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 The Sharenet Daily 
Thursday, 13 December 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)

What is Driving up the Local Equity Market?

Over this last year and in November the JSE has powered up to new highs. For sure the gains have only come from a certain section of the market – as we noted last month Industrials and Financials are driving the market to new highs.

November ended the month on a new high and this has again continued into December. The local JSE has now made new highs in August, September, October, November and now also in December.

Ultimately we believe that a company generating higher and higher profitability will be represented by a share price that moves up over time. But over the last 12 months earnings growth on JSE listed companies has slowed from an annual growth of 30% in July to just 4.8% in November. Clearly there are other factors driving prices up.

One US based fund manager, Ken Fisher, who very often goes against the prevailing trend has a firm view that the only determinant of prices is supply and demand. In the long term there is an almost unlimited supply of shares, but in the shorter term up to say two years the supply of shares is relatively stable because new share issues and major merger and acquisitions take some time to conclude.

The demand side for equities can be categorised into fundamental and non-fundamental factors. Fundamental drivers include economic activity and corporate profitability. Non fundamental drivers include sentiment and liquidity. All of these are important drivers of demand but at different times have differing influences on prices.

The chart below gives a just one possible reason for the on-going demand for local equities and especially selected industrials and financials despite earnings growth falling back – i.e. the requirement for yield from investors in a global environment that is providing very few opportunities. For a period of time investors are prepared to bid up prices because on a relative basis they are attractive.

When priced relative to bonds, there have only been 3 periods of time in the last 10 years when local investments were as attractive – in the period 2002/2003, in the period from September 2008 and now more recently in June to September.

Therefore despite the more elevated share prices and the new monthly highs, liquidity driven demand for yield has continued to be a driver of share prices. This chart indicates that there is still relatively good value in local equities when compared to a bond alternative.

Kind regards,

Ian de Lange

021 914 4966

Thu, 13 Dec 2012
Top News
South African stocks fell slightly on Thursday, snapping a three-day record-setting run, as investors cashed in on profits while worries about U.S. fiscal problems dampened sentiment.  Full story

South Africa's Kumba Iron Ore will supply the local unit of ArcelorMittal with up to 4.8 million tonnes of ore at $65 per tonne next year as the companies try to resolve a pricing dispute.  Full story
European governments reached a landmark deal on Thursday that gives the European Central Bank new powers to supervise banks, boosting confidence in the single currency bloc as it enters the fourth year of its debt crisis.  Full story
Syrian rebels are gaining ground and might win, Russia's Middle East envoy said on Thursday, in the starkest such admission from a major ally of President Bashar al-Assad in 20 months of conflict.  Full story
Japan scrambled fighter jets on Thursday after a Chinese government plane entered what Japan considers its airspace over disputed islets in the East China Sea, escalating tension between Asia's two biggest economies.  Full story
World shares and commodity prices slipped on Thursday as investors looked past the Federal Reserve's announcement of further monetary stimulus and set their sights. . .  Full story
U.S. stocks fell slightly on Thursday, pulling back from six straight days of gains despite a batch of positive economic releases as "fiscal. . .  Full story
Britain's leading share index fell on Thursday as concerns over U.S. fiscal negotiations resurfaced, prompting investors to consolidate recent gains made during the longest. . .  Full story
European shares slipped from 18-month highs on Thursday, led by weakness in heavyweight healthcare stocks, after uncertainty over U.S. budget talks prompted investors to. . .  Full story

Gold prices fell more than 1 percent on Thursday, failing to sustain gains made after the Federal Reserve unveiled a fresh round of. . .  Full story
U.S. stocks opened flat on Thursday after data showed first time claims for jobless benefits fell sharply last week, but investors were cautious about. . .  Full story
U.S. stock index futures rose on Thursday after data showed initial jobless claims fell in the latest week, producer prices fell more. . .  Full story
European shares dipped on Thursday as new stimulus steps from the Federal Reserve were overshadowed by concern over U.S. austerity measures, though traders made. . .  Full story
SA Business
South Africa's Standard Bank may sell 60 percent of its UK commodities and foreign exchange trading businesses to the Industrial & Commercial Bank of China for at least $600 million, the. . .  Full story
Coal of Africa said on Thursday it has re-hired 178 workers it sacked last week for going on an illegal strike at its Mooiplaats mine in South Africa.. . .  Full story
South Africa's rand firmed against the dollar on Thursday after the U.S. Federal Reserve announced a new round of monetary stimulus to bolster the world's biggest economy.. . .  Full story

