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 The Sharenet Daily 
Tuesday, 27 August 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)

Seed Weekly - Liberty Holdings ? Growing Steadily

Liberty Holdings Ltd (LBH) is a group of companies offering a wide range of solutions in the financial services industry, including long-term insurance, investments and asset management, health risk business, and administration services.

Liberty Life was listed on the JSE in 1962 with assets just exceeding R 1m with Guardian Royal Exchange (GRE) acquiring a 75% controlling interest in 1964. Liberty Holdings was formed in 1968 to consolidate GRE’s South African operations, and the Group managed various further acquisitions over the years.

Company Structure

The Retail SA division includes Liberty’s core life insurance business, tasked with developing, marketing and distributing insurance products to individuals across SA, and LibFin, which forms part of the group’s risk management structure and manages market, credit and liquidity risk originating in the life insurance business.

The Institutional and Asset Management division has three components:
• STANLIB is an asset management business. As on 30 June, STANLIB’s total assets under management and administration stood at R 468bn.
• Liberty Properties develops and manages direct property assets across the retail and commercial sectors. These properties are used in many of Liberty’s products and policies.
• Liberty Corporate provides pension, provident, investment and risk solutions for groups of company employees. This division is also responsible for the administration of retirement funds and the provision of financial advice and intermediary services.

The Growth division includes those operations expected to grow much faster than Liberty’s core operations:
• Liberty Africa provides distribution for Liberty’s insurance, asset management, property, and health products on the continent. The division has established a footprint in 15 African countries, with expansion into West Africa one of the goals for 2013.

• Liberty Health provides health insurance through the Liberty Blue product, with about one million lives in Africa now serviced by the business unit.
• Direct Financial Services was launched in November 2010 and includes three operations, of which the life insurer Frank.Net is the most significant.

Latest Financial Results

Liberty released its interim results for the six months ended 30 June 2013 during August, and the market showed its concern with the slow growth in some areas when the share price dropped 3% on the same day.

Basic EPS and BEE normalised HEPS increased by only 6%, while BEE normalised operating earnings increased by 31% and BEE normalised Return on Equity stayed more or less constant at 22%. The interim dividend increased by 10% to 212 cents. Direct Financial Services and Liberty Health are still loss-making while Liberty builds up scale to leverage the investment in systems and processes.

Although these figures have obviously disappointed shareholders, these losses have decreased significantly compared to the same period last year.

The bulk of Liberty’s earnings came from the retail life insurance business, where earnings increased by 34%. Net cash inflows were strong at R 2.2bn, and the new business margin for the Retail SA business showed significant improvement from 1.7% to 2.0%.

The other major source of earnings was STANLIB, where earnings increased by 22%. Net inflows for the first six months amounted to R 9bn.

Current Valuation

Liberty is very attractively valued, trading on a PE ratio of 9 compared to the ALSI’s 18.3 and offering an attractive DY of 4.7% (2.8% for the ALSI).

Liberty is included in Seed’s Model Share Portfolios on the basis of the attractive current valuation and the potential upside in streamlining existing operations and achieving economies of scale within its Africa operations. Seed’s Model Share Portfolios are suitable for investors, with a minimum of R 1m to invest, through personal accounts at a stock broker.

The Seed Equity Fund, a smart beta unit trust that blends value and momentum portfolios, also has an allocation to Liberty. The share is a top 10 holding and has both value and momentum attributes. The unit trust is available to smaller investors – for more information please contact us.

Kind regards,

Cor van Deventer

021 914 4966

Tue, 27 Aug 2013
Top News
Gold rose 1 percent on Tuesday, to its highest price in more than three months, as investors sought safe havens from rising geopolitical tension, with an attack by Western powers on Syria seen possible within days. U.S. Defense Secretary Chuck Hagel said U.S. forces in the region are "ready to g  Full story

