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 The Sharenet Daily 
Wednesday, 17 April 2013 - 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)

Japanese aggressive monetary policy

Seed Investments have a brand new website! Feel free to go and have a look by clicking here. Here you will be able to find more information of Seed Investments and also be able to access our fund fact sheets and monthly market overviews.

Japan is the latest country to embark on aggressive expansion of its money supply. In the last few months the bold monetary policy initiative from the newly installed prime Minister of Japan, translated into an immediate depreciation of the yen versus the US dollar and at the same time a huge uptick in Japanese share prices.

In the 1970’s Japan experienced high monetary growth. This led to a major bubble in the property and stock market, culminating in the Nikkei 225 index reaching 38 900 in late 1989. Then the Bank of Japan put on the brakes in order to reign in the monetary supply. The stock market and property bubble burst and the economy went into recession. The stock market index went into a long term decline from its peak to an eventual low of 7055 in March 2009. At its peak, the Japanese share market comprised 45% of the MSCI World index. It has now fallen to just 8%.

The Japanese economy has been in general recession over the last two decades, despite the fact that the Bank of Japan ran a zero interest rate policy for much of this time. This is possibly because prices have been in decline and therefore real interest rates were actually too high – i.e. monetary policy was actually tight throughout most of this period, leading to a strong currency. Price deflation and a strong currency encouraged high savings, low investment and in turn on-going deflation.

Renowned economist Milton Friedman said this in a speech in 2000, “As far as Japan is concerned, the situation is very clear...They can buy long-term government securities, and they can keep buying them and providing high-powered money until the high-powered money starts getting the economy in an expansion. What Japan needs is a more expansive domestic monetary policy. Bold monetary policy achieved through the cooperation of the government and the Bank of Japan will be indispensable for breaking away from deflation and the appreciating yen.”

Following years of half-hearted attempts to stimulate the weak economy, the new leadership has taken up on Friedman’s recommendation. The new Japanese Prime Minister, Shinzo Abe, together with new leader of the Bank of Japan announced sweeping economic and monetary easing policies - now termed as Abenomics. “Bold monetary policy achieved through the cooperation of the government and the Bank of Japan will be indispensable for breaking away from deflation and the appreciating yen.” -Prime Minister Shinzo Abe, January 11, 2013.

While high inflation is a problem for any economy, even more so is deflation. Japan has been in a deflation scenario for two decades and this latest plan is essentially an attempt to break the back of deflation in the economy.

The deflation environment has hampered business growth and according to BCA Research, the total amount of corporate profits today is essentially the same as 20 year ago, compared to the US, which is up 5 times. See chart below.

Source : BCA Research

The announcement sparked a depreciation in the yen against the USD from around 83 yen to its current 98 yen to the dollar. BCA Research estimates that this decline should translate into about a 35% increase in corporate profits for Japanese companies. The announcements led to a sharp uptick in prices with the Nikkei 225 index up from around 9 000 in November to the current level of around 13200.

The Japanese Nikkei 225 index

Will bold monetary policy work?

While the announcement of the impending monetary supply has proved positive for Japan, there is a growing degree of scepticism globally that the large scale aggressive monetary policy that the US, Europe and now Japan have embarked upon will lead to possible disastrous consequences.
So far it has had the exact intended result in Japan and should it prove to be sustainable, maybe just maybe Japanese companies may prove to be global winners.

Kind regards

Ian de Lange
Seed Investments

021 914 4966

Wed, 17 Apr 2013
Top News
South African stocks booked their biggest one-day drop in two months on Wednesday, falling 1.9 percent as nervous investors continued to sell mining companies such as Anglo American on worries over commodities prices.  Full story

