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 The Sharenet Daily 
Tuesday, 14 April 2015 - 20:00
 
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Top News
Markets
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 - Local Stock Market ? Rand Hedges

The JSE All Share Index (ALSI) and Top 40 Index both traded at new highs into mid-April. This is despite being dragged down by the Resource sector. The ALSI is up a further 5,8% to the end of March and over a one year period the financial and industrial index is up 25,3%, having gained over 10% for the current year to date.

Many investors struggle to understand the disconnect between the local economy, which by most accounts remains very sluggish, and the local stock market, which continues to trade higher and higher.

At face value there is indeed good reason to be cautious of current valuations. Countering this, however, is the fact that global interest rates remain extremely low; resulting in the ongoing attraction of South Africa’s higher yielding property, bond, and listed equity market to foreign shareholders.

For most emerging markets, foreign capital flows are hugely important, but there is always the risk that as these flows subside or indeed reverse, that there is pressure on both local prices and the currency.

South Africa is one of those countries that needs foreign capital because of its large trade and fiscal deficits that require funding in order to balance the books. While foreign inflows have been welcomed, there is a growing risk that as developed world interest rates are normalised, foreign flows into emerging markets will come under pressure. In such a scenario there is typically rapid currency depreciation and one hedge against this is the offshore asset base and revenue streams in many locally listed companies.

Looking at the 10 largest constituents of the Top 40, that make up 65% of the index, an estimated 78% of their income and asset exposure is foreign (rand hedged). A brief summary of these companies and their estimated foreign exposure is as follows:

• Naspers is listed locally with at least 90% of its value derived from its Chinese and Russian IT businesses.
• SABMiller is a beer and beverage company with its primary listing in London. It operates in 75 countries with around 70 000 employees. Over the last 20 years it has diversified extensively away from its South Africa origins, which now represent sales of approximately 17%.
• Billiton is one of the world’s largest diversified resource companies, focusing on petroleum, copper, iron ore and coal. It is domiciled in Australia and London.
• Richemont is one of the world’s largest luxury goods companies with brands such as Cartier, Dunhill, and Mont Blanc. Its primary listing is in Switzerland. With no exact figures it is estimated that only 3% of its business is in South Africa.
• MTN is large telecommunication company. Its origins are in South Africa, but it has expanded into Nigeria and Iran. A third of its margin is from South Africa.
• Anglo American is a diversified mining group with a primary listing in London and operations around the world. It continues to have a relatively high asset base in South Africa through its Kumba and Anglo Platinum stakes, but all products are dollar priced. For purposes of this exercises we estimated 40% South African exposure.
• Sasol is an energy and chemical business with operations in South Africa and in over 30 other countries. Key drivers of profitability are the oil price and the rand exchange rate. For purposes of this exercise it is estimated that 50% of its profitability is foreign.
• Standard Bank is one of South Africa’s 4 main banking groups. It is 20% owned by Chinese Bank, the ICBC, and has a growing presence in Africa which contributes approximately 27% to headline earnings.
• British American Tobacco is an international tobacco company listed in London with a number of brands across 200 countries. An estimated 7% of its sales are in South Africa.
• Old Mutual is a life insurance and investment business that relocated its head office to London some 15 years ago. It has operations in Europe and the US, but still has substantial business in South Africa and is a major shareholder in listed Nedbank and therefore has approximately 65% of its business generated in South Africa.

On these estimates, the top 10 shares listed in the JSE Top 40 Index have a weighted 78% rand hedge element to them. This is an important consideration if one is pessimistic about the prospects for the local currency against developed world currencies. It is also a factor to be taken into account when considering the price levels of the local stock market.

