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 The Sharenet Daily 
Wednesday, 28 January 2015 - 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 - The Foschini Group ? Cash sales and African operations picking up

The Foschini Group (TFG) is a well-known retailer in SA, with 17 brands in its stable spanning the clothing, jewellery, sporting apparel, cellular and homeware segments of the market. The Group caters primarily to the middle and upper income groups, and sales are nearly evenly split between cash and credit. The group operates 2,071 stores in SA and 134 in the rest of Africa, with the majority of stores located in Namibia, Botswana and Zambia.


TFG was founded in 1924, and in 1941 became the first of SA’s fashion retail brands to list on the JSE. Various acquisitions followed, including American Swiss Watch Company, Markham and Sterns in the earlier years, and Sportscene and Totalsports more recently. Brands such as DonnaClaire, Matrix, DueSouth and Luella were launched at regular intervals through the years to serve different consumer groups.

As a result, TFG has built up an impressive collection of brands that are well diversified across product types and target markets:

Latest Financial Results

The Group has recently released its financial results for the half-year ended 30 September 2014. Despite a tough trading environment, including low real GDP growth, inflation at the upper edge of the target band and rand weakness affecting imports, the Group has performed admirably.

Retail turnover is up 9.7% to R 7.3bn compared to the previous period, while continuing HEPS is up 8.0% and the interim dividend has increased by 8%.

As can be seen in the table below, clothing turnover contributed 67% to total turnover but grew at a relatively modest 8.5%. Cellphones have overtaken Jewellery to become the second-highest contributor at 10%, with good growth of 21% over the previous reporting period.

Over the past two and a half years of trading, growth in cash sales have picked up significantly, while growth in credit sales have slowed down owing to the constrained credit cycle. Cash sales now represent 44.2% of total sales - compared to 40.3% in Sept ’13 – after strong growth of 20.3%.

TFG’s African operations have performed well, with 26% total turnover growth and 16% same store turnover growth providing a boost to the consolidated results outlined above. Fourteen new stores were opened during the year, and all regions are profitable except Nigeria’s two stores. Further expansion is planned in Ghana, Kenya, Mozambique and Angola, with management aiming to have between 280 and 300 stores established by 2018.

TFG sold its stake in the credit provider RCS Group to BNP Paribas during the reporting period, realising R 1.4bn in proceeds and a profit on disposal of R 273m. The funds were used to reduce borrowings in the short term, while management evaluates other opportunities to employ the cash.

Outlook and Fundamentals

Management sees the growth in cash sales as a major benefit, as the local credit environment is likely to remain challenging for the rest of 2015. The recent drop in the fuel price will provide welcome relief to consumers, with revenue increasing accordingly. Growth in retail space for the full year is estimated at around 7%, with 100 new stores planned for the second half of the financial year. A key focus area is e-commerce – TFG plans to launch @Home and TFG Mobile sites during the year and will eventually phase in all of its brands.
TFG currently trades at a PE of 19, which is slightly more expensive than the JSE’s 17, while the dividend yield is a healthy 3.4% compared to the JSE’s 2.9%.

The Foschini Group has been included as a value holding in the Seed Equity Fund in the past, but is currently included at a 2.8% weighting due to strong recent price momentum.

Kind Regards

Cor van Deventer

021 914 4966

Wed, 28 Jan 2015
Top News
Local markets On Wednesday the JSE All Share ended up 0.97% as all sectors contributed to a positive day. Resources rose 0.50%, industrials were up 1.07% and financials climbed 1.09%.  Full story

