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 The Sharenet Daily 
Tuesday, 04 March 2014 - 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)

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Seed Weekly - SA budget and implications for investors

Last week, Pravin Gordhan presented his 5th budget speech as Minister of Finance. The aim of the budget is to present the forecasted government revenue and expenses. The sheer scale of the government finances as a percentage of the size of the economy means that it is an extremely important consideration for all investors in the local economy.

Most governments, including South Africa, run their finances at a deficit instead of a surplus. Again the deficit in absolute terms as measured against the size of the economy is an important number because it means that the government has to find this shortfall from funds outside of the revenue that it derives from the tax base. This shortfall is made up by government borrowing from local and international lenders.

The table below presents the key components of the last years and this year’s budgets against the 2014 actual. Firstly the size of the SA economy as measured by GDP, is around R3,5 trillion. In real terms it grew by just 1,9% in 2013. This is down from growth of 2,5% in 2012 and 3,6% in 2011.

The government is however pencilling in real economic growth of 2,7% for 2014, 3,2% in 2015 and 3,5% in 2016. Because an important measurement of government finances is the deficit as a percentage of the total GDP, a higher economic growth estimate helps to lower the budget deficit in percentage terms.

For the 2013/2014 financial year the budget deficit will come in at approximately R140 billion or 4% of GDP. The forecast for the 2014/2015 year is for the deficit to increase to R153 billion, but because GDP is expected to grow slightly, to remain at the 4% level. However cumulatively borrowings increase as the government needs to borrow these additional funds in order to make good this annual shortfall. The borrowing requirement also has to take into account maturity of older debt.

For the year ahead, while the budget is to spend R153 billion more than is received, because of redemptions, government has planned net financing requirement of R180 billion for the year ahead. This is new debt added onto existing debt and this is how the total gross public debt is now expected to rise to around 45% of GDP – see chart below.

Fortunately SA has a low percentage of foreign denominated debt. However gross debt in absolute terms has increased from around R600 billion in 2009 to the current level around R2 trillion. Increased debt means increased interest costs and while the current cost of debt financing to total expenditure is 9,2%, in absolute terms it is expected to increase by 11,2% and 15,2% over the following 2 years.

South Africa has done well in the past to reign in the relative size of its debt in the past, but on the projections over the next few years, there is concern as the debt levels approach 50% of GDP.

Government finances and their debt issuance have a direct bearing on the local bond market and the direction of longer term interests rates. At the same time a growing government increasingly crowds out the private sector as the higher demand for tax revenue is a cost for both individuals and companies.

Kind regards

Ian de Lange

021 914 4966

Tue, 04 Mar 2014
Top News
The rand gained more than 1 percent against the dollar on Tuesday, buoyed by abating investor aversion towards emerging markets after immediate tensions between Russia and Ukraine appeared to ease.  Full story

South Africa's Association of Mineworkers and Construction Union (AMCU) said on Tuesday it had revised its wage demands to the world's top platinum producers, in its first major concession as a sector-wide strike rumbles into its sixth week.  Full story
President Vladimir Putin delivered a robust defence of Russia's actions in Crimea on Tuesday and said he would use force in Ukraine only as a last resort, easing market fears that East-West tension over the former Soviet republic could lead to war.  Full story
U.S. President Barack Obama said on Tuesday that Russian President Vladimir Putin's intervention in Ukraine is not a sign of Russian strength but rather a reflection of the deep concern Russia's neighbors have about Moscow's meddling.  Full story
President Vladimir Putin delivered a robust defence of Russia's actions in Crimea on Tuesday and said he would use force in Ukraine only as a last resort, easing market fears that East-West tension over the former Soviet republic could lead to war.  Full story
European stocks surged on Tuesday, reversing a big portion of the previous session's sharp losses after Russian President Vladimir Putin said he would. . .  Full story
Stocks and other risky investments, including battered Russian assets, rallied on Tuesday after Russia's president said he saw no need to use military force. . .  Full story
Britain's top share index rebounded from two-week lows on Tuesday, recouping its losses in the previous session, with the perception that tensions between Russia. . .  Full story
U.S. stocks rallied on Tuesday, with the S&P 500 at a record high, as fears of a confrontation between Russia and Ukraine eased. . .  Full story