Kind regards,

Ian de Lange

www.seedinvestments.co.za
info@seedinvestments.co.za
021 914 4966

Tue, 14 Apr 2015
Top News
[IMAGE]
South African utility Eskom said on Tuesday it had lost 9,500 megawatts (MW) of electricity due to unplanned outages, forcing it to implement widespread power cuts, in one of its most serious breakdowns in years.  Full story

[IMAGE]
Local markets Gold mining shares climbed 2.11% and resources rose 2.85%, however the All Share fell 0.52% on Tuesday.  Full story
Nigeria's President-elect Muhammadu Buhari vowed on Tuesday to make every effort to free more than 200 schoolgirls abducted by Boko Haram militants a year ago but admitted it was not clear whether they would ever be found.  Full story
The U.N. Security Council on Tuesday imposed an arms embargo targeting the Iran-allied Houthi rebels who now control most of Yemen as battles in the south of the country intensified.  Full story
Iran proposed a peace plan for Yemen on Tuesday and called for an end to Saudi-led air strikes against Houthi rebels allied to Tehran, but the move was likely to draw a cool response from Riyadh.  Full story
 
Markets
Crude prices rose on Tuesday after a surprise drop in expectations for U.S. shale oil production while the dollar fell and stocks edged. . .  Full story
Gold cut losses on Tuesday, as the dollar turned lower after U.S. retail sales and producer prices data came in weaker than expected,. . .  Full story
Hong Kong stocks retreated on Tuesday, breaking an eight-day winning streak, as Tencent Holdings Ltd slumped after its chief executive reduced his. . .  Full story
Australian shares fell 0.2 percent on Tuesday as investors backed away from testing 6,000 points on the benchmark index, selling mining stocks like. . .  Full story

China stocks advanced to fresh seven-year highs on Tuesday, even as 15 companies start taking subscriptions for their initial public offerings, underscoring bullishness about. . .  Full story
Japan's Nikkei share average was flat on Tuesday as investors preferred to pull back a little after the recent rally as they prepared. . .  Full story
Equities in major markets slipped on Monday, weighed down by Wall Street on trepidation over first-quarter earnings, while crude prices added to last week's. . .  Full story
Gold dropped for a fourth session in five on Monday, as the dollar firmed after fresh comments from Federal Reserve officials that the. . .  Full story
SA Business
South Africa's Eskom will cut up to 4,000 megawatts of electricity from the strained national power grid on Tuesday from. . .  Full story
South Africa's rand gained over 1 percent against the dollar on Tuesday after U.S. retail sales data came in slightly below. . .  Full story
South Africa's Eskom [ESCJ.UL] said on Tuesday it will rehire 1,700 employees fired after a strike at the Medupi power plant. . .  Full story
South Africa's rand steadied against the dollar early on Tuesday with a firmer greenback and electricity shortages in Africa's most advanced. . .  Full story

South Africa has named preferred bidders for the fourth round of a series of renewable energy projects, that will add about 1,000 megawatts (MW) of power to its ailing grid, industry insiders said on Tuesday.. . .  Full story
Company News
The shareholders of PSV are hereby advised that Windfall has acquired 11 000 000 (Eleven Million) ordinary shares, representing 4% (Four. . .  Full story
RBPlat is pleased to advise its shareholders that all the ordinary and special resolutions proposed in the Notice of the AGM. . .  Full story
Shareholders are referred to the announcements released on SENS on 11 March 2015 and 17 March 2015 and are further advised. . .  Full story
In compliance with section 3.59 of the Listings Requirements of the JSE Ltd., the board of directors announces the resignation of. . .  Full story

