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 The Sharenet Daily 
Thursday, 27 September 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)

Monetary Policy Impacts on Share Prices

Central banks all attempt to modify the cost of money or interest rates, the supply of money, and the availability of money. This is known as their monetary policy. All things being equal the lower the cost of money and the greater its supply, the greater the economic activity and vice versa.

Typically a central bank modifies the interest rate through various conventional means. This includes setting short term interest rates, buying and selling short term government bonds from / to financial institutions in the open market.

Since the global financial crisis in 2007/2008 – which had a severe impact on the housing, employment, and general economies of developed markets – central banks have been struggling to revive their economies. In the years and even decades up to the crash, lowering the cost of debt provided a quick fix to an economy that loved debt. But post the bubble it’s been a struggle to resuscitate economies even as central banks have brought interest rates down to record low levels of close to 0%.

Because central banks now don’t have much room to manoeuvre on the interest rate front, they have embarked, over the last 4 years, on various methods of quantitative easing (QE). This is an attempt to stimulate the real economy when the more conventional means are not as effective. In the latest announcement from the US Federal Reserve, it will involve buying up to $40 billion per month of agency mortgage backed securities.

The Federal Reserve did this after the 2007/2008 financial crisis, trying to provide a backstop to the financial system by printing and buying up $600 billion in mortgage backed securities. Then in November 2010 the US Federal Reserve announced a second round of quantitative easing (QE2) through a process of buying $600 billion of treasury securities.

The chart below reflects the US Federal Reserve Balance sheet expansion due to printing from around $800 billion to almost $3 trillion.

US Fed Balance Sheet

Source: US Federal Reserve website

Now the QE3 announced last week sees a reversion to the government buying private mortgages held by the government sponsored agencies. Because the US Federal Reserve owns a lot of other debt which matures over time, it will also reinvest all proceeds its receives. The sum of these actions is a monthly purchase of around $85 billion and according to the Fed Reserve, “......should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.”

The Fed is linking the fresh injection of money into the banking system with the labour market and will only stop once there is a substantial improvement in the labour market, saying “To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthen.”

So far it’s difficult to see what the very accommodative monetary policy has done for the real economy, but one apparent consequence has been an on-going upward rise in share prices following the 2008 sell off. Given the stated intention of officials to continue for as long as it takes, this should provide an on-going underpin to the price of risk assets.

Kind regards,

Ian de Lange

021 914 4966

Thu, 27 Sep 2012
Top News
Revenue for the year fell marginally to R81.0 million (2011: R81.5 million). Operating profit shot up to R8.5 million (2011: R6.3 million). Total comprehensive income attributable to owners of the company more than doubled to R7.2 million (2011: R2.6 million). In addition, headline arning pe  Full story

The results for the prior reporting period were prepared on a liquidation basis as the merger between Simmers and Village was successfully concluded. The prior period relates to 15 months and is therefore not comparable to current reporting period. Total comprehensive loss attributable to ow  Full story
U.S. stocks added to gains in afternoon trading on Thursday, with the S&P 500 and Nasdaq up more than 1 percent as investors. . .  Full story
European shares closed a touch higher in thin trade on Thursday, lifted by expectations of economic stimulus in China, but uncertainty about Spain's. . .  Full story
U.S. stocks rallied on Thursday, putting the S&P 500 on track to snap a five-day retreat, after Spain unveiled its plans for economic. . .  Full story
Stocks rallied and the euro rebounded from two-week lows on Thursday after the Spanish government said it would cut spending sharply and opened. . .  Full story

Gains by bank and mining stocks helped lift Britain's benchmark share index on Thursday, although investors said worries over the euro zone could. . .  Full story
European shares further trimmed gains on Thursday afternoon as disappointing U.S. home sales figures dented already fragile investor sentiment after mixed economic data earlier. . .  Full story
U.S. stocks rose modestly at the open on Thursday after weak data reflected sluggish U.S. economic growth and dented optimism China would take. . .  Full story
U.S. stock index futures pared some earlier gains and were poised to open modestly higher Thursday in the wake of weak data that. . .  Full story
SA Business
Gold prices ended down on Wednesday but off an earlier two-week low as a stronger dollar and weaker crude oil triggered profit-taking after bullion's recent sharp rally boosted by stimulus by central banks around the world. The metal was weighed down by gains in the U.S. dollar after data showed new U.S. home sales held near two-year highs in August and prices vaulted to their highest in more than five years. Bullion has extended its losses to a third straight day. It is still 3.5 perc. . .  Full story

