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 The Sharenet Daily 
Tuesday, 23 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)

Retirement and the Perfect Storm

At the best of times Retirement planning tends to be a stressful exercise, over the last couple of years successful Retirement has become nearly impossible for most individuals in South Africa.

There are a number of reasons for this and these various factors have combined to create “The Perfect Storm” for South African Pensioners and Financial Advisors.

Let us have a look at the factors:

Retiring Earlier

There has been a tendency for a lot of South Africans to take early retirement, we won’t go into the various reasons for that now, but 20 years ago most people retired at the age of 65. It is now not uncommon for people to take early retirement packages at the age of 55, this extra ten years in retirement and ten years less of saving puts a huge strain on retirement capital.

Retirees living longer

It is a well-known fact that, with the advances in nutrition and medical sciences, people are living longer. This means that people are often in retirement for a period longer than their working careers.

Low Interest Rates

Because real interest rates are negative i.e. below inflation, retirees need to invest in “Higher Risk Assets”. Whilst these assets offer the prospect of real returns, they are a lot more volatile than cash and this volatility adds to the many concerns already experienced by pensioners.

The second concern on low interest rates is that it is more difficult to achieve higher returns in a low interest rate environment. This factor has been exacerbated by the fact that very few people are on defined benefit retirement funds so most retirees now carry the investment risk. On a defined benefit pension fund the investment risk sits with the employer.

Even people purchasing guarantees at these low rates are at risk. They are exposed to huge uncertainty going forward should we see later large inflation increases because they have been locked into these low rates.

Different Inflation Rates

Whilst the official South African inflation rate has remained under control, most individuals have seen huge inflationary pressure on their cost of living. Eskom, petrol prices and medical expenses are just a few of the normal day to day expenses which have seen increases way in excess of the official inflation rates. This erodes the purchasing power of the retirees’ future income.

Starting families later

In the 60’s it was common place for couples to start their families in their early twenties, lately it is not uncommon to see forty year olds bleary eyed from the effects of late night “pajama drills”. This means that your average 60 year old often still has children who are financially dependent.

As you can see, this lethal cocktail of factors has made a secure retirement a reality for only a select few. “What can be done about this?” I hear you ask. Firstly, remember no matter how frustrating your job is, no matter how irritating useless or incompetent your boss is, a bad day at the office is a lot better than having insufficient retirement capital and spending your “golden years” under the breadline. So, always try and work for as long as possible. Working longer has a double benefit on your retirement savings, firstly you are saving for longer and your capital has more time to grow and secondly you are drawing down on your capital for a shorter period of time. The chart below illustrates the effects of retiring at 55 versus 65 in real terms (i.e. after the impact of inflation).

The second way to get around it is obviously to start saving early enough; unfortunately this cannot be rectified like it was in the “good old days” where people were able to “buy back” years of service.

Most importantly, one needs to have a plan, the plan should include when you are planning to retire, how much income you need to retire with, what capital do you have at the moment and what returns are required to achieve all of these goals. If you timeously start with this plan and constantly assess your progress, you could be one of the select few spending your golden years above the bread line.

Kind regards,

Barry Hugo

021 914 4966

Tue, 23 Apr 2013
Top News
The Nigerian arm of South African telecom MTN Group on Tuesday signed a $3 billion loan facility with a group of local and international lenders to expand its network.  Full story

The new chief executive of South Africa's Pick n Pay said he planned to win back market share by cutting prices, a risky strategy for a retailer already hurt by weak margins.  Full story
A car bomb in Tripoli wounded two French guards at France's embassy in Libya on Tuesday, bringing new violence to a capital that has not seen attacks on diplomats like that which killed the U.S. ambassador in Benghazi last year.  Full story
Two men charged in Canada with plotting an attack on a passenger train appeared in separate courts on Tuesday while Iran reacted angrily to police accusations that the plotters were backed by al Qaeda elements in Iran.  Full story
At least 23 people were killed when Iraqi security forces stormed a Sunni Muslim protest camp near Kirkuk on Tuesday, triggering a gun battle between troops and protesters and provoking insurgent attacks in other areas.  Full story
Markets for stocks, bonds, oil and commodities were briefly roiled on Tuesday after a bogus report of explosions at the White House.. . .  Full story
U.S. stocks turned volatile on Tuesday, sharply cutting gains for a few minutes and then bouncing back, after a "bogus" Associated Press report. . .  Full story
Europe's main share index posted its biggest one-day gain in more than seven months on Tuesday, buoyed by strong earnings and after a. . .  Full story
Britain's blue chip share index jumped 2 percent on Tuesday on strong earnings reports and after weak German data fuelled expectations for a. . .  Full story