Eqstra shareholders are referred to the announcement released on SENS on 27 February 2015, advising shareholders that the Company has entered into discussions which, if successfully concluded, may have a material effect on the price of the Company∆s securities. Accordingly, shareholders. . .  Full story
Shareholders of Evraz are hereby advised that the board of directors has resolved that the Company does not have adequate funding to meet its obligations for the short term. This is primarily as a result of historical operational difficulties and sustained. . .  Full story
Company Results
New Frontier have released maiden results for the period ending 31 December 2014. No prior year comparisons are made. Revenue amounted to USD114 329 while total comprehensive loss for the period. . .  Full story
Revenue increased to R344.6 million (R45.9 million). Operating profit increased to R14.5 million (R1.1 million). Net attributable profit grew to R12.8 million (R2.9 million). In addition, headline earnings per share rose. . .  Full story
Revenue from continuing operations increased to R1.1 billion (R1 billion). Net attributable profit rose to R40.9 million (R34.3 million). Headline earnings per share grew to 186.6cps (160.2cps). Outlook The Group produced satisfactory. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0053311.46-277.85-0.52%
JSE Top 4017:0047039.79-267.95-0.57%
JSE Gold17:001306.1826.992.11%
JSE Financial17:0046210.32-195.54-0.42%
JSE Industrial17:0076033.45-1004.50-1.30%
JSE Indust 2517:0067627.26-981.09-1.43%
JSE Resource17:0040542.471124.492.85%
DJ Futures19:5817965.0055.000.31%
DJ Ind19:5818032.7355.690.31%
SP 50019:582094.371.940.09%
Nasdaq19:584970.04-18.21-0.37%
FTSE 10017:357075.2610.960.16%
DAX18:0812227.60-111.13-0.90%
CAC4018:085218.06-36.06-0.69%
Nikkei08:3219908.683.220.02%
Shanghai09:284135.5713.860.34%
Hang-Seng06:2827880.90-135.44-0.48%
All Ords08:365916.20-11.90-0.20%
NZSE 5007:485882.1127.790.47%
NameTimeRPMove% Move
Gold $20:001193.28-5.66-0.47%
Gold R19:5814318.89-226.65-1.56%
Gold R/kg19:58460348-7252-1.55%
Silver $20:0016.2250-.0560-0.34%
Platinum $20:001153.402.400.21%
Palladium $19:59762.55-3.45-0.45%
R18615:487.75-.05-0.64%
R20415:487.08-.05-0.77%
R20715:487.23-.08-1.10%
Brent Crude19:5859.101.172.02%
Rand / Dollar19:5911.9983-0.1336-1.10%
Rand / Pound19:5517.7211-0.0630-0.35%
Rand / Euro19:5512.8003-0.0280-0.22%
Rand / NZD19:589.0354-0.0042-0.05%
Rand / AUD19:559.1599-0.0512-0.56%
Yen / Dollar20:00119.2840-0.8410-0.70%
Euro / Dollar19:550.9369-0.0090-0.95%
Dollar / Euro20:001.06710.01030.98%
Pound / Dollar19:550.6757-0.0058-0.85%

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The JSE Today

Trading Statistics
DateAdv.Decl.Unch.ActivesVolumeValueTradesOrders
14/04/201516720257426274,177,979R20,071,714,7672346241637538
13/04/201520418560449218,033,480R17,787,269,5992580281786637
10/04/201523811950407181,190,985R14,918,887,1362077021744443
09/04/201519815966423236,935,188R15,880,651,2652143721660013
08/04/201520616264432220,199,725R15,808,356,7332165751679669
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 ACSION  99939465.12.%385
2 ZCI  46510228.10.%100
3 ADRENNA  1251816.82.%107400
4 SEARDEL  1351411.57.%3000
5 INFRASORS  1351310.66.%1000
6 AEEI  345309.52.%56822
7 DCENTRIX  370267.56.%254307
8 CURRO  36002457.30.%61268
9 ASSORE  111507006.70.%344038
10 KAP  560346.46.%307920
11 BASREAD  294155.38.%117084
12 LONMIN  23481135.06.%871225
13 MASTDRILL  1490684.78.%1760
14 DIPULA-A  1150504.55.%3230
15 ANGGOLD  129845424.36.%909880
16 ANGLO  184007003.95.%2334738
17 ALTRON-P  1349493.77.%63089
18 HUGE  280103.70.%33125
19 EXXARO  94003103.41.%312987
20 ARM   94592953.22.%313744

