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 The Sharenet Daily 
Thursday, 15 October 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 - Biases

We are all biased.

No-one can claim that they are not biased to some degree. Even the paragon of today’s rational investor is biased. The best we can do is to acknowledge this and do our best to be aware of our biases when we make decisions.

Biases can be broadly broken into 2 categories, emotional and cognitive. Let’s start with the latter.

Cognitive Biases

Cognitive biases stem from errors in the way we process and remember the information we use to make decisions. If the information is not ‘stored’ or processed correctly we tend to make decisions that would not necessarily be regarded as rational or optimal. Cognitive biases can be further broken down onto several more specific sub categories. We will only look at a couple of the more common ones.

Confirmation bias - the tendency for individuals to selectively notice and process information that confirms their pre-existing beliefs while disregarding information that doesn’t.

• An example of confirmation bias is when a person believes share X is poised for high growth going forward and a news article is published with a mixed review of share X. The person reading the article will disregard the negative information and only remember the positives, thereby reinforcing their belief that the share will grow.

Anchoring and adjustment bias - assigning too much importance to original information.

• E.g. A person sees a share is priced at R 100 the first time they encounter the share and uses this as an anchor going forward. Any subsequent adjustments to the share price are based on the original price of R 100. This completely disregards whether the price of R 100 was a fair price for the share in the first place.

Emotional Biases

Cognitive biases, in general, are easier to correct than emotional biases. Emotional biases stem from intuition or impulse and as you can imagine it is a tall order to try and change the way you feel about something. As with cognitive biases there are a large variety identified and we will only look at the more common/problematic ones.

Loss aversion - one of the more common emotional biases. People with this bias tend to experience losses more acutely than gains. If, for instance, a client is presented with a 10% gain they would not experience the same amount of satisfaction as the pain they will experience when presented with a 10% loss. This is a common bias as it is routine for people to accept lower returns in exchange for a lower risk of losses.

• As this is a very broad bias present in most individuals the example will not cover all the different permutations.
• If an individual forgoes 4% in potential returns in order to ensure that a 1% possible loss is avoided the person can be said to be loss averse.

Endowment bias - the bias of overvaluing an asset just because it is already owned. This is particularly true in the case of inheritance. If you inherit an asset it is common to attach a sentimental premium to the asset. The correct action is always to ask yourself what you would do if this asset was received as cash. If your answer would be to buy the asset at its current price then you are right to hold, but if you wouldn’t necessarily pay as much to buy the asset you are holding it may be time to consider your options. The same line of thinking can be applied to any of your assets.

The above biases all lead people to make decisions that might not be considered rational or optimal. It is not necessarily bad to have these biases as it is a normal part of being human. What is important though, is to be aware of your biases and to know whether it is affecting your investment decision making in a negative way.

Kind Regards,

Stefan Keeve

Tel +27 21 914 4966
Fax +27 21 914 4912
Email info@seedinvestments.co.za

Seed is hiring: Visit the Seed Analytics LinkedIn profile to view vacancies.


Thu, 15 Oct 2015
Top News
South Africa's rand rallied to its firmest level in almost two months against the dollar on Thursday as limp retail sales and producer prices fell, dampening bets of a U.S Federal rate hike.  Full story

Local markets On Thursday the JSE All Share closed 0.17% down at 5pm with losses led by resource shares.  Full story
Reversing policy on Afghanistan, President Barack Obama announced on Thursday he will prolong the 14-year-old U.S. military engagement there, effectively handing off the task of pulling out troops to his successor.  Full story
Iran has met a deadline to give the U.N. nuclear watchdog what it needs to assess whether Tehran's past activities had anything to do with nuclear weapons, the agency said on Thursday, a step towards implementing a deal between Tehran and world powers.  Full story
Syrian troops and their allies, backed by Russian jets, attacked rebel-held towns north of the city of Homs on Thursday, targeting a long-held and strategic enclave of opposition to President Bashar al-Assad.  Full story
Global equity markets slid for a second day and the dollar sank to a seven-week low on Wednesday as weak U.S. retail sales. . .  Full story
Gold rallied to 3-1/2 month highs on Wednesday, as soft U.S. data and concerns over deflationary pressures in China fueled expectations the U.S. Federal. . .  Full story
A gauge of stocks in major markets fell on Tuesday for the first session in 10 after Chinese trade data reinforced views that. . .  Full story
Gold rose on Tuesday, recovering an earlier 1 percent slide on expectations the Federal Reserve will not lift U.S. interest rates this year, which. . .  Full story