World no. 2 platinum producer Impala Platinum said on Thursday it was giving workers a "pay adjustment" and details would follow, against the backdrop of a wave of illegal strikes sweeping South Africa's mining sector.. . .  Full story
South Africa's rand firmed against the dollar early on Thursday, still supported by foreign portfolio flows as fund managers gear up for the inclusion of government debt into Citigroup's World Government Bond Index from next week.. . .  Full story
Company News
Shareholders were advised that the company's integrated annual report for the year ended 31 March 2012 were posted to shareholders on. . .  Full story
Further to Shoprite's preliminary results for the year ended 30 June 2012, released on SENS on 21 August 2012, the integrated. . .  Full story
Anglo draws attention to an announcement issued by Amplats, the text of which is set out below: Anglo American Platinum commences. . .  Full story
Amplats is providing an update in respect of its Rustenburg operations, following resumption of those operations on Tuesday 18 September 2012.. . .  Full story

Shareholders are advised that the Annual Integrated Report of Implats for the year ended 30 June 2012, which includes the annual. . .  Full story
Omnia shareholders ("Shareholders") are advised that at the duly constituted annual general meeting of Shareholders held on Thursday, 27 September 2012,. . .  Full story
American Platinum announced the resignation of Ms Albertinah Kekana, a non-executive director of the company, effective 25 September 2012.. . .  Full story
Terms not defined in this announcement shall have the meanings given to them in the circular posted to Mvela Group ordinary. . .  Full story
Company Results
Revenue decreased to R2.5 billion (R2.6 billion). EBITDA amounted to a loss of R517 000 (loss of R211.8 million) and an. . .  Full story
Interest income for the interim period shot up 56% to R3.0 billion (2011: R1.9 billion). Income from operations grew 32% to. . .  Full story
Income from operations increased 6% to R936.5 million (2011: R883.2 million). Profit from operations fell 16% to R82.5 million (2011; R98.4. . .  Full story
Revenue from continuing operations increased from R354.2 million to R420.8 million in 2012. Gross profit increased to R88.3 million (June 2011:. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0035616.60201.000.57%
JSE Top 4017:0031393.10230.000.74%
JSE Gold17:002344.2228.001.22%
JSE Financial17:0026846.7521.000.08%
JSE Industrial17:0041864.2782.000.20%
JSE Indust 2517:0035750.5582.000.23%
JSE Resource17:0047805.53722.001.53%
DJ Futures19:4813420.009.000.07%
DJ Ind19:5813512.1654.610.41%
SP 50019:581448.997.400.51%
FTSE 10017:355779.4211.330.20%
All Ords08:574402.8020.300.46%
NZSE 5007:503809.03-.29-0.01%
NameTimeRPMove% Move
Gold $19:581776.9123.171.32%
Gold R19:5814610.38198.051.37%
Gold R/kg19:584694417690.16%
Silver $19:5834.5890.66801.97%
Platinum $19:581642.2010.200.63%
Palladium $19:56631.003.200.51%
Brent Crude19:58113.074.374.02%
Rand / Dollar19:588.22240.00200.02%
Rand / Pound19:5513.31420.05380.41%
Rand / Euro19:5510.61520.03160.30%
Rand / NZD19:586.84120.06320.93%
Rand / AUD19:558.59750.06500.76%
Yen / Dollar19:5877.6270-0.0940-0.12%
Euro / Dollar19:580.7743-0.0025-0.32%
Dollar / Euro19:581.29160.00390.30%
Pound / Dollar19:550.6157-0.0025-0.40%

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 JUBILEE  1491914.62.%71858
2 AMA  300269.49.%298566
3 COMPCLEAR  365205.80.%8300
4 COAL  205105.13.%2573813
5 CAPITEC  2140010295.05.%244902
6 NASPERSN  5125023504.81.%1095587
7 CMH  1151514.64.%140414
8 CIPLAMED  666284.39.%746604
9 ROCKWELL  250104.17.%376
10 ASSORE  3260012003.82.%97608
11 ANGLOPLAT  4180014983.72.%499073
12 PHUMELELA  880303.53.%13500
13 VILLAGE  12643.28.%741222
14 EXXARO  161005003.21.%788245
15 TIGBRANDS  276518153.04.%228760
16 SANLAM  37311032.84.%3682279
17 HOWDEN  2825752.73.%2982
18 JDGROUP  45001182.69.%350012
19 ATLATSA  15442.67.%25430
20 PALLINGHT  20052.56.%112897

