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 The Sharenet Daily 
Tuesday, 30 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)

The Argument for Property

Property is an asset class that most people seem to have an opinion about! Specific experience with property is usually the major determinant in how it’s viewed, and it’s almost impossible to change someone’s thinking...

As multi managers at Seed, part of our job is to determine whether to over or underweight the various asset classes – listed property included – using a variety of indicators to help us determine the intrinsic value of each asset class. It is also interesting to compare our views to those of other asset managers.

For a while now, larger managers have generally been negative on the prospects of listed property going forward, citing excellent multiyear performance coupled with low yields (and a low reference bond yield) and poor growth prospects relative to history. While we agree to a certain degree with this sentiment, we couldn’t help but dig a little deeper.

An asset manager with R200bn in asset allocation mandates (this is the case with at least a couple of managers, but could very well be the case for a few more) that wants to make a sizeable investment into local property (i.e. a 10% position) would need to purchase more than 10% of the local property market! Listed property’s total market capitalisation sits at just over R180bn, so by virtue of their significant assets under management, the local property market becomes largely un-investable to the major asset managers. Seed has just over R1bn of assets under management, and we are therefore able to make a significant investment into all asset classes should they show value (including listed property).

In the case of listed property we do agree that there are risks, particularly if interest rates start to creep up and/or bond yields start to climb, but feel that the opportunities available to investors currently outweigh the negatives. When looking at the yield relative to history, investors are currently receiving slightly in excess of the average yield over the past 9 years (since inception of the SA Listed Property Index – J253). The expectations for growth in yield are much lower than they were in the early 2000’s, but in a low yield environment we are happy with an above inflation initial yield coupled with increases in line with inflation.

Another key valuation point is the relative yield that one can earn on an asset class versus another, compared its historic relationship. The charts below show how property’s yield is currently attractive when compared to the yield one can earn on equity or bonds.

The above charts show that while property isn’t currently a screaming buy when looking purely at valuations, it is preferable to other local assets. A further tailwind for property is the imminent implementation of REIT legislation in South Africa that will bring legislation in line with global property markets and make our property companies more attractive to foreigners. The foreign ownership percentage of property shares is currently much lower than both the local equity and bond markets, and we feel that there will be a larger demand on our property companies going forward.

At Seed we are taking advantage of this opportunity by having a 13% allocation to property in our house view Seed Flexible Fund. This allocation has most definitely added to performance over the past year.

For any questions on our Funds, please feel free to contact us or visit our website directly www.seedinvestments.co.za.

Take care,

Mike Browne

021 914 4966

Tue, 30 Apr 2013
Top News
Local markets At midday on Monday the JSE All Share had fallen 0.25%, as tumbling gold mining shares weighed on the local bourse.  Full story

Operating loss narrowed to USD6.5 million (2011: loss of USD14.4 million). Loss attributable to equity holders of the parent fell to USD4.5 million (2011: loss of USD16.1 million), while headline loss per share dropped to USD0.29cps (2011: loss of USD1.01cps). Dividends No dividends wer  Full story
European shares and oil prices dipped on Friday at the end of what looked set to be their best week since November, while. . .  Full story
Britain's benchmark share index edged lower on Friday to end a three-day rally, as some weak corporate earnings and caution ahead of U.S.. . .  Full story
European shares opened lower early on Friday, cooling after five straight sessions of gains, with some disappointing earnings weighing on indexes.. . .  Full story
China shares ended April with a whimper on Friday, with growth-sensitive counters from railway to shipbuilders leading index losses ahead of a three-day Labour. . .  Full story