World share prices fell on Tuesday, snapping their longest winning streak since February after Chinese trade data gave a further sign the world's economic. . .  Full story
Crude oil futures tumbled on Monday on profit-taking and a report of higher OPEC production, while pressure lingered on the U.S. dollar as. . .  Full story
Gold rose to its highest level since early July on Monday as expectations that the Federal Reserve will postpone an expected U.S. interest. . .  Full story
Chinese investors jumped back into stocks on Monday in heavy volume trade that pushed prices to seven-week highs, boosted by hopes for more. . .  Full story
SA Business
South Africa added 1,286 megawatts (MW) to its national grid on Thursday when two generating units were brought back online following an extensive "overhaul", power utility Eskom said.. . .  Full story

S. Africa's National Treasury. . .  Full story
South Africa's national oil company, PetroSA, says its flagship Mossel Bay gas-to-liquid plant could run out of local gas supplies by 2017 after an offshore drilling campaign yielded only 10 percent of the expected gas reserves.. . .  Full story
Company News
Shareholders are referred to the previous cautionary announcements dated 6 March 2013, 22 April 2013, 5 July 2013, 8 July 2013,. . .  Full story
The JSE has made amendments to the JSE Listings Requirements (the ˘Requirements÷) relating to various items. Pursuant to Board Notice 229. . .  Full story
Further to the cautionary announcement issued by Pinnacle on SENS on 1 October 2015 and in the press on 2 October. . .  Full story
Shareholders are referred to the joint announcement published on SENS on 19 June 2015, the subsequent announcements on 9 July 2015. . .  Full story

In accordance with paragraph 3.4(b) of the JSE Ltd. Listings Requirements, a company is required to inform shareholders as soon as. . .  Full story
Emira wishes to advise bondholders that the annual report of Emira for the period ended 30 June 2015 is available for. . .  Full story
Pursuant to clause 9.8.1 of the Company's Constitution, the Board has postponed the 2015 Annual General Meeting scheduled for 10.00 am. . .  Full story
Keaton released the following first half production update for the half year ended 30 September 2015. Vanggatfontein reported a LTIFR of 0.38. . .  Full story
Company Results
Revenue for the interim period was higher at R47.0 million (R40.6 million). Operating profit increased to R30.7 million (R24.1 million). Net profit for the period rose to R30.6 million (R24.3 million). In addition, headline earnings per unit grew to 64.6 cents. . .  Full story
Revenue for the interim period jumped to R111.6 million (R51.0 million). Operating profit shot up to R92.6 million (R39.5 million). Profit attributable to owners multiplied to R208.5 million (R14.3 million). In addition, headline earnings per share grew to 60.54 cents per. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0052966.42-92.64-0.17%
JSE Top 4017:0047462.98-149.16-0.31%
JSE Gold17:001126.542.730.24%
JSE Financial17:0044009.78211.460.48%
JSE Industrial17:0078570.38-178.25-0.23%
JSE Indust 2517:0070715.84-196.31-0.28%
JSE Resource17:0036269.24-422.33-1.15%
DJ Futures19:4216952.00130.000.77%
DJ Ind19:5817058.13133.380.79%
SP 50019:582011.5117.270.87%
FTSE 10017:016344.7175.101.20%
All Ords07:385265.6035.200.67%
NZSE 5007:285775.7148.580.85%
NameTimeRPMove% Move
Gold $19:591186.262.180.18%
Gold R19:5715487.6715487.670.00%
Gold R/kg19:58497928-350-0.07%
Silver $19:5916.1270.02700.17%
Platinum $19:591004.9310.931.10%
Palladium $19:59702.323.820.55%
Brent Crude19:2848.67-.57-1.16%
USD / ZAR19:5913.0630-0.1386-1.05%
GBP / ZAR19:5520.1759-0.2440-1.19%
EUR/ ZAR19:5514.8584-0.3091-2.04%
NZD/ ZAR19:578.95858.95850.00%
AUD / ZAR19:559.5735-0.0789-0.82%
USD / JPY19:59118.6430-0.1330-0.11%
EUR / USD19:591.1381-0.0100-0.87%
GBP / USD19:591.5477-0.0004-0.03%