Gold fell more than one percent on Tuesday, retreating from the previous day's four-month high, after President Vladimir Putin said Russia would only. . .  Full story
U.S. stocks opened higher on Tuesday after Russian President Vladimir Putin ordered troops involved in a military exercise near the Russian border with Ukraine. . .  Full story
World shares and hard-hit Russian assets rebounded on Tuesday after Russia's president said he saw no need to use military force in the. . .  Full story
European shares rebounded on Tuesday from losses in the previous session, with banks and mining company Glencore among top performers, on tentative signs belligerence. . .  Full story
SA Business
FirstRand, South Africa's second largest bank, sees its full-year results largely in line with the 21 percent increase in first-half earnings reported on Tuesday, despite an expected drop in lending.. . .  Full story

South African furniture group Steinhoff posted a 41 percent rise in first-half profit on Tuesday, bucking the trend in the sector. . .  Full story
South African mid-tier platinum producer Royal Bafokeng Platinum aims to raise 1.5 billion rand in equity through a bookbuild and rights. . .  Full story
South African bullion producer Harmony Gold said on Tuesday an investigation into a fire at its Doornkop mine last month that. . .  Full story
Ecobank shareholders passed a governance action plan to address criticism by Nigeria's securities regulator at an extraordinary general meeting on Monday. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0047602.69464.370.99%
JSE Top 4017:0043064.97487.331.14%
JSE Gold17:001468.65-63.73-4.16%
JSE Financial17:0033671.34348.181.04%
JSE Industrial17:0061996.46740.441.21%
JSE Indust 2517:0054930.10727.511.34%
JSE Resource17:0056297.21341.380.61%
DJ Futures19:4816385.00236.001.46%
DJ Ind20:0016388.56220.531.36%
SP 50020:001872.0426.311.43%
FTSE 10018:356823.77115.421.72%
All Ords07:425411.7014.300.26%
NZSE 5006:485033.2625.860.52%
NameTimeRPMove% Move
Gold $19:591336.90-12.24-0.91%
Gold R20:0014416.63-268.58-1.83%
Gold R/kg20:00463495-9135-1.93%
Silver $19:5921.1600-.2480-1.16%
Platinum $19:591460.757.500.52%
Palladium $19:59760.7514.501.94%
Brent Crude20:00109.41.340.31%
Rand / Dollar19:5910.7825-0.1010-0.93%
Rand / Pound19:5517.9247-0.1886-1.04%
Rand / Euro19:5514.7938-0.1664-1.11%
Rand / NZD19:589.0391-0.0677-0.74%
Rand / AUD19:559.6350-0.0914-0.94%
Yen / Dollar19:59102.17100.74900.74%
Euro / Dollar19:550.72800.00030.04%
Dollar / Euro19:591.3732-0.0003-0.02%
Pound / Dollar19:550.5998-0.0001-0.02%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 CENRAND  3404013.33.%3023
2 MARSHALL  9008910.97.%3000
3 NET1UEPS  110009509.45.%11429
4 CLIENTELE  15601107.59.%2874
5 PETMIN  209147.18.%5469275
6 MMG  1000555.82.%15424
7 MAS  21001155.79.%9305
8 SABVEST  23001004.55.%950
9 FONEWORX  230104.55.%62971
10 AF-OVR6PP  1200504.35.%1467
11 SAPPI  36471383.93.%2145153
12 COMAIR  419153.70.%353001
13 BRIMST-N  1350483.69.%23800
14 NEDCOR  212107073.45.%1587154
15 WBHO  131504253.34.%299328
16 BRAIT  48501523.24.%455326
17 NASPERSN  13100040003.15.%2299935
18 SEPHAKU  670203.08.%3991
19 WESCOAL  21062.94.%201950
20 POYNTING  28882.86.%87446