Australian shares reversed earlier gains to finish the session 0.1 percent lower on Friday as the financial sector took a breather from a. . .  Full story
Japan's Nikkei share average retreated 0.3 percent from a nearly five-year high on Friday, as investors booked profits ahead of the Golden Week. . .  Full story
European stock futures pointed to a lower open on Friday following a five-session rally, with investors trimming their trading positions after some disappointing company. . .  Full story
Hong Kong shares are set to start at their highest since March 15 on Friday, with robust quarterly earnings spurring gains of about. . .  Full story
Company News
Shareholders are advised that the executive group financial director, Mr. Deon Bekker has resigned with immediate effect. Mr. Johann de Wet,. . .  Full story
Anglo drew attention to an announcement issued by Anglo American Platinum Ltd., the text of which is set out below:. . .  Full story
Anglo American Platinum Ltd is providing an update on the restructuring proposals consultation process. On 28 March 2013, Anglo American Platinum. . .  Full story
Production and financial update for the March 2013 quarter: *Attributable production from operating mines increased by 20% to 81 471 4E ounces. . .  Full story
Company Results
Gross rental income was lower at GBP29.4 million (GBP38.5 million). Net attributable profit staged a turnaround to GBP22.3 million (loss of. . .  Full story
Revenue for the interim period lowered to R9.9 million (2012: R12.4 million). Trading loss widened to R12.7 million (2012: loss of. . .  Full story
Revenue for the year ended 28 February 2013 fell to R2 billion (2012: R2.6 billion). Gross profit lowered to R164.9 million. . .  Full story
The following are Osiris' maiden interim results. Gross rental income was GBP36 427. Profit from operations were GBP4 739 . Loss. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0038735.00-290.00-0.74%
JSE Top 4017:0034068.00-295.00-0.86%
JSE Gold17:001497.98-42.00-2.73%
JSE Financial17:0030906.69126.000.41%
JSE Industrial17:0049328.73-215.00-0.43%
JSE Indust 2517:0042692.29-196.00-0.46%
JSE Resource17:0043644.04-981.00-2.20%
DJ Futures19:3814770.0022.000.15%
DJ Ind19:5814831.4612.710.09%
SP 50019:581596.582.970.19%
FTSE 10017:356430.12-27.90-0.43%
All Ords08:445168.6060.301.18%
NZSE 5007:484614.3733.410.73%
NameTimeRPMove% Move
Gold $19:581473.18-3.29-0.22%
Gold R19:5813226.94-40.20-0.30%
Gold R/kg19:58425155-12521-2.86%
Silver $19:5824.2000-.3300-1.35%
Platinum $19:561501.25-6.75-0.45%
Palladium $19:58695.25.350.05%
Brent Crude19:58102.40-.40-0.39%
Rand / Dollar19:588.9802-0.0060-0.07%
Rand / Pound19:5513.91680.02730.20%
Rand / Euro19:5511.80880.04410.37%
Rand / NZD19:587.69640.00600.08%
Rand / AUD19:559.30530.00700.08%
Yen / Dollar19:5797.5680-0.2800-0.29%
Euro / Dollar19:580.7601-0.0038-0.50%
Dollar / Euro19:581.31550.00630.48%
Pound / Dollar19:550.6435-0.0016-0.25%

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 NICTUS  1201817.65.%15000
2 AQUARIUS  600447.91.%688941
3 SYCN-N  140107.69.%102770
4 ADAPTIT  280207.69.%79390
5 ROLFES  695406.11.%39763
6 ALTRON  2090904.50.%26088
7 AFROC-P  1550604.03.%1200
8 TASTE  395153.95.%12830
9 AFGRI  488183.83.%756181
10 PREMIUM  2145653.13.%443639
11 CONDUIT  17852.89.%10591
12 HUDACO  88102422.82.%48634
13 ILIAD  499132.67.%217290
14 ALTECH  3201812.60.%355629
15 DISCOVERY  81741992.50.%2091496
16 COMAIR  29072.47.%164930
17 ZEDER  38592.39.%980057
18 BIDVEST  233365262.31.%1159466
19 ABSA  147693202.21.%4069456
20 PHUMELELA  1190252.15.%3207