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Major Moves Down
SharenameSaleMove% MoveVolume
1 KAYDAV  170-20-10.53.%3500
2 EFFICIENT  470-55-10.48.%6200
3 CULLINAN  159-16-9.14.%2000
4 FINBOND  310-25-7.46.%129514
5 NASPERSN  186881-11119-5.62.%2412638
6 DIGICOR  260-15-5.45.%28815
7 SEPHAKU  900-51-5.36.%44559
8 HOSP-B  275-15-5.17.%120007
9 NAMPAK  3981-162-3.91.%1294946
10 ASCEN_A  592-23-3.74.%12935
11 NEPI  13849-526-3.66.%258916
12 VALUE  375-14-3.60.%40100
13 STELLAR  188-7-3.59.%106169
14 INTEWASTE  135-5-3.57.%119362
15 TORRE  435-15-3.33.%85173
16 NOVUS  1500-50-3.23.%21771
17 ETFPLD  9138-303-3.21.%7053
18 ARGENT  426-14-3.18.%2080
19 QUANTUMF  368-12-3.16.%370288
20 SOVFOOD  775-25-3.12.%13540

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New Highs
SharenameSaleHighMove% MoveVolume
1 ADRENNA  1251251816.82.%107400
2 HUGE  280280103.70.%33125
3 JSE  13672143742121.58.%59407
4 RMBH  72557271640.89.%996629
5 STANBANK  17453175051180.68.%4134648
6 ROCKCASTL  3474355090.26.%1194746
7 PSG  182041833040.02.%329088
8 SPAR  1992920247-182-0.90.%487198

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New Lows
SharenameSaleLowMove% MoveVolume
1 ANGLOPLAT  2787427580-476-1.68.%828682
2 MRHLD  12901251181.42.%501359
3 KUMBAIO  13005123522612.05.%982364

