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 The Sharenet Daily 
Thursday, 04 August 2016 - 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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Moxima Gama
Current economic conditions have challenged the business environment in South Africa. The entry of Walmart into the market has intensified competition, placing added pressure on already thin average profit margins. Increased competition translates into more power and choice for consumers and with social media at a peak, consumers are becoming more vocal as they compare products, prices and customer experiences online in real time. Nowadays, more and more consumers are asking questions about the...  Full story
Seed Weekly - Targeting Returns

In this third article on targeting returns I am going to focus on a very topical subject, not only now but one that has been on the agenda for the entire 25 years I have been in the investment industry.

There are many views, themes, strategies and methodologies for evaluating the topic and I am not going to try and pitch one over the other but rather focus on a few big picture ideas.

The question has been and is, should a South African (asset resident) long term investor invest internationally to get better returns from their portfolio? If the answer is yes the second question is if you were unrestricted what percentage of your investable assets should or would you invest outside of South Africa?

For most South African citizens their biggest assets are all in South Africa namely, their businesses, pension funds and homes. Apart from pension funds that can have up 25% offshore pretty much everything is in South Africa.

Below is a chart that illustrates the various sizes of the listed equity markets. You will note that Africa makes up about 1.5% and of this South Africa less than 1%.

Source: The Money Project 2 August 2016

It does seem quite obvious that South African investment managers would ideally like the opportunity to invest in the other 99% of the global listed equity economy.

I have read for many years that it is much better to have a decent portion of your investment offshore and remember the early days of exchange control when R250k once off was officially allowed offshore, this slowly crept up and up until recently when it was announced that an individual can take up to R10/11m p.a. offshore. This effectively now removes all exchange control for 99% of the population.

Without making the ever present political call, let’s investigate the historical facts based on an investment made in Rands. I have chosen several well-known indexes to represent various equity investment options to illustrate the point. The ALSI for the SA market, the S&P 500 for the broader US market, the FTSE 100 for the UK, the MSCI All World for the broad global market and MSCI Emerging Markets Index. I have also used rolling five year returns to reduce the volatility and to illustrate a more strategic allocation by an investor. Just a reminder the returns p.a. are in Rands.

Source: ZephyrStyleAdvisor 3 August 2016

So with perfect hindsight history shows us that choosing to go offshore was not straightforward and in fact you would have been a net loser until about seven to five years ago. Also the out performance of the local market was extreme for the better part of this reporting period.
If you got your timing right to switch offshore immediately after great financial recession of 2008/9 then you have done very well over rolling 5 year periods since by overweighting to the S&P 500, MSCI AW and the FTSE 100 vs. the ALSI.
Granted I have only used one asset class to explore the question but the same is largely true of most other asset classes. What is very apparent to me is that you need to tactically time your diversification to benefit fully from diversification.
What is encouraging is that at Seed we have analysed our past performances and have consistently added value through our tactical asset allocation decisions.

Kind regards,

Robert Foster

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

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Thu, 04 Aug 2016
Top News
Rental revenue increased to R2.2 billion (2015: R1.9 billion). Profit for the year attributable to equity holders of the company dropped to R3.9 billion (R5.5 billion). In addition, headline earnings per share decreased to 869.66 cents per share (2015: 132.25 cents per share). Payment of  Full story

Local markets  Full story
Security agencies in Paris have circulated a photo of an Afghan asylum seeker on suspicion that he might be plotting an attack on the capital, a police source said on Thursday, as France reels from two strikes in a month by Islamic State loyalists.  Full story
South Africa's opposition Democratic Alliance led in three major cities on Thursday as votes were counted in local elections, threatening to deal the biggest electoral blow to the African National Congress since the end of apartheid two decades ago.  Full story
Former Thai Prime Minister Thaksin Shinawatra on Thursday criticised a military-backed draft constitution as a "folly" that would perpetuate the power of the ruling junta and make it impossible for future elected governments to rule.  Full story
SA Business
South Africa's rand touched a nine-month high against the dollar and government bonds firmed on Thursday as the smooth running of local government elections and expectations that interest rates in leading economies will remain low boosted sentiment.. . .  Full story
South African mobile phone operator MTN Group flagged a half-year loss on Thursday, blaming a hefty fine in Nigeria and underperformance at home. * MTN said on June 10 it had agreed to pay. . .  Full story