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Major Moves Down
SharenameSaleMove% MoveVolume
1 TRADEH  825-825-100.00.%100
2 MMG  215-60-21.82.%1100
3 LONMIN  3700-299-7.48.%829711
4 MAS  1950-150-7.14.%7746
5 SIBANYE  850-65-7.10.%3513535
6 WITSGOLD  950-50-5.00.%14050
7 AVENG  2950-150-4.84.%1307382
8 IMPLATS  12246-539-4.22.%2283608
9 EXXARO  14073-618-4.21.%1565956
10 GFIELDS  6387-271-4.07.%4477879
11 SANTAM  17620-730-3.98.%222196
12 VALUE  510-20-3.77.%6925
13 MAZOR  180-7-3.74.%6000
14 SANTOVA  110-4-3.51.%483668
15 MRHLD  2197-78-3.43.%1494301
16 GRINDROD  1880-62-3.19.%763685
17 METMAR  155-5-3.13.%281483
18 DRDGOLD  592-19-3.11.%653727
19 BOWCALF  800-25-3.03.%13422
20 ADCORP  2880-90-3.03.%304284

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New Highs
SharenameSaleHighMove% MoveVolume
1 SYCN-N  140185107.69.%102770
2 AFROC-P  15501550604.03.%1200
3 PREMIUM  21452249653.13.%443639
4 DISCOVERY  817482481992.50.%2091496
5 CAPCO  43204412902.13.%739983
6 OCTODEC  25502600502.00.%554806
7 PNR-FOODS  775077501501.97.%137197
8 LIFEHC  37913791661.77.%2052223
9 MEDCLIN  65056576600.93.%1659639
10 NEPI  67946800440.65.%171389
11 ILLOVO  34693499190.55.%429713
12 FORTRESSA  154516500.1392553
13 HYPROP  79208039-10-0.13.%123367
14 RESILIENT  59305996-13-0.22.%446136

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New Lows
SharenameSaleLowMove% MoveVolume
1 TRADEH  825750-825-100.00.%100
2 SIBANYE  850850-65-7.10.%3513535
3 EXXARO  1407314073-618-4.21.%1565956

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Index Summary
Index NameRPMove% Move
Top 4034,068.00-295.00-0.86%
Mid Cap55,662.00-143.00-0.26%
Small Cap44,349.003.000.01%
Resource 2043,644.00-981.00-2.20%
Industrial 2542,692.00-196.00-0.46%
Financial 1511,426.0055.000.49%
Financial & Ind. 3046,231.00-128.00-0.28%
All Share38,735.00-290.00-0.74%
Oil & Gas 29,348.00-148.00-0.50%
Mining 26,934.00-697.00-2.52%
Gold Mining1,497.00-42.00-2.73%
Platinum Mining43.00-1.00-2.89%
GENERAL MINING7,424.00-169.00-2.23%
Oil & Gas Producers 15,780.00-79.00-0.50%
Basic Materials 23,689.00-547.00-2.26%
Chemicals 19,202.0070.000.37%
Forestry & Paper 20,721.00-66.00-0.32%
Industrial Metals 23,456.0078.000.33%
Industrials 40,084.00-152.00-0.38%
General Industrials
Consumer Goods 46,453.00-271.00-0.58%
Automobiles & Parts 7,583.00-92.00-1.20%
Household Goods162.00-2-1.34%
Health Care 62,551.00309.000.50%
Beverages 165.00.00-0.28%
Index NameRPMove% Move
Food Producers 67,935.00271.000.40%
Personal Goods 719.00-7.00-1.07%
Consumer Services 81,648.0090.000.11%
General Retailers 62,593.00-225.00-0.36%
Travel & Leisure 5,641.00-68.00-1.20%
Support Services 2,310.00-41.00-1.78%
Telecommunications 76,853.00-1333.00-1.71%
Financials 30,906.00126.000.41%
Banks 51,699.00305.000.59%
Non-life Insurance 44,970.00-1862.00-3.98%
Life Insurance 28,509.0080.000.28%
General Financial 2,828.0015.000.53%
Technology 36,094.00158.000.44%
SHARIAH TOP40 3,099.00-50-1.62%
FTSE/JSE SHARIAH ALL3,249.00-48-1.47%
COAL MINING17,924.00-766-4.10%
FTSE JSE Fledgling 5,894.00-11-0.19%
FTSE/JSE Alt X 948.00-23-2.42%
RESOURCE 23,895.00-538-2.21%
DIVIDEND PLUS208.000-0.22%
FTSE/JSE RAFI 407,759.00-75-0.97%
Capped Top 4018,021.00-146-0.80%
Capped All Share19,637.00-141-0.71%
JSE TABACO 6,351.00-43-0.67%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
03/05/2013BIOSCIDecember 2013 (Interim)
03/05/2013HARMONYMarch 2013 (Q)
03/05/2013HARMONY-PMarch 2013 (Q)
03/05/2013HWANGEDecember 2012 (Final)
03/05/2013HWANGE-ADecember 2012 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
REDEFINTL29/04/201317/05/201327/05/2013R 0.0147
PREMIUM25/04/201310/05/201320/05/2013R 0.6620
OCTODEC25/04/201310/05/201320/05/2013R 0.7870
CLICKS25/04/201321/06/201301/07/2013R 0.4850
PIKWIK23/04/201307/06/201318/06/2013R 0.3361
Ex Div**
Share NameDec-DateLDTPay-DateAmount
NTC PREF02/04/201325/04/201306/05/2013R 3.4966
SBR00305/02/201325/04/201306/05/2013R 1.3500
BARWORLD6%P08/04/201325/04/201306/05/2013R 0.0600
ZEDER08/04/201325/04/201306/05/2013R 0.0400

