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 The Sharenet Daily 
Wednesday, 12 June 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)

Dividend Aristocrats ? The New Nifty 50?

The original Nifty Fifty stocks from the 1960’s and 1970’s were the type of shares that were supposed to be buy and hold shares. They were characterised as having consistent earnings growth and high PE ratios. A Barron’s article put it as “They were so-called one-decision stocks you were supposed to buy and put away forever because these supposedly elite growth companies would continue to grow no matter what.”

Many of these companies have indeed continued to grow, despite protracted bear markets, especially in the bear markets of the mid 1970’s and the early 2000’s. Some of the names included well known Coca Cola, IBM, McDonalds, and Johnson and Johnson. But then there were others such as Burroughs, Digital Equipment, and Eastman Kodak, which have all long gone.

Standard and Poor’s, which produces the well know S&P500 index, also produce what is known as the Dividend Aristocrats index. This is a subset of the top 500 companies, which have increased their dividend pay-outs for at least 25 consecutive years.

The companies that make up the Dividend Aristocrats cover ten different business sectors with both growth and value holdings. The index of shares is then equally weighted across the various shares and each quarter re adjusted back to an equal weight.

The list declined from 52 companies in 2009 to 42 companies in 2010, as many companies cut their dividend pay-outs. The index then remained steady in 2011 and in 2012 one company was removed and 10 added.

The chart below reflects that over the last three and five years the Dividend Aristocrat index has outperformed the larger S&P500 index mostly because these shares did not decline as much as the broader market in the 2007/2008 financial crisis. Over the last 12 months however the returns from the two series have been neck on neck.

Source: S&P500

BCA Research have a view that given the scarcity and low quantum of yield available for investors, the dividend attributes of these types of shares could become even more in favour than is already the case, potentially pushing up valuations to inflated levels. These shares are attractive for investors because of their fixed income type qualities.

BCA do point out, however, that while there is a belief that defensive stocks typically weather market shakeouts or corrections, the reality is that they rarely do. I.e. there is investment risk when investors overpay. A lot, however, does hinge on the actions of central bankers with regard to keeping interest rates low and providing liquidity. Over the last few weeks we have seen interest rates rise, once again causing some headwinds for shares, but resulting in losses for bondholders.

Kind regards,

Ian de Lange

021 914 4966

Wed, 12 Jun 2013
Top News
South African stocks gained on Wednesday, in line with a broader rally in global shares after a sharp sell-off the previous day, though investors stayed on edge over the stimulus plans of major central banks.  Full story

South African President Jacob Zuma vowed on Wednesday to take a hard line against labour unrest in the mining sector, which has been rocked by 18 months of killings and wildcat strikes that have threatened to destabilise Africa's biggest economy.  Full story
Turkey's president called on Wednesday for dialogue with legitimate demonstrators after riot police cleared the Istanbul square at the centre of almost two weeks of protest against Prime Minister Tayyip Erdogan.  Full story
The National Security Agency contractor who revealed the government's top-secret monitoring of phone and Internet data says he intends to stay in Hong Kong and fight any effort to bring him back to the United States to face charges.  Full story
Anti-apartheid hero Nelson Mandela was responding better to treatment in hospital on Wednesday morning after a "difficult last few days", South Africa's President Jacob Zuma said.  Full story
The dollar and world equity markets retreated on Wednesday as persistent concerns about central banks' support for their economies - and financial markets -. . .  Full story
Gold rose around 1 percent on Wednesday, as losses in U.S. equities and a drop in the U.S. dollar prompted the metal to. . .  Full story
European shares fell on Wednesday, pressured by autos and banks, as concerns over Greek politics pushed regional indexes nearer to key support levels which,. . .  Full story
U.S. stocks fell on Wednesday in another volatile session as investors extended a recent selloff that has been driven by the unwinding of. . .  Full story

Britain's FTSE 100 slipped towards seven-week lows on Wednesday, with Severn Trent sinking after a bidder walked away, and with broad sentiment. . .  Full story
U.S. stock indexes turned negative on Wednesday, giving up earlier gains, as investor concerns lingered over how soon central banks will begin to scale. . .  Full story
European shares turned negative in late trade on Wednesday, in light trade, tracking a retreat from the opening highs on Wall Street.. . .  Full story
U.S. stocks pared early gains and the Nasdaq turned negative on Wednesday as investors continued to mull how soon central banks will begin. . .  Full story
SA Business
Growth in South Africa's retail sales slowed to 1.9 percent year-on-year in April from a revised 2.7 percent in March, Statistics South Africa said on Wednesday.. . .  Full story
South Africa's rand edged higher against the dollar on Wednesday after touching a new four-year low the day before, although the potential for further weakness remains as investors ponder the weak. . .  Full story
Platinum producer Lonmin said on Wednesday it was confident it could reach a recognition agreement with South Africa's Association of Mineworkers and Construction Union (AMCU) and avert a strike.. . .  Full story