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 RANGOLD  2013319.64.%10224
2 OANDO  1111111.00.%164040
3 ALARIS  150128.70.%103116
4 NIVEUS  26002018.38.%15000
5 COMAIR  327258.28.%1116267
6 MIXTEL  315248.25.%1020000
7 ANGLOPLAT  2910018926.95.%571724
8 BOWCALF  1010606.32.%39280
9 KIBO  12575.93.%10378
10 LABAT  13075.69.%1249651
11 PHUMELELA  1900955.26.%1200
12 SAFARI  820405.13.%50000
13 RBPLAT  31431434.77.%148949
14 TRADEH  2220954.47.%19048
15 ADVHLTH  250104.17.%3854
16 RESILIENT  120194664.03.%1508753
17 NORTHAM  34041263.84.%872503
18 SIBANYE  2406893.84.%5430640
19 STEFSTOCK  420153.70.%105497
20 INTEWASTE  11943.48.%35200

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Major Moves Down
SharenameSaleMove% MoveVolume
1 ELBGROUP  2411-539-18.27.%19304
2 CULLINAN  140-20-12.50.%22
3 RBA  130-15-10.34.%2475
4 DELTA  240-20-7.69.%12
5 BALWIN  1020-80-7.27.%5493159
6 NUWORLD  2600-150-5.45.%40170
7 RENERGEN  1500-80-5.06.%1542
8 PINNACLE  1283-64-4.75.%570740
9 CENRAND  210-10-4.55.%2500
10 TRNPACO  2149-101-4.49.%12050
11 WESCOAL  115-5-4.17.%177732
12 DIAMONDCP  195-7-3.47.%11800
13 BELL  870-30-3.33.%50
14 CAT  1789-61-3.30.%27563
15 QUANTUMF  326-11-3.26.%25763
16 AEEI  300-10-3.23.%48772
17 NET1UEPS  21004-696-3.21.%11069
18 TORRE  455-14-2.99.%130613
19 CASHBIL  29150-875-2.91.%50271
20 ASSORE  9134-266-2.83.%75556

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New Highs
SharenameSaleHighMove% MoveVolume
1 BOWCALF  10101050606.32.%39280
2 CAPREG  14301430302.14.%477103
3 CIL  34643487391.14.%191825
4 SYGNIA  15451698150.98.%1254240
5 SABMILLER  8088083127-837-1.02.%1952338
6 BALWIN  10201105-80-7.27.%5493159

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New Lows
SharenameSaleLowMove% MoveVolume
1 VUNANI  1601070.3294

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Index Summary
Index NameRPMove% Move
Top 4047,462.98-149.16-0.31%
Mid Cap68,484.99474.910.70%
Small Cap58,534.69101.960.17%
Resource 2036,269.24-422.33-1.15%
Industrial 2570,715.84-196.31-0.28%
Financial 1516,372.7070.760.43%
Financial & Ind. 3074,599.27-98.11-0.13%
All Share52,966.42-92.64-0.17%
Oil & Gas 9,312.06.000.00%
Mining 21,604.87-244.90-1.12%
Gold Mining1,126.542.730.24%
Platinum Mining22.03.663.09%
GENERAL MINING6,369.47-112.57-1.74%
Oil & Gas Producers 50,
Basic Materials 21,298.85-246.19-1.14%
Chemicals 21,527.34-452.18-2.06%
Forestry & Paper 48,156.4781.730.17%
Industrial Metals 5,589.59-66.95-1.18%
Industrials 45,438.79404.450.90%
General Industrials 166.211.951.19%
Consumer Goods 76,331.13-914.54-1.18%
Automobiles & Parts 6,702.8020.380.30%
Household Goods565.84-3-0.46%
Health Care 9,490.5668.850.73%
Beverages 275.39-2.86-1.03%
Index NameRPMove% Move
Food Producers 9,291.417.490.08%
Personal Goods 1,127.40-28.17-2.44%
Consumer Services 16,823.20204.171.23%
General Retailers 8,176.57116.591.45%
Travel & Leisure 5,880.8514.880.25%
Media 419.555.411.31%
Support Services 2,854.876.840.24%
Telecommunications 9,284.22-48.51-0.52%
Financials 44,009.78211.460.48%
Banks 7,383.9161.300.84%
Non-life Insurance 57,476.01-459.40-0.79%
Life Insurance 40,760.06-27.80-0.07%
General Financial 4,638.85-25.83-0.55%
Technology 60,131.62-128.47-0.21%
SHARIAH TOP40 3,311.02-32-0.96%
FTSE/JSE SHARIAH ALL3,537.42-23-0.65%
COAL MINING8,090.722342.98%
FTSE JSE Fledgling 6,677.19-33-0.49%
FTSE/JSE Alt X 1,551.70-1-0.07%
RESOURCE 19,620.29-222-1.12%
DIVIDEND PLUS205.34-0-0.15%
FTSE/JSE RAFI 409,416.45-52-0.55%
Capped Top 4025,233.53-87-0.34%
Capped All Share26,863.72-47-0.18%
JSE TABACO 9,822.38-4-0.04%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
19/10/2015RAC PREFSSeptember 2015 (Interim)
19/10/2015RECMSeptember 2015 (Interim)
20/10/2015OANDOJune 2015 (Interim)
20/10/2015SVFJune 2015 (Final)
20/10/2015SVFBJune 2015 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
MAS14/10/1530/10/1511/11/15EUR 0.0220
OASIS14/10/1513/11/1523/11/15ZAR 0.6057
PICKNPAY13/10/1504/12/1514/12/15ZAR 0.2420
PIKWIK13/10/1504/12/1514/12/15ZAR 0.1160
DCENTRIX13/10/1530/10/1509/11/15ZAR 0.0923
Ex Div**
Share NameDec-DateLDTPay-DateAmount
SVFB02/10/1509/10/1519/10/15ZAR 33.9057
SVF02/10/1509/10/1519/10/15ZAR 25.5858
SHFINV-PREF08/09/1509/10/1519/10/15ZAR 3.7800
WBHO31/08/1509/10/1519/10/15ZAR 2.5800
A-V-I07/09/1509/10/1519/10/15ZAR 2.0000