U.S. stocks climbed on Tuesday as strong earnings from Travelers Cos Inc and others put shares on track for a third straight day. . .  Full story
Europe's top share index recorded its biggest one-day gain in more than seven months on Tuesday, buoyed by strong earnings and as a. . .  Full story
U.S. stocks extended gains on Tuesday, with the S&P 500 up 1 percent as strong earnings from a variety of sectors improved sentiment.. . .  Full story
Gold fell around one percent on Tuesday after the outflow from the biggest gold exchange-traded fund (ETF) accelerated, investors shifted towards other assets like. . .  Full story
SA Business
Cameroon cocoa exports reached 183,300 tonnes by the end of March since the start of the season in August, up more than 12 percent from amount shipped over the same period last season, National Cocoa and Coffee Board statistics showed.. . .  Full story
South Africa's rand remained on a weaker footing against the dollar on Monday, weighed down by fears over disruptions to the national electricity supply and by weaker-than-expected Chinese manufacturing data.. . .  Full story

Operations at Northam Platinum's Zondereinde mine resumed on Tuesday after the South African mining company said it reached a deal with. . .  Full story
British oil company BP intends to invest nearly 5 billion rand in South Africa over the next five years, half of. . .  Full story
South Africa sold a total 2.35 billion rand of its 2023, 2036 and 2041 government bonds on Tuesday. Yields were lower. . .  Full story
The South African Reserve Bank's monthly leading business cycle indicator increased 0.1 percent in February from January, as the number of. . .  Full story

Shares of South African retailer Massmart tumbled more than 3 percent on Monday, after the Wal-Mart unit warned it may fall short of its profit target this year, squeezed by weak consumer spending.. . .  Full story
Company News
Afrimat is pleased to announce that its headline earnings are expected to increase by between 25% and 30% for the year. . .  Full story
Shareholders are referred to the renewal cautionary announcement released by Aspen on 7 March 2013 in which shareholders were advised of. . .  Full story
Anglo draws attention to an announcement issued by Kumba Iron Ore, the text of which is set out below: Application for. . .  Full story
Shareholders were advised on 28 March 2013 that the Supreme Court of Appeal had dismissed the appeals of the Department of. . .  Full story

