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The Sharenet Daily 
Tuesday, 07 May 2013 - 20:00
 
Charts
News
Top News
Markets
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)


Charts
 
Diversification ? Benefits of Low Correlation

Everyone has heard that you should have a diversified portfolio, but is your “diversified” portfolio actually providing you with the maximum benefit?

The aim of diversifying your portfolio is to reduce the risk (i.e. volatility) of the portfolio for a certain expected return. The key in diversification is to take into account the correlation between the different components of the portfolio.

The correlation is the statistical measure of how two assets move in relation to one another. If two assets are perfectly positively correlated (ρ=1) they move in lock step, if the one goes up the other will also go up and vice versa. At the other end of spectrum is perfectly negatively correlated assets (ρ=-1), if the one goes up the other goes down. Uncorrelated assets (ρ=0) sit in the middle as there is no relationship between the movements of the two assets.

The graph below shows the risk/return plot of 4 portfolios made up out of two assets with different correlations. Each curve represents the different risk/return combinations dependant on the weight of the securities in the portfolio.

The maximum benefits of correlation are observed when assets are either uncorrelated or negatively correlated with each other. It is possible to create a portfolio where the risk (standard deviation) is less than either of the two assets, with the expected between the two assets.

Another way to look at how diversified your portfolio is, is to look at how the assets react in periods of negative market returns in relation to each other and the market. The assets might have a higher correlation with each other in down periods which reduces the benefit of diversification. At Seed we pay careful attention to how assets react in relation to one another in down markets, as this is when the benefits of diversification are best experienced.

A portfolio will ideally be constructed with assets that have negative or low bear (down market) correlation and high bull (up market) correlation. This will ensure that the portfolio is better at preserving capital in negative periods and delivering good returns in positive periods.

While correlation is an important metric, investors must also make sure that the expected return is acceptable. It is pointless adding a negatively correlated asset to a portfolio when the asset’s expected return is negative in most market environments.

As always, we are available for any questions regarding investment or retirement matters.

Kind regards,

Gerbrandt Kruger

www.seedinvestments.co.za
info@seedinvestments.co.za
021 914 4966

Tue, 07 May 2013
Top News
[IMAGE]
South African stocks broke a three-day rise on Tuesday, weighed down by share price drops at gold companies such as Gold Fields as investors nervously await economic data from top metals consumer China.  Full story
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Revenue for the year ended 28 February 2013 soared to R798.4 million (2012: R514.9 million). Gross profit jumped to R148 million (2012: R79.5 million), operating profit more than doubled to R89.4 million (2012: R43.2 million), while profit attributable to equity holders of the company shot u  Full story
The three Cleveland women found alive after vanishing in their own neighbourhood for about a decade were rescued from a house that authorities tried to visit several years ago, police said on Tuesday.  Full story
Britain should leave the European Union because Prime Minister David Cameron's plan to claw back powers from Brussels is doomed, a former senior minister said on Tuesday, stirring divisions that threaten his party's re-election hopes.  Full story
The U.S. secretary of state sought Russian help in ending Syria's civil war on Tuesday, telling President Vladimir Putin in Moscow that common interest in a stable Middle East could bridge divisions among the big powers.  Full story
 