Revenue for the year shot up to R10.1 billion (2012: R7.9 billion). Operating profit dropped to R166 million (2012: R414.2 million), while profit for the year attributable to equity holders of the company slumped to R26.5 million (2012: R266.8 million). Furthermore, headline earnings per sha  Full story
Western powers could attack Syria within days, envoys from the United States and its allies have told rebels fighting President Bashar al-Assad, sources who attended the meeting told Reuters on Tuesday.  Full story
Prime Minister David Cameron recalled parliament to debate Britain's response to a suspected chemical weapons attack in Syria, after his spokesman said plans were being drawn up for possible military action.  Full story
Tunisia's Islamist Prime Minister Ali Larayedh said on Tuesday he was ready to step aside for a caretaker cabinet to hold new elections, but would not create a power vacuum while the country faced serious security and economic challenges.  Full story
The possibility of Western military action against the Syrian government pushed oil prices to a six-month high and sent equities worldwide substantially lower on. . .  Full story
European stocks suffered their biggest daily drop in two months on Tuesday as the threat of a military strike against Syria prompted investors. . .  Full story
U.S. stocks fell on Tuesday as geopolitical tensions flared on the possibility of an impending military strike against Syrian President Bashar al-Assad's forces in. . .  Full story
Financials and miners dragged Britain's FTSE 100 lower on Tuesday as tensions in Syria and prospects of stimulus withdrawal by the U.S. Federal. . .  Full story

U.S. stocks dropped at the open on Tuesday after Western powers told the Syrian opposition to expect a strike against President Bashar al-Assad's. . .  Full story
U.S. stock index futures fell further on Tuesday after Western powers told the Syrian opposition to expect a strike against President Bashar al-Assad's forces. . .  Full story
Investment in Spanish and Italian stocks has surged on the back of improved economic data, trumping a Spanish party funding scandal and the. . .  Full story
European stocks dropped on Tuesday as unease about the threat of a U.S.-led military strike against Syria prompted some investors to cash in. . .  Full story
SA Business
South Africa has the space to manage its budget deficit and attract enough inflows to fund its yawning current account shortfall,. . .  Full story
South Africa on Tuesday raised its forecast of maize output for 2013 to 11.513 million tonnes from 11.394 million tonnes in. . .  Full story
South African stocks hit record highs for the third straight trading session on Tuesday, edging up as the weaker rand currency. . .  Full story
South Africa's rand extended losses against the dollar on Tuesday, weighed down by worsening labour strife that threatens to hurt growth. . .  Full story

South Africa's petrol station and car dealership workers on Tuesday announced a strike for higher wages next week, signalling more labour disruption to a. . .  Full story
South Africa's economic growth accelerated at a solid but slower-than-expected pace in the second quarter, driven by manufacturing, but with simmering. . .  Full story
As many 72,000 workers at South Africa's petrol stations and car dealerships will go on strike for higher wages from next. . .  Full story
South Africa's Treasury sold a total 2.35 billion rand of its 2031, 2037 and government bonds on Tuesday.. . .  Full story

