Having trouble reading this email? View in your web browser
 The Sharenet Daily 
Tuesday, 03 December 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 - Making use of the CGT Exclusion

A while back I had an interesting conversation with a friend. Every year she sells a portion of her unit trust investments and then immediately reinvests the proceeds into the same fund. Her rational behind this is that every year SARS provides you with Capital Gains Tax (CGT) exclusion and you can use this exclusion to increase the base cost of our investment and reduce your future CGT liability.

How are capital gains calculated?
You make a capital gain if you dispose (sell) and asset for more than the original price (base cost). A simple example is:
• Invest R 1 000 into a unit trust
• Sell the unit trust for a total value of R 1 700.

So can you actually decrease your future CGT by selling a portion of your investment and reinvesting it immediately?

For ease of calculation I have made the following assumptions:
• The investment is a unit trust.
• The returns of an average equity unit trust are used.
• There are no transaction costs.
• One is able to sell and buy the exact same unit trust on the same day.
• Distributions and reinvestments by the unit trust are not taken into account.

I did the calculation on the different sizes of initial investments. Every year you sell a portion of your investment where the CGT is equal to that tax year’s exclusion. In 2006 the exclusion was R 10 000, this tax year it’s R 30 000.

The chart below illustrates how the base cost increases every year for the different portfolios compared to the unit price of underlying investment and base cost of not selling.

You derive the biggest benefit when the portfolio is smaller. The new base cost is calculated using the weighted average of the previous year’s base cost and the price of the “new” investment. With a smaller portfolio you are able to sell a higher ratio of the units and increase the base cost more effectively.

The graph below shows the unrealised capital gains (The capital gains you would make if you were to sell 100% of your portfolio.) for the different portfolios at the end of the 8 year period.

With a R100,000 portfolio it was possible to reduce the unrealised capital gains by 98%, with the R500,000 portfolio by 23% and the R1,000,000 by 12%.

By increasing the base cost of the investment in line with the current price of the unit trust you are able to reduce the unrealised capital gains on the investment and ultimately your CGT liability when making a full disposal of the investment.

This is a very simplistic discussion about how to reduce your CGT liability and makes quite a few assumptions. In reality we would guess that the benefit wouldn’t be as great as illustrated. This strategy would also require a very disciplined investor to put the trades through timeously each year and reinvest the full proceeds from the disposal. It is also very evident that the benefits of this strategy reduce as your portfolio grows.

Kind regards,

Gerbrandt Kruger

021 914 4966

Tue, 03 Dec 2013
Top News
South African stocks slid 1.7 percent on Tuesday, with AngloGold Ashanti and other index heavyweights hit by a global market sell-off on concerns the U.S. Federal Reserve may start cutting back its stimulus programme.  Full story

South Africa's Bidvest has asked a high court to stop a $1.2 billion takeover bid for local drugmaker Adcock Ingram by a Chilean rival, alleging the planned financing of the offer is against the law.  Full story
Ukraine's embattled government held onto power in parliament on Tuesday but faced determined public protests and the rising risk of a financial crisis after spurning closer ties with the European Union under pressure from Russia.  Full story
North Korean leader Kim Jong Un is believed to have dismissed a powerful uncle, a man key to his rise to power, from his posts, South Korean lawmakers said on Tuesday, a move that could help consolidate his power base with a younger guard of aides.  Full story
Mexican Senate committees on Tuesday passed an electoral reform demanded by the opposition, taking Congress a step closer to a bill to open up the oil and gas industry at the center of President Enrique Pena Nieto's economic agenda.  Full story
Fear that the Federal Reserve will scale back its stimulus as the U.S. economy recovers hit world stock markets for a second straight. . .  Full story
Gold rose slightly on Tuesday, bouncing up after a slide of almost 3 percent the previous day and a further decline in early. . .  Full story
European stocks dropped on Tuesday, suffering their biggest falls since August after recent robust U.S. data raised concern that the Federal Reserve will cut. . .  Full story
U.S. stocks fell on Tuesday, sending the S&P 500 index lower for three straight sessions, as investors speculated the Federal Reserve may move. . .  Full story