Upcoming AGMs**
CodeCompany NameDateStatus
STAStratCorp Ltd.16/10/2015Confirmed
WEAWG Wearne Ltd.16/10/2015Confirmed
SHPCBShoprite Holdings Ltd.19/10/2015Confirmed
SHP3Shoprite Holdings Ltd.19/10/2015Confirmed
SHP4Shoprite Holdings Ltd.19/10/2015Confirmed

Stock Exchange News Service
15/10/201517:45FREEDOM PROPERTY FUND LIMITED - Notice of Change to the Proposed Specific Issue ...
15/10/201517:15BONATLA PROPERTY HOLDINGS LIMITED - Renewal of Cautionary Announcement
15/10/201517:15INTERNATIONAL HOTEL GROUP LIMITED - Further Placing Of Shares
15/10/201516:55FAIRVEST PROPERTY HOLDINGS LIMITED - Placement of shares
15/10/201516:24TASTE HOLDINGS LIMITED - Exercise of Options and Sale of Shares by a Director
15/10/201516:05GOODERSON LEISURE CORPORATION LTD - Trading update
15/10/201516:04METROFILE HOLDINGS LIMITED - Dealing in Securities by Director
15/10/201515:39AVENG LIMITED - Appointment of director to the Aveng board
15/10/201515:06FIRSTRAND LIMITED - Dealings in securities by a director
15/10/201515:00GOLIATH GOLD MINING LIMITED - Posting of Circular and Notice Convening the Schem...
15/10/201515:00OLD MUTUAL PLC - Form 8.3 - Public Opening Position Disclosure
15/10/201514:53WACO INTERNATIONAL HOLDINGS LIMITED - Postponement of private placement and list...
15/10/201514:50OLD MUTUAL PLC - Form 8.3 - Public Opening Position Disclosure
15/10/201514:40JSE LIMITED - GEN General - Amendments to the JSE Listings Requirements Part 1...
15/10/201514:15PINNACLE HOLDINGS LTD - Further acquisition and intention to make a mandatory o...
15/10/201513:40Grindrod Bank Limited - New Listing GBL02
15/10/201513:35EQUITES PROPERTY FUND LIMITED - Dividend: Tax treatment and salient dates
15/10/201513:34EQUITES PROPERTY FUND LIMITED - Unaudited consolidated interim results for the 6...
15/10/201513:05STELLAR CAPITAL PARTNERS LIMITED - Combined finalisation announcement in respect...
15/10/201513:00OLD MUTUAL PLC - Form 8.3 - Public Opening Position Disclosure
15/10/201513:00NEW EUROPE PROPERTY INVESTMENTS PLC - Financial Reporting Schedule Update
15/10/201512:49Bnp Paribas Arbitrage Issuance B.v. - Correction: Redemption On Certificates Rel...
15/10/201512:48BNP PARIBAS ARBITRAGE ISSUANCE B.V. - CANCELLATION OF S363539 Redemption on cert...
15/10/201512:43NEWFUNDS COLLECTIVE INVEST SCHEME - Interest Distribution
15/10/201512:37AVI LIMITED - Dealing in AVI Shares by a Director of a Major Subsidiary
15/10/201512:35OLD MUTUAL PLC - Form 8.3 Disclosure
15/10/201512:32NEWFUNDS COLLECTIVE INVEST SCHEME - Distribution and Re-Investment Announcement ...
15/10/201512:30LIBERTY HOLDINGS LIMITED - Dealings in Securities by a Director
15/10/201512:30CHOPPIES ENTERPRISES LIMITED - Dividend finalisation anouncement
15/10/201512:23NEWFUNDS COLLECTIVE INVEST SCHEME - Distribution Announcement For Quarter Ended ...
15/10/201512:12QUANTUM PROPERTY GROUP LIMITED - Renewal of cautionary announcement
15/10/201512:11NEWFUNDS COLLECTIVE INVEST SCHEME - Distribution & Re-Investment For The Quarter...