Shareholders of Exxaro were advised that the audited condensed annual financial statements for the year ended 31 December 2012 issued on. . .  Full story
Textainer Group Holdings Ltd. ("Textainer"), the world's largest lessor of intermodal containers based on fleet size, today reported that it will. . .  Full story
Shareholders must please take note that the time of the Annual General Meeting of the company scheduled for Monday, 20 May. . .  Full story
Shareholders are advised that on Friday, 12 April 2013 the Board of Directors of the Company, acting in accordance with section. . .  Full story
Company Results
Net revenue for the interim period fell to R210.7 million (2012: R217.6 million). Operating profit increased to R27 million (2012: R21.7. . .  Full story
Revenue for the year ended 29 February 2013 increased to R9 billion (2012: R8.3 billion). Gross profit rose to R1.6 billion. . .  Full story
Net insurance premium revenue for the interim period increased to R17.9 million (2012: R16.6 million). Profit attributable to equity holders of. . .  Full story
Headline earnings for the annual financial period amount to R284.6 million (2012: R365.5 million). In addition, headline earnings per share from. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0038742.43573.001.50%
JSE Top 4017:0034166.27582.001.73%
JSE Gold17:001493.14-26.00-1.77%
JSE Financial17:0030502.12342.001.13%
JSE Industrial17:0049434.201135.002.35%
JSE Indust 2517:0042792.681102.002.64%
JSE Resource17:0043935.26121.000.28%
DJ Futures19:4014630.00131.000.90%
DJ Ind20:0014696.80129.630.89%
SP 50020:001577.0914.590.93%
FTSE 10017:356406.12125.502.00%
All Ords08:455002.6047.200.95%
NZSE 5007:484516.5032.840.73%
NameTimeRPMove% Move
Gold $19:591411.10-14.29-1.00%
Gold R20:0012985.510.400.00%
Gold R/kg20:00417484-4780-1.13%
Silver $19:5922.9180-.4670-2.00%
Platinum $19:591412.50-16.50-1.15%
Palladium $19:59669.30-11.60-1.70%
Brent Crude20:0099.98.330.33%
Rand / Dollar19:599.2024-0.0205-0.22%
Rand / Pound19:5514.0048-0.0640-0.45%
Rand / Euro19:5511.9626-0.0822-0.68%
Rand / NZD19:587.7375-0.0344-0.44%
Rand / AUD19:559.4400-0.0373-0.39%
Yen / Dollar19:5999.40000.08000.08%
Euro / Dollar19:550.76890.00360.47%
Dollar / Euro19:591.3002-0.0060-0.46%
Pound / Dollar19:550.65530.00150.23%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 LONAFRIC  1091414.74.%11000
2 MASTDRILL  870587.14.%6000
3 RICHEMONT  72294807.11.%19202791
4 GRANPRADE  370205.71.%122222
5 INDEQTY  475255.56.%17218
6 OCTODEC  2225894.17.%54
7 ZEDER  375154.17.%305282
8 CAPEVINH  670253.88.%232973
9 MEDCLIN  62552153.56.%1322557
10 CADIZ  15053.45.%24000
11 OLDMUTUAL  2826893.25.%10555172
12 PNR-FOODS  75352353.22.%206676
13 SABMILLER  4902315233.21.%1532020
14 NASPERSN  6100018883.19.%2018244
15 REMGRO  182105603.17.%1037984
16 S-OCEAN  16553.13.%60551
17 INVLTD  63421893.07.%412535
18 MIXTEL  350102.94.%16380
19 TREMATON  22062.80.%5000
20 STEINHOFF  2385652.80.%5829897

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Major Moves Down
SharenameSaleMove% MoveVolume
1 GOLIATH  275-29-9.54.%6450
2 SEPHAKU  639-56-8.06.%80254
3 ATLATSA  180-10-5.26.%36876
4 HARMONY  4293-229-5.06.%1435384
5 RAUBEX  1871-76-3.90.%43373
6 FONEWORX  202-8-3.81.%7271
7 DELTA  560-20-3.45.%1000
8 FINBOND  135-4-2.88.%403710
9 FPT  928-27-2.83.%4756394
10 DRDGOLD  609-17-2.72.%2024965
11 ILIAD  502-13-2.52.%74684
12 ALTRON  2000-50-2.44.%10538
13 BUILDMX  225-5-2.17.%6000
14 ANGGOLD  16892-338-1.96.%1809875
15 HOSP-B  515-10-1.90.%1939
16 EHSV  1700-30-1.73.%630
17 DCENTRIX  340-6-1.73.%14277
18 SANTOVA  115-2-1.71.%181700
19 JUBILEE  115-2-1.71.%84021
20 COMAIR  295-5-1.67.%6532

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New Highs
SharenameSaleHighMove% MoveVolume
1 INDEQTY  475475255.56.%17218
2 PNR-FOODS  753576242353.22.%206676
3 ILLOVO  32523495722.26.%514143
4 GROWPNT  28192819541.95.%2271016
5 FORTRESSB  810810151.89.%14700
6 PREMIUM  19501970351.83.%1055055
7 TIMES  16601700251.53.%15572

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New Lows
SharenameSaleLowMove% MoveVolume
1 SIBANYE  932892171.86.%2843419