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Major Moves Down
SharenameSaleMove% MoveVolume
1 GOLIATH  205-25-10.87.%43386
2 TREMATON  360-39-9.77.%15000
3 JDG CONV  820000-79999-8.89.%6
4 GFIELDS  3911-200-4.86.%1688064
5 HARMONY  3397-171-4.79.%609053
6 LITHA  210-10-4.55.%45100
7 ADAPTIT  735-34-4.42.%197248
8 SASFIN  4401-193-4.20.%3433
9 SIBANYE  2183-91-4.00.%3600227
10 ANGGOLD  19067-771-3.89.%1134916
11 RCL  1393-53-3.67.%51946
12 KEATON   276-9-3.16.%25600
13 AVENG  2125-69-3.14.%1264872
14 ADVTECH  727-23-3.07.%26927
15 TORRE  270-8-2.88.%32815
16 WCC  175-5-2.78.%62215
17 PAN-AF  263-7-2.59.%1099297
18 DATATEC  4725-125-2.58.%498438
19 FINBOND  303-8-2.57.%147151
20 ALTRON  2470-60-2.37.%16904

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New Highs
SharenameSaleHighMove% MoveVolume
1 CLIENTELE  156015601107.59.%2874
2 SABVEST  230023001004.55.%950
3 AF-OVR6PP  12001200504.35.%1467
4 SAPPI  364736931383.93.%2145153
5 GRANPRADE  500505132.67.%3570381
6 BATS  58904594768041.38.%695574
7 MONDIPLCP  19720198632691.38.%833506
8 MONDILTDP  19600196962251.16.%450330
9 SASOL  55700561493040.55.%1178833
10 OLDMUTUAL  3537355520.06.%12677195
11 ALTRON-P  244025410.29091
12 STEINHOFF  51045220-30-0.58.%8167093

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New Lows
SharenameSaleLowMove% MoveVolume
1 JDG CONV  820000820000-79999-8.89.%6
2 AVENG  21252107-69-3.14.%1264872
3 JDGROUP  22172180-48-2.12.%240362
4 CAT  16301581-20-1.21.%148793

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Index Summary
Index NameRPMove% Move
Top 4043,064.97487.331.14%
Mid Cap58,607.42109.030.19%
Small Cap50,706.61-84.07-0.17%
Resource 2056,297.21341.380.61%
Industrial 2554,930.10727.511.34%
Financial 1512,897.20142.791.12%
Financial & Ind. 3058,150.09769.211.34%
All Share47,602.69464.370.99%
Oil & Gas 42,150.73230.050.55%
Mining 33,923.67167.000.49%
Gold Mining1,468.65-63.73-4.16%
Platinum Mining48.99-.06-0.12%
GENERAL MINING9,859.14111.591.14%
Oil & Gas Producers 22,663.67123.690.55%
Basic Materials 30,160.21175.310.58%
Chemicals 24,505.88-8.75-0.04%
Forestry & Paper 32,919.28570.191.76%
Industrial Metals 24,145.13227.320.95%
Industrials 41,276.8577.410.19%
General Industrials 127.73-.06-0.05%
Consumer Goods 57,431.90422.970.74%
Automobiles & Parts 9,818.69-99.64-1.00%
Household Goods346.92-2-0.58%
Health Care 73,951.61263.360.36%
Beverages 179.931.080.60%
Index NameRPMove% Move
Food Producers 63,516.82702.551.12%
Personal Goods 1,
Consumer Services 11,777.46272.882.37%
General Retailers 55,706.35596.761.08%
Travel & Leisure 5,332.19-36.57-0.68%
Media 285.828.693.14%
Support Services 2,646.8726.040.99%
Telecommunications 9,537.58181.551.94%
Financials 33,671.34348.181.04%
Banks 56,027.51830.771.51%
Non-life Insurance 45,225.35306.260.68%
Life Insurance 33,232.77325.660.99%
General Financial 3,286.3926.660.82%
Technology 43,265.38-298.69-0.69%
SHARIAH TOP40 4,114.32370.90%
FTSE/JSE SHARIAH ALL4,199.34280.67%
COAL MINING18,836.224422.41%
FTSE JSE Fledgling 6,529.75-2-0.03%
FTSE/JSE Alt X 1,173.5690.77%
RESOURCE 30,770.791540.50%
DIVIDEND PLUS206.5310.62%
FTSE/JSE RAFI 409,449.03860.92%
Capped Top 4022,761.472611.16%
Capped All Share24,092.042350.99%
JSE TABACO 7,526.901031.38%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
05/03/2014MMI HLDGSDecember 2013 (Interim)
05/03/2014MMIPREFDecember 2013 (Interim)
05/03/2014MPACTDecember 2013 (Final)
05/03/2014MTN GROUPDecember 2013 (Final)
05/03/2014RMBHDecember 2013 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
SA CORP03/03/1420/03/1431/03/14ZAR 0.1647
SHOPCONV03/03/1420/03/1403/04/14ZAR 325.0000
MONDILTD28/02/1416/04/1422/05/14EUR 0.2645
LONFIN28/02/1413/03/1411/04/14GBP 0.0045
MONDIPLC28/02/1416/04/1422/05/14EUR 0.2645
Ex Div**
Share NameDec-DateLDTPay-DateAmount
ASSORE12/02/1428/02/1410/03/14ZAR 4.5000
HUDACO31/01/1428/02/1410/03/14ZAR 3.1000
ZURICH SA14/02/1428/02/1410/03/14ZAR 2.0000
WOOLIES13/02/1428/02/1410/03/14ZAR 1.0100
BHPBILL18/02/1428/02/1426/03/14USD 0.5900