The U.S. Federal Reserve must consider when and how fast it unwinds its economic stimulus to avoid harming emerging markets, although the impact on China could be more limited compared with some other countries,. . .  Full story
South Africa's Richards Bay Coal Terminal was on track to export more than 70 million tonnes of coal this year, up from 68.3 million tonnes the previous year, a senior official. . .  Full story
A year ago, militant South African miners affiliated to upstart union AMCU were marching with spears, clubs and knives in often violent wildcat strikes and protests against management bosses.. . .  Full story
Company News
Shareholders are hereby advised of the resignation of Ms Matsotso Vuso as an independent non-executive director of the company with immediate effect. As a result thereof, Ms Matsoso Vuso also resigns and is withdrawn as a member of the RBPlat Audit. . .  Full story
Resgen has moved to tidy up the ownership of its shareholding in Waterberg One Coal (Pty) Ltd. (WOC). Currently WOC is owned 70% by Resource Generation and 30% by Lukale Mining Company (Pty) Ltd. (Lukale). Following the agreed transaction, WOC will. . .  Full story
Company Results
Revenue grew 20% to R1.0 billion (R864.1 million) whilst operating profit increased by 2% to R92.5 million (R90.4 million). Profit attributable. . .  Full story
Revenue was up by 14.9% to R153.4 billion (R133.5 billion). Gross income rose by 11.3% to R30.4 billion (R27.3 billion) 291. . .  Full story
Revenue for the year increased by 8% to R10.3 billion (2012: R9.5 billion). Operating profit shot up by 11% to R1.9. . .  Full story
Revenue for the interim period rose 4% to R881.7 million (R850.4 million). EBITDA went up by 7% to R135.8 million (R126.6. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0043082.83-207.72-0.48%
JSE Top 4017:0038720.33-182.99-0.47%
JSE Gold17:001430.1655.794.06%
JSE Financial17:0030602.60-198.86-0.65%
JSE Industrial17:0055991.25-375.89-0.67%
JSE Indust 2517:0049155.24-325.84-0.66%
JSE Resource17:0050830.98-24.81-0.05%
DJ Futures19:5414795.00-136.00-0.91%
DJ Ind20:0014826.79-119.67-0.80%
SP 50020:001637.99-18.79-1.13%
FTSE 10017:356440.97-51.13-0.79%
All Ords08:445130.803.700.07%
NZSE 5007:504542.02-3.65-0.08%
NameTimeRPMove% Move
Gold $19:591418.3113.710.98%
Gold R20:0014761.91338.482.35%
Gold R/kg20:00474595177793.89%
Silver $19:5924.5940.26401.09%
Platinum $19:591528.00-18.50-1.20%
Palladium $19:59745.801.500.20%
Brent Crude20:00114.043.002.70%
Rand / Dollar19:5810.40810.09290.90%
Rand / Pound19:5516.14000.09080.57%
Rand / Euro19:5513.94000.13921.01%
Rand / NZD19:588.10790.00480.06%
Rand / AUD19:559.33500.01200.13%
Yen / Dollar19:5997.0750-1.3830-1.40%
Euro / Dollar19:590.7468-0.0005-0.07%
Dollar / Euro19:591.33910.00220.17%
Pound / Dollar19:550.64340.00170.26%

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 ROCKWELL  2806027.27.%4895
2 CADIZ  1251412.61.%6000
3 TRNPACO  195019511.11.%250
4 ATLATSA  412328.42.%81649
5 ALERT  135108.00.%16303
6 FINBOND  13896.98.%570228
7 DRDGOLD  640406.67.%394948
8 MSHolding  10555.00.%31774
9 CULLINAN  215104.88.%14700
10 GFIELDS  60402704.68.%5783155
11 INDEQTY  450204.65.%10000
12 PUTPROP  695304.51.%700
13 ONELOGIX  297124.21.%147739
14 ANGGOLD  154156184.18.%1132077
15 HARMONY  42471563.81.%1922327
16 PALLINGHT  23383.56.%206252
17 BELL  2475753.13.%453073
18 TASTE  366113.10.%53965
19 ANNUITY  510153.03.%7000
20 PINNACLE  2400622.65.%796819

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Major Moves Down
SharenameSaleMove% MoveVolume
1 CENRAND  120-40-25.00.%52
2 DIPULA-B  730-150-17.05.%4166
3 TOWER  880-70-7.37.%44322
4 TORRE  187-13-6.50.%600
5 EHSV  1450-99-6.39.%3353
6 SHPCB  1120000-60000-5.08.%50
7 SABVEST  1900-100-5.00.%25
8 TRNSHEX  350-16-4.37.%22550
9 ASCEN B  240-10-4.00.%34350
10 IMPERIAL  20825-858-3.96.%575303
11 MEDCLIN  7000-250-3.45.%1893989
12 ESORFRANK  145-5-3.33.%71028
13 DISCOVERY  9505-326-3.32.%1801567
14 TRUWTHS  8150-275-3.26.%1160124
15 REUNERT  6590-210-3.09.%112460
16 MONDIPLCP  16631-525-3.06.%535182
17 ABIL  1640-50-2.96.%3277726
18 CBH  340-10-2.86.%70000
19 SOVFOOD  515-15-2.83.%366
20 SHOPRIT  15865-455-2.79.%2477882

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New Highs
SharenameSaleHighMove% MoveVolume
1 ATLATSA  412412328.42.%81649
2 CULLINAN  215215104.88.%14700
3 MIXTEL  650700111.72.%2700856
4 NET1UEPS  11000110001861.72.%21606
5 BEE-SASOL  34750347551500.43.%1055
6 NORTHAM  4124414840.10.%290803
7 VALUE  6016400.7550
8 AFRIMAT  10001025-10-0.99.%90208
9 MONDILTDP  1670017223-450-2.62.%290649

