Gold R/kg19:58432976133343.18%
Silver $19:5926.8840-.1260-0.47%
Platinum $19:591383.00-13.00-0.93%
Palladium $19:59559.25-9.65-1.70%
Brent Crude19:58104.25-1.07-1.02%
Rand / Dollar19:598.53560.07860.93%
Rand / Pound19:5513.20420.12300.94%
Rand / Euro19:5510.29440.04820.47%
Rand / NZD19:586.70280.03800.57%
Rand / AUD19:558.73720.05970.69%
Yen / Dollar19:5978.1800-0.1490-0.19%
Euro / Dollar19:550.82920.00410.50%
Dollar / Euro19:591.2056-0.0058-0.48%
Pound / Dollar19:550.64500.00020.03%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 MMG  3303010.00.%37815
2 CALGRO  435358.75.%174146
3 KGMEDIA  2000804.17.%4672
4 AECI  86253444.15.%211240
5 BRAIT  28001003.70.%502037
6 RESILIENT  47701603.47.%422464
7 ELLIES   550183.38.%506804
8 ASSORE  285008503.07.%58260
9 CIPLAMED  813232.91.%633070
10 MTN  147154152.90.%5954607
11 GFIELDS  103662742.72.%1246775
12 CAPEVIN  108002802.66.%583
13 IMPERIAL  176004422.58.%938026
14 TASTE  32082.56.%72799
15 ARB  400102.56.%1355
16 ANGGOLD  271756252.35.%635467
17 HULAMIN  455102.25.%1768590
18 CML  2890602.12.%257573
19 BARWORLD  76891582.10.%338576
20 BCX  46491.98.%2076851

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Major Moves Down
SharenameSaleMove% MoveVolume
1 ADAPTIT  120-10-7.69.%56256
2 POYNTING  120-10-7.69.%6963
3 ONELOGIX  171-14-7.57.%15000
4 TRNSHEX  315-24-7.08.%72105
5 KEATON   275-15-5.17.%54502
6 HOSP-B  325-15-4.41.%1614959
7 PERGRIN  1150-50-4.17.%102973
8 KELLY  240-10-4.00.%351
9 WITSGOLD  2800-100-3.45.%7500
10 CIL  1200-40-3.23.%328024
11 REDEFINE  877-28-3.09.%3554785
12 DIPULA-B  650-20-2.99.%105000
13 HOSP-A  1360-40-2.86.%116176
14 ARROW-A  656-19-2.81.%564880
15 LITHA  373-10-2.61.%43569
16 SUPRGRP  1515-38-2.45.%1127924
17 SUNINT  8142-191-2.29.%44696
18 SOVFOOD  430-10-2.27.%18041
19 BIDVEST  18599-401-2.11.%598162
20 EASTPLATS  186-4-2.11.%58195

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New Highs
SharenameSaleHighMove% MoveVolume
1 RESILIENT  477047701603.47.%422464
2 CIPLAMED  813815232.91.%633070
3 REUNERT  736273621131.56.%366272
4 CAPCO  28012810250.90.%492659
5 ASPEN  1344513550790.59.%930297
6 SABMILLER  3509135272930.27.%724710
7 HYPROP  66506790-1-0.02.%388734
8 TRENCOR  49755250-22-0.44.%63404
9 BIDVEST  1859919147-401-2.11.%598162
10 ARROW-A  656680-19-2.81.%564880

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New Lows
SharenameSaleLowMove% MoveVolume
1 LONMIN  87508705-50-0.57.%282066
2 ANGLOPLAT  4081140006610.15.%215209
3 COAL  39838620.51.%1033300