Upcoming AGMs**
CodeCompany NameDateStatus
TCPTransaction Capital Ltd.04/03/2014Confirmed

Stock Exchange News Service
04/03/201417:43THE STANDARD BANK OF SA LTD - The Standard Bank of South Africa Limited New Fin...
04/03/201417:39NEDBANK LIMITED - Interim Dividend - FSRNNI
04/03/201417:38NEDBANK LIMITED - Interim Dividend - FSRNIJ
04/03/201417:20PREMIUM PROPERTIES LIMITED - Premium Properties Limited PMM13
04/03/201417:13LONMIN PLC - Director/PDMR shareholding
04/03/201417:11ROYAL BAFOKENG PLATINUM LIMITED - Rights Offer Declaration Announcement
04/03/201417:03CONSOLIDATED INFRASTRUCTURE GRP LTD - TRP121: Notification of a disposal of bene...
04/03/201416:30INDWA INVESTMENTS LIMITED - Lising of Tap Issue -INA422
04/03/201416:30DIAMONDCORP PLC - change in auditors
04/03/201416:20NORTHAM PLATINUM LIMITED - Interest Rate Reset - NHM001
04/03/201416:03BOWLER METCALF LIMITED - Cautionary Announcement
04/03/201416:00NASPERS LIMITED - Notification of interest in shares
04/03/201415:45EXXARO RESOURCES LIMITED - Changes to the composition of the board and a board c...
04/03/201415:20VERIMARK HOLDINGS LIMITED - Notification in terms of Section 122(3) of The Compa...
04/03/201415:15VERIMARK HOLDINGS LIMITED - Notification in terms of section 122(3) of the Compa...
04/03/201415:10VERIMARK HOLDINGS LIMITED - Unwinding of the current Verimark BEE Structure
04/03/201415:10GROWTHPOINT PROPERTIES LIMITED - Director's Dealings
04/03/201415:10VERIMARK HOLDINGS LIMITED - Dealing in Securities by a Director
04/03/201415:03RMB CIS MANCO (PTY) LIMITED - Distribution announcement - Salient dates - RMBT40
04/03/201415:00STANDARD BANK GROUP LIMITED - Change in directors
04/03/201415:00RMB CIS MANCO (PTY) LIMITED - Distribution Announcement - Salient dates - RMNMID
04/03/201415:00RMB CIS MANCO (PTY) LIMITED - Distribution announcement - Salient Dates - RMBINF
04/03/201414:26DIPULA INCOME FUND LIMITED - Dealings in securities by an associate of directors...
04/03/201414:17STEINHOFF INTERNATIONAL HOLDINGS LD - Unaudited interim results for the six mont...
04/03/201414:00IMPERIAL HOLDINGS LIMITED - Dealings in Securities by an Associate of Director o...
04/03/201414:00CLOVER INDUSTRIES LIMITED - Retirement of director
04/03/201413:53ROYAL BAFOKENG PLATINUM LIMITED - Results of the Bookbuild
04/03/201413:30BIDVESTCO LIMITED - New Instrument Listing - BIDC38 and BIDC39
04/03/201413:20TRANSPACO LIMITED - Director's dealing in securities
04/03/201413:18THE SPAR GROUP LIMITED - Notice pursuant to section 45(5) of the Companies Act n...
04/03/201413:00OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Per...
04/03/201413:00DEUTSCHE BANK AG - Distribution - DBAGLI
04/03/201413:00DEUTSCHE BANK AG - Distribution - DBAGLK
04/03/201413:00DEUTSCHE BANK AG - Distribution - DBAGLJ
04/03/201413:00DEUTSCHE BANK AG - Distribution - DBAGLK
04/03/201412:59OLD MUTUAL PLC - CANCELLATION OF S342271 Form 8.3 disclosure
04/03/201412:59ARROWHEAD PROPERTIES LIMITED - Manner of payment of interest distribution for t...
04/03/201411:46LABAT AFRICA LIMITED - Appointment of Non-Executive Director