Markets
Robust results from heavyweight banks drove European shares to fresh peaks on Tuesday, with Germany's benchmark stock market rising to a record high.. . .  Full story
Major stock indexes in Germany and the United States hit all-time highs on Tuesday after data bolstered expectations that Germany has returned to. . .  Full story
U.S. stocks rose on Tuesday, with the S&P 500 extending its three-day rally to an intraday high, although profit-taking in technology shares. . .  Full story
A surge in banking shares lifted Britain's top share index to a 5-1/2 year high on Tuesday after Europe's largest lender HSBC reported. . .  Full story
Gold fell further on Tuesday as its appeal as an alternative investment faded after equity markets rose on prospects of sustained central bank. . .  Full story
U.S. stocks pared their early gains on Tuesday, with the S&P 500 briefly turning negative as technology shares weighed on the market.. . .  Full story
U.S. stocks edged up on Tuesday with the S&P 500 setting yet another record, led by gains in energy and tech sectors.. . .  Full story
A rally in banking shares propelled Britain's top share index to a 5-1/2 year high on Tuesday after Europe's largest lender HSBC reported estimate-beating. . .  Full story
SA Business
South Africa's rand was on a weaker footing on Tuesday as the country's economic downturn heightens expectations of an interest rate cut.. . .  Full story
Ivory Coast mobile telecoms companies risk losing their licences if they do not improve their poor levels of service, a minister said on Monday.. . .  Full story
South Africa's competition authorities are to investigate the private healthcare industry, where early evidence points to high charges and market distortions, a government minister said on Tuesday.. . .  Full story
South Africa's Treasury sold a total 2.35 billion rand of its 2023, 2036 and 2041 government bonds on Tuesday.. . .  Full story
Company News
Further to the 'Annual Report Release' announcement dated 29 April 2013, shareholders are advised that the notice of the 2013 annual. . .  Full story
Shareholders are advised that the Company has entered into discussions which, if successful, could have a material impact on the Company's. . .  Full story
Shareholders were advised that, for the full year ended 31 March 2013, MiX anticipates earnings per share to be between 21%. . .  Full story
Vukile has closed its accelerated book build. In light of strong demand, the amount of capital to be raised was increased. . .  Full story
Further to the Altron cautionary announcement dated 22 March 2013, shareholders are advised that negotiations are still in progress which if. . .  Full story
Shareholders of Implats are referred to the circular to shareholders dated 8 April 2013 relating to the granting and approval of. . .  Full story
Trencor drew attention to the following news release issued by Textainer Group Holdings Ltd., in which Trencor has a 48.5% beneficiary. . .  Full story
Subject to pricing acceptable to Vukile, Vukile proposes an equity raise of about R250 million through the issue of new linked. . .  Full story
Company Results
Delprop's maiden final results as a listed entity showed contractual rental income of R116.9 million and revenue of R139.9 million. A net loss of R17.3 million was made. In addition, the headline/diluted headline loss per linked unit amounted to 26.70cplu. Distribution A. . .  Full story
Transcap's maiden interim results showed interest and other similar income of R1.3 billion. Net attributable profit amounted to R233 million. In addition, headline earnings per share from continuing operations of 39.9cps was recorded. Dividend A maiden gross interim dividend of 9cps was. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0039821.48-6.00-0.02%
JSE Top 4017:0035214.0215.000.04%
JSE Gold17:001464.97-36.00-2.40%
JSE Financial17:0031222.1483.000.27%
JSE Industrial17:0050908.61-61.00-0.12%
JSE Indust 2517:0044232.92-56.00-0.13%
JSE Resource17:0045234.52-27.00-0.06%
DJ Futures19:2814978.0072.000.48%
DJ Ind19:5815046.9178.020.52%
SP 50019:581625.528.020.50%
Nasdaq19:583396.953.980.12%
FTSE 10017:356557.3035.840.55%
DAX18:028181.7869.700.86%
CAC4018:023921.3214.280.37%
Nikkei08:3614180.24486.203.55%
Shanghai09:282235.574.410.20%
Hang-Seng10:2823047.09132.000.58%
All Ords08:435122.70-11.10-0.22%
NZSE 5007:484621.7325.500.55%
NameTimeRPMove% Move
Gold $19:591450.40-19.17-1.30%
Gold R19:5813089.4613089.460.00%
Gold R/kg19:58420902-3347-0.79%
Silver $19:5923.8760-.1240-0.52%
Platinum $19:591478.50-23.50-1.56%
Palladium $19:59679.50-13.30-1.92%
R15717:245.08-.00-0.10%
R18617:276.72.010.15%
R20417:245.67.000.00%
R20717:245.84-.00-0.09%
Brent Crude19:58105.041.030.99%
Rand / Dollar19:599.02060.03930.44%
Rand / Pound19:5513.94030.00340.02%
Rand / Euro19:5511.80800.05700.49%
Rand / NZD19:587.6301-0.0175-0.23%
Rand / AUD19:559.1875-0.0325-0.35%
Yen / Dollar19:5999.0400-0.2650-0.27%
Euro / Dollar19:550.7639-0.0008-0.10%
Dollar / Euro19:591.30850.00120.09%
Pound / Dollar19:550.64560.00240.37%