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New Lows
SharenameSaleLowMove% MoveVolume
1 CENRAND  120120-40-25.00.%52
2 TOWER  880870-70-7.37.%44322
3 SHPCB  11200001120000-60000-5.08.%50
4 SHOPRIT  1586515545-455-2.79.%2477882

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Index Summary
Index NameRPMove% Move
Top 4038,720.33-182.99-0.47%
Mid Cap55,290.34-337.23-0.61%
Small Cap46,340.32-66.36-0.14%
Resource 2050,830.98-24.81-0.05%
Industrial 2549,155.24-325.84-0.66%
Financial 1511,581.78-89.78-0.77%
Financial & Ind. 3051,996.79-349.67-0.67%
All Share43,082.83-207.72-0.48%
Oil & Gas 36,423.6899.130.27%
Mining 30,983.66-22.29-0.07%
Gold Mining1,430.1655.794.06%
Platinum Mining49.13-.32-0.65%
GENERAL MINING8,806.21-44.86-0.51%
Oil & Gas Producers 19,584.3453.300.27%
Basic Materials 27,400.69-69.70-0.25%
Chemicals 22,720.34-149.13-0.65%
Forestry & Paper 26,912.41-691.83-2.51%
Industrial Metals 24,338.68-87.20-0.36%
Industrials 40,863.89-367.37-0.89%
General Industrials 122.29-.11-0.09%
Consumer Goods 53,542.57-113.93-0.21%
Automobiles & Parts 8,654.764.530.05%
Household Goods188.96-4-1.91%
Health Care 68,616.51-1048.78-1.51%
Beverages 172.191.460.86%
Index NameRPMove% Move
Food Producers 69,935.34-710.08-1.01%
Personal Goods 1,023.73-13.49-1.30%
Consumer Services 9,264.28-110.50-1.18%
General Retailers 56,143.98-1105.82-1.93%
Travel & Leisure 5,520.61-40.36-0.73%
Media 187.81-1.08-0.57%
Support Services 2,644.91-60.08-2.22%
Telecommunications 9,176.64-24.36-0.26%
Financials 30,602.60-198.86-0.65%
Banks 51,174.71-186.76-0.36%
Non-life Insurance 47,726.53.000.00%
Life Insurance 29,613.79-490.49-1.63%
General Financial 2,880.95-43.29-1.48%
Technology 42,337.4616.050.04%
SHARIAH TOP40 3,710.93-10-0.28%
FTSE/JSE SHARIAH ALL3,806.99-12-0.31%
COAL MINING20,796.92-132-0.63%
FTSE JSE Fledgling 5,709.86360.64%
FTSE/JSE Alt X 996.1120.15%
RESOURCE 27,833.25-4-0.01%
DIVIDEND PLUS205.34-2-0.89%
FTSE/JSE RAFI 408,544.42-39-0.45%
Capped Top 4020,446.55-106-0.52%
Capped All Share21,801.82-107-0.49%
JSE TABACO 6,829.08250.36%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
28/08/2013GPL-PREFJune 2013 (Final)
28/08/2013GRANPRADEJune 2013 (Final)
28/08/2013M-R-HLDJune 2013 (Final)
28/08/2013METAIRJune 2013 (Interim)
28/08/2013MUSTEKJune 2013 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
SA CORP26/08/201319/09/201330/09/2013R 0.1628
SUNINT26/08/201313/09/201323/09/2013R 1.5500
SYNERGY B26/08/201313/09/201323/09/2013R 0.2663
SYNERGY A26/08/201313/09/201323/09/2013R 0.4234
BIDVEST26/08/201313/09/201323/09/2013R 3.9600
Ex Div**
Share NameDec-DateLDTPay-DateAmount
LIB-HOLD01/08/201323/08/201302/09/2013R 2.1200
RESILIENT06/08/201323/08/201302/09/2013R 1.3623
ZURICH SA01/08/201323/08/201302/09/2013R 1.0000
ADCORP22/05/201323/08/201302/09/2013R 0.8000
NEDBANK-P06/08/201323/08/201302/09/2013R 0.3513