Miners and oil companies led Britain's FTSE 100 lower on Tuesday as strong economic data prompted investors to bet that equity-friendly central bank stimulus. . .  Full story
U.S. stocks opened lower on Tuesday, with the S&P 500 down for a third consecutive session, on concerns the Federal Reserve may begin. . .  Full story
Britain's main benchmark index fell for second day on Tuesday, led down by heavyweight materials stocks as metal prices weakened.. . .  Full story
European shares edged lower on Tuesday, with miners tracking a decline in metals prices and concerns that the Federal Reserve could start reducing. . .  Full story
SA Business
The board of South African drugmaker Adcock Ingram said on Tuesday it believed a $1.2 billion takeover bid from Chile's CFR Pharmaceuticals was still the best option for shareholders, rebuffing a. . .  Full story
South Africa's rand retreated against the dollar on Tuesday, weighed down by fears of a wider-than-expected current account deficit.. . .  Full story
A Chilean group's $1.2 billion bid for South African drugmaker Adcock Ingram was challenged on two fronts on Monday, as a group led by Bidvest sought nearly a third of Adcock's. . .  Full story

South African industrial conglomerate Bidvest has asked a high court to invalidate a $1.2 billion takeover bid for local drugmaker Adcock. . .  Full story
South Africa's current account deficit widened in the third quarter to its biggest in five years despite positive revisions to trade. . .  Full story
Spending in South Africa grew at its slowest pace in four years in the third quarter of 2013, as strikes, tighter. . .  Full story
The Australian dollar was on the defensive on Tuesday after the Reserve Bank of Australia (RBA) reiterated the local currency was still uncomfortably high,. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0043962.83-696.54-1.56%
JSE Top 4017:0039194.66-676.87-1.70%
JSE Gold17:001099.26-48.08-4.19%
JSE Financial17:0032176.37-678.41-2.06%
JSE Industrial17:0058344.66-974.57-1.64%
JSE Indust 2517:0051077.80-904.96-1.74%
JSE Resource17:0048863.68-473.85-0.96%
DJ Futures19:0815875.00-118.00-0.74%
DJ Ind19:5815901.99-106.78-0.67%
SP 50019:581793.48-7.42-0.41%
FTSE 10018:356532.43-62.90-0.95%
All Ords07:455249.60-23.90-0.45%
NZSE 5006:484783.85-8.48-0.18%
NameTimeRPMove% Move
Gold $19:591222.001.830.15%
Gold R19:5912662.76130.781.04%
Gold R/kg19:584069009630.24%
Silver $19:5919.0900-.0750-0.39%
Platinum $19:591355.9018.401.38%
Palladium $19:59712.603.600.51%
Brent Crude19:58112.352.662.43%
Rand / Dollar19:5910.36300.09240.90%
Rand / Pound19:5516.97040.20411.22%
Rand / Euro19:5514.09100.18571.34%
Rand / NZD19:598.55390.13681.63%
Rand / AUD19:559.45610.09901.06%
Yen / Dollar19:59102.3670-0.5600-0.54%
Euro / Dollar19:590.7353-0.0033-0.45%
Dollar / Euro19:591.36000.00610.45%
Pound / Dollar19:550.6093-0.0020-0.33%

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 REXTRU-N  105015016.67.%746
2 NET1UEPS  80006078.21.%230
3 DIAMONDCP  12087.14.%31750
4 TASTE  360236.82.%4035
5 DELTA  600356.19.%10159
6 ITLTILE  790405.33.%5754
7 WCC  200105.26.%5000
8 MMG  980404.26.%23662
9 CAT  2100552.69.%13160
10 CARGO  1950502.63.%5000
11 BEE-SASOL  375009502.60.%1047
12 SOVFOOD  560101.82.%27000
13 MIXTEL  53091.73.%272661
14 BRAIT  5504911.68.%231039
15 DISTELL  136762001.47.%3927
16 HOLDSPORT  4625671.47.%144307
17 KAP  35051.45.%5698100
18 TRNSHEX  35551.43.%93029
19 AME  78001001.30.%700
20 COMAIR  32441.25.%19372

Click here for more Major Moves...
Major Moves Down
SharenameSaleMove% MoveVolume
1 RESGEN  220-250-100.00.%794500
2 POYNTING  141-19-11.88.%9640
3 MAS  1805-195-9.75.%2029
4 ACCENT  101-10-9.01.%186922
5 DRDGOLD  374-31-7.65.%494049
6 AUSTRO  109-8-6.84.%73088
7 CROOKES  6500-450-6.47.%15000
8 ANGGOLD  12850-851-6.21.%1644171
9 COAL  128-8-5.88.%239406
10 WITSGOLD  780-45-5.45.%13350
11 ASSORE  36076-2057-5.39.%153554
12 CMH  1375-75-5.17.%660
13 CONTROL  111-6-5.13.%20000
14 ATLATSA  475-25-5.00.%44493
15 PALLINGHT  250-13-4.94.%159720
16 HARMONY  2749-141-4.88.%1309606
17 LITHA  270-13-4.59.%100359
18 AQUARIUS  694-33-4.54.%416581
19 FONEWORX  240-10-4.00.%35364
20 STEINHOFF  3880-160-3.96.%5609618

Click here for more Major Moves...