Upcoming AGMs**
CodeCompany NameDateStatus
BELBell Equipment Ltd.30/04/2013Confirmed
PAMPalabora Mining Company Ltd.30/04/2013Confirmed
PAMCDPalabora Mining Company Ltd.30/04/2013Confirmed
GGMGoliath Gold Mining Ltd.30/04/2013Confirmed
ABSPAbsa Bank Ltd.02/05/2013Confirmed

Stock Exchange News Service
30/04/201317:45COMMAND HOLDINGS LIMITED - Shareholder quarterly update
30/04/201317:40INDWA INVESTMENTS LIMITED - New Instrument Listing - IND332
30/04/201317:38RGT SMART MARKET INTELLIGENCE LTD - Dealings in Securities by Directors
30/04/201317:36RGT SMART MARKET INTELLIGENCE LTD - Firm Intention of Halls Technology (Pty) Ltd...
30/04/201317:31LONRHO PLC - Total Voting Rights
30/04/201317:30SHERBOURNE CAPITAL LIMITED - Pro Forma Effects update on Acquisition of Applemin...
30/04/201317:30LONRHO PLC - Notice of annual general meeting
30/04/201317:15ELLIES HOLDINGS LIMITED - Dealing in securities by a director of Ellies
30/04/201317:10JSE LIMITED - Index Change Advice - 20130506 Cape Empowerment Ltd Deletion
30/04/201317:07FORTRESS INCOME FUND LIMITED - TRP121: Notification of a disposal of beneficial ...
30/04/201317:05JSE LIMITED - Index Change Advice - 20130509 New Europe Property Investment Shar...
30/04/201317:05MAZOR GROUP LIMITED - Trading Statement
30/04/201317:02JSE LIMITED - Index Change Advice - 20130509 Delta Property Fund Shares In Issue...
30/04/201316:15MONDI PLC - 2012 Final Dividend euro/sterling Exchange Rate
30/04/201316:01JOHN DANIEL HOLDINGS LIMITED - Cautionary Renewal Announcement
30/04/201316:00ASTRAL FOODS LIMITED - Trading Statement Update
30/04/201316:00GOGLOBAL PROPERTIES LIMITED - Cautionary announcement
30/04/201315:30OSIRIS PROP INTERNATIONAL CO LTD - Abridged unaudited consolidated results for t...
30/04/201315:30Trematon Capital Investments Ltd - Disposal By Trematon Of Bougainville Shopping...
30/04/201315:27GOLD FIELDS LIMITED - Mineral Resources and Mineral Reserves Publications
30/04/201315:21EXXARO RESOURCES LIMITED - Trading of Exxaro ordinary shares on behalf of the Ex...
30/04/201315:20EXXARO RESOURCES LIMITED - Trading of Exxaro ordinary shares on behalf of the Ku...
30/04/201315:17Rba Holdings Limited - Actions To Reduce Short Term Debt And Notice
30/04/201315:15BLUE FINANCIAL SERVICES LIMITED - Changes to the board of directors
30/04/201315:12OSIRIS PROP INTERNATIONAL CO LTD - Changes to the board of directors
30/04/201315:10HYPROP INVESTMENTS LIMITED - New Instrument Listing - HILB03 HILC05
30/04/201315:08IFA HOTELS AND RESORTS LIMITED - Results of AGM and Changes to the board
30/04/201315:00INSIMBI REFRACTORY & ALLOY SUP LTD - Trading Statement for Year Ended 28 Februar...
30/04/201314:40INGENUITY PROPERTY INVESTMENTS LTD - Disclosure of acquisition of securities
30/04/201314:30CHROMETCO LIMITED - Renewal of cautionary
30/04/201314:30PAN AFRICAN RESOURCES PLC - Dealing in securities