South Africa's competition watchdog levied a $10 million price-fixing fine on consumer foods maker Foodcorp, a takeover target of poultry producer Rainbow Chicken.. . .  Full story
Company News
Shareholders were previously advised that the Sishen Iron Ore Company (Pty) Ltd. ("SIOC") and ArcelorMittal South Africa Ltd. ("AMSA") were engaging. . .  Full story
Shareholders are hereby advised that, with the exception of Ordinary Resolution number 10 (Authority to place unissued shares under the directors'. . .  Full story
In compliance with the AIM Rules, Datatec announced the following: *The allotment of 605 901 ordinary ZAR0.01 shares as the second of. . .  Full story
Shareholders are referred to the cautionary announcement dated 16 November 2012, and are advised that as negotiations have been terminated, caution. . .  Full story

Coal ("the company") advised that it has signed a Memorandum of Understanding ("MOU") with the National Union of Mineworkers ("NUM") relating. . .  Full story
The Financial Mail reported the weaker rand has prompted South African investors to increase their exposure to rand hedge stocks such. . .  Full story
Shareholders are referred to the notice of annual general meeting contained in the 2012 integrated report, posted to shareholders on 15. . .  Full story
Business Day's "Bottom Line" column wonders if Cadiz could be a takeover target, as financial services RE:CM acquired 15% of the. . .  Full story
Company Results
Revenue increased to R454.8 million (R393.7 million). Operating profit rose to R41.8 million (R27.3 million). Net attributable profit was up by. . .  Full story
Revenue for the year grew to R34.9 million (R32.2 million). Profit attributable to equity holders increased to R4.3 million (R3.7 million).. . .  Full story
Revenue. . .  Full story
The following are BK Prefs maiden interim results and therefore are incomparable. Revenue for the interim period was R5.5 million. Loss. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0038676.70-86.00-0.22%
JSE Top 4017:0034287.11-127.00-0.37%
JSE Gold17:002240.127.000.32%
JSE Financial17:0028858.2038.000.13%
JSE Industrial17:0046235.84-27.00-0.06%
JSE Indust 2517:0039772.56-80.00-0.20%
JSE Resource17:0050766.85-397.00-0.78%
DJ Futures19:2213212.00-13.00-0.10%
DJ Ind19:5213177.49-67.96-0.51%
SP 50019:521419.10-9.38-0.66%
FTSE 10018:355929.61-16.24-0.27%
All Ords07:474592.901.100.02%
NZSE 5006:483974.73-20.53-0.51%
NameTimeRPMove% Move
Gold $19:581697.01-13.68-0.80%
Gold R19:5814705.13-96.90-0.65%
Gold R/kg19:52473035-4134-0.87%
Silver $19:5932.3750-1.0050-3.01%
Platinum $19:591607.00-23.00-1.41%
Palladium $19:59689.00-2.20-0.32%
Brent Crude19:48108.56.550.51%
Rand / Dollar19:598.66930.01800.21%
Rand / Pound19:5513.9236-0.0068-0.05%
Rand / Euro19:5511.32670.01770.16%
Rand / NZD19:587.30950.01250.17%
Rand / AUD19:559.1185-0.0125-0.14%
Yen / Dollar19:5983.43000.30000.36%
Euro / Dollar19:550.7647-0.0001-0.01%
Dollar / Euro19:591.30670.00010.01%
Pound / Dollar19:550.62070.00130.21%

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 ROCKWELL  1705851.79.%10000
2 DIPULA-A  120019919.88.%100
3 SEPHAKU  328185.81.%141084
4 TREMATON  17584.79.%20685
5 PICKNPAY  44021824.31.%3076054
6 BELL  2140874.24.%27026
7 FAIRVEST  13553.85.%423248
8 NIVEUS  1350503.85.%10000
9 TELKOM  1610553.54.%995539
10 WBHO  153015013.39.%487009
11 TRNSHEX  310103.33.%25282
12 BASREAD  1070343.28.%72469
13 COMAIR  16053.23.%306409
14 ABIL  3099953.16.%3995364
15 NAMPAK  3200973.13.%1641554
16 JUBILEE  10532.94.%43709
17 AFRIMAT  730202.82.%67351
18 PPC  3350892.73.%995630
19 BARWORLD  82172172.71.%1372108
20 HOLDSPORT  45491192.69.%3727