New Highs
SharenameSaleHighMove% MoveVolume
1 BRAIT  55045529911.68.%231039
2 KEATON   27028531.12.%376626
3 CURRO  23012350-17-0.73.%43762
4 RESGEN  220250-250-100.00.%794500

Click here for more Major Moves...
New Lows
SharenameSaleLowMove% MoveVolume
1 DRDGOLD  374363-31-7.65.%494049
2 HARMONY  27492749-141-4.88.%1309606
3 TIGBRANDS  2712227064-1068-3.79.%1182708
4 MASSMART  1400613800-384-2.67.%300206
5 GFIELDS  39203832-50-1.26.%2587373
6 VIVIDEND  465447-5-1.06.%442870
7 FPT  730656-7-0.95.%4980810

Click here for more Major Moves...

Index Summary
Index NameRPMove% Move
Top 4039,194.66-676.87-1.70%
Mid Cap58,886.66-469.52-0.79%
Small Cap49,020.56-573.67-1.16%
Resource 2048,863.68-473.85-0.96%
Industrial 2551,077.80-904.96-1.74%
Financial 1512,107.51-310.30-2.50%
Financial & Ind. 3053,917.11-1098.53-2.00%
All Share43,962.83-696.54-1.56%
Oil & Gas 37,438.47-289.08-0.77%
Mining 29,251.09-312.04-1.06%
Gold Mining1,099.26-48.08-4.19%
Platinum Mining47.08-.81-1.69%
GENERAL MINING8,519.53-53.75-0.63%
Oil & Gas Producers 20,129.98-155.43-0.77%
Basic Materials 25,996.20-289.71-1.10%
Chemicals 23,418.2450.770.22%
Forestry & Paper 26,913.17-556.89-2.03%
Industrial Metals 22,215.92-294.86-1.31%
Industrials 42,715.71-694.12-1.60%
General Industrials 128.25-2.31-1.77%
Consumer Goods 54,769.80-761.82-1.37%
Automobiles & Parts 8,469.07-63.41-0.74%
Household Goods263.73-11-3.96%
Health Care 73,653.20-1284.61-1.71%
Beverages 176.26-.87-0.49%
Index NameRPMove% Move
Food Producers 68,056.09-1307.47-1.88%
Personal Goods 1,016.14-21.18-2.04%
Consumer Services 10,284.36-152.39-1.46%
General Retailers 61,022.31-958.54-1.55%
Travel & Leisure 5,466.79-38.58-0.70%
Media 211.90-2.47-1.15%
Support Services 2,499.37-19.88-0.79%
Telecommunications 9,122.18-284.90-3.03%
Financials 32,176.37-678.41-2.06%
Banks 54,208.32-1335.18-2.40%
Non-life Insurance 47,726.53.000.00%
Life Insurance 31,158.57-1006.16-3.13%
General Financial 3,165.42-37.45-1.17%
Technology 44,675.86-145.37-0.32%
SHARIAH TOP40 3,640.56-60-1.62%
FTSE/JSE SHARIAH ALL3,779.38-57-1.48%
COAL MINING17,679.93-262-1.46%
FTSE JSE Fledgling 6,171.02-20-0.32%
FTSE/JSE Alt X 1,085.38-24-2.16%
CAPPED PROPERTY 417.62-0.84%
RESOURCE 26,674.55-270-1.00%
DIVIDEND PLUS211.62-3-1.45%
FTSE/JSE RAFI 408,620.58-161-1.84%
Capped Top 4020,708.95-368-1.74%
Capped All Share22,259.56-355-1.57%
JSE TABACO 6,903.70-31-0.45%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
10/12/2013MICROMEGASeptember 2013 (Interim)
10/12/2013ZCISeptember 2013 (Interim)
13/12/2013EHSVSeptember 2013 (Q)
13/12/2013FIUUNITSeptember 2013 (Q)
13/12/2013INDEQTYSeptember 2013 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
AMECOR02/12/1318/12/1330/12/13ZAR 0.0650
LIBHOLD1102/12/1318/12/1330/12/13ZAR 0.0550
JDG CONV29/11/1306/12/1320/12/13ZAR 375.0000
PRESCIENT28/11/1317/01/1427/01/14ZAR 0.0250
OMNIA26/11/1310/01/1420/01/14ZAR 1.8500
Ex Div**
Share NameDec-DateLDTPay-DateAmount
INVPREFR21/11/1329/11/1317/12/13ZAR 4.0486
INVESTEC-P25/11/1329/11/1317/12/13ZAR 3.5512
INVLTDPREF21/11/1329/11/1317/12/13ZAR 3.3143
ABIL PREF11/11/1329/11/1309/12/13ZAR 3.0800
SPAR13/11/1329/11/1309/12/13ZAR 3.0600