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Major Moves Down
SharenameSaleMove% MoveVolume
1 GOLIATH  315-55-14.86.%9119
2 MAZOR  150-20-11.76.%3000
3 NIVEUS  900-100-10.00.%134632
4 CONDUIT  109-11-9.17.%45610
5 POYNTING  135-10-6.90.%37700
6 MEDCLIN-N  1130-80-6.61.%864196
7 TRNSHEX  300-20-6.25.%64841
8 KEATON   206-12-5.50.%40502
9 TIMES  1350-70-4.93.%28473
10 ALTRON  2200-99-4.31.%5707
11 INVPROP  1800-79-4.20.%15113
12 JASCO  144-6-4.00.%124900
13 BELL  2000-82-3.94.%50
14 ADAPTIT  152-6-3.80.%10614
15 GOLDONE  349-13-3.59.%2000
16 WITSGOLD  1900-70-3.55.%5512
17 OCTODEC  1900-70-3.55.%3464
18 SOVFOOD  415-15-3.49.%2500
19 EQSTRA  652-23-3.41.%385489
20 SUNINT  8350-275-3.19.%215058

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New Highs
SharenameSaleHighMove% MoveVolume
1 NASPERSN  512505125023504.81.%1095587
2 HOWDEN  28252900752.73.%2982
3 CAT  17301820120.70.%36850
4 SYNERGY-A  1045110050.48.%68852
5 REX-TRUE  17501850-50-2.78.%5300
6 INVPROP  18001900-79-4.20.%15113

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New Lows
SharenameSaleLowMove% MoveVolume
1 KEATON   206206-12-5.50.%40502
2 WITSGOLD  19001900-70-3.55.%5512
3 DIGICOR  195185-5-2.50.%145055
4 PRESCIENT  1351250.7255500

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Index Summary
Index NameRPMove% Move
Top 4031,393.00230.000.74%
Mid Cap51,349.00-79.00-0.16%
Small Cap38,123.00-239.00-0.62%
Resource 2047,805.00722.001.53%
Industrial 2535,750.0082.000.23%
Financial 159,981.0023.000.23%
Financial & Ind. 3039,018.00101.000.26%
All Share35,616.00201.000.57%
Oil & Gas 27,659.00430.001.58%
Mining 30,544.00456.001.52%
Gold Mining2,344.0028.001.22%
Platinum Mining48.001.002.51%
GENERAL MINING7,930.00125.001.61%
Oil & Gas Producers 14,871.00230.001.58%
Basic Materials 26,192.00362.001.40%
Chemicals 15,826.00-158.00-0.99%
Forestry & Paper 15,061.0022.000.15%
Industrial Metals 26,461.00243.000.93%
Industrials 34,825.00-50.00-0.14%
General Industrials 99.00.00-0.18%
Consumer Goods 35,763.00-16.00-0.05%
Automobiles & Parts 6,499.00-67.00-1.02%
Household Goods167.00-1-0.60%
Health Care 48,954.00-7.00-0.02%
Index NameRPMove% Move
Food Producers 64,975.00883.001.38%
Personal Goods 501.00-6.00-1.19%
Consumer Services 75,881.001305.001.75%
General Retailers 61,674.00105.000.17%
Travel & Leisure 4,309.00-72.00-1.65%
Support Services 2,149.00-13.00-0.64%
Telecommunications 75,516.00-940.00-1.23%
Financials 26,846.0021.000.08%
Banks 47,828.00113.000.24%
Non-life Insurance 46,450.00169.000.37%
Life Insurance 22,780.00174.000.77%
General Financial 2,432.0010.000.41%
Technology 33,288.00-42.00-0.13%
SHARIAH TOP40 3,071.00210.70%
FTSE/JSE SHARIAH ALL3,190.00190.62%
COAL MINING20,578.006473.25%
FTSE JSE Fledgling 5,555.00-48-0.87%
FTSE/JSE Alt X 1,141.00-1-0.10%
CAPPED PROPERTY 387.00-0.96%
RESOURCE 26,330.003951.53%
DIVIDEND PLUS197.0010.61%
FTSE/JSE RAFI 407,257.00390.55%
Capped Top 4016,561.001160.71%
Capped All Share18,018.001000.56%
JSE TABACO 5,443.00-16-0.30%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
28/09/2012ACCENTJune 2012 (Final)
28/09/2012AFEAGLEJune 2012 (Interim)
28/09/2012AFRO-CJune 2012 (Final)
28/09/2012AFROC-PJune 2012 (Final)
28/09/2012ANDJune 2012 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PUTPROP20/09/201205/10/201215/10/2012R 0.1800
REMGRO20/09/201209/11/201219/11/2012R 1.8800
ELBGROUP19/09/201219/10/201229/10/2012R 0.5200
ELBGROUP619/09/201219/10/201229/10/2012R 0.0600
TELEMASTR19/09/201219/10/201229/10/2012R 0.0100
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ARM03/09/201220/09/201201/10/2012R 4.7500
IMPERIAL22/08/201220/09/201201/10/2012R 3.8000
IMPERIALP22/08/201220/09/201201/10/2012R 3.7227
ASSORE03/09/201220/09/201201/10/2012R 3.0000
SA CORP20/08/201220/09/201201/10/2012R 0.1517