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Index Summary
Index NameRPMove% Move
Top 4034,166.00582.001.73%
Mid Cap54,996.00240.000.44%
Small Cap43,813.00233.000.54%
Resource 2043,935.00121.000.28%
Industrial 2542,792.001102.002.64%
Financial 1511,334.00153.001.37%
Financial & Ind. 3046,276.001102.002.44%
All Share38,742.00573.001.50%
Oil & Gas 29,157.00236.000.82%
Mining 27,188.0023.000.09%
Gold Mining1,493.00-26.00-1.77%
Platinum Mining43.001.002.48%
GENERAL MINING7,523.0013.000.17%
Oil & Gas Producers 15,677.00127.000.82%
Basic Materials 23,876.0024.000.10%
Chemicals 19,163.0085.000.45%
Forestry & Paper 20,771.0063.000.30%
Industrial Metals 22,988.00-4.00-0.02%
Industrials 40,481.00660.001.66%
General Industrials
Consumer Goods 46,756.001718.003.82%
Automobiles & Parts 7,812.0057.000.74%
Household Goods162.0053.25%
Health Care 61,066.00685.001.14%
Index NameRPMove% Move
Food Producers 67,345.00762.001.15%
Personal Goods 722.0048.007.12%
Consumer Services 81,643.001206.001.50%
General Retailers 61,596.00-50.00-0.08%
Travel & Leisure 5,580.0048.000.89%
Support Services 2,369.00-6.00-0.29%
Telecommunications 76,974.001239.001.64%
Financials 30,502.00342.001.13%
Banks 51,632.00324.000.63%
Non-life Insurance 46,935.00434.000.93%
Life Insurance 28,085.00509.001.85%
General Financial 2,773.0051.001.87%
Technology 35,655.00146.000.41%
SHARIAH TOP40 3,111.00441.44%
FTSE/JSE SHARIAH ALL3,256.00411.30%
COAL MINING19,209.004592.45%
FTSE JSE Fledgling 5,914.00-18-0.31%
FTSE/JSE Alt X 949.00171.83%
RESOURCE 24,059.00480.20%
DIVIDEND PLUS206.0010.86%
FTSE/JSE RAFI 407,763.001001.31%
Capped Top 4018,070.003141.77%
Capped All Share19,640.002951.53%
JSE TABACO 6,414.00761.21%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
24/04/2013EFFICIENTFebruary 2013 (Interim)
24/04/2013OCTODECFebruary 2013 (Interim)
24/04/2013PREMIUMFebruary 2013 (Final)
25/04/2013ALTECHFebruary 2013 (Final)
25/04/2013CLICKSFebruary 2013 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
CMH22/04/201307/06/201318/06/2013R 0.5000
BLACKSTAR19/04/201307/06/201318/06/2013R 0.0121
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
Ex Div**
Share NameDec-DateLDTPay-DateAmount
TRENCOR25/03/201319/04/201329/04/2013R 3.6000
SANLAM07/03/201319/04/201329/04/2013R 1.6500
JDGROUP21/02/201319/04/201329/04/2013R 1.1500
MPACT07/03/201319/04/201329/04/2013R 0.5000
SANLAM07/03/201319/04/201329/04/2013R 0.5000

Upcoming AGMs**
CodeCompany NameDateStatus
SVNSabvest Ltd.24/04/2013Confirmed
MRFMerafe Resources Ltd.24/04/2013Confirmed
SBVSabvest Ltd.24/04/2013Confirmed
CNLControl Instruments Group Ltd.24/04/2013Confirmed
JSEJSE Ltd.25/04/2013Confirmed