Upcoming AGMs**
CodeCompany NameDateStatus
APNAspen Pharmacare Holdings Ltd.03/12/2013Confirmed
APNPAspen Pharmacare Holdings Ltd.03/12/2013Confirmed
FSRFirstRand Ltd.03/12/2013Confirmed
FSRPAFirstRand Ltd.03/12/2013Confirmed
FSRPFirstRand Ltd.03/12/2013Confirmed

Stock Exchange News Service
03/12/201317:42THE BIDVEST GROUP LIMITED - Legal proceedings announcement
03/12/201317:40RESILIENT PROPERTY INCOME FUND LTD - Interest Rate Reset-RESB01
03/12/201317:38DEVELOPMENT BANK OF SOUTHERN AFRICA - Reviewed interim results for the six month...
03/12/201317:37INGUZA INVESTMENTS (RF) LIMITED - Liosting of Tap Issue -ING216
03/12/201317:34THE STANDARD BANK OF SA LTD - The Standard Bank of South Africa Limited New Fin...
03/12/201317:29INDWA INVESTMENTS LIMITED - Listing of New Instrument-INA410
03/12/201317:23PETMIN LIMITED - Correction - No Change Statement And Notice Of Annual General M...
03/12/201317:22PETMIN LIMITED - CANCELLATION OF S339497 No Change Statement and Notice of Annua...
03/12/201317:17INDWA INVESTMENTS LIMITED - Listing of Tap Issue-INA350
03/12/201317:08AFRICAN BANK INVESTMENTS LIMITED - Disclosure of significant holding of ABIL sha...
03/12/201317:06AUSTRO GROUP LIMITED - Update in respect of Austro's litigation against Jonathan...
03/12/201317:04ANGLOGOLD ASHANTI LIMITED - Full Capital Redemption-ANG05
03/12/201317:00CROOKES BROTHERS LIMITED - Unaudited interim results and cash dividend declarati...
03/12/201317:00MR PRICE GROUP LIMITED - Dealings in securities by directors and the company sec...
03/12/201316:40COAL OF AFRICA LIMITED - Director's Dealings - Appendix 3B
03/12/201316:30INVESTEC PLC - Notification of Interest in Shares
03/12/201316:10METAIR INVESTMENTS LIMITED - Results Of General Meeting
03/12/201316:01HULAMIN LIMITED - Acquisition of securities by Old Mutual PLC
03/12/201316:00PETMIN LIMITED - No Change Statement and Notice of Annual General Meeting
03/12/201316:00COAL OF AFRICA LIMITED - Issue of Employee Share Options
03/12/201316:00DATATEC LIMITED - Notification of change in a major interest in datatec shares
03/12/201315:59STEINHOFF INTERNATIONAL HOLDINGS LD - Results of the annual general meeting
03/12/201315:58SABVEST LIMITED - Declaration of special cash dividend
03/12/201315:45CONSOLIDATED INFRASTRUCTURE GRP LTD - TRP121: Notification of an acquisition of ...
03/12/201315:41PREFEX CO LIMITED - Finalisation announcement in respect of the conversion of Pr...
03/12/201315:32FIRSTRAND BANK LIMITED - Interest rate reset-FRC04, FRC107
03/12/201315:28LEWIS GROUP LIMITED - Notification Of An Acquisition Of A Beneficial Interest In...
03/12/201315:20TOYOTA FIN SERVICES (SA) LTD - Full Capital Redemption-TFS90A
03/12/201315:14VUKILE PROPERTY FUND LIMITED - TRP121: Notification of Acquisition of Beneficial...
03/12/201315:13SYNERGY INCOME FUND LIMITED - Results of annual general meeting
03/12/201315:08DISCOVERY LIMITED - Report on proceedings at annual general meeting
03/12/201315:00OSIRIS PROPERTIES INTERNATIONAL LTD - Abridged unaudited consolidated results fo...
03/12/201315:00INVESTEC PLC - PDMR Dealings
03/12/201314:55SOVEREIGN FOOD INVESTMENTS LIMITED - Notice Of An Acquisition Of A Beneficial In...
03/12/201314:45TONGAAT HULETT LIMITED - Director's dealings
03/12/201314:45PALABORA MINING COMPANY LIMITED - Notice Under Section 45 Of The Companies Act 2...
03/12/201314:33FIRSTRAND LIMITED - Report on proceedings at annual general meeting
03/12/201313:49STRATCORP LIMITED - Change to the board
03/12/201313:42COMAIR LIMITED - Changes to the board of directors