Glencore's South African coal unit, Optimum Coal Mines said on Wednesday it may close some of its mines in the African nation after export prices fell. Optimum said in a statement the closures would reduce its overall production by at least 5 million tonnes per annum and that 1,07  Full story
Two Israeli soldiers and a Spanish peacekeeper were killed on Wednesday in an exchange of fire between Hezbollah and Israel that has raised the threat of a full-blown conflict between the militant Islamist group and Israel.  Full story
Jordan offered on Wednesday to hand over an Iraqi woman on death row for her role in a 2005 suicide bomb attack if a Jordanian pilot captured by Islamic State was freed.  Full story
Leftwing Greek Prime Minister Alexis Tsipras threw down an open challenge to international creditors on Wednesday by halting privatisation plans agreed under the country's bailout deal, prompting a third day of heavy losses on financial markets.  Full story
The dollar edged up and world stock indexes edged lower on Wednesday as investor focus turned toward the Federal Reserve, which will deliver. . .  Full story
Gold eased on Wednesday as the dollar steadied on expectations the Federal Reserve will deliver no significant changes later in the day to. . .  Full story
Hong Kong's key share index rebounded on Wednesday as investors speculated that the Federal Reserve may delay raising interest rates until the second. . .  Full story
Japanese stocks rose to a fresh one-month high on Wednesday as expectations of strong corporate earnings and a weaker yen boosted investor sentiment.. . .  Full story

Australia's share market closed higher for a fifth session on Wednesday as the major banks bounced back from early declines in a sign. . .  Full story
Australian stocks are likely to open lower on Wednesday with investors poised to book some profits following a disappointing performance on Wall Street.. . .  Full story
Global stock indexes fell on Tuesday following disappointing U.S. corporate earnings results and an unexpected decline in U.S. durable goods orders, while the dollar. . .  Full story
Gold rose 1 percent on Tuesday after two sessions of losses, as the dollar and shares eased ahead of a U.S. Federal Reserve. . .  Full story
SA Business
Africa's biggest telecommunications provider MTN plans to issue dismissal notices by May 1 to up to 578 people at its South African enterprise business unit, the Solidarity union said on Wednesday.. . .  Full story
Stanbic Bank Uganda (SBU) has signed an $85 million, 18-month loan to fund its general business activities, the first time it has borrowed from international loan markets, the main arranger of. . .  Full story
The rand remained on the back foot against the dollar on Wednesday after weakening to 1-week lows overnight, as investors fretted about the impact of South Africa's electricity shortage on economic. . .  Full story

South African power utility Eskom said it would stop Wednesday's rolling blackouts at 1400 local time, eight hours ahead of the. . .  Full story
Hennes & Mauritz, the world's No.2 fashion retailer, missed quarterly earnings forecasts as it spent heavily on new ranges and websites in its battle. . .  Full story
South African power utility Eskom said on Wednesday it would implement scheduled cuts for a third straight day to manage. . .  Full story
Stanbic Bank Uganda has signed to obtain an $85 million, 18-month loan which will fund the bank's general business activities, the main arranger. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0051200.57489.480.97%
JSE Top 4017:0045002.40470.641.06%
JSE Gold17:001507.7021.791.47%
JSE Financial17:0042845.80460.401.09%
JSE Industrial17:0072736.67771.451.07%
JSE Indust 2517:0064431.18728.731.14%
JSE Resource17:0041493.35204.400.50%
DJ Futures19:5817380.003.000.02%
DJ Ind19:5817460.2072.990.42%
SP 50019:582035.065.510.27%
FTSE 10017:546792.53-19.08-0.28%
All Ords07:375516.605.100.09%
NZSE 5006:485794.8257.080.99%
NameTimeRPMove% Move
Gold $19:591287.42-4.29-0.33%
Gold R19:5914842.02-109.12-0.73%
Gold R/kg19:58476708-2992-0.62%
Silver $19:5918.0550.03100.17%
Platinum $19:591258.39-3.11-0.25%
Palladium $19:59795.9017.402.24%
Brent Crude19:5848.99-.61-1.23%
Rand / Dollar19:5911.5333-0.0439-0.38%
Rand / Pound19:5517.4488-0.1016-0.58%
Rand / Euro19:5513.0842-0.0805-0.61%
Rand / NZD19:598.6053-0.0241-0.28%
Rand / AUD19:559.19170.00900.10%
Yen / Dollar19:59117.79100.04000.03%
Euro / Dollar19:590.88060.00110.13%
Dollar / Euro19:591.1354-0.0016-0.14%
Pound / Dollar19:550.65850.00050.08%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 ITLTILE  125012511.11.%15040
2 MARSHALL  130012510.64.%3000
3 KIBO  1401310.24.%26246
4 CONVERGE  1981810.00.%109319
5 KEATON   240209.09.%226304
6 ROLFES  340257.94.%139766
7 AMECOR  247177.39.%3634
8 ENX  250135.49.%167150
9 CLICKS  91894705.39.%1707348
10 MPACT  35601795.29.%282664
11 FINBOND  316134.29.%45789
12 JDGROUP  25001004.17.%10926
13 SABMILLER  6234924074.02.%1083417
14 PIKWIK  2486953.97.%279046
15 TFG  171066233.78.%977394
16 MIXTEL  280103.70.%146765
17 EQSTRA  310113.68.%777920
18 KUMBAIO  221697793.64.%495594
19 QUANTUMF  399143.64.%76196
20 SEPHAKU  870303.57.%75847