Stock Exchange News Service
23/04/201317:35REDEFINE PROP INTERNATIONAL LTD - Redefine International P.L.C - Notice of half ...
23/04/201317:30QUANTUM PROPERTY GROUP LIMITED - Renewal of cautionary announcement
23/04/201317:15INDWA INVESTMENTS LIMITED - Interest Rate Reset - IN01E
23/04/201316:44ARCELORMITTAL SOUTH AFRICA LIMITED - ArcelorMittal South Africa and Sishen Iron ...
23/04/201316:20NORTHAM PLATINUM LIMITED - Operations resume at Northam's Zondereinde Mine
23/04/201316:04AFRIMAT LIMITED - Trading Update for Year Ended 28 February 2013
23/04/201316:00ASPEN PHARMACARE HOLDINGS LIMITED - Renewal of Cautionary Announcement
23/04/201316:00EXXARO RESOURCES LIMITED - Trading of Exxaro ordinary shares on behalf of the Ex...
23/04/201315:19THE STANDARD BANK OF SA LTD - Interest rate announcement/ BISTDB -CLN230, CLN231
23/04/201315:17IFA HOTELS AND RESORTS LIMITED - Changes To The Board Of Directors
23/04/201315:15THE STANDARD BANK OF SA LTD - Interest rate announcement/ BISTDB- CLN219, CLN220
23/04/201314:49VIVIDEND INCOME FUND LIMITED - Results Of General Meeting And The Combined Claw ...
23/04/201314:45ANGLO AMERICAN PLC - Anglo American update re. Kumba Iron Ore
23/04/201314:37REDEFINE PROPERTIES LIMITED - Results of Accelerated Book Build
23/04/201314:23AMALGAMATED APPLIANCE HOLDINGS LD - Decrease in Beneficial Holding of Amalgamate...
23/04/201314:10INDWA INVESTMENTS LIMITED - New Instrument Listing - IND330
23/04/201314:00KUMBA IRON ORE LIMITED - Application for leave to appeal to the constitutional c...
23/04/201313:42THE STANDARD BANK OF SA LTD - Interest rate announcement/ BISTDB - SBN51, SBN52
23/04/201313:40CASHBUILD LIMITED - Dealing in securities by directors
23/04/201313:15THE STANDARD BANK OF SA LTD - Interest rate announcement/ BISTDB- CLN213, CLN 21...
23/04/201313:14THE STANDARD BANK OF SA LTD - Interest rate announcement/ BISTDB- CLN216, CLN217
23/04/201313:11THE STANDARD BANK OF SA LTD - Interest rate annnouncement / BISTDB- CLN186
23/04/201313:00EXXARO RESOURCES LIMITED - No Change Statement and Notice of Annual General Meet...
23/04/201312:34ANGLO AMERICAN PLC - Directors/PMDR interests
23/04/201312:05JSE LIMITED - NGPLT - NewGold Issuer Limited - Resulst of initial offer for NewG...
23/04/201311:55TRENCOR LIMITED - Trencors Textainer announces date for the first quarter 2013 e...
23/04/201311:53FIRSTRAND BANK LIMITED - New Instrument Listing - FRS86
23/04/201311:45THE STANDARD BANK OF SA LTD - Amended New Financial Instrument Listing Announcem...
23/04/201311:15SYNTHESIS FUNDING LIMITED - SYN991 Synthesis Funding Limited - New Financial In...
23/04/201310:30COAL OF AFRICA LIMITED - Initial Directors Interest Notice Appendix 3X (Rule 3.1...
23/04/201310:22STANDARD BANK OF SOUTH AFRICA LD - SCIB: The Standard Bank of South Africa Limit...
23/04/201310:07REDEFINE PROPERTIES LIMITED - Accelerated book build
23/04/201309:53FOUNTAINHEAD PROPERTY TRUST - Response to Growthpoint and Redefine announcements
23/04/201309:45GREENHOUSE FUNDING (RF) LIMITED - Greenhouse Funding (RF) Limited - Partial Rede...
23/04/201309:44EVRAZ HIGHVELD STEEL & VANADIUM LTD - Confirmation of time of annual general mee...
23/04/201309:00SABMILLER PLC - SABMiller plc accelerates promotion of new Chief Executive
23/04/201309:00NEW GOLD ISSUER LIMITED - Additional listing of 2,800,000 debentures
23/04/201308:45PHUMELELA GAMING & LEISURE LIMITED - Directors dealings in Securities
23/04/201308:00ADCOCK INGRAM HOLDINGS LIMITED - Disclosure of beneficial interests in securitie...
23/04/201308:00SATRIX COLLECTIVE INVESTMENT SCHEME - Listing of additional securities - STXRES
23/04/201307:30COMPAGNIE FINANCIERE RICHEMONT SA - Favourable exchange rates at 31 March 2013 i...
23/04/201307:10BRITISH AMERICAN TOBACCO PLC - Publication of Supplementary Prospectus
23/04/201307:05PICK N PAY HOLDINGS LIMITED - Audited summarised consolidated results for the an...
23/04/201307:05RAINBOW CHICKEN LIMITED - Dealings in securities by a director of a major subsid...
23/04/201307:05GOLD ONE INTERNATIONAL LIMITED - Notice of General Meeting
23/04/201307:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
23/04/201307:05COAL OF AFRICA LIMITED - Board Changes

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