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Index Summary
Index NameRPMove% Move
Top 4047,039.79-267.95-0.57%
Industrial76,033.45-1004.50-1.30%
Mid Cap75,848.62-275.03-0.36%
Small Cap59,809.0928.710.05%
Resource 2040,542.471124.492.85%
Industrial 2567,627.26-981.09-1.43%
Financial 1517,624.96-51.91-0.29%
Financial & Ind. 3072,855.05-917.15-1.24%
All Share53,311.46-277.85-0.52%
Oil & Gas 29,629.30.000.00%
Mining 24,542.90678.392.84%
Gold Mining1,306.1826.992.11%
Platinum Mining29.58.240.82%
GENERAL MINING7,080.90216.223.15%
Oil & Gas Producers 15,931.13.000.00%
Basic Materials 23,209.20422.631.85%
Chemicals 22,926.81-24.75-0.11%
Forestry & Paper 41,880.05-477.97-1.13%
Industrial Metals 8,775.95136.071.57%
Industrials 46,799.3327.110.06%
General Industrials 166.54.090.05%
Consumer Goods 65,587.33-422.86-0.64%
Automobiles & Parts 8,321.89.000.00%
Household Goods519.51-2-0.44%
Health Care 11,082.9357.400.52%
Beverages 218.09-1.90-0.86%
Index NameRPMove% Move
Food Producers 8,871.69-24.14-0.27%
Personal Goods 1,029.82-8.59-0.83%
Consumer Services 16,927.63-627.36-3.57%
General Retailers 88,543.1464.090.07%
Travel & Leisure 6,427.41-32.21-0.50%
Media 407.24-24.04-5.57%
Support Services 2,898.91-5.31-0.18%
Telecommunications 10,850.30-129.18-1.18%
Financials 46,210.32-195.54-0.42%
Banks 83,836.92421.420.51%
Non-life Insurance 56,786.9110.210.02%
Life Insurance 44,302.83-500.23-1.12%
General Financial 4,263.54-11.91-0.28%
Technology 61,981.80-836.85-1.33%
SHARIAH TOP40 3,577.10300.85%
FTSE/JSE SHARIAH ALL3,849.37280.74%
COAL MINING11,883.253923.41%
FTSE JSE Fledgling 6,821.37-7-0.11%
FTSE/JSE Alt X 1,268.52-0-0.03%
SA LISTED PROPERTY 663.16-1.33%
CAPPED PROPERTY 569.41-1.10%
RESOURCE 22,275.836162.84%
DIVIDEND PLUS233.7900.18%
FTSE/JSE RAFI 409,934.80350.36%
Capped Top 4025,108.88-125-0.50%
Capped All Share27,040.54-141-0.52%
JSE TABACO 8,321.19130.15%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
MNDMONDI LIMITEDHOLD13/04/2015
ARIAFRICAN RAINBOW MINERALSBUY13/04/2015
SPPTHE SPAR GROUP LTDBUY13/04/2015
HSPHOLDSPORT LIMITEDBUY13/04/2015
TFGTHE FOSCHINI GROUP LTDHOLD13/04/2015
Results Expected**
ExpectedCompany NameFin. Date
15/04/2015ASTRAPAKFebruary 2015 (Final)
15/04/2015ASTRAPAKPFebruary 2015 (Final)
15/04/2015EFFICIENTFebruary 2015 (Interim)
15/04/2015OAKBAYFebruary 2015 (Final)
15/04/2015PSGFebruary 2015 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
BARWORLD6%P13/04/1508/05/1518/05/15ZAR 0.0600
NTC PREF13/04/1508/05/1518/05/15ZAR 3.8052
SYCOM10/04/1517/04/1528/04/15ZAR 0.9898
PHUMELELA10/04/1515/05/1525/05/15ZAR 0.2800
ACUCAP10/04/1517/04/1528/04/15ZAR 1.7263
Ex Div**
Share NameDec-DateLDTPay-DateAmount
CAPITEC24/03/1510/04/1520/04/15ZAR 5.9000
B-AFRICA03/03/1510/04/1520/04/15ZAR 5.2500
BIDVEST02/03/1510/04/1520/04/15ZAR 4.2600
SHFINV-PREF03/03/1510/04/1520/04/15ZAR 3.8400
STANBANK-P05/03/1510/04/1520/04/15ZAR 3.5816

Upcoming AGMs**
CodeCompany NameDateStatus
RBPRoyal Bafokeng Platinum Ltd.14/04/2015Confirmed
MTEMarshall Monteagle PLC14/04/2015Confirmed
MMPMarshall Monteagle PLC14/04/2015Confirmed
BRTBrimstone Investment Corporation Ltd.20/04/2015Confirmed
BRNBrimstone Investment Corporation Ltd.20/04/2015Confirmed