South Africa's government bonds edged higher and yields fell sharply on Wednesday, partly driven by inflation data which backs the case for domestic monetary policy to stay accommodative.  Full story
Investigators of the Boston Marathon bombings believe they have identified a suspect from security video taken before Monday's blasts killed three people and injured 176 others, a U.S. law enforcement source said on Wednesday.  Full story
The World Health Organization said on Wednesday that a number of people who have tested positive for a new strain of bird flu in China appear to have had no contact with poultry, adding to the mystery about a virus that has killed 17 people to date.  Full story
World equity markets and commodities fell on Wednesday as global growth concerns continued to take a heavy toll on investor sentiment and disappointing earnings. . .  Full story
European shares fell to their lowest levels so far this year on Wednesday on fresh concerns over the global economy that led some. . .  Full story
Britain's top share index slipped to a 10-week closing low on Wednesday, pulled down by resource stocks on mounting concerns that global growth. . .  Full story
U.S. stocks dropped 1 percent in a broad decline on Wednesday, with materials and energy shares leading the way lower as commodity prices. . .  Full story

European shares extended their losses to fall to new intraday lows on Wednesday, in a broad sell-off which tracked a similar sharp fall. . .  Full story
U.S. stocks extended losses on Wednesday, with the top equity indexes down more than 1 percent after a batch of disappointing earnings reports. . .  Full story
U.S. stocks fell at the open on Wednesday after several disappointing earnings reports and another drop in commodity prices.. . .  Full story
European shares fell for the fourth straight session on Wednesday in a broad selloff led by mining and industrial stocks, as brewing concerns. . .  Full story
SA Business
De Beers, a unit of miner Anglo American, said production at its Venetia diamond mine, the biggest in South Africa, should return to normal in the second half of 2013, keeping its production steady at 2012 levels.. . .  Full story
South Africa's rand and government bonds steadied in early Wednesday trade, as investors kept to the sidelines ahead of the release of inflation data at 0800 GMT.. . .  Full story

Growth in South Africa's retail sales accelerated to a five month high of 3.8 percent year-on-year in February from a revised. . .  Full story
Yields on South African government bonds fell after lower-than-expected inflation data on Wednesday, with the 2026 benchmark bond hitting an all. . .  Full story
Miner Petra Diamonds said it recovered a high-quality 25.5-carat blue diamond at its Cullinan mine in South Africa, sending its shares. . .  Full story
South Africa's headline consumer inflation undershot market expectations in March, coming in unchanged at 5.9 percent year-on-year compared with February, data. . .  Full story

South African fixed line operator Telkom said on Tuesday it had agreed to pay a 449 million rand fine handed down by regulators last year for uncompetitive behaviour.. . .  Full story
South Africa's Zeder Investments plans to acquire Total Produce's holding in the Capespan Group, South Africa's biggest fruit exporter, the company said on Wednesday.. . .  Full story
Company News
The following Offering Circular has been approved by the UK Listing Authority and is available for viewing: Offering Circular dated 17. . .  Full story
Shareholders are hereby advised that a reasonable degree of certainty exists that Pioneer Foods' earnings and headline earnings per share for. . .  Full story
Shareholders were advised that, at the Annual General Meeting of RBPlat held at the Castello room at the Palazzo Hotel, Monte. . .  Full story
Business Day reported that one of insurer's Liberty's main objectives this year is to broaden its presence in Africa, including launching. . .  Full story