Upcoming AGMs**
CodeCompany NameDateStatus
OMNOmnia Holdings Ltd.27/09/2012Confirmed
OMPOmnia Holdings Ltd.27/09/2012Confirmed
HUGHuge Group Ltd.28/09/2012Confirmed
CSPChemical Specialities Ltd.28/09/2012Confirmed
ABKAfrican Brick Centre Ltd03/10/2012Unconfirmed

Stock Exchange News Service
27/09/201217:50JUBILEE PLATINUM PLC - Reviewed provisional results for year ended June 2012
27/09/201217:49IFA HOTELS AND RESORTS LIMITED - Amended Unaudited Pro Forma Financial Effects ...
27/09/201217:30HOLDINGS LIMITED - Trading Update
27/09/201217:24EMPOWERMENT LIMITED - Condensed Unaudited Interim Results for the six months end...
27/09/201217:16RARE HOLDINGS LIMITED - ERRATA: Annual finantial statements for the 12 months en...
27/09/201217:05JSE LIMITED - Index Change Advice - 20121005 Capital & Counties Shares In Issue ...
27/09/201217:00HOSKEN CONSOLIDATED INVESTMENTS LTD - No Change Statement and Notice of AGM
27/09/201216:39SILVERBRIDGE HOLDINGS LIMITED - Dealings in Securities by Director
27/09/201216:39BOWLER METCALF LIMITED - Amendment to Cash Dividend Declaration
27/09/201216:13WILLIAM TELL HOLDINGS LIMITED - Voluntary suspension of listing
27/09/201216:10PEREGRINE HOLDINGS LIMITED - No change statement and notice of annual general me...
27/09/201216:10CAPITAL & COUNTIES PROPERTIES PLC - Voting rights and capital increase
27/09/201216:08AFROCENTRIC INVESTMENT CORP LIMITED - Audited results for the year ended 30 June...
27/09/201216:00SHOPRITE HOLDINGS LIMITED - No change statement and posting of integrated report
27/09/201215:35REAL PEOPLE INV HOLD (PTY) LTD - New Instrument Listing - RP013 and RP014
27/09/201215:30INDWA INVESTMENTS LIMITED - Listing of Tap Issue
27/09/201215:20SHERBOURNE CAPITAL LIMITED - Trading Statement
27/09/201215:15ANGLO AMERICAN PLC - Anglo American update re. Anglo American Platinum
27/09/201215:15ANGLO AMERICAN SA FINANCE LTD - Financial Statements
27/09/201215:05THE STANDARD BANK OF SA LTD - Interest Rate Announcement- CLN274
27/09/201215:01THE STANDARD BANK OF SA LTD - Interest Rate Announcement- CLN273
27/09/201215:00SA RESOURCES CORPORATION - Atlatsa and Anglo Platinum agree to first phase of re...
27/09/201214:59THE STANDARD BANK OF SA LTD - Interest Rate Announcement- CLN272
27/09/201214:58OLDINGS LIMITED - Director dealing in securities
27/09/201214:57THE STANDARD BANK OF SA LTD - Interest Rate Announcement- CLN232
27/09/201214:49THE STANDARD BANK OF SA LTD - Interest Rate Announcement - CLN 239
27/09/201214:45IENCE BRANDS LIMITED - Dealings in securities by director
27/09/201214:43THE STANDARD BANK OF SA LTD - Interest Rate Announcement -CLN263
27/09/201214:40THE STANDARD BANK OF SA LTD - Interest Rate Announcement- CLN 287
27/09/201214:36ANGLO AMERICAN PLAT LTD - Anglo American Platinum Commences Disciplinary Action ...
27/09/201214:30ABSA BANK LIMITED - ABN55 - Interest Rate Reset
27/09/201214:10BAYPORT SECURITISATION (PTY) LTD - Listings of new finacial instrument - BAYA26
27/09/201214:00ING HOLDINGS LIMITED - Summarised provisional consolidated financial statements ...
27/09/201214:00Impala Platinum Holdings Limited - No Change Statement And Notice Of Annual Gene...
27/09/201213:49THE STANDARD BANK OF SA LTD - Interest Rate Announcement- CLN227
27/09/201213:46THE STANDARD BANK OF SA LTD - Interest Rate Announcemnet-CLN154
27/09/201213:45GROWTHPOINT PROPERTIES LIMITED - Director's Dealings
27/09/201213:39THE STANDARD BANK OF SA LTD - Interest Rate Announcemnet-CLN156