15/10/201512:02ANGLO AMERICAN SA FINANCE LTD - Interest Rate Reset announcement
15/10/201512:00SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Finalisation Announcement - Q...
15/10/201512:00NU-WORLD HOLDINGS LIMITED - Trading Statement
15/10/201512:00SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Finalisation Announcement - Q...
15/10/201512:00SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Finalisation Announcement - Q...
15/10/201512:00SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Finalisation Announcement - Q...
15/10/201512:00WILSON BAYLY HOLMES-OVCON LIMITED - Availability of the Integrated Report, No Ch...
15/10/201512:00SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Finalisation Announcement - Q...
15/10/201512:00SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Finalisation Announcement - Q...
15/10/201511:56EMIRA PROPERTY FUND LIMITED - Release of annual report
15/10/201511:48DISCOVERY LIMITED - Dealings in securities by a share incentive scheme
15/10/201511:30CAPITAL & REGIONAL PLC - Director/PDMR shareholding
15/10/201511:00COMPAGNIE FINANCIERE RICHEMONT SA - Information for Depositary Receipt ('DR') ho...
15/10/201510:58RESOURCE GENERATION LIMITED - 2015 AGM postponed
15/10/201510:48BNP PARIBAS ARBITRAGE ISSUANCE B.V. - Redemption on certificates relating to the...
15/10/201510:30TISO BLACKSTAR GROUP SE - Transaction in own shares
15/10/201510:20CURRO HOLDINGS LIMITED - Interest Rate Reset Announcement - COH002
15/10/201510:15A E C I LIMITED - Repurchase announcement
15/10/201510:08LABAT AFRICA LIMITED - Amended terms announcement regarding the Acquisition of R...
15/10/201509:17MURRAY & ROBERTS HOLDINGS LIMITED - Bridge support structure collapse on M1, clo...
15/10/201509:00NEW GOLD ISSUER LIMITED - NGPLT-Partial De-listing of NewGold Platinum Debenture...
15/10/201508:55INVESTEC PROPERTY FUND LIMITED - Results of the General Meeting held on 14 Octob...
15/10/201508:00REDEFINE INTERNATIONAL PLC - Redefine International acquires shares in Internati...
15/10/201508:00KIBO MINING PLC - Mbeya Definitive Mining Feasibility Study - Stage 2: Geotechni...
15/10/201508:00CAPITAL & REGIONAL PLC - Non-executive director appointment
15/10/201508:00GROWTHPOINT PROPERTIES LIMITED - Growthpoint Properties Limited-New Listing of G...
15/10/201508:00KEATON ENERGY HOLDINGS LIMITED - Keaton Energy releases first half production up...
15/10/201508:00SACOVEN PLC - Notice of Annual General Meeting, proposed extension of Investment...
15/10/201508:00NEW GOLD ISSUER LIMITED - Board Changes
15/10/201507:45JD GROUP LIMITED - Notice of request for written consent of noteholders - JDG01,...
15/10/201507:05BHP BILLITON PLC - BHP Billiton Prices Hybrid Notes
15/10/201507:05INVESTEC AUSTRALIA PROPERTY FUND - Acquisition of new property for AUD 26,000,00...
15/10/201507:05BHP BILLITON PLC - BHP Billiton Prices Hybrid Notes

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