Tuesday, 14 August 2012 - 20:00
Charts
Let?s Save More Tomorrow I have a friend that is addicted to TED Talks, with the better ones always managing to find their way to my inbox. The most recent one that piqued my interest was a talk by Shlomo Benartza: Saving for tomorrow, http://www.ted.com/talks/shlomo_benartzi_saving_more_tomorrow.html. It caught my eye as he tackles a problem that most of us face. We convince ourselves that we will save more in the future but never actually get around to it.
Shlomo Benartzi uses behavioural economics to study how and why we plan well for the future (or fail to), and uses that to develop new programs to encourage saving for retirement. He identified three key reasons why people make the promise to save, but fail to follow through.
Present Biased
We all make promises to exercise more, eat healthier, and save more in the future but when the day comes we generally succumb to instant gratification. Self control is only a problem in the present. We would rather spend today than save for tomorrow.
Inertia
We like to continue in our current state of motion. We don’t like to get bogged down with doing boring stuff like filling in paperwork or reading up on funds. We would rather keep procrastinating and placing the problems off until a future date.
Loss Aversion
People hate losing stuff. People experience savings as a loss of spending, and this is painful to the average person. It is painful to save now, because I will need to cut back on my spending today.
Shlomo looked at the three resistances that we have against saving money and tried to find a solution and to get people start saving. The solution he found was the program Save More Tomorrow™ or SMarT.
The program is based on four principles:
1. The investor is approached to increase their contribution well in advance of their pay increase. By agreeing to the increase of contribution well in advance the present bias is overcome as you are not affected by this in the near term.
2. Your contribution to the plan is increased beginning with the first pay cheque after a raise. With the increased contribution happening on your first increased pay cheque the loss effect is minimised as you haven’t yet got accustomed to new disposable income.
3. The contribution percentage increases annually until the maximum preset percentage. Keeping your current inertia, the investor doesn’t need to do anything and requires no effort.
4. The investor can opt out of the process at any stage. The investor is more agreeable to join the investment plan if they know that they will be able to opt out in the future and there is no lock up.
You can take a couple things from the SMarT plan when implementing your own savings plan either through your company pension scheme or private savings plan. One is to schedule increased contributions that coincide with your salary increase way in advance. Another suggestion is to make sure that your debit order for the savings goes off as soon as possible after your salary is paid to minimise the “loss” you suffer. Ultimately getting into good saving habits now will assist us in our future retirement.
Kind regards,
Gerbrandt Kruger
www.seedinvestments.co.za
info@seedinvestments.co.za
021 914 4966
Tue, 14 Aug 2012
Top News
Revenue for the interim period jumped to R2.9 billion (2011: R2.1 billion). Gross profit grew to R638.5 million (2011: R496.8 million), while profit for the period attributable to owners of Bell surged to R135.8 million (2011: R103.3 million). Furthermore, headline earnings per share rose to Full story
