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Tuesday, 17 May 2011 - 20:00
Sharenet is pleased to announce the launch of our new publication, The Sharenet Daily. We have built on the success of our Daily Equity Report, while adding more content and helpful information. The result is a publication that gives readers a quick, easy to read and informative synopsis of market activity, company results and news on the JSE for the day, as well as an overview of what transpired on important overseas markets.
The Sharenet Daily includes helpful charts that give a graphical impression of events, and our news content is sourced from a number of contributors, including Reuters. In addition, Sharenet's popular price information is available in our Spot Price format which provides a snapshot of the JSE and world indices, currencies and commodities.
All the JSE trading statistics; major movers; latest dividends; upcoming AGM dates and more are provided to insure that you keep abreast of market developments. The Sharenet Daily is published at 8pm each day on the website and also distributed via email for your convenience. As always, we welcome your comments, feedback and suggestions at support@sharenet.co.za
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Charts
PPC and Coronation In investment markets the evidence points to company margins and returns on equity, reverting to a mean over varying periods of time. What this means is that company margins and returns don’t expand into infinity. Often a period of poor performance is followed by a period of good performance and vice versa.
Two companies that I looked at which reported half year results to March were PPC and Coronation. They have had polar opposite recent histories, with PPC struggling in the current environment, while Coronation has produced excellent results.
PPC
PPC is the country’s largest manufacturer of cement. Revenue for the 6 months fell by 5% to R3,2 billion, but margins were squeezed as cost of sales rose 7%, due in part to higher electricity costs, diesel costs and also depreciation. The company did well to have administration and other operating expenses increased only 1%, but given the decline in margins from 41,8% to 35%, operating profit fell 26% to R828 million.
At the EPS level, this declined from 114c to 71c, down 38%.
On an after tax basis profit declined 38% to R378 million – a margin of 11,8%. The commentary from the ceo reiterated the difficult trading conditions in the local building and construction industry, with sales volumes down, pressure on selling prices, and high input cost inflation.
Despite the tough conditions, they do see some light in that although cement sales for the year to date are negative, the rate of decline has been slowing and with month on month volume comparisons, total sales for 2011 could be similar to that of 2010.
The share price declined from a peak of R52 in July 2007 to R25 on October 2008. It has essentially moved sideways ever since.
The company had warned that earnings per share would decline by between 35% and 40% and with the price having already taken a sustained knock, the price gained 3,3% to 2615c.
CML
This morning also saw local investment fund manager, Coronation report its interim results to March. Its revenue jumped 32% to R864 million. On an after tax basis, the company’s profits rose from R226m to R299m, a gain of 32%.
At a net after tax operating profit margin level, this remained steady from 34,6% to 34,5%.
Because there is a high translation of the accounting net profit into cash flow, and because the company has a relatively low cash requirement for future growth they can pay out at least 75% of the profits by way of dividend. With the increased profitability, the dividend was raised by 57% to 80cents a share.
These were excellent numbers, driven by a combination of local stock market gains over the last 2 years and excellent performance figures from Coronation.
Coronation has a market capitalisation of R6 billion. The share price is up 117% from the beginning of 2010.
Seed Presentation
Seed is having a presentation in Cape Town and Johannesburg on the 1st June and 7 June respectively. We will cover portfolio construction and our thoughts on the current market valuation. Seats are limited, so for those interested, please mail Myrna on Myrna@seedinvestments.co.za
Kind regards
Ian de Lange
info@seedinvestments.co.za
021 9144966
www.seedinvestments.co.za
Tue, 17 May 2011 Top News
South Africa's annual inflation came in below expectations in April while retail sales growth slowed for a third month in a row, backing the case for leaving interest rates at a three-decades low for longer. Full story
South African government bonds rallied on Tuesday, buoyed by softer-than-forecast April inflation data which supported the view the Reserve Bank might hold off raising interest rates for longer than expected. Full story |
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Japan unveiled new plans on Tuesday to contain the crisis at a crippled nuclear plant after admitting it faced greater challenges than first disclosed, but it kept to a goal of bringing the reactors under control by January. Full storyThe chairman of Libya's National Oil Corporation has defected from Muammar Gaddafi's administration and fled to neighbouring Tunisia, a Tunisian security source said on Tuesday. Full storyItalian Prime Minister Silvio Berlusconi has suffered a serious blow in local elections that punctured his image of political invincibility and could usher in a period of instability. Full story |
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Markets | U.S. stocks fell on Tuesday,
as a disappointing outlook from Hewlett-Packard Co and another
batch of soft U.S. data added to growing trepidation. . . Full story | | World stocks fell to a
one-month low on Tuesday as data spurred a new wave of doubts
over the global economic recovery and. . . Full story | | European equities hit a four-week
closing low on Tuesday as disappointing economic numbers hurt
sentiment, while a cut in outlook by the world's. . . Full story | | Britain's leading share index was
driven down by weakness in commodity issues and banks on
concerns over global growth which countered resulsts-driven
gains by. . . Full story |
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| U.S. stocks fell on Tuesday,
with the Dow dropping more than 1 percent as a disappointing
outlook from Hewlett-Packard Co and weak U.S.. . . Full story | | Gold reversed course on Tuesday
to fall after a rally in the dollar exacerbated a sell-off in
the already-fragile commodity complex and offset. . . Full story | | Japan's Nikkei average was nearly
flat on Tuesday after slipping earlier as a weaker yen offset
losses in the utility sector which was. . . Full story | | Australian stocks rose 0.7
percent on Tuesday, hauled off an eight-week low by the miners,
which found support following a one-month slide as. . . Full story |
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SA Business | Kumba Iron Ore said on Tuesday it would extend its interim iron ore supply agreement with ArcelorMittal South Africa until July next year to conclude arbitration between the two firms.. . . Full story | | Growth in South Africa's retail sales slowed to 5.1 percent year-on-year in March at constant prices, compared with a slightly downwardly revised 5.5 percent increase in February, Statistics South Africa said. . . Full story | | South Africa's rand firmed against the dollar on Tuesday, rebounding from 8-week lows after the greenback softened and metal prices edged up.. . . Full story |
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| Pretoria Portland Cement, South Africa's biggest cement producer, is eyeing expansion elsewhere in Africa to counteract flagging sales at home, its. . . Full story | | Vodafone, the world's largest
mobile operator by revenue, surprised investors with an upbeat
outlook for 2012 on Tuesday after posting resilient results
driven by. . . Full story | | South African government bonds firmed slightly on Tuesday, after softer-than-expected inflation data backed some analysts' views that interest rates will remain. . . Full story | | Shares of South Africa's Pretoria Portland Cement opened down nearly