Urban South Africans dealt the ANC its biggest political blow since the end of apartheid on Thursday, knocking the ruling party off its perch in three cities as voters vented anger at corruption, high unemployment and poor public services.. . .  Full story
Company News
Shareholders are referred to ResilientÆs preliminary summarised audited consolidated financial statements for the year ended 30 June 2016, published on SENS. . .  Full story
Old Mutual plc today announces that it has entered into a short period of exclusive negotiations with Cinven, owner of ERGO. . .  Full story
OM Asset Management plc ("OMAM"), the majority-owned subsidiary of Old Mutual plc, today reports its results for the second quarter ended. . .  Full story
Old Mutual announced that Ingrid Johnson, Group Finance Director, has been appointed to the board of OM Asset Management plc, a. . .  Full story

Anglo American announced the commissioning of De BeersÆ Gahcho KuT diamond mine in the Northwest Territories of Canada. Gahcho KuT û the worldÆs largest new diamond mine û is expected to ramp up to reach full commercial production in Q1 2017, producing an average of 4.5 million carats per year over its anticipated 13-year life. Gahcho KuT is located about 280km north east of Yellowknife in the Canadian Northwest Territories and is a joint venture between De Beers (51%) and Mountain Pr. . .  Full story
Company Results
Revenue for the year increased to R376.5 million (2015: R247.7 million). Net operating profit jumped to. . .  Full story
Revenue for the quarter increased to R379.1 million (2015: R344.1 million). Gross profit rose to R255.8 million (2015: R241.9 million). Operating. . .  Full story
Sales revenue for the quarter came in at USD1.223 billion (2015: USD1.272 billion). Gross profit was higher at USD184 million (2015:. . .  Full story
Group revenue decreased to EUR3.312 billion (2015: EUR3.459 billion). Operating profit rose to EUR529 million (2015: EUR451 million), profit for the. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0052543.3710.610.02%
JSE Top 4017:0045533.22-26.35-0.06%
JSE Gold17:002906.53-43.49-1.47%
JSE Financial17:0041942.63229.580.55%
JSE Industrial17:0077052.30-186.31-0.24%
JSE Indust 2517:0069030.79-204.76-0.30%
JSE Resource17:0031931.8486.570.27%
DJ Futures20:0018268.00-1.00-0.01%
DJ Ind20:0018344.39-10.61-0.06%
SP 50020:002164.250.460.02%
FTSE 10017:156737.95103.551.56%
All Ords08:405563.4012.000.22%
NZSE 5009:027298.0820.680.28%
NameTimeRPMove% Move
Gold $19:591361.363.970.29%
Gold R20:0018682.22-213.06-1.13%
Gold R/kg20:00600633-6850-1.13%
Silver $19:5920.40000.02100.10%
Platinum $19:591159.060.030.00%
Palladium $19:59701.85-6.65-0.94%
Brent Crude20:0044.161.062.46%
USD / ZAR19:5913.7232-0.1966-1.41%
GBP / ZAR19:5517.9542-0.5528-2.99%
EUR/ ZAR19:5515.2745-0.2400-1.55%
NZD/ ZAR19:599.8528-0.1101-1.11%
AUD / ZAR19:5510.4741-0.0878-0.83%
USD / JPY19:59101.20600.00000.00%
EUR / USD19:591.1132-0.0018-0.16%
GBP / USD19:591.3109-0.0211-1.58%