South Africa's benchmark index hit a record close on Friday, rising 0.25 percent as Gold Fields and other bullion producers were helped by dim Chinese data and fading hopes that Europe will take resolute action on its economy. Full story |
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President Bashar al-Assad
controls less than a third of Syria and his power is crumbling,
his former prime minister said on Tuesday, in his first public
appearance since he defected to the opposition this month. Full story |
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Markets | Gold prices fell about 0.5
percent on Tuesday as healthy U.S. retail sales data prompted
bullion investors to scale back their bets based. . . Full story | | European shares advanced on
Tuesday, in a broad-based rally, as tepid growth figures from
Europe led investors to focus on expectations for fresh. . . Full story | | World stocks and oil prices
rose on Tuesday, as stronger-than-expected U.S. retail sales
data supported risk appetite while tepid growth figures in
Europe underpinned. . . Full story | | Wall Street advanced on Tuesday
after retail sales data suggested consumer spending may lift
economic growth and Home Depot raised its profit
forecast, saying. . . Full story |
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| Strength in risk-sensitive energy
and financial stocks hauled Britain's leading share index higher
on Tuesday, as investors continued to focus on hopes for. . . Full story | | U.S. stocks rose on Tuesday
after stronger-than-expected retail sales data suggested a
return of consumer spending could spur economic growth and
helped alleviate investors'. . . Full story | | U.S. stock index futures added
to gains on Tuesday after U.S retail sales rose in July for the
first time in four months. . . Full story | | Hong Kong shares produced
their first gain in three sessions on Tuesday, powered by a
strong showing by China Mobile and other defensive. . . Full story |
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| The world's no. 3 platinum producer Lonmin shut its South African mining operations and its shares tumbled on Tuesday after violence caused by a feud between rival unions killed at least. . . Full story | | South Africa's rand firmed against the dollar on Tuesday, with investors betting that continued weakness in global growth will lead to co-ordinated monetary stimulus from central banks, which would boost emerging. . . Full story | | Russia's largest steelmaker Evraz said on Tuesday it has resumed operations of its steel and vanadium asset in South Africa, following a shutdown caused by a strike last month.. . . Full story |
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Company News | Accordingly, a review of the financial results for the year ended 30 June 2012 by management has indicated that the earnings. . . Full story | | Shareholders are advised that Santam expects its earnings as well as headline earnings per share for the six months ended 30. . . Full story | | Shareholders were advised that at the annual general meeting of Ansys that will be held at 10h00 on Tuesday 28 August. . . Full story | | Business Day reported that Bell says that they are ready for John Deere to let go of its stake in the. . . Full story |