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Index Summary
Index NameRPMove% Move
Top 4029,868.00186.000.63%
Mid Cap49,866.0087.000.17%
Small Cap36,661.00.00-0.00%
Resource 2045,699.00332.000.73%
Industrial 2533,584.00226.000.68%
Financial 159,760.0011.000.12%
Financial & Ind. 3037,034.00202.000.55%
All Share33,998.00184.000.55%
Oil & Gas 25,729.00-29.00-0.12%
Mining 29,394.00266.000.92%
Gold Mining2,305.0050.002.25%
Platinum Mining46.00.000.74%
GENERAL MINING7,582.0056.000.75%
Oil & Gas Producers 13,834.00-15.00-0.11%
Basic Materials 25,290.00199.000.80%
Chemicals 15,251.00289.001.94%
Forestry & Paper 13,726.00-36.00-0.26%
Industrial Metals 28,700.00-325.00-1.12%
Industrials 32,997.00-52.00-0.16%
General Industrials 93.00.00-0.59%
Consumer Goods 34,087.00173.000.51%
Automobiles & Parts 5,932.002.000.04%
Household Goods157.0000.47%
Health Care 46,120.00126.000.27%
Index NameRPMove% Move
Food Producers 62,903.00-208.00-0.33%
Personal Goods 451.005.001.31%
Consumer Services 70,230.00367.000.53%
General Retailers 59,866.00-86.00-0.14%
Travel & Leisure 3,952.00-57.00-1.44%
Support Services 2,
Telecommunications 70,172.001576.002.30%
Financials 26,175.0024.000.09%
Banks 48,228.00165.000.34%
Non-life Insurance 41,448.00-619.00-1.47%
Life Insurance 20,690.00-130.00-0.63%
General Financial 2,431.0018.000.78%
Technology 29,890.00-32.00-0.11%
SHARIAH TOP40 2,900.00270.95%
FTSE/JSE SHARIAH ALL3,033.00250.85%
COAL MINING21,256.00-164-0.77%
FTSE JSE Fledgling 5,428.00-11-0.22%
FTSE/JSE Alt X 1,090.00-7-0.66%
CAPPED PROPERTY 380.00-0.34%
RESOURCE 25,211.001900.76%
DIVIDEND PLUS190.0000.52%
FTSE/JSE RAFI 406,947.00350.52%
Capped Top 4015,778.00960.62%
Capped All Share17,200.00920.54%
JSE TABACO 5,572.00440.81%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
25 Jul 2012AECIJune 2012 (Interim)
25 Jul 2012AECI 5.5%PJune 2012 (Interim)
25 Jul 2012BATSJune 2012 (Interim)
26 Jul 2012CAPSHOPJune 2012 (Interim)
27 Jul 2012ABSAJune 2012 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ELLIES12-07-2312-09-0712-09-17R 0.1000
SABVEST-N12-07-2312-08-1012-08-20R 0.1200
SABVEST12-07-2312-08-1012-08-20R 0.1200
KUMBA12-07-2012-08-1012-08-20R 19.2000
SYNERGY B12-07-1912-08-0212-08-13R 0.1953
Ex Div**
Share NameDec-DateLDTPay-DateAmount
OMNIA12-06-2612-07-2012-07-30R 1.8000
PERGRIN12-06-0712-07-2012-07-30R 0.7200
PERGRIN12-06-0712-07-2012-07-30R 0.4533
INVLTD12-05-1712-07-2012-08-06R 0.0900
INVPLC12-05-1712-07-2012-08-06R 0.0900

Upcoming AGMs**
CodeCompany NameDateStatus
IFCIFCA Technologies Ltd.24/07/2012Confirmed
SNVSantova Ltd.24/07/2012Confirmed
MDCMediclinic International Ltd.26/07/2012Confirmed
WLNPBT Group Ltd.27/07/2012Confirmed
CKSCrookes Brothers Ltd.27/07/2012Confirmed

Stock Exchange News Service
24/07/201217:43INDWA INVESTMENTS LIMITED - Listing of New Instrument
24/07/201217:12GOLD FIELDS LIMITED - Results invitation and conference call notification
24/07/201216:45Exxaro Resources Limited - Trading Statement For The Six-month Period Ended 30 J...
24/07/201216:45MART MARKET INTELLIGENCE LTD - Dealing by an employee of the Designated Advisor
24/07/201215:56Santova Limited - Results Of Annual General Meeting And Change In Dividend Polic...
24/07/201214:58Curro Holdings Limited - Cautionary Announcement
24/07/201214:31KAYDAV GROUP LIMITED - Further cautionary announcement relating to a potential d...
24/07/201214:30LLER PLC - Altria Financial Data Disclosure
24/07/201214:01TECHNOLOGIES LIMITED - Results of Annual General Meeting
24/07/201213:47MERCEDES-BENZ SA (PTY) LTD - Mercedes-Benz South Africa (Proprietary) Limited - ...
24/07/201213:13TOYOTA FIN SERVICES (SA) PTY LTD - Full Capital Redemption
24/07/201211:35Oasis Crescent Property Fund - Results Of The Annual General Meeting
24/07/201210:01FIRSTRAND BANK LIMITED - Interest Rate Reset
24/07/201210:00FIRSTRAND BANK LIMITED - Interest Rate Reset
24/07/201209:30ANGLO AMERICAN PLC - Anglo American agrees to acquire majority interest in Revub...
24/07/201209:27African Bank Investments Limited - Voluntary Disclosure: Dealing In Securities B...
24/07/201209:01INVESTEC BANK LIMITED - New Financial Instrument Listing
24/07/201208:41SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of securities
24/07/201208:40SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of securities
24/07/201208:39SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of securities
24/07/201208:38SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of securities
24/07/201208:13INVESTEC BANK LIMITED - Breached Barrier- AMSIDF
24/07/201207:10GOLD ONE INTERNATIONAL LIMITED - Production at Modder East to be Normalised CCMA...
24/07/201207:05British American Tobacco Plc - Transaction In Own Shares

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