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Major Moves Down
SharenameSaleMove% MoveVolume
1 GIJIMA  150-30-16.67.%9602
2 MASTDRILL  1121-104-8.49.%33109
3 SEARDELN  135-12-8.16.%16430
4 ATLATSA  205-15-6.82.%16769
5 POYNTING  170-10-5.56.%170013
6 HUGE  217-12-5.24.%592590
7 NUWORLD  2370-130-5.20.%3175
8 ASSORE  16799-901-5.09.%213494
9 ASCEN_B  270-14-4.93.%38950
10 CIL  2620-130-4.73.%1403545
11 TEX  1050-50-4.55.%12000
12 WESCOAL  218-10-4.39.%46481
13 MMG  1800-69-3.69.%6509
14 IVT-N  997-38-3.67.%100154
15 ONELOGIX  603-22-3.52.%573767
16 DIGICOR  290-10-3.33.%4596
17 HOWDEN  4260-140-3.18.%17752
18 DCENTRIX  340-8-2.30.%51573
19 ARGENT  555-13-2.29.%49644
20 DISTELL  14200-326-2.24.%39198

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New Highs
SharenameSaleHighMove% MoveVolume
1 ITLTILE  1250125012511.11.%15040
2 ENX  250250135.49.%167150
3 CLICKS  918993744705.39.%1707348
4 TFG  17106171476233.78.%977394
5 SEPHAKU  870900303.57.%75847
6 MRPRICE  26758268079133.53.%831556
7 INVPROP  17891810593.41.%412576
8 SUNINT  13000132864003.17.%304043
9 HOMCHOICE  340034001003.03.%2000
10 SANTAM  23180232826803.02.%24413
11 BRIMST-N  17101710492.95.%1007854
12 SPURCORP  368537011002.79.%243325
13 FIRSTRAND  524352501152.24.%14556199
14 CAPITEC  38000383067782.09.%88321
15 STANBANK  15315153393112.07.%3430495
16 TOWER  9951000202.05.%548000
17 HOLDSPORT  49995050992.02.%34975
18 FPT  996996181.84.%868734
19 RMBH  656265831101.70.%817995
20 SANTOVA  29530541.37.%403389

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New Lows
SharenameSaleLowMove% MoveVolume
1 POYNTING  170160-10-5.56.%170013
2 ROCKWELL  245245-5-2.00.%418
3 IMPCB  837500837500-2500-0.30.%33