Upcoming AGMs**
CodeCompany NameDateStatus
ILEImbalie Beauty Ltd.27/08/2013Confirmed
RACCRECM - Calibre Ltd.28/08/2013Confirmed
ACPAcucap Properties Ltd.28/08/2013Confirmed
RACPRECM - Calibre Ltd.28/08/2013Confirmed
ADRAdcorp Holdings Ltd.29/08/2013Confirmed

Stock Exchange News Service
27/08/201317:47JOHN DANIEL HOLDINGS LIMITED - Updated Trading Statement
27/08/201317:25OLD MUTUAL PLC - Notification of Transactions of Directors/Persons Discharging M...
27/08/201317:15RAINBOW CHICKEN LIMITED - Abridged consolidated audited results for the year end...
27/08/201317:07KAP INDUSTRIAL HOLDINGS LIMITED - Dealing in securities by a director of a major...
27/08/201316:45MASTER DRILLING GROUP LTD - Interim Results for the period ended 30 June 2013
27/08/201316:40STELLA VISTA TECHNOLOGIES LIMITED - Appointment of Independent Non-Executive Dir...
27/08/201316:37DATACENTRIX HOLDINGS LIMITED - Acquisition of eNetworks
27/08/201316:18COUNTRY BIRD HOLDINGS LIMITED - Appointment of Acting Financial Director
27/08/201316:14GLOBAL ASSET MANAGEMENT LTD - Disclosure of the Acquisition and Disposal of Secu...
27/08/201316:12SOUTH OCEAN HOLDINGS LIMITED - Share Dealings in Securities by Directors Associa...
27/08/201316:00ROYAL BAFOKENG PLATINUM LIMITED - Resignation of Independent Non-Executive Direc...
27/08/201316:00COUNTRY BIRD HOLDINGS LIMITED - Audited results for the year ended 30 June 2013
27/08/201316:00SUPER GROUP LIMITED - Dealings in securities by directors, group company secreta...
27/08/201315:50INDWA INVESTMENTS LIMITED - Listing of New Financial Instrument - INA347
27/08/201315:44FIRSTRAND BANK LIMITED - Listing of New Financial Instrument - FRS96
27/08/201315:38INDWA INVESTMENTS LIMITED - Listing of New Finanncial Instrument - IN04Q
27/08/201315:27IVUZI INVESTMENTS LIMITED - Full Capital Redemption - IVA335 and IV01E
27/08/201315:22GOGLOBAL PROPERTIES LIMITED - No change statement and notice of annual general m...
27/08/201314:48WILDERNESS HOLDINGS LIMITED - Appointment of company secretary
27/08/201314:15ITALTILE LIMITED - Dealing in securities by a director
27/08/201313:58GOLD FIELDS LIMITED - Disclosure of Beneficial Interests Securities
27/08/201313:52RAUBEX GROUP LIMITED - No change statement and notice of annual general meeting
27/08/201312:57GROUP FIVE LIMITED - Dealing in securities by a director of a major subsidiary
27/08/201312:55INGUZA INVESTMENTS (RF) LIMITED - Full Capital Redemption - ING198 and ING175
27/08/201312:35W G WEARNE LIMITED - Designated Adviser dealing in securities
27/08/201312:30JSE LIMITED - Gen - General - Update Announcement
27/08/201311:48ARROWHEAD PROPERTIES LIMITED - TRP121: Notification of the acquisition or dispo...
27/08/201310:55IMBALIE BEAUTY LIMITED - Results of Annual General Meeting
27/08/201310:47INVESTEC BANK LIMITED - Breached Barrier 2 Day VWAP- GRTIHB
27/08/201310:15NUTRITIONAL HOLDINGS LIMITED - Dealings in Securities by Directors of the Compan...
27/08/201310:00FONEWORX HOLDINGS LIMITED - Voluntary Announcement
27/08/201310:00ILIAD AFRICA LIMITED - Unaudited Interim Results for the six months ended 30 Jun...
27/08/201307:15BRIMSTONE INVESTMENT CORPORATION LD - Unaudited Results for the Six Months ended...
27/08/201307:05RESOURCE GENERATION LIMITED - Increase in shareholding in Waterberg One Coal

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