30/04/201314:30NUTRITIONAL HOLDINGS LIMITED - Dealing in securities by associate of director
30/04/201314:26PRIMESERV GROUP LIMITED - Results of the general meeting
30/04/201314:16ASCENSION PROPERTIES LIMITED - TRP121 Notification of a disposal of beneficial i...
30/04/201314:10MERAFE RESOURCES LIMITED - Dealings in Securities by a Director and Company Secr...
30/04/201314:06GOLIATH GOLD MINING LIMITED - Results of annual general meeting
30/04/201313:30SABMILLER PLC - Total Voting Rights and Capital
30/04/201312:28JSE LIMITED - Early Capital Redemption
30/04/201312:20KAYDAV GROUP LIMITED - Dealings in securities by an associate of a director
30/04/201312:13TAWANA RESOURCES NL - Notice of Annual General Meeting
30/04/201312:12Standard Bank Of South Africa Ld - Scib: Notice Of Rollover Of Standard Bank Sha...
30/04/201311:45COMBINED MOTOR HOLDINGS LIMITED - No Change Statement and Notice of Annual Gener...
30/04/201311:37ANGLO AMERICAN PLC - Anglo American re Anglo American Platinum
30/04/201311:36GOLD FIELDS LIMITED - Gold Fields to Release Q1 2013 Results on 10 May 2013
30/04/201311:32DRDGOLD LIMITED - Dealing in securities by a director
30/04/201311:30INVESTEC PLC - Voting rights and Capital
30/04/201311:15ANGLO AMERICAN PLAT LTD - Update On The Anglo American Platinum Restructuring Pr...
30/04/201311:05PALABORA MINING COMPANY LIMITED - Results of annual general meeting
30/04/201310:30TAWANA RESOURCES NL - Appendix 5B
30/04/201310:22TSOGO SUN HOLDINGS LIMITED - Trading Statement
30/04/201310:15TAWANA RESOURCES NL - Quarterly Activities Report 1 January - 31 March 2013
30/04/201310:10HUDACO INDUSTRIES LIMITED - Director's dealing in securities
30/04/201309:55METMAR LIMITED - Audited abridged financial results for the year ended 28 Februa...
30/04/201309:00GROWTHPOINT PROPERTIES LIMITED - GPT24 - New Financial Instrument Listing
30/04/201308:27BIOSCIENCE BRANDS LIMITED - Disposal Of Muscle Science Brand And Further Caution...
30/04/201308:25FERRUM CRESCENT LIMITED - Quarterly Results for the period ended 31 March 2013
30/04/201308:00AQUARIUS PLATINUM LIMITED - Financial and Production Results to 31 March 2013
30/04/201308:00LONMIN PLC - Regulatory Release: Incident at Number Two Furnace
30/04/201308:00BRITISH AMERICAN TOBACCO PLC - Notification in accordance of listing rule 9.6.14
30/04/201307:10ANGLO AMERICAN PLC - Directors'/PMDR's interests
30/04/201307:10BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
30/04/201307:08GOLD ONE INTERNATIONAL LIMITED - March 2013 Quarterly Results
30/04/201307:07GOLD ONE INTERNATIONAL LIMITED - Quarterly Activities Report Quarter Ended 31 Ma...
30/04/201307:06BRITISH AMERICAN TOBACCO PLC - Dealings by Directors, PMDR's or Connected person...
30/04/201307:05REINET INVESTMENTS S.C.A - Unaudited net asset value of Reinet Fund S.C.A., F.I....

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