India's Apollo Tyres Ltd agreed to buy U.S.-based Cooper Tire & Rubber Co for about $2.5 billion in a deal that would. . .  Full story
South African state-run power utility Eskom said on Wednesday labour tensions at its new power station projects should ease after unions. . .  Full story
South Africa's state-run PetroSA will shut down its gas-to-liquid refinery in Mossel Bay for 37 days for planned maintenance from September. . .  Full story
South Africa will auction 2.35 billion rand worth of its 2026, 2031 and 2036 government bonds on June 18.. . .  Full story

Japanese government bond prices slipped on Wednesday, with the 10- and 20-year yields briefly hitting two-week highs, after an auction of 300 billion yen ($3.1 billion ) long-term JGBs drew tepid demand.. . .  Full story
Already halfway to a bear market, emerging market stocks face slumping commodities prices and what looks very much like a global trade slowdown.. . .  Full story
Company News
Further to the announcement released on SENS on 4 April 2013, shareholders are advised that the contractual disputes associated with the final contract close-out in Sierra Leone continue. Despite numerous attempts. . .  Full story
AMAP and Bidvest shareholders are referred to the announcement published on SENS on 12 April 2013 and in the press on 15 April 2013, regarding the approval at the AMAP shareholders'. . .  Full story
Shareholders are advised that Mr Don Hope will be resigning as a non-executive director of Nedbank and Nedbank-p with effect from 30 June 2013, following his retirement from Old Mutual plc. . .  Full story
Company Results
Revenue went up 35% to R7.6 billion (R5.6 billion) and operating profit grew 47% to R883.8 million (R601.1 million). Profit attributable to owners increased to R693.2 million (R455.7 million). In addition, headline earnings per share were greater at 885 cents. . .  Full story
Revenue increased to R918.8 million (R474.4 million). Gross loss was recorded at R27.3 million (gross profit of R14.6 million). Operating loss was R139.4 million (profit of R4.9 million). In addition, net attributable loss was at R84.5 million (profit of R132 million).. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0039766.53145.530.37%
JSE Top 4017:0035401.32144.920.41%
JSE Gold17:001462.83-4.36-0.30%
JSE Financial17:0029162.896.420.02%
JSE Industrial17:0051817.30437.940.85%
JSE Indust 2517:0045253.91429.560.96%
JSE Resource17:0045697.50-152.74-0.33%
DJ Futures19:4815060.00-188.12-1.23%
DJ Ind20:0015056.86-65.16-0.43%
SP 50020:001619.18-6.95-0.43%
FTSE 10017:356299.45-40.63-0.64%
All Ords08:454716.10-32.80-0.69%
NZSE 5007:484442.12-21.46-0.48%
NameTimeRPMove% Move
Gold $19:591390.9813.090.95%
Gold R20:0013937.2264.520.47%
Gold R/kg20:0044808232560.73%
Silver $19:5921.8110.19100.88%
Platinum $19:591478.505.250.36%
Palladium $19:59754.004.500.60%
Brent Crude20:00103.71.750.73%
Rand / Dollar19:5910.0218-0.0462-0.46%
Rand / Pound19:5515.6881-0.0436-0.28%
Rand / Euro19:5513.3640-0.0495-0.37%
Rand / NZD04:597.98140.04950.62%
Rand / AUD19:559.53120.01870.20%
Yen / Dollar19:5995.8500-0.1780-0.19%
Euro / Dollar19:550.7502-0.0007-0.09%
Dollar / Euro19:591.33250.00170.13%
Pound / Dollar19:550.6377-0.0013-0.20%

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 VALUE  5606012.00.%10304
2 MARSHALL  7957510.42.%143084
3 CBH  375257.14.%16183
4 ARB  455307.06.%116192
5 AME  67003505.51.%2074
6 WESCOAL  14664.29.%416307
7 AECI  110503963.72.%82136
8 ARGENT  600203.45.%36586
9 NASPERSN  7220023003.29.%1225438
10 CML  58301753.09.%657700
11 ROCKWELL  17053.03.%5620
12 SANTAM  172504972.97.%23764
13 PHUMELELA  1400402.94.%48978
14 ANGLOPLAT  315009002.94.%492645
15 DAWN  755202.72.%13267
16 ELBGROUP  3200802.56.%6667
17 MTN  169254002.42.%4584325
18 ADCORP  3022712.41.%29241
19 MEDCLIN  65401482.32.%1263084
20 ATLATSA  23052.22.%41547