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Index Summary
Index NameRPMove% Move
Top 4045,002.40470.641.06%
Mid Cap73,872.42423.940.58%
Small Cap60,140.00145.270.24%
Resource 2041,493.35204.400.50%
Industrial 2564,431.18728.731.14%
Financial 1516,355.27224.781.39%
Financial & Ind. 3068,921.82829.971.22%
All Share51,200.57489.480.97%
Oil & Gas 31,494.68-31.44-0.10%
Mining 25,275.82156.030.62%
Gold Mining1,507.7021.791.47%
Platinum Mining34.82-.15-0.43%
GENERAL MINING7,048.1142.510.61%
Oil & Gas Producers 16,934.11-16.90-0.10%
Basic Materials 23,159.51132.910.58%
Chemicals 21,486.95-106.03-0.49%
Forestry & Paper 35,783.9341.110.12%
Industrial Metals 12,758.49352.382.84%
Industrials 47,521.20377.000.80%
General Industrials 164.421.981.22%
Consumer Goods 63,075.33684.811.10%
Automobiles & Parts 7,427.42124.541.71%
Household Goods407.99-2-0.42%
Health Care 11,031.2364.230.59%
Beverages 212.838.123.97%
Index NameRPMove% Move
Food Producers 9,898.0927.940.28%
Personal Goods 971.10-13.68-1.39%
Consumer Services 15,771.05184.071.18%
General Retailers 83,195.331754.092.15%
Travel & Leisure 6,484.5547.630.74%
Media 369.652.360.64%
Support Services 2,871.718.230.29%
Telecommunications 10,437.52179.741.75%
Financials 42,845.80460.401.09%
Banks 77,065.501441.641.91%
Non-life Insurance 59,160.481735.513.02%
Life Insurance 38,934.57467.311.21%
General Financial 3,953.9415.150.38%
Technology 51,749.30106.500.21%
SHARIAH TOP40 3,411.56230.68%
FTSE/JSE SHARIAH ALL3,723.22240.64%
COAL MINING13,136.05-40-0.31%
FTSE JSE Fledgling 6,749.49-2-0.03%
FTSE/JSE Alt X 1,498.40100.67%
RESOURCE 22,935.081120.49%
DIVIDEND PLUS240.8331.18%
FTSE/JSE RAFI 409,696.991101.15%
Capped Top 4024,025.572421.02%
Capped All Share25,969.862480.97%
JSE TABACO 8,455.49370.44%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
29/01/2015EASTPLATSJune 2014 (Interim)
29/01/2015HWANGEDecember 2013 (Final)
29/01/2015HWANGE-ADecember 2013 (Final)
30/01/2015HUDACONovember 2014 (Final)
30/01/2015LITHASeptember 2014 (Q)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
FIRSTRANDB-P27/01/1513/02/1523/02/15ZAR 3.4851
ECSP A23/01/1506/02/1516/02/15ZAR 0.7671
ECSP C23/01/1506/02/1516/02/15ZAR 1.0164
ARGENT04/12/1420/03/1530/03/15ZAR 0.0800
TFG PREF06/11/1413/03/1523/03/15ZAR 0.0650
Ex Div**
Share NameDec-DateLDTPay-DateAmount
INVICTA09/01/1523/01/1502/02/15ZAR 20.2433
TONGAAT10/11/1423/01/1505/02/15ZAR 1.7000
PNR FOODS24/11/1423/01/1502/02/15ZAR 1.5600
NETCARE24/11/1423/01/1502/02/15ZAR 0.4800
GRANPRADE05/01/1523/01/1502/02/15ZAR 0.2000

Upcoming AGMs**
CodeCompany NameDateStatus
CLSClicks Group Ltd.28/01/2015Confirmed
LHCLife Healthcare Group Holdings Ltd.28/01/2015Confirmed
EFGEfficient Group Ltd.29/01/2015Confirmed
AWAArrowhead Properties Ltd.03/02/2015Confirmed
AWBArrowhead Properties Ltd.03/02/2015Confirmed