04/03/201411:45NAMPAK LIMITED - Dealings in securities by a director
04/03/201411:15GRINDROD INDEX TRACKER MAN RF PTY LTD - Distribution announcement - salient date...
04/03/201411:05GRINDROD INDEX TRACKER MAN RF PTY LTD - Distribution announcement - salient date...
04/03/201410:55GRINDROD INDEX TRACKER MAN RF PTY LTD - Distribution announcement - salient date...
04/03/201410:47TRANSACTION CAPITAL LIMITED - Results of the Annual General Meeting
04/03/201410:45TRANSACTION CAPITAL LIMITED - Annual General Meeting Statement by the Group Chie...
04/03/201410:45ABSA BANK LIMITED - New Financial Instrument Listing - ASN007
04/03/201410:08DISTELL GROUP LIMITED - Dealings in securities by a director of a major subsidia...
04/03/201410:05GROWTHPOINT PROPERTIES LIMITED - Effective date of the transaction: Acquisition ...
04/03/201410:00NEW EUROPE PROPERTY INVESTMENTS PLC - Notice to NEPI shareholders in respect of...
04/03/201409:37FIRSTRAND BANK LIMITED - Increase of DMTN Programme amount
04/03/201409:30GROWTHPOINT PROPERTIES LIMITED - Summary of unaudited results for the six months...
04/03/201409:24BUSINESS CONNEXION GROUP LIMITED - Business Connexion Reorganisation
04/03/201409:05JSE LIMITED - GEN - General - Miranda Mineral Holdings Limited - Emphasis of mat...
04/03/201409:05GLENCORE XSTRATA PLC - Preliminary Results 2013 - GLN
04/03/201409:05REAL PEOPLE INV HOLDINGS LTD - GCR places Real People's ratings on rating watch
04/03/201408:12ROYAL BAFOKENG PLATINUM LIMITED - Equity capital raising for Styldrift I Project
04/03/201408:02SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of Satrix Fini securitie...
04/03/201408:01SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of Satrix Resi securitie...
04/03/201408:00ROYAL BAFOKENG PLATINUM LIMITED - Audited results for the year ended 31 December...
04/03/201408:00SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of Satrix 40 securities ...
04/03/201408:00CASHBUILD LIMITED - Audited Interim Results and Dividend Declaration December 2...
04/03/201408:00FIRSTRAND LIMITED - Unaudited Interim Results and Cash Dividend Declaration for ...
04/03/201408:00HARMONY GOLD MINING COMPANY LIMITED - Doornkop resumes operations, according to ...
04/03/201407:40PETMIN LIMITED - Press Release on Condensed Consolidated Interim Financial State...
04/03/201407:30PETMIN LIMITED - Condensed Consolidated Interim Financial Statements and Withdra...
04/03/201407:30PALABORA MINING COMPANY LIMITED - Reviewed Provisional Results for the year ende...
04/03/201407:30BRIMSTONE INVESTMENT CORPORATION LD - Reviewed results for the year ended 31 Dec...
04/03/201407:30EQSTRA HOLDINGS LIMITED - Unaudited Interim Results for the six months ended 31 ...
04/03/201407:30SATRIX COLLECTIVE INVESTMENT SCHEME - Announcement for February 2014 and salient...
04/03/201407:05BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
04/03/201407:05BHP BILLITON PLC - Notice of Change of Interest - A Cudmore
04/03/201407:05BHP BILLITON PLC - Change of Director's Interest Notice - K Rumble

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