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Major Moves Down
SharenameSaleMove% MoveVolume
1 CENRAND  176-19-9.74.%9940
2 GOLDONE  162-15-8.47.%24500
3 METROFILE  440-40-8.33.%1595
4 KEATON   135-10-6.90.%235107
5 SENTULA  103-7-6.36.%4196549
6 ZEDER  401-17-4.07.%144211
7 FAMBRANDS  8889-366-3.95.%38924
8 REBOSIS  1190-48-3.88.%264365
9 CADIZ  125-4-3.10.%124000
10 KAP  301-9-2.90.%6449
11 WOOLIES  6166-169-2.67.%6623085
12 EQSTRA  624-17-2.65.%145077
13 SOVFOOD  510-13-2.49.%10000
14 MRPRICE  11720-290-2.41.%853986
15 HOLDSPORT  4375-95-2.13.%112809
16 AQUARIUS  651-14-2.11.%536490
17 TONGAAT  12348-262-2.08.%137330
18 IMPERIAL  19000-400-2.06.%2000407
19 ADAPTIT  245-5-2.00.%75062
20 MONDILTDP  12071-242-1.97.%185256

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New Highs
SharenameSaleHighMove% MoveVolume
1 MARSHALL  7957957510.42.%143084
2 AME  670067003505.51.%2074
3 WESCOAL  14615864.29.%416307
4 BEE-SASOL  33000330005001.54.%204

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New Lows
SharenameSaleLowMove% MoveVolume
1 CENRAND  176165-19-9.74.%9940
2 GOLDONE  162162-15-8.47.%24500
3 KEATON   135135-10-6.90.%235107
4 TRUWTHS  76677574-48-0.62.%2581312

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Index Summary
Index NameRPMove% Move
Top 4035,401.00145.000.41%
Mid Cap53,740.00121.000.23%
Small Cap44,080.00-80.00-0.18%
Resource 2045,697.00-152.00-0.33%
Industrial 2545,253.00429.000.96%
Financial 1510,903.00-11.00-0.11%
Financial & Ind. 3047,908.00356.000.75%
All Share39,766.00145.000.37%
Oil & Gas 31,906.00-532.00-1.64%
Mining 27,969.00-11.00-0.04%
Gold Mining1,462.00-4.00-0.28%
Platinum Mining39.00.001.72%
GENERAL MINING7,915.001.000.03%
Oil & Gas Producers 17,155.00-286.00-1.64%
Basic Materials 24,554.00-22.00-0.09%
Chemicals 20,593.00413.002.05%
Forestry & Paper 20,808.00-197.00-0.94%
Industrial Metals 23,938.00-301.00-1.25%
Industrials 39,
General Industrials
Consumer Goods 50,814.00435.000.86%
Automobiles & Parts 7,912.00-1.00-0.03%
Household Goods162.0021.53%
Health Care 62,039.00406.000.66%
Index NameRPMove% Move
Food Producers 67,672.00189.000.28%
Personal Goods 888.007.000.90%
Consumer Services 84,791.00791.000.94%
General Retailers 55,920.00-909.00-1.60%
Travel & Leisure 5,398.00-12.00-0.23%
Support Services 2,365.00-22.00-0.93%
Telecommunications 80,664.001737.002.20%
Financials 29,
Banks 46,859.0025.000.05%
Non-life Insurance 44,025.001268.002.97%
Life Insurance 28,075.00-101.00-0.36%
General Financial 2,744.0012.000.46%
Technology 39,646.00313.000.80%
SHARIAH TOP40 3,296.0070.24%
FTSE/JSE SHARIAH ALL3,422.0070.21%
COAL MINING18,606.00370.20%
FTSE JSE Fledgling 5,718.00160.28%
FTSE/JSE Alt X 991.0010.16%
RESOURCE 24,998.00-78-0.31%
DIVIDEND PLUS198.0000.39%
FTSE/JSE RAFI 407,842.00120.16%
Capped Top 4018,668.00820.44%
Capped All Share20,131.00770.38%
JSE TABACO 7,018.00400.57%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
13/06/2013AFPREFINVMarch 2013 (Final)
13/06/2013AMEMarch 2013 (Final)
13/06/2013CAFCAMarch 2013 (Interim)
13/06/2013SYCOMMarch 2013 (Final)
14/06/2013TELKOMMarch 2013 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
INVICTA11/06/201328/06/201308/07/2013R 1.7900
MARSHALL10/06/201321/06/201312/07/2013R 0.0170
MIXTEL10/06/201328/06/201308/07/2013R 0.0600
ANNUITY07/06/201321/06/201301/07/2013R 0.2176
PERGRIN06/06/201319/07/201329/07/2013R 0.2800
Ex Div**
Share NameDec-DateLDTPay-DateAmount
INVPREFR23/05/201307/06/201325/06/2013R 4.0264
INVESTEC-P23/05/201307/06/201325/06/2013R 3.5318
INVLTDPREF23/05/201307/06/201325/06/2013R 3.2962
ABIL PREF20/05/201307/06/201318/06/2013R 3.2200
BARWORLD20/05/201307/06/201318/06/2013R 0.9600