Click here for the Sharenet Spot Price page
The JSE Today

 Trading Statistics
DateAdv.Decl.Unch.ActivesVolumeValueTradesOrders
07/05/201316318178422247,569,548R15,954,074,5241812551473403
06/05/201319515477426165,540,728R9,566,824,233130921825343
03/05/201320818777472292,593,016R17,083,418,7562065551490473
02/05/201321814972439222,611,531R15,842,517,5192214801560575
30/04/201315119973423255,898,674R15,024,617,2621731521002379
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 IMPCB  953000953000.35
2 ATLATSA  2003017.65.%100
3 SYCN-N  2333316.50.%24169
4 GOLIATH  2752510.00.%2500
5 PUTPROP  600509.09.%9000
6 AQUARIUS  630406.78.%290212
7 FINBOND  11976.25.%382986
8 CONTROL  12076.19.%28624
9 SOVFOOD  550315.97.%57796
10 GOLDONE  20994.50.%2702
11 ASTRAPAK  720304.35.%90763
12 ZURICHSA  2550010004.08.%1000
13 PAN-AF  21583.86.%5746933
14 WESCOAL  11043.77.%68621
15 LONMIN  41001483.74.%2518586
16 ARM   176005893.46.%561795
17 RBPLAT  54761763.32.%39765
18 ARCMITTAL  2500803.31.%826575
19 REBOSIS  1349392.98.%1209592
20 ARGENT  575152.68.%10524

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Major Moves Down
SharenameSaleMove% MoveVolume
1 AFROX  2090-190-8.33.%35782
2 ABIL  2136-138-6.07.%17129350
3 DIGICOR  195-10-4.88.%55920
4 BUILDMX  200-10-4.76.%52044
5 JUBILEE  105-5-4.55.%342937
6 ILIAD  440-20-4.35.%28925
7 ARB  450-20-4.26.%6899
8 SENTULA  125-5-3.85.%4099828
9 ASCEN B  250-10-3.85.%69196
10 ADAPTIT  250-10-3.85.%178248
11 GFIELDS  6153-228-3.57.%3337670
12 DISCOVERY  8153-296-3.50.%2065319
13 ALTECH  3380-120-3.43.%102825
14 COMAIR  290-10-3.33.%85085
15 S-OCEAN  145-5-3.33.%11850
16 LIFEHC  3712-118-3.08.%2338076
17 ANGLOPLAT  33500-1000-2.90.%556291
18 LITHA  345-10-2.82.%812942
19 TRENCOR  6295-182-2.81.%636036
20 TORRE  140-4-2.78.%1000

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New Highs
SharenameSaleHighMove% MoveVolume
1 IMPCB  953000953000953000.35
2 SYCN-N  2332503316.50.%24169
3 WESCOAL  11011043.77.%68621
4 REBOSIS  13491350392.98.%1209592
5 MPACT  25102570502.03.%528117
6 EOH  53015301811.55.%84756
7 PINNACLE  22832328311.38.%527416
8 SYCOM  29903084290.98.%89467
9 BARWORLD  989010000830.85.%795932
10 OLDMUTUAL  29843005240.81.%8938604
11 ROCKCASTL  13301415100.76.%21400
12 ARROW-A  79081050.64.%165426
13 FAMBRANDS  87559185550.63.%62569
14 GROWPNT  30003030120.40.%2435692
15 CAPCO  44444477170.38.%274065
16 SPURCORP  30503106100.33.%30297
17 SABMILLER  5019650699970.19.%1989370
18 ASPEN  21600218720.1085586
19 FPT  98010250.853374
20 ILLOVO  35503589-10-0.28.%979577

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New Lows
SharenameSaleLowMove% MoveVolume
1 ABIL  21362136-138-6.07.%17129350
2 ILIAD  440355-20-4.35.%28925
3 SENTULA  125125-5-3.85.%4099828
4 PALLINGHT  186185-5-2.62.%311382
5 PIKWIK  17571755-11-0.62.%132087
6 JASCO  1231100.57181