27/09/201213:33THE STANDARD BANK OF SA LTD - Interest Rate Announcement -CLN157
27/09/201213:30 HOLDINGS LIMITED - Results of the Annual General Meeting
27/09/201213:25THE STANDARD BANK OF SA LTD - Interest Rate Announcement CLN170
27/09/201213:20THE STANDARD BANK OF SA LTD - Interest Rate Announcement CLN179
27/09/201213:10ANGLO AMERICAN PLAT LTD - Anglo American Platinum announces the resignation of M...
27/09/201213:00LLER PLC - Application for block listing
27/09/201212:49Investec Property Fund Limited - Results Of General Meeting And Rights Offer Fin...
27/09/201212:30JUBILEE PLATINUM PLC - PGM material, Middleburg and Power Alt update
27/09/201212:05METAIR INVESTMENTS LIMITED - Dealings in securities by a director
27/09/201212:00AVENG LIMITED - No change statement and notice of annual general meeting
27/09/201212:00NEW GOLD ISSUER LIMITED - GLD - Listing of additional NewGold debentures
27/09/201211:11R AND JACK MINES LIMITED - Audited Results For The Year Ended 30 June 2012
27/09/201211:00LONRHO PLC - Notification of interest in shares
27/09/201210:59BSI STEEL LIMITED - Director's dealings
27/09/201210:56BSI STEEL LIMITED - Dealing by a director
27/09/201210:35MVELAPHANDA GROUP LIMITED - Apportionment of cost for South Africa income tax pu...
27/09/201210:33REDEFINE PROPERTIES LIMITED - Appointment of independent non-executive director
27/09/201210:30ROUP LIMITED - Dealing in PSG Group Limited shares by an associate of a director
27/09/201210:27S A FRENCH LIMITED - Reviewed Condensed Results for the Financial Year ended ...
27/09/201210:10JSE LIMITED - Amendments to Section 11 and 12 of the JSE Listings Requirements
27/09/201210:04THE STANDARD BANK OF SA LTD - Interest Rate Announcement
27/09/201210:03THE STANDARD BANK OF SA LTD - Interest Rate Announcement
27/09/201210:00LONRHO PLC - TR-1 Notification of major interest in shares
27/09/201209:48THE STANDARD BANK OF SA LTD - Interest Rate Announcement
27/09/201209:47THE STANDARD BANK OF SA LTD - Interest Rate Announcement
27/09/201209:45THE STANDARD BANK OF SA LTD - Interest Rate Announcement
27/09/201209:43THE STANDARD BANK OF SA LTD - Interest Rate Announcement
27/09/201209:40BNP PARIBAS ARBITRAGE ISSUANCE B.V. - New Warrant Listing
27/09/201209:30IMITED - Dealing in Avi shares by a director of AVI
27/09/201209:30AMALGAMATED ELECTRONIC CORP LTD - No change statement and Notice of AGM
27/09/201209:00FRICAN RESOURCES PLC - Audited Results for the year ended 30 June 2012
27/09/201208:55Ferrum Crescent Limited - Final Results For Year Ended 30 Une 2012
27/09/201208:47INVESTEC BANK LIMITED - Subordinated Debt Issue
27/09/201208:45Premium Properties Limited - New Financial Instrument Listing Announcement
27/09/201208:01LONRHO PLC - Director dealing
27/09/201207:45TIGER BRANDS LIMITED - Dealing in securities
27/09/201207:30GROWTHPOINT PROPERTIES LIMITED - No Change Statement and AGM Notice
27/09/201207:30ACCENTUATE LIMITED - Audited results for the year ended 30 June 2012
27/09/201207:06AMATED APPLIANCE HOLDINGS LD - Russell Hobbs trademark secured
27/09/201207:05LONRHO PLC - TR-1 Notification of major interest in shares
27/09/201207:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
27/09/201207:05AMATED APPLIANCE HOLDINGS LD - Audited results for the year ended 30 June 2012
27/09/201207:05DIGICORE HOLDINGS LIMITED - Group audited results for the year ended 30 June 201...

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