Upcoming AGMs**
CodeCompany NameDateStatus
KDVKayDav Group Ltd.13/06/2013Confirmed
SPASpanjaard Ltd.14/06/2013Confirmed
MASPMasonite (Africa) Ltd.19/06/2013Confirmed
MASMasonite (Africa) Ltd.19/06/2013Confirmed
MASBMasonite (Africa) Ltd.19/06/2013Confirmed

Stock Exchange News Service
12/06/201317:25RACEC GROUP LIMITED - Cautionary announcement
12/06/201317:25JOHN DANIEL HOLDINGS LIMITED - Renewal of Cautionary Announcement
12/06/201317:15AFRICAN EAGLE RESOURCES PLC - Winding Up Petition
12/06/201317:13JSE LIMITED - Index Change Advice - 20130624 June 2013 Quarterly Index Review IC...
12/06/201317:12KAP INDUSTRIAL HOLDINGS LIMITED - Notifications in terms of section 122 of the C...
12/06/201317:10AMALGAMATED APPLIANCE HOLDINGS LD - Joint Announcement - Fulfilment of the Outst...
12/06/201317:00DATATEC LIMITED - Settlement of awards under share schemes and dealing in securi...
12/06/201316:40PETMIN LIMITED - Director Dealings
12/06/201316:35FORTRESS INCOME FUND LIMITED - Results of General Meeting
12/06/201316:35ABSA CAPITAL - LPBCA6 LEIPS Listing
12/06/201316:34ABSA CAPITAL - LEIPS LPBCP6 Listing
12/06/201315:54INFRASORS HOLDINGS LIMITED - changes to the board - appointment of a director
12/06/201315:37FORBES & MANHATTAN COAL CORP - Confirmation of Notice of Record and Meeting Date...
12/06/201315:18NAMPAK PRODUCTS LTD - New Instrument Listing - NPL06
12/06/201315:10NAMPAK PRODUCTS LTD - New Instrument Listing
12/06/201315:00GRINDROD LIMITED - Directors share dealings
12/06/201314:33CAPITAL PROPERTY FUND - Dealing in securities by a director of PFM
12/06/201314:30CHROMETCO LIMITED - Renewal of Cautionary
12/06/201314:30CADIZ HOLDINGS LIMITED - Directors' Interests
12/06/201313:30EXXARO RESOURCES LIMITED - Disclosure of beneficial interests in securities
12/06/201313:30FORBES & MANHATTAN COAL CORP - First quarter production at its Magdalena bitumin...
12/06/201313:09FIRSTRAND BANK LIMITED - Listing of Tap Issue - FRX23
12/06/201312:12RAINBOW CHICKEN LIMITED - Dealings in securities by a director
12/06/201312:03NEDBANK GROUP LIMITED - Resignation of non-executive director
12/06/201311:58REAL PEOPLE INV HOLD (PTY) LTD - Interest Rate Reset - RP011
12/06/201311:38FIRSTRAND BANK LIMITED - Interest Rate Reset - FRC160
12/06/201311:02COMAIR LIMITED - Dealing in securities by a director
12/06/201310:55EFFICIENT GROUP LIMITED - Dealings in securities by a director of EFG
12/06/201310:37ARGENT INDUSTRIAL LIMITED - Changes to the board: Company Secretary
12/06/201310:25FORTRESS INCOME FUND LIMITED - New Instrument Listing - FIFC06
12/06/201310:20REAL PEOPLE INV HOLD (PTY) LTD - Interest Rate Reset - RP016 RP019
12/06/201310:06STANDARD BANK OF SOUTH AFRICA LD - SCIB: The Standard Bank of South Africa - Iss...
12/06/201310:03NEW GOLD ISSUER LIMITED - Listing of additional NewGold platinum debentures
12/06/201309:50TOYOTA FIN SERVICES (SA) PTY LTD - Full Capital Redemption - TFS109
12/06/201309:45ROCKCASTLE GLOBAL REAL EST CO LTD - Dealings in securities by an associate of a ...
12/06/201309:35Transnet SOC Limited - TNF16 Floating Rate Note
12/06/201309:25INDWA INVESTMENTS LIMITED - New Instrument Listing - INA338
12/06/201309:15FIRSTRAND BANK LIMITED - Interest Rate Reset - FRB11 FRC158
12/06/201309:00BARCLAYS BANK PLC - BAR001 - New Financial Instrument Listing
12/06/201308:00KEATON ENERGY HOLDINGS LIMITED - Reviewed provisional condensed consolidated res...
12/06/201307:25ASCENSION PROPERTIES LIMITED - Acquisition of Atterbury House and Cautionary Ann...
12/06/201307:05INVICTA HOLDINGS LIMITED - Preference share cash dividend
12/06/201307:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares

Click here for more SENS news