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Major Moves Down
SharenameSaleMove% MoveVolume
1 ATLATSA  135-35-20.59.%20426
2 DELRAND  140-30-17.65.%1593
3 ALERT  190-21-9.95.%8585
4 KEATON   185-15-7.50.%539152
5 LONAFRIC  120-9-6.98.%18333
6 NET1UEPS  4800-350-6.80.%22322
7 TASTE  390-20-4.88.%7520
8 PAN-AF  242-9-3.59.%471315
9 SPURCORP  2300-80-3.36.%10541
10 SASFIN  3250-110-3.27.%15104
11 SYCOM  2760-90-3.16.%351676
12 ITLTILE  610-19-3.02.%2400
13 PREMIUM  1800-50-2.70.%26617
14 MUSTEK  545-15-2.68.%245169
15 DCENTRIX  380-10-2.56.%28499
16 VILLAGE  118-3-2.48.%1248440
17 OCTODEC  2000-50-2.44.%30264
18 TRUWTHS  10150-250-2.40.%918816
19 EMIRA  1418-33-2.27.%280886
20 ESORFRANK  132-3-2.22.%248562

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New Highs
SharenameSaleHighMove% MoveVolume
1 DIPULA-A  1200120019919.88.%100
2 FAIRVEST  13513553.85.%423248
3 WBHO  15301155805013.39.%487009
4 NAMPAK  32003244973.13.%1641554
5 PPC  33503417892.73.%995630
6 INVICTA  845085501712.07.%67626
7 INVLTD  57225749911.62.%550253
8 INVPLC  57105735751.33.%1269801
9 CML  39984023481.22.%200534
10 ASSORE  40000415684301.09.%127717
11 RESILIENT  53005600400.76.%348288
12 REMGRO  1549015500900.58.%590774
13 MEDCLIN  52855337280.53.%1068690
14 METAIR  32033236130.41.%20534
15 CLOVER  1756179460.34.%119900
16 LIB-HOLD  1141011575280.25.%165866
17 MASSMART  1877119241200.11.%243358
18 WOOLIES  71967300-6-0.08.%1782397
19 CITYLDG  1075011389-51-0.47.%181310
20 SHOPRIT  1990020198-97-0.49.%1428673

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New Lows
SharenameSaleLowMove% MoveVolume
1 DELRAND  140140-30-17.65.%1593
2 KEATON   185181-15-7.50.%539152
3 DCENTRIX  380380-10-2.56.%28499
4 ALTRON-P  21002048-10-0.47.%965597
5 LEWIS  668065501001.52.%357605