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Company Results | Revenue grew marginally to R8.78 billion (2011: R8.77 billion) and operating profit plunged from R331 million (2011: R606 million). Net atttributable. . . Full story | | Urone on 14 August 2012 reported quarterly revenue of CAD96.8 million for Q2 2012 based on sales of 1.9 million pounds. . . Full story | | Loss and attributable loss to equity holders for the company's first quarter was USD92 589. In addition, headline loss per share. . . Full story | | Revenue for the interim period fell to USD48.7 million (2011: USD62.6 million), operating loss skyrocketed to USD112 million (2011: loss of. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 35564.34 | 147.00 | 0.42% | JSE Top 40 | 17:00 | 31340.64 | 146.00 | 0.47% | JSE Gold | 17:00 | 2451.29 | -4.00 | -0.19% | JSE Financial | 17:00 | 27297.37 | 232.00 | 0.86% | JSE Industrial | 17:00 | 41380.88 | 195.00 | 0.48% | JSE Indust 25 | 17:00 | 35344.54 | 184.00 | 0.52% | JSE Resource | 17:00 | 47770.79 | -5.00 | -0.01% | DJ Futures | 19:38 | 13145.00 | -27.00 | -0.20% | DJ Ind | 19:58 | 13188.80 | -19.15 | -0.14% | SP 500 | 19:52 | 1406.55 | 0.68 | 0.05% | Nasdaq | 19:58 | 3025.93 | 5.07 | 0.17% | FTSE 100 | 10:24 | 5870.24 | 38.36 | 0.66% | DAX | 18:08 | 6974.39 | 29.83 | 0.43% | CAC40 | 18:08 | 3450.27 | 23.86 | 0.70% | Nikkei | 08:28 | 8929.88 | 38.44 | 0.43% | Shanghai | 09:28 | 2142.52 | -26.29 | -1.21% | Hang-Seng | 10:28 | 20291.68 | 155.56 | 0.77% | All Ords | 08:46 | 4317.40 | 7.90 | 0.18% | NZSE 50 | 07:48 | 3608.88 | 31.08 | 0.87% |
| | Name | Time | RP | Move | % Move | Gold $ | 19:58 | 1600.17 | -9.55 | -0.59% | Gold R | 19:57 | 13063.63 | -45.77 | -0.35% | Gold R/kg | 19:58 | 419948 | -264 | -0.06% | Silver $ | 19:58 | 27.7720 | -.0430 | -0.15% | Platinum $ | 19:58 | 1396.50 | 14.00 | 1.01% | Palladium $ | 19:58 | 575.75 | 4.25 | 0.74% | R157 | 17:02 | 5.67 | .05 | 0.89% | R204 | 17:02 | 6.39 | .09 | 1.35% | Brent Crude | 19:58 | 114.14 | .28 | 0.25% | Rand / Dollar | 19:58 | 8.1660 | 0.0220 | 0.27% | Rand / Pound | 19:55 | 12.7757 | 0.0313 | 0.25% | Rand / Euro | 19:55 | 10.0650 | 0.0163 | 0.16% | Rand / NZD | 19:57 | 6.5801 | -0.0105 | -0.16% | Rand / AUD | 19:55 | 8.5713 | -0.0017 | -0.02% | Yen / Dollar | 19:58 | 78.7520 | 0.4560 | 0.58% | Euro / Dollar | 19:55 | 0.8107 | 0.0001 | 0.01% | Dollar / Euro | 19:58 | 1.2330 | -0.0001 | -0.01% | Pound / Dollar | 19:55 | 0.6371 | -0.0003 | -0.05% |
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Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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14/08/2012 | 185 | 130 | 80 | 395 | 157,387,633 | R9,342,474,859 | 88601 | 1237281 | 13/08/2012 | 134 | 166 | 106 | 406 | 129,545,824 | R7,542,356,316 | 77611 | 973859 | 10/08/2012 | 177 | 142 | 71 | 390 | 162,605,219 | R9,319,648,328 | 108826 | 1410008 | 08/08/2012 | 176 | 158 | 76 | 410 | 179,515,088 | R9,926,543,129 | 107035 | 1540138 | 07/08/2012 | 161 | 172 | 88 | 421 | 186,307,444 | R9,235,728,482 | 89189 | 1620877 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 31,340.00 | 146.00 | 0.47% | Industrial | 41,380.00 | 195.00 | 0.48% | Mid Cap | 51,529.00 | 68.00 | 0.13% | Small Cap | 37,274.00 | 77.00 | 0.21% | Resource 20 | 47,770.00 | -5.00 | -0.01% | Industrial 25 | 35,344.00 | 184.00 | 0.52% | Financial 15 | 10,220.00 | 106.00 | 1.05% | Financial & Ind. 30 | 38,908.00 | 261.00 | 0.68% | All Share | 35,564.00 | 147.00 | 0.42% | Oil & Gas | 26,024.00 | 124.00 | 0.48% | Mining | 30,948.00 | -20.00 | -0.07% | Gold Mining | 2,451.00 | -4.00 | -0.19% | Platinum Mining | 48.00 | .00 | -0.35% | GENERAL MINING | 7,956.00 | 6.00 | 0.08% | Oil & Gas Producers | 13,992.00 | 66.00 | 0.48% | Basic Materials | 26,469.00 | 3.00 | 0.01% | Chemicals | 15,460.00 | 3.00 | 0.02% | Forestry & Paper | 13,637.00 | 8.00 | 0.06% | Industrial Metals | 27,968.00 | 446.00 | 1.62% | Industrials | 35,052.00 | 357.00 | 1.03% | General Industrials | 100.00 | 1.00 | 1.35% | Consumer Goods | 35,736.00 | 43.00 | 0.12% | Automobiles & Parts | 6,071.00 | 16.00 | 0.26% | Household Goods | 163.00 | 0 | 0.24% | Health Care | 48,923.00 | -225.00 | -0.46% | Beverages | 122.00 | .00 | -0.12% |
| | Index Name | RP | Move | % Move | Food Producers | 64,465.00 | -338.00 | -0.52% | Personal Goods | 507.00 | 4.00 | 0.89% | Consumer Services | 72,977.00 | 490.00 | 0.68% | General Retailers | 63,727.00 | 450.00 | 0.71% | Travel & Leisure | 3,943.00 | 41.00 | 1.06% | Media | 101.00 | 1.00 | 1.79% | Support Services | 2,184.00 | .00 | 0.03% | Telecommunications | 74,502.00 | 647.00 | 0.88% | Financials | 27,297.00 | 232.00 | 0.86% | Banks | 50,785.00 | 561.00 | 1.12% | Non-life Insurance | 44,919.00 | -62.00 | -0.14% | Life Insurance | 22,018.00 | 222.00 | 1.02% | General Financial | 2,475.00 | 8.00 | 0.35% | Technology | 30,795.00 | -24.00 | -0.08% | SHARIAH TOP40 | 3,064.00 | 9 | 0.32% | FTSE/JSE SHARIAH ALL | 3,192.00 | 7 | 0.25% | COAL MINING | 23,336.00 | -409 | -1.73% | FTSE JSE Fledgling | 5,567.00 | 23 | 0.43% | FTSE/JSE Alt X | 1,092.00 | 10 | 0.99% | SA LISTED PROPERTY | 489.00 | | 0.56% | CAPPED PROPERTY | 388.00 | | 0.78% | RESOURCE | 26,390.00 | 3 | 0.01% | DIVIDEND PLUS | 197.00 | 1 | 0.86% | FTSE/JSE RAFI 40 | 7,277.00 | 41 | 0.58% | Capped Top 40 | 16,542.00 | 79 | 0.48% | Capped All Share | 17,991.00 | 74 | 0.42% | JSE TABACO | 5,597.00 | 25 | 0.45% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | OML | OLD MUTUAL PLC | BUY | 10 Aug | MST | MUSTEK LIMITED | BUY | 09 Aug | IPL | IMPERIAL HOLDINGS LTD | HOLD | 09 Aug | RLO | REUNERT LIMITED | SELL | 09 Aug | ALT | ALLIED TECHNOLOGIES LIMIT... | HOLD | 09 Aug |
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Results Expected** Expected | Company Name | Fin. Date | 15 Aug 2012 | CITYLDG | June 2012 (Final) | 15 Aug 2012 | FIUUNIT | June 2012 (Q) | 15 Aug 2012 | GB LD | June 2012 (Interim) | 15 Aug 2012 | GB LD OPT | June 2012 (Interim) | 15 Aug 2012 | ITLTILE | June 2012 (Final) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | ARROWA | 12-08-08 | 12-08-24 | 12-09-03 | R 0.1500 | ARROWB | 12-08-08 | 12-08-24 | 12-09-03 | R 0.1003 | OLDMUTUAL | 12-08-08 | 12-10-19 | 12-11-30 | R 0.0175 | MTN GROUP | 12-08-08 | 12-08-24 | 12-09-03 | R 3.2100 | MONDILTD | 12-08-07 | 12-08-17 | 12-09-18 | R 0.0890 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | KUMBA | 12-07-20 | 12-08-10 | 12-08-20 | R 19.2000 | HUDACO | 12-06-29 | 12-08-10 | 12-08-20 | R 1.5500 | ADCORP | 12-05-22 | 12-08-10 | 12-08-20 | R 0.8000 | BATS | 12-07-25 | 12-08-10 | 12-09-26 | R 0.4220 | ANGLO | 12-07-27 | 12-08-10 | 12-09-13 | R 0.3200 |
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Upcoming AGMs** Code | Company Name | Date | Status | HSP | Holdsport Ltd. | 14/08/2012 | Confirmed | IVT | Invicta Holdings Ltd. | 14/08/2012 | Confirmed | KEH | Keaton Energy Holdings Ltd. | 17/08/2012 | Confirmed | FGL | Finbond Group Ltd. | 17/08/2012 | Confirmed | LEW | Lewis Group Ltd. | 17/08/2012 | Confirmed |
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