03/12/201313:39REMGRO LIMITED - Report on proceedings at annual general meeting
03/12/201313:30TIMES MEDIA GROUP LIMITED - Fulfilment Of Suspensive Conditions In Connection Wi...
03/12/201313:10BUSINESS CONNEXION GROUP LIMITED - Notice Of Acquistion Of A Beneficial Interest...
03/12/201313:08ADCOCK INGRAM HOLDINGS LIMITED - Further cautionary announcement regarding the c...
03/12/201313:05WILSON BAYLY HOLMES-OVCON LIMITED - Acquisition of securities
03/12/201312:59BSI STEEL LIMITED - Director's dealings in securities
03/12/201312:55THE SPAR GROUP LIMITED - Dealing In Securities By The Spar Group Limited Employe...
03/12/201312:44DENEL SOC LIMITED - DENG 49 New Financial Instrument Listing Announcement
03/12/201312:30ROCKWELL DIAMONDS INCORPORATED - Appointment of new sponsor
03/12/201312:18ROCKWELL DIAMONDS INCORPORATED - Change in Sponsor
03/12/201312:00CLINDEB INVESTMENTS (PTY) LIMITED - New Financial Instrument Listing: NET47
03/12/201312:00CLINDEB INVESTMENTS (PTY) LIMITED - New Financial Instrument Listing: NET48
03/12/201311:46AFRICAN BANK INVESTMENTS LIMITED - Dealing in securities by directors
03/12/201311:15ESORFRANKI LIMITED - Dealing in securities by a director
03/12/201310:42EDCON LIMITED - Notice of change in auditors - EDC01
03/12/201310:22SASOL LIMITED - Dealing in securities by a director of a major subsidiary of Sas...
03/12/201310:16AFROCENTRIC INVESTMENT CORP LIMITED - Directors dealings in securities
03/12/201310:00CLOVER INDUSTRIES LIMITED - Launch of sponsored Level I ADR Programme
03/12/201309:36SATRIX COLLECTIVE INVESTMENT SCHEME - Announcement for November 2013 and salient...
03/12/201309:35SATRIX COLLECTIVE INVESTMENT SCHEME - STXIND - Distribution announcement - salie...
03/12/201309:24TAWANA RESOURCES NL - Presentation
03/12/201309:23SATRIX COLLECTIVE INVESTMENT SCHEME - STXFIN - Distribution announcement - salie...
03/12/201309:20SATRIX COLLECTIVE INVESTMENT SCHEME - STXSWX - Distribution announcement - sali...
03/12/201309:19SATRIX COLLECTIVE INVESTMENT SCHEME - STXRES - Distribution announcement - sali...
03/12/201309:18SATRIX COLLECTIVE INVESTMENT SCHEME - STXDIV - Distribution announcement - sali...
03/12/201309:16SATRIX COLLECTIVE INVESTMENT SCHEME - STX40 - Distribution announcement - salien...
03/12/201309:00DIAMONDCORP PLC - Market update on Lace Mine November diamond sale
03/12/201309:00DATATEC LIMITED - Westcon appoints former Dell and Brambles executive as CEO
03/12/201309:00REDEFINE INTERNATIONAL PLC - Completion of internalisation and conversion to UK-...
03/12/201309:00PIONEER FOOD GROUP LIMITED - Dealing In Companys Shares By A Director
03/12/201308:35BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
03/12/201308:16THE DB X-TRACKER COL INVEST SCHEME - Listing of additional securities - DBXEU
03/12/201308:15THE DB X-TRACKER COL INVEST SCHEME - Listing of additional securities - DBXUS
03/12/201308:04THE DB X-TRACKER COL INVEST SCHEME - Distribution announcement - salient dates -...
03/12/201308:03THE DB X-TRACKER COL INVEST SCHEME - Distribution announcement - salient dates -...
03/12/201308:02THE DB X-TRACKER COL INVEST SCHEME - DBXJP - Distribution announcement - salient...
03/12/201308:01THE DB X-TRACKER COL INVEST SCHEME - Distribution announcement - salient dates -...
03/12/201308:00THE DB X-TRACKER COL INVEST SCHEME - Distribution announcement - salient dates -...
03/12/201307:45ESORFRANKI LIMITED - Acquisition of interest in the company
03/12/201307:05ARDOR SA LIMITED - Update on Reverse Listing and Renewal of Cautionary Announcem...

Click here for more SENS news