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Index Summary
Index NameRPMove% Move
Top 4034,287.00-127.00-0.37%
Mid Cap54,156.00358.000.67%
Small Cap40,463.00-125.00-0.31%
Resource 2050,766.00-397.00-0.78%
Industrial 2539,772.00-80.00-0.20%
Financial 1510,767.0017.000.17%
Financial & Ind. 3043,176.00-71.00-0.17%
All Share38,676.00-86.00-0.22%
Oil & Gas 27,385.00-568.00-2.03%
Mining 32,884.00-174.00-0.53%
Gold Mining2,
Platinum Mining55.00.000.02%
GENERAL MINING8,700.00-65.00-0.75%
Oil & Gas Producers 14,724.00-305.00-2.03%
Basic Materials 28,232.00-117.00-0.41%
Chemicals 16,352.0020.000.13%
Forestry & Paper 17,563.00255.001.48%
Industrial Metals 27,641.0037.000.14%
Industrials 36,998.00413.001.13%
General Industrials
Consumer Goods 41,090.00-182.00-0.44%
Automobiles & Parts 7,253.0030.000.42%
Household Goods187.0021.33%
Health Care 52,608.0045.000.09%
Index NameRPMove% Move
Food Producers 70,232.00-727.00-1.03%
Personal Goods 670.00-10.00-1.59%
Consumer Services 82,942.00-346.00-0.42%
General Retailers 67,757.00-500.00-0.73%
Travel & Leisure 4,752.00-34.00-0.73%
Media 119.00.00-0.18%
Support Services 2,273.00-20.00-0.89%
Telecommunications 80,314.00192.000.24%
Financials 28,858.0038.000.13%
Banks 51,143.00177.000.35%
Non-life Insurance 47,841.00625.001.32%
Life Insurance 25,068.00-171.00-0.68%
General Financial 2,653.0036.001.41%
Technology 32,743.0041.000.13%
SHARIAH TOP40 3,369.00-20-0.60%
FTSE/JSE SHARIAH ALL3,480.00-16-0.47%
COAL MINING20,309.00-19-0.10%
FTSE JSE Fledgling 5,746.00-19-0.33%
FTSE/JSE Alt X 985.00171.79%
RESOURCE 28,004.00-209-0.74%
DIVIDEND PLUS210.0010.72%
FTSE/JSE RAFI 407,863.00-11-0.15%
Capped Top 4018,069.00-71-0.39%
Capped All Share19,558.00-43-0.22%
JSE TABACO 5,792.00-22-0.39%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
14/12/2012AH-VESTSeptember 2012 (Interim)
14/12/2012OSIRISAugust 2013 (Final)
14/12/2012RACECSeptember 2012 (Final)
14/12/2012TELEMASTRSeptember 2012 (Final)
14/12/2012WINHOLDSeptember 2012 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
CULLINAN12/12/201227/12/201207/01/2013R 0.0100
AFPREFINV10/12/201227/12/201207/01/2013R 0.2606
NAMPAK 6%P06/12/201218/01/201328/01/2013R 0.0600
NAMPAK 6.506/12/201218/01/201328/01/2013R 0.0650
REX TRUE6%05/12/201227/12/201207/01/2013R 0.0600
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ABIL PREF19/11/201207/12/201218/12/2012R 3.2700
MRPRICE14/11/201207/12/201218/12/2012R 1.3300
ABIL19/11/201207/12/201218/12/2012R 1.1000
AME20/11/201207/12/201218/12/2012R 1.0000
CROOKES27/11/201213/12/201224/12/2012R 0.8000

Upcoming AGMs**
CodeCompany NameDateStatus
RARRare Holdings Ltd.13/12/2012Confirmed
RARPRare Holdings Ltd.13/12/2012Confirmed
SLOSouthern Electricity Company Ltd.13/12/2012Confirmed
PPEPurple Capital Ltd.14/12/2012Confirmed
PPEPPurple Capital Ltd.14/12/2012Confirmed