Shareholders were advised that, with immediate effect, non-executive director, Andrew Brooking has been appointed as a member of the Audit and. . .  Full story
AMAPS refers to the SENS announcement dated 29 January 2013 regarding the retirement of Mr. Des Olivier. AMAPS shareholders were advised. . .  Full story
Resgen released its quarterly report for the three months ended 31 March 2013. Present status * Mine construction activities have commenced, with. . .  Full story
Coal advised that Michael Meeser has been appointed as CFO and executive director with effect from 1 June 2013.. . .  Full story
Company Results
Revenue increased to R1.9 billion (R1.8 billion). Earnings before interest, taxation, depreciation and amortisation ("EBITDA") declined to R126.3 million (R145.2 million) and operating profit was lower at R106.2 million (R123.4 million). Total comprehensive income attributable to ordinary shareholders decreased to R77.3. . .  Full story
Revenue increased to R969.7 million (R763.5 million). Gross profit was higher at R258.3 million (R202.8 million) and earnings before interest, taxation, depreciation and amortisation ("EBITDA") rose to R123.9 million (R97.4 million). Net attributable profit was more than 25% higher at R70.1. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0037801.67-627.00-1.63%
JSE Top 4017:0033230.97-630.00-1.86%
JSE Gold17:001484.97-27.00-1.79%
JSE Financial17:0029956.89-406.00-1.34%
JSE Industrial17:0048108.05-411.00-0.85%
JSE Indust 2517:0041527.78-386.00-0.92%
JSE Resource17:0042787.62-1480.00-3.34%
DJ Futures19:2214530.00-155.00-1.06%
DJ Ind19:5814627.56-129.22-0.88%
SP 50019:581552.65-21.92-1.39%
FTSE 10017:356244.21-60.37-0.96%
All Ords08:404993.6049.501.00%
NZSE 5007:484478.2750.431.14%
NameTimeRPMove% Move
Gold $19:591377.277.100.52%
Gold R19:5812624.20131.071.05%
Gold R/kg19:584055449120.23%
Silver $19:5923.2470-.1170-0.50%
Platinum $19:591431.50-14.50-1.00%
Palladium $19:59659.50-11.50-1.71%
Brent Crude19:22100.39-.24-0.24%
Rand / Dollar19:589.16790.04750.52%
Rand / Pound19:5513.9619-0.0234-0.17%
Rand / Euro19:5511.9646-0.0589-0.49%
Rand / NZD19:587.7386-0.0070-0.09%
Rand / AUD19:559.4540-0.0243-0.26%
Yen / Dollar19:5997.5900-0.1900-0.19%
Euro / Dollar19:550.76680.00831.09%
Dollar / Euro19:591.3035-0.0142-1.08%
Pound / Dollar19:550.65560.00500.77%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 DIGICOR  215157.50.%60248
2 BUILDMX  215157.50.%14541
3 COMAIR  299144.91.%31280
4 FONEWORX  220104.76.%6388
5 DCENTRIX  350154.48.%568055
6 COMPCLEAR  355154.41.%7200
7 ROLFES  625254.17.%31829
8 PALLINGHT  21383.90.%72037
9 CADIZ  14553.57.%163000
10 SPURCORP  3029963.27.%161653
11 CONDUIT  17053.03.%89829
12 BRIMSTON  1298383.02.%4163
13 TRNSHEX  33092.80.%56100
14 BCX  580152.65.%101478
15 VIVIDEND  574142.50.%1249491
16 SUPRGRP  2436562.35.%598461
17 METROFILE  43092.14.%514017
18 ADAPTIT  21041.94.%110284
19 PINNACLE  2168411.93.%242119
20 RAUBEX  1975351.80.%23079

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Major Moves Down
SharenameSaleMove% MoveVolume
1 GOLIATH  225-65-22.41.%2000
2 FORBES  372-78-17.33.%102
3 RANGOLD  240-40-14.29.%25000
4 EASTPLATS  104-16-13.33.%58923
5 ATLATSA  180-20-10.00.%28345
6 GOLDONE  190-15-7.32.%14519
7 LONMIN  3630-281-7.18.%3109749
8 KAP  291-19-6.13.%952443
9 METMAR  155-10-6.06.%179757
10 SIBANYE  990-52-4.99.%10411448
11 BILLITON  24652-1186-4.59.%4548608
12 OASIS  1320-60-4.35.%2781
13 KEATON   163-7-4.12.%2525
14 RICHEMONT  6734-282-4.02.%8577859
15 HARMONY  4500-185-3.95.%1902399
16 ADVTECH  650-25-3.70.%106990
17 JUBILEE  113-4-3.42.%79720
18 BARWORLD  9080-318-3.38.%1356331
19 STANBANK  10823-375-3.35.%5920971
20 TRNPACO  1740-60-3.33.%3400

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New Highs
SharenameSaleHighMove% MoveVolume
1 COMAIR  299300144.91.%31280
2 SPURCORP  30293049963.27.%161653
3 CARGO  13001300100.78.%2500
4 LIFEHC  36343700-15-0.41.%1530314

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New Lows
SharenameSaleLowMove% MoveVolume
1 EASTPLATS  104104-16-13.33.%58923
2 METMAR  155155-10-6.06.%179757
3 SIBANYE  990990-52-4.99.%10411448
4 HUDACO  86208232-267-3.00.%53347
5 ANGGOLD  1680016481-442-2.56.%4974811
6 LEWIS  60005985-110-1.80.%263366
7 ALTRON-P  19501889-25-1.27.%40021