Stock Exchange News Service
DateTimeHeadline
14/04/201517:50DELTA INTERNATIONAL PROPERTY HOLDINGS LIMITED - Resignation of Delta Internation...
14/04/201517:15JSE LIMITED - Index Change Advice - 20150422 Ansys Shares In Issue Update
14/04/201517:10JSE LIMITED - Index Change Advice - 20150422 Delta Property Fund Shares In Issue...
14/04/201517:00NU-WORLD HOLDINGS LIMITED - Interim results for the period ended February 2015
14/04/201516:45DATACENTRIX HOLDINGS LIMITED - Voluntary Trading Statement
14/04/201516:40SHOPRITE HOLDINGS LIMITED - Dealings in securities by director of main subsidiar...
14/04/201516:35EFFICIENT GROUP LIMITED - Unaudited interim financial results for the six months...
14/04/201516:30GOLD FIELDS LIMITED - Production and Cost Guidance for Q1 2015
14/04/201516:20OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
14/04/201516:20GRINDROD INDEX TRACKER MAN RF PTY LTD - Distribution Finalisation Announcement -...
14/04/201516:17EXXARO RESOURCES LIMITED - Exercise of matching awards and sale in terms of the ...
14/04/201516:08PSV HOLDINGS LIMITED - Announcement of a Firm Intention by Windfall to make a Ma...
14/04/201516:04GRINDROD INDEX TRACKER MAN RF PTY LTD - Distribution Finalisation Announcement -...
14/04/201516:04GRINDROD INDEX TRACKER MAN RF PTY LTD - Distribution Finalisation Announcement -...
14/04/201516:04GRINDROD INDEX TRACKER MAN RF PTY LTD - Distribution Finalisation Announcement -...
14/04/201516:03GRINDROD INDEX TRACKER MAN RF PTY LTD - Distribution Finalisation Announcement -...
14/04/201515:55ECSPONENT LIMITED - Correction to the number of the Series 1 Class B Preference ...
14/04/201515:45OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
14/04/201515:43PSV HOLDINGS LIMITED - Notification in Terms of Section 122(3) of the Companies ...
14/04/201515:40TRENCOR LIMITED - Disclosure of significant holding of Trencor shares
14/04/201515:25OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
14/04/201515:15OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
14/04/201515:05FIRSTRAND LIMITED - Dealing in securities by an associate of a director
14/04/201515:01ROYAL BAFOKENG PLATINUM LIMITED - Results of Annual General Meeting
14/04/201515:00CLOVER INDUSTRIES LIMITED - Dealing in securities by an associate of a director
14/04/201515:00NEDBANK GROUP LIMITED - Dealings in securities by executive directors
14/04/201514:34BONATLA PROPERTY HOLDINGS LIMITED - Change to Board of Directors
14/04/201514:20CHEMICAL SPECIALITIES LIMITED - Notice of application in terms of section 150(5)...
14/04/201514:03AFROCENTRIC INVESTMENT CORP LIMITED - Dealing in securities by a director
14/04/201514:01SATRIX COLLECTIVE INVESTMENT SCHEME - Partial delisting of Satrix Fini securitie...
14/04/201514:00SATRIX COLLECTIVE INVESTMENT SCHEME - Partial Delisting of STXDIV Securities - S...
14/04/201513:45TOWER PROPERTY FUND LIMITED - Acquisition of industrial portfolio
14/04/201512:45NEW FRONTIER PROPERTIES LIMITED - Abridged group audited financial statements fo...
14/04/201512:30NEW FRONTIER PROPERTIES LIMITED - Dealing in securities by an associate of a dir...
14/04/201512:25ARB HOLDINGS LIMITED - Dealing in securities by a director
14/04/201512:10BIDVESTCO LIMITED - BIDC45 and BIDC46 - New Instrument Listing
14/04/201512:10PSG KONSULT LIMITED - Dealing In Securities By A Director Of A Major Subsidiary
14/04/201511:43EQSTRA HOLDINGS LIMITED - Renewal of cautionary announcement
14/04/201511:36THARISA PLC - 2nd Quarter Production Report: 3 months ended 31 March 2015
14/04/201511:00BLUE TITANIUM CONDUIT (RF) LIMITED - New Financial Instrument Listing Announceme...
14/04/201509:38INVESTEC PROPERTY FUND LIMITED - New Financial Instrument Listing - IPF12
14/04/201509:33TAWANA RESOURCES NL - Formal IMCC Presentation for Mofe Creek Project
14/04/201508:42EVRAZ HIGHVELD STEEL & VANADIUM LTD - Suspension Of Listing And Cautionary Annou...
14/04/201508:34SABMILLER PLC - Senior Management Changes
14/04/201508:24JD GROUP LIMITED - Availability of Guarantor Financials
14/04/201508:13INVESTEC PROPERTY FUND LIMITED - New Financial Instrument - IPFC06

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