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Index Summary
Index NameRPMove% Move
Top 4035,214.0015.000.04%
Industrial50,908.00-61.00-0.12%
Mid Cap55,787.00-209.00-0.37%
Small Cap44,594.0034.000.08%
Resource 2045,234.00-27.00-0.06%
Industrial 2544,232.00-56.00-0.13%
Financial 1511,605.0059.000.51%
Financial & Ind. 3047,749.0055.000.12%
All Share39,821.00-6.00-0.02%
Oil & Gas 30,387.0080.000.26%
Mining 27,856.00-27.00-0.10%
Gold Mining1,464.00-36.00-2.40%
Platinum Mining42.00.00-0.12%
GENERAL MINING7,801.0030.000.40%
Oil & Gas Producers 16,338.0043.000.27%
Basic Materials 24,448.00-12.00-0.05%
Chemicals 19,203.00-220.00-1.14%
Forestry & Paper 20,779.00-7.00-0.04%
Industrial Metals 24,459.00469.001.96%
Industrials 41,877.0082.000.20%
General Industrials 126.001.000.94%
Consumer Goods 48,157.00314.000.66%
Automobiles & Parts 7,574.00.000.01%
Household Goods161.0010.89%
Health Care 65,049.00-594.00-0.91%
Beverages 171.00.000.24%
Index NameRPMove% Move
Food Producers 70,443.00308.000.44%
Personal Goods 756.0015.002.09%
Consumer Services 83,138.00-512.00-0.61%
General Retailers 63,612.00-92.00-0.15%
Travel & Leisure 5,576.00-32.00-0.58%
Media 135.00-1.00-1.33%
Support Services 2,341.00-10.00-0.46%
Telecommunications 79,276.00-1531.00-1.90%
Financials 31,222.0083.000.27%
Banks 51,716.00585.001.14%
Non-life Insurance 47,981.00638.001.35%
Life Insurance 29,162.00-12.00-0.04%
General Financial 2,779.00-34.00-1.24%
Technology 37,061.00413.001.13%
SHARIAH TOP40 3,220.00-1-0.04%
FTSE/JSE SHARIAH ALL3,365.00-2-0.08%
COAL MINING18,199.00-249-1.35%
FTSE JSE Fledgling 5,813.00-12-0.22%
FTSE/JSE Alt X 928.0000.08%
SA LISTED PROPERTY 577.000.01%
CAPPED PROPERTY 461.000.27%
RESOURCE 24,717.00-9-0.04%
DIVIDEND PLUS207.0000.00%
FTSE/JSE RAFI 407,961.00-6-0.09%
Capped Top 4018,607.00-3-0.02%
Capped All Share20,178.00-7-0.04%
JSE TABACO 6,492.00-23-0.37%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
MTNMTN GROUP LIMITEDBUY06/05/2013
FSRFIRSTRAND LIMITEDHOLD03/05/2013
APNASPEN PHARMACARE HLDGSSELL03/05/2013
NEDNEDBANK GROUP LTDBUY03/05/2013
SBKSTANDARD BANK GROUP LIMIT...HOLD03/05/2013
Results Expected**
ExpectedCompany NameFin. Date
08/05/2013ALTRONFebruary 2013 (Final)
08/05/2013ALTRON PPFebruary 2013 (Final)
08/05/2013ASTRAPAKFebruary 2013 (Final)
08/05/2013ASTRAPAKPFebruary 2013 (Final)
08/05/2013LITHAMarch 2013 (Q)
Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
SBR00306/05/201326/07/201305/08/2013R 1.3600
DELPROP06/05/201317/05/201327/05/2013R 0.2369
REDEFINE02/05/201317/05/201327/05/2013R 0.3370
REDEFINTL29/04/201317/05/201327/05/2013R 0.0147
OCTODEC25/04/201310/05/201320/05/2013R 0.7870
Ex Div**
Share NameDec-DateLDTPay-DateAmount
PSG15/04/201303/05/201313/05/2013R 0.7800
AMAPS12/04/201303/05/201313/05/2013R 0.3000
Upcoming AGMs**
CodeCompany NameDateStatus
RNGRandgold - Exploration Co Ltd.07/05/2013Unconfirmed
IFHIFA Hotels - Resorts Ltd.08/05/2013Unconfirmed
ZSAZurich Insurance Company South Africa Lt...08/05/2013Confirmed
MMHMiranda Mineral Holdings Ltd.08/05/2013Confirmed
GFIGold Fields Ltd.09/05/2013Confirmed
Stock Exchange News Service
DateTimeHeadline
07/05/201317:30Central Rand Gold Limited - Notice Of Annual General Meeting And Share Capital R...
07/05/201317:28MVELASERVE LIMITED - Cautionary announcement
07/05/201317:26SASOL LIMITED - Sasol Group Executive announces retirement
07/05/201317:20Mondi Limited - AGM Special Business
07/05/201317:00MIX TELEMATICS LIMITED - Trading Statement
07/05/201316:46CAPITEC BANK HOLDINGS LIMITED - Dealing In Securities By A Director