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Index Summary
Index NameRPMove% Move
Top 4033,230.00-630.00-1.86%
Mid Cap54,462.00-391.00-0.71%
Small Cap43,287.0016.000.04%
Resource 2042,787.00-1480.00-3.34%
Industrial 2541,527.00-386.00-0.92%
Financial 1511,119.00-183.00-1.62%
Financial & Ind. 3044,984.00-548.00-1.20%
All Share37,801.00-627.00-1.63%
Oil & Gas 27,926.00-450.00-1.59%
Mining 26,616.00-999.00-3.62%
Gold Mining1,484.00-27.00-1.79%
Platinum Mining41.00-1.00-2.65%
GENERAL MINING7,357.00-300.00-3.93%
Oil & Gas Producers 15,015.00-242.00-1.59%
Basic Materials 23,368.00-819.00-3.39%
Chemicals 19,196.00-134.00-0.70%
Forestry & Paper 20,102.00-299.00-1.47%
Industrial Metals 22,457.00-395.00-1.73%
Industrials 39,682.00-20.00-0.05%
General Industrials
Consumer Goods 44,637.00-777.00-1.71%
Automobiles & Parts 7,812.00-89.00-1.13%
Household Goods159.0000.03%
Health Care 60,793.00-145.00-0.24%
Beverages 158.00-1.00-0.66%
Index NameRPMove% Move
Food Producers 67,312.00-820.00-1.20%
Personal Goods 672.00-27.00-3.92%
Consumer Services 79,965.00128.000.16%
General Retailers 62,176.00-308.00-0.49%
Travel & Leisure 5,450.0038.000.72%
Support Services 2,332.008.000.36%
Telecommunications 76,967.00-680.00-0.88%
Financials 29,956.00-406.00-1.34%
Banks 50,697.00-1220.00-2.35%
Non-life Insurance 47,981.00.000.00%
Life Insurance 27,763.00-257.00-0.92%
General Financial 2,683.00-54.00-1.98%
Technology 35,432.0018.000.05%
SHARIAH TOP40 3,025.00-82-2.65%
FTSE/JSE SHARIAH ALL3,179.00-77-2.39%
COAL MINING18,311.00-440-2.35%
FTSE JSE Fledgling 5,906.00-5-0.10%
FTSE/JSE Alt X 920.00-9-1.04%
CAPPED PROPERTY 429.00-0.00%
RESOURCE 23,473.00-803-3.31%
DIVIDEND PLUS204.00-1-0.66%
FTSE/JSE RAFI 407,569.00-145-1.88%
Capped Top 4017,570.00-310-1.74%
Capped All Share19,159.00-306-1.58%
JSE TABACO 6,325.00-20-0.33%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
18/04/2013CILFebruary 2013 (Interim)
18/04/2013OSIRISFebruary 2013 (Interim)
18/04/2013REBOSISFebruary 2013 (Interim)
19/04/2013BCXFebruary 2013 (Interim)
19/04/2013BCX - A SHARESFebruary 2013 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
DCENTRIX16/04/201310/05/201320/05/2013R 0.1202
PSG15/04/201303/05/201313/05/2013R 0.7800
AMAPS12/04/201303/05/201313/05/2013R 0.3000
PHUMELELA11/04/201317/05/201327/05/2013R 0.2800
BARWORLD6%P08/04/201325/04/201306/05/2013R 0.0600
Ex Div**
Share NameDec-DateLDTPay-DateAmount
CAPITEC25/03/201312/04/201322/04/2013R 4.0500
ASTRAPAKP20/03/201312/04/201322/04/2013R 3.9745
SHFINV-PREF05/03/201312/04/201322/04/2013R 3.5600
STANBANK07/03/201312/04/201322/04/2013R 2.4300
REMGRO19/03/201312/04/201322/04/2013R 1.4500