Stock Exchange News Service
28/01/201517:30OLD MUTUAL PLC - Form 8.3 Disclosure
28/01/201517:15CLICKS GROUP LIMITED - Results of Annual General Meeting
28/01/201517:10OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
28/01/201517:05JSE LIMITED - Index Change Advice - 20150202 Litha Healthcare Group Ltd Deletion
28/01/201517:04CONVERGENET HOLDINGS LIMITED - Disclosure of acquisition of securities in terms ...
28/01/201517:00THE STANDARD BANK OF SA LTD - New Financial Instrument Listing - SBS35 - SBS39
28/01/201516:50HUGE GROUP LIMITED - Dealing in securities by associate of director
28/01/201516:50GIYANI GOLD CORPORATION - Corporate Update
28/01/201516:41INVICTA HOLDINGS LIMITED - Dealings in securities by an associate of director
28/01/201516:30DEUTSCHE BANK AG - Termination of Listing - TOPDWX
28/01/201516:15Transnet SOC Limited - TN25 Bond Tap
28/01/201516:15Transnet SOC Limited - TN40 Bond Tap
28/01/201516:15Transnet SOC Limited - TN30 Bond Tap
28/01/201515:33HOSPITALITY PROPERTY FUND LIMITED - Disclosure of changes in the holding of the ...
28/01/201515:00TOYOTA FIN SERVICES (SA) LTD - TFS132-3 New Instrument Listing
28/01/201514:55REDEFINE PROPERTIES LIMITED - Acquisition by Redefine of Leaf Property Fund Prop...
28/01/201514:33SACOIL HOLDINGS LIMITED - Completion of first phase development Operations Lagi...
28/01/201514:16CAPITAL PROPERTY FUND LIMITED - Tax treatment of dividend
28/01/201514:15CAPITAL PROPERTY FUND LIMITED - Preliminary summarised audited consolidated fina...
28/01/201514:00SABMILLER PLC - Director's Dealings - Exercise of Options
28/01/201512:00KIBO MINING PLC - Presentation in London
28/01/201511:36AQUARIUS PLATINUM LIMITED - Production Results to 31 December 2014
28/01/201511:32VILLAGE MAIN REEF LIMITED - Renewal of Cautionary Announcement
28/01/201511:28SASOL LIMITED - Sasol announces plan to respond to the low oil price environment
28/01/201511:15SOVEREIGN FOOD INVESTMENTS LIMITED - Notice of an acquisition of a beneficial in...
28/01/201511:00INVESTEC PROPERTY FUND LIMITED - Directorate changes and appointment of new Chie...
28/01/201511:00BASIL READ HOLDINGS LIMITED - Renewal of Cautionary Announcement
28/01/201511:00BLUE TITANIUM CONDUIT (RF) LIMITED - New Financial Instrument Listing Announceme...
28/01/201510:53TAWANA RESOURCES NL - Quarterly Activities Report for the quarter to 31 December...
28/01/201510:32DIPULA INCOME FUND LIMITED - Changes to reviewed provisional condensed consolida...
28/01/201509:30SATRIX COLLECTIVE INVESTMENT SCHEME - Listing of Additional Satrix Fini Securiti...
28/01/201509:15SPUR CORPORATION LIMITED - Sales update for the six months ended 31 December 201...
28/01/201509:00ANGLO AMERICAN PLAT LTD - Production Report for the fourth quarter ended 31 Dece...
28/01/201509:00CLICKS GROUP LIMITED - Trading update for 20 weeks to 18 January 2015
28/01/201509:00ANGLO AMERICAN PLC - Production Report for the fourth quarter ended 31 December ...
28/01/201509:00METMAR LIMITED - Renewal of cautionary announcement
28/01/201509:00KUMBA IRON ORE LIMITED - Production and sales report for the quarter ended 31 De...
28/01/201509:00THE SA NATIONAL ROADS AGENCY SOC LTD - HWAY23 and HWAY24 - Tap Issuance
28/01/201508:45ROLFES HOLDINGS LIMITED - Cautionary Renewal Announcement
28/01/201508:15DEUTSCHE BANK AG - Deutsche Bank AG - DBNPNW & DBNPNX listing
28/01/201508:00CONVERGENET HOLDINGS LIMITED - Changes to the board of directors
28/01/201508:00NICTUS BEPERK - Dealing in securities by associates of directors

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