Stock Exchange News Service
13/12/201217:23N PLC - Voting rights and capital update
13/12/201217:08CHROMETCO LIMITED - Results of General Meeting
13/12/201217:00BK ONE LIMITED - Unaudited condensed interim results for the six months ended 31...
13/12/201216:55OLDINGS LIMITED - Director Dealing In Securities
13/12/201216:49INTERWASTE HOLDINGS LIMITED - Directors Dealings In Securities
13/12/201216:48INTERWASTE HOLDINGS LIMITED - CANCELLATION OF S326695 Directors Dealings In Secu...
13/12/201216:41AH-VEST LIMITED - Appointment of Independent Non-Executive Directors
13/12/201216:37MASTER DRILLING GROUP LTD - Results of placing announcements
13/12/201216:15PLATFIELDS LIMITED - Renewal of cautionary announcement
13/12/201216:07KUMBA IRON ORE LIMITED - Sishen Supply Agreement
13/12/201216:00ARCELORMITTAL SOUTH AFRICA LIMITED - Iron Ore Supply Agreement between ArcelorMi...
13/12/201215:48ABSA CAPITAL - Notice of the expiry and maturity of ABSW19
13/12/201215:45INVESTEC PROPERTY FUND LIMITED - Director's dealings in Securities
13/12/201215:37NAMPAK LIMITED - Dealings in securities by a director, the company secretary and...
13/12/201215:15Buildmax Limited - Finalisation Date Announcement: Share Consolidation
13/12/201215:00WITWATERSRAND CONS GOLD RESOURCES - Geotechnical drilling completed at Wits Gold...
13/12/201214:40JD GROUP LIMITED - Dealing In Securities By Directors
13/12/201214:20GRAND PARADE INVESTMENTS LIMITED - Results of the annual general meeting
13/12/201214:11STANLIB COLLECTIVE INVESTMENTS LTD - Distribution announcement - amendment
13/12/201214:10STANLIB COLLECTIVE INVESTMENTS LTD - Distribution announcement - STAN40
13/12/201214:00DATATEC LIMITED - Further Issues Of Shares
13/12/201214:00SACOIL HOLDINGS LIMITED - Award of the onshore Petroleum Prospecting Licence Blo...
13/12/201213:51THE STANDARD BANK OF SA LTD - New Financial Instrument Listing Announcement - CL...
13/12/201213:50THE STANDARD BANK OF SA LTD - New Financial Instrument Listing Announcement - CL...
13/12/201213:33BUILDMAX LIMITED - Awarding of shares to directors in terms of Long Term Incenti...
13/12/201213:31O RESOURCES LIMITED - Trading of Exxaro ordinary shares on behalf of the Exxaro ...
13/12/201213:30O RESOURCES LIMITED - Trading of Exxaro ordinary shares on behalf of the Kumba M...
13/12/201213:27HOLDINGS LIMITED - Results of the Annual General Meeting
13/12/201213:25SOUTHERN ELECTRICITY COMPANY LTD - Results of Annual General Meeting
13/12/201213:16AUSTRO GROUP LIMITED - Outcome of disciplinary enquiry
13/12/201213:15FAMOUS BRANDS LIMITED - Directors' dealings in securities
13/12/201213:15SYNTHESIS FUNDING LIMITED - SYN966 Synthesis Funding Limited - New Financial In...
13/12/201213:06SASOL LIMITED - Dealing in securities by a director of a major subsidiary of Sas...
13/12/201213:00FIRSTRAND BANK LIMITED - Listing of Tap Issue - FRS81
13/12/201212:50DORBYL LIMITED - Posting of the independent board's response circular in respons...
13/12/201212:48THE STANDARD BANK OF SA LTD - The Standard Bank of South Africa Limited New Fina...
13/12/201212:30Capitec Bank Limited - New Instrument Listing - CBL20
13/12/201212:05INDWA INVESTMENTS LIMITED - New Instrument Listing - IND312
13/12/201212:00MUVONI TECHNOLOGY GROUP LTD - Withdrawal of cautionary
13/12/201212:00BETTABETA CIS - Index review announcement
13/12/201211:55MUVONI TECHNOLOGY GROUP LTD - Reviewed Results for the year ended 31 August 2012
13/12/201211:50LIFE HEALTHCARE GROUP HOLDINGS LTD - Dealing In Securities By An Associate Of Th...
13/12/201211:48METAIR INVESTMENTS LIMITED - Director dealings
13/12/201211:44WESCOAL HOLDINGS LIMITED - Director Dealing in Securities
13/12/201211:17ADVTECH LIMITED - Director's dealings
13/12/201211:00COAL OF AFRICA LIMITED - Mooiplaats employees re-instated
13/12/201210:28K LIMITED - Proposed Distribution - STXNNF
13/12/201210:17NEDBANK LIMITED - Proposed Distribution - STXNII
13/12/201210:15FIRSTRAND BANK LIMITED - New Intsrument Listing - FRC157 FRC158 FRC159
13/12/201210:15TELKOM SA SOC LIMITED - Appointment of Independent Non-executive Directors
13/12/201210:01NTERNATIONAL HOLDINGS LIMITED - Declaration And Finalisation Announcement In Res...
13/12/201210:00REAL PEOPLE INV HOLD (PTY) LTD - Interest Rate Reset - RP011
13/12/201209:47REUNERT LIMITED - Notice Of Class Meeting And Notice Of Combined Meeting
13/12/201209:45REUNERT LIMITED - No Change Statement And Notice Of Annual General Meeting
13/12/201209:45TOYOTA FIN SERVICES (SA) PTY LTD - Full Capital redemption - TFS102
13/12/201208:47GOLIATH GOLD MINING LIMITED - Trading Statement
13/12/201208:10STANDARD BANK GROUP LIMITED - Relaxation of certain restrictions on Standard Ban...
13/12/201208:02REDEFINE PROPERTIES LIMITED - Amended proposal to acquire the property portfolio...
13/12/201208:00FOUNTAINHEAD PROPERTY TRUST - Update on Corporate Action and Renewal of Cautiona...
13/12/201207:07BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
13/12/201207:05BHP BILLITON PLC - Longford Gas Conditioning Plant Project Approval

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