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 TRNPACO  26012319.75.%225402
2 THARISA  1250998.60.%745
3 SOVFOOD  866617.58.%907
4 IMPLATS  67143645.73.%3283218
5 AVENG  402205.24.%2110330
6 RAUBEX  1990904.74.%571129
7 PALLINGHT  340154.62.%208250
8 ASCENDIS  25651104.48.%560066
9 CONDUIT  270103.85.%128211
10 TRUSTCO  358133.77.%9931
11 NAMPAK  2130753.65.%2511058
12 TFG  151505203.55.%3024882
13 MRPRICE  227017433.38.%1108589
14 ACCELERAT  614203.37.%213021
15 FINBOND  310103.33.%35385
16 TOWER  825263.25.%1052241
17 STANBANK  144524523.23.%4870063
18 WESCOAL  16153.21.%5450
19 B-AFRICA  161005003.21.%4914167
20 SUNINT  88802603.02.%1121748

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Major Moves Down
SharenameSaleMove% MoveVolume
1 SEARDEL  800-95-10.61.%9203
2 TREMATON  282-28-9.03.%45054
3 ISA  107-10-8.55.%4000
4 NIVEUS  2600-200-7.14.%12415
5 TRNSHEX  370-25-6.33.%2860
6 BOWCALF  960-64-6.25.%42880
7 ENX  170-10-5.56.%47900
8 RANGOLD  206-12-5.50.%4096
9 QUANTUMF  265-15-5.36.%144400
10 CAT  1325-75-5.36.%101
11 BRIMST-N  1160-65-5.31.%11079
12 DIAMONDCP  110-6-5.17.%113832
13 AMECOR  370-20-5.13.%17650
14 DAWN  260-14-5.11.%125257
15 Zakhele   7231-369-4.86.%8691
16 AFROX  1900-93-4.67.%239123
17 DRDGOLD  1177-56-4.54.%936970
18 KUMBAIO  14150-651-4.40.%1066799
19 EASTPLATS  995-45-4.33.%265
20 TORRE  177-8-4.32.%118695

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New Highs
SharenameSaleHighMove% MoveVolume
1 IMPLATS  671467433645.73.%3283218
2 RAUBEX  19902049904.74.%571129
3 MASSMART  15167151674112.79.%426536
4 RBPLAT  52605444701.35.%141772
5 ADVTECH  15211540201.33.%2913970
6 ANGLOPLAT  46200471432030.44.%507278
7 TSOGO-SUN  30353200120.40.%1633273
8 JASCO  1101150.53883

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New Lows
SharenameSaleLowMove% MoveVolume
1 TORRE  177177-8-4.32.%118695
2 ABINBEV  171110169000-3564-2.04.%153163
3 ATLEAF  19251905-24-1.23.%15105
4 RICHEMONT  80858043-61-0.75.%6021937
5 TEX  707700-1-0.14.%47074