07/05/201316:02PEREGRINE HOLDINGS LIMITED - TRP121: Notification of disposal of beneficial inte...
07/05/201316:00SABMILLER PLC - Change in Particulars of Non-Executive Director
07/05/201315:35EMIRA PROPERTY FUND - Interest Rate Reset - EPFC02
07/05/201315:301TIME HOLDINGS LIMITED - Change to the board of directors - Resignation
07/05/201315:17LONMIN PLC - TR1 - Notification of Major Interest In Shares(i)
07/05/201315:14KELLY GROUP LIMITED - Extension Of A Term Debtors Securitisation Funding Program...
07/05/201315:10BIDVESTCO LIMITED - Full Capital Redemption - BIDC29
07/05/201315:08GLOBAL ASSET MANAGEMENT LTD - Change in Company Secretarial Role
07/05/201315:00RANDGOLD & EXPLORATION COMPANY LTD - Results of the annual general meeting
07/05/201314:40BIDVESTCO LIMITED - New Instrument Listing - BIDC31
07/05/201314:35IVUZI INVESTMENTS LIMITED - Full Capital Redemption - IVF004
07/05/201314:26VUKILE PROPERTY FUND LIMITED - Results of the accelerated book build
07/05/201314:15REDEFINE PROPERTIES LIMITED - Dealings in securities by directors of Redefine
07/05/201314:10IVUZI INVESTMENTS LIMITED - Full Capital Redemption - IVA319
07/05/201314:02ALLIED ELECTRONICS CORPORATION LTD - Renewal of Cautionary
07/05/201314:00CALGRO M3 HOLDINGS LIMITED - Audited abridged results for the year ended 28 Febr...
07/05/201314:00ALLIED TECHNOLOGIES LIMITED - Renewal of Cautionary
07/05/201313:57HARMONY GOLD MINING COMPANY LIMITED - Dealings in securities by Director
07/05/201313:40PAN AFRICAN RESOURCES PLC - Group operational update
07/05/201313:30IMPALA PLATINUM HOLDINGS LIMITED - Results of General Meeting
07/05/201313:10UBUBELE HOLDINGS LIMITED - Disclosure of acquisition of securities
07/05/201313:05INDWA INVESTMENTS LIMITED - New Instrument Listing - IND333
07/05/201313:00SABMILLER PLC - MillerCoors Weathers Tough First Quarter
07/05/201312:39COMAIR LIMITED - Dealing in securities by a director
07/05/201312:30REDEFINE PROP INTERNATIONAL LTD - Change to the board of directors - resignation...
07/05/201312:10PSG GROUP LIMITED - Dealing in PSG Group Limited shares
07/05/201312:05DISCOVERY LIMITED - Dealings In Securities By A Director
07/05/201312:00TOTAL CLIENT SERVICES LIMITED - Renewal of cautionary announcement
07/05/201312:00BASIL READ HOLDINGS LIMITED - No change statement and details of the annual gene...
07/05/201311:56TRENCOR LIMITED - Trencors Textainer To Present At The Wells Fargo 2013 Industri...
07/05/201311:00BLACKSTAR GROUP SE - Posting of annual report and accounts and notice of annual ...
07/05/201310:52VILLAGE MAIN REEF LIMITED - Dealings in securities by an associate of a director...
07/05/201310:31VUKILE PROPERTY FUND LIMITED - Accelerated Bookbuild
07/05/201310:30COAL OF AFRICA LIMITED - Appendix 3Z-Final Directors Interest Notice
07/05/201310:15AVI LIMITED - Dealing in AVI shares by a director of a major subsidiary
07/05/201310:00PROP INDEX TRACKER COL INV SCHEME - Listing of 100 000 additional PropTrax SAPY ...
07/05/201310:00PROP INDEX TRACKER COL INV SCHEME - Listing of 100 000 PropTrax TEN securities -...
07/05/201309:45RECM AND CALIBRE LIMITED - Changes to the board of directors
07/05/201309:45MURRAY & ROBERTS HOLDINGS LIMITED - Notice of acquisition of Murray & Roberts se...
07/05/201309:30NEW GOLD ISSUER LIMITED - Listing of additional NEWGOLD PLATINUM debentures- NGP...
07/05/201307:05TRANSACTION CAPITAL LIMITED - Unaudited Financial Results for the half year ende...

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