Upcoming AGMs**
CodeCompany NameDateStatus
RBPRoyal Bafokeng Platinum Ltd.17/04/2013Confirmed
HULAHulamin Ltd.18/04/2013Confirmed
HLMHulamin Ltd.18/04/2013Confirmed
FCCPFoord Compass Ltd.18/04/2013Confirmed
FCPDFoord Compass Ltd.18/04/2013Confirmed

Stock Exchange News Service
17/04/201317:39ABSA BANK LIMITED - ABN58 - Interest Rate Reset
17/04/201317:34ABSA BANK LIMITED - ABN48 - Interest Rate Reset
17/04/201317:30BARLOWORLD LIMITED - BAW12 and BAW13 - Interest Rate Reset
17/04/201317:29NEDBANK LIMITED - Final Distribution - STXNII
17/04/201317:15TOYOTA FIN SERVICES (SA) PTY LTD - New Instrument Listing - TFS110
17/04/201317:15IVUZI INVESTMENTS LIMITED - Interest Rate Reset - IV02E
17/04/201316:40ANGLO AMERICAN PLC - Publication of Offering Circular
17/04/201316:30PREMIUM PROPERTIES LIMITED - Circular to Premium linked unitholders
17/04/201316:22ZEDER INVESTMENTS LIMITED - Acquisition Of Shareholding In Capespan Group Limite...
17/04/201316:00THE SPAR GROUP LIMITED - Notice of a disposal of a beneficial interest in Spar s...
17/04/201316:00PIONEER FOOD GROUP LIMITED - Earnings Guidance
17/04/201315:26SIBANYE GOLD LIMITED - Director's dealing in securities
17/04/201315:02GROWTHPOINT PROPERTIES LIMITED - GRT03 - Interest Rate Reset
17/04/201315:00ROYAL BAFOKENG PLATINUM LIMITED - Results of Annual General Meeting
17/04/201314:25INDEQUITY GROUP LIMITED - Trading statement for the six months ended 31 March 20...
17/04/201314:22SEKUNJALO INVESTMENTS LIMITED - Trading statement
17/04/201314:11MPACT LIMITED - Dealings In Securities By A Director
17/04/201313:34Transnet SOC Limited - Commercial Paper Issue - TSP140
17/04/201313:33Transnet SOC Limited - Commercial Paper Issue - TSP139
17/04/201313:20GROWTHPOINT PROPERTIES LIMITED - Offer for the property assets of Fountainhead P...
17/04/201312:43HOSPITALITY PROPERTY FUND LIMITED - Transaction update: Acquisition of the Radis...
17/04/201312:19VIVIDEND INCOME FUND LIMITED - Disclosure of disposal of securities
17/04/201312:07AVENG LIMITED - Results of general meeting
17/04/201312:00ISA HOLDINGS LIMITED - Results of general meeting
17/04/201311:47ROLFES HOLDINGS LIMITED - Dealing in Securities by an Associate of a Director of...
17/04/201311:30PSG GROUP LIMITED - Dealing in securities by the PSG Group Limited Supplementary...
17/04/201311:15TIMES MEDIA GROUP LIMITED - Dealing in shares by an associate of a director
17/04/201310:19KAP INDUSTRIAL HOLDINGS LIMITED - Dealing in securities by an associate of a dir...
17/04/201309:49NORTHAM PLATINUM LIMITED - Unprotected work stoppage at Zondereinde Mine continu...
17/04/201309:48ONELOGIX GROUP LIMITED - Chnages to the board of directors
17/04/201309:46AMALGAMATED APPLIANCE HOLDINGS LD - Update to a Change to the Board Of Directors
17/04/201309:05RESOURCE GENERATION LIMITED - Quarterly Report for the three months ended 31 Mar...
17/04/201308:03ZEDER INVESTMENTS LIMITED - Acquisition Of Shareholding In Capespan Group Limite...
17/04/201307:26BHP BILLITON PLC - BHP Billiton Production Report for the Nine Months Ended 31 M...
17/04/201307:06BHP BILLITON PLC - BHP Billiton Exploration and Development Report for the Quart...
17/04/201307:05CONSOLIDATED INFRASTRUCTURE GRP LTD - Unaudited Condensed Consolidated Intdrim R...
17/04/201307:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
17/04/201307:05COAL OF AFRICA LIMITED - Finance Director Appointed

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