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Index Summary
Index NameRPMove% Move
Top 4045,533.22-26.35-0.06%
Mid Cap81,873.69358.390.44%
Small Cap60,661.65-6.47-0.01%
Resource 2031,931.8486.570.27%
Industrial 2569,030.79-204.76-0.30%
Financial 1515,271.01107.700.71%
Financial & Ind. 3071,779.84-125.14-0.17%
All Share52,543.3710.610.02%
Oil & Gas 7,
Mining 24,417.9160.270.25%
Gold Mining2,906.53-43.49-1.47%
Platinum Mining31.02.822.72%
GENERAL MINING5,527.8435.800.65%
Oil & Gas Producers 38,689.88.000.00%
Basic Materials 22,848.7647.980.21%
Chemicals 19,284.96223.751.17%
Forestry & Paper 49,564.02-510.22-1.02%
Industrial Metals 10,508.39-483.46-4.40%
Industrials 47,649.21492.051.04%
General Industrials 185.563.351.84%
Consumer Goods 71,304.98-902.71-1.25%
Automobiles & Parts 4,585.5356.611.25%
Household Goods610.72122.09%
Health Care 10,105.18112.061.12%
Beverages 267.43-6.12-2.24%
Index NameRPMove% Move
Food Producers 9,837.381.500.02%
Personal Goods 807.50-6.09-0.75%
Consumer Services 18,353.5546.320.25%
General Retailers 8,229.90187.792.34%
Travel & Leisure 6,413.5665.861.04%
Media 464.64-.21-0.05%
Support Services 2,054.58-29.30-1.41%
Telecommunications 7,415.0952.750.72%
Financials 41,942.63229.580.55%
Banks 7,217.36124.061.75%
Non-life Insurance 58,680.66446.640.77%
Life Insurance 38,868.8538.070.10%
General Financial 3,951.798.490.22%
Technology 54,388.33873.281.63%
SHARIAH TOP40 3,123.90240.78%
FTSE/JSE SHARIAH ALL3,553.44200.57%
COAL MINING10,592.531131.07%
FTSE JSE Fledgling 7,320.00-33-0.44%
FTSE/JSE Alt X 1,445.92-9-0.59%
SA LISTED PROPERTY 662.37.550.08%
CAPPED PROPERTY 552.78-0.07%
RESOURCE 18,230.99380.21%
DIVIDEND PLUS210.2420.89%
FTSE/JSE RAFI 409,711.25300.31%
Capped Top 4024,405.74200.08%
Capped All Share26,909.76240.09%
JSE TABACO 11,062.89-294-2.59%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
05/08/2016INTEWASTEJune 2016 (Interim)
05/08/2016MARADELTAJune 2016 (Final)
05/08/2016MIXTELJune 2016 (Q)
05/08/2016MTN GROUPJune 2016 (Interim)
05/08/2016SIBANYEJune 2016 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
MERAFE01/08/1623/08/1629/08/16ZAR 0.0080
FIRSTRANDB-P01/08/1623/08/1629/08/16ZAR 3.9472
NEDBANK01/08/1606/09/1612/09/16ZAR 5.7000
NEDBANK-P01/08/1623/08/1629/08/16ZAR 0.4275
VUNANI01/08/1623/08/1629/08/16ZAR 0.0600
Ex Div**
Share NameDec-DateLDTPay-DateAmount
PERGRIN08/06/1601/08/1608/08/16ZAR 1.5500
SABMILLER18/05/1601/08/1612/08/16USD 0.9375

Upcoming AGMs**
CodeCompany NameDateStatus
INLCP1Investec Ltd.04/08/2016Confirmed
INLInvestec Ltd.04/08/2016Confirmed
INLCP2Investec Ltd.04/08/2016Confirmed
INL-PInvestec Ltd.04/08/2016Confirmed
INPRInvestec Ltd.04/08/2016Confirmed

Stock Exchange News Service
04/08/201617:40NORTHAM PLATINUM LIMITED - Northam secures new R1.5 billion revolving credit fac...
04/08/201617:30SOVEREIGN FOOD INVESTMENTS LIMITED - Results of Annual General Meeting
04/08/201617:06RESILIENT REIT LIMITED - Dividend: Tax treatment and salient dates
04/08/201617:05RESILIENT REIT LIMITED - Preliminary summarised audited consolidated financial s...
04/08/201617:00OLD MUTUAL PLC - Old Mutual Enters into Exclusive Negotiations Regarding its Ita...
04/08/201616:58STANDARD BANK OF SOUTH AFRICA LD - SCIB: The Standard Bank Of South Africa Limit...
04/08/201616:53WILDERNESS HOLDINGS LIMITED - Notice of Annual General Meeting and important pre...
04/08/201616:47THE PIVOTAL FUND LIMITED - Further cautionary announcement
04/08/201616:42CONDUIT CAPITAL LIMITED - Cautionary Announcement
04/08/201616:26HULAMIN LIMITED - Purchase of shares by Hulamin Long Term Incentive Plan - 2007
04/08/201616:15ISA HOLDINGS LIMITED - Renewal of Cautionary Announcement
04/08/201616:06NEWFUNDS COLLECTIVE INVEST SCHEME - NFGOVI/ NFILBI/ NFTRCI - Interest distributi...
04/08/201615:58HUGE GROUP LIMITED - Update regarding the publication of the 2016 integrated ann...
04/08/201615:45SABMILLER PLC - Additional Amounts Guarantee by SABMiller Holdings Inc. and Soli...
04/08/201615:39SUPER GROUP LIMITED - Acquisition of Fleet Hire by SG Fleet Group
04/08/201615:30OLD MUTUAL PLC - Form 8.3 Disclosure - Deutsche
04/08/201615:28ABSA BANK LIMITED - NEWUSD - Listing of additional NewWave USD Exchange Traded N...
04/08/201615:20FORTRESS INCOME FUND LIMITED - FIFC28-Full Capital Redemption
04/08/201615:00NET 1 UEPS TECHNOLOGIES INC - Net 1 UEPS Technologies, Inc. to Host Conference C...
04/08/201614:30MONDI PLC - 2016 Interim Dividend ZAR/euro Exchange Rate
04/08/201614:25TRANSPACO LIMITED - Trading Statement
04/08/201614:09OLD MUTUAL PLC - Appointment to OM Asset Management Board of Directors
04/08/201614:08OLD MUTUAL PLC - OMAM Reports Financial and Operating Results for the Second Qua...
04/08/201614:00IVUZI INVESTMENTS LIMITED - Listing of Tap Issue-IVA636 IVA644
04/08/201613:55RAUBEX GROUP LIMITED - Cancellation and delisting of 7 500 000 Raubex ordinary s...
04/08/201612:33KUMBA IRON ORE LIMITED - Dealings in securities by a director of a major subsidi...
04/08/201611:15NOVUS HOLDINGS LIMITED - Appointment of Company Secretary
04/08/201610:52UNIVERSAL PARTNERS LIMITED - Abridged Pre-Listing Statement
04/08/201609:50MERCEDES-BENZ SOUTH AFRICA LIMITED - MBF041-Full Capital Redepmtion
04/08/201609:22CITY LODGE HOTELS LIMITED - Trading statement
04/08/201609:01TRANSNET SOC LIMITED - TSP218 Short Term New Issue
04/08/201609:00ADCORP HOLDINGS LIMITED - Further cautionary announcement
04/08/201609:00SAPPI LIMITED - Third quarter results for the period ended June 2016
04/08/201609:00ERIN ENERGY CORPORATION - Sec Filing: Statement of changes in beneficial ownersh...
04/08/201609:00SABMILLER PLC - Rule 2.10 announcement
04/08/201609:00TRANSNET SOC LIMITED - TSP202 Short Term Tap
04/08/201608:31ANHEUSER-BUSCH INBEV SA/NV - Anheuser-Busch InBev announces structure and leader...
04/08/201608:30SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Announcement for July 2016 an...
04/08/201608:12OLD MUTUAL PLC - Form 8.3 Disclosure - Deutsche
04/08/201608:07OLD MUTUAL PLC - Form 8.3 Disclosure - 888 Holdings
04/08/201608:00MIX TELEMATICS LIMITED - MiX Telematics announces financial results for first qu...
04/08/201608:00MONDI LIMITED - Half-yearly results for the six months ended 30 June 2016
04/08/201608:00TOWER PROPERTY FUND LIMITED - Abridged results of the audited consolidated annua...
04/08/201608:00SCHRODER EUROPEAN REAL ESTATE INV TRUST PLC - First Tranche Of Debt Financing Se...
04/08/201607:51MTN GROUP LIMITED - Update on trading statement for the six months ended 30 June...
04/08/201607:05SABMILLER PLC - Rule 2.10 announcement
04/08/201607:05KIBO MINING PLC - MCPP and Imweru Gold Project Interim Update
04/08/201607:05ANGLO AMERICAN PLC - Announces commissioning of De Beers Gahcho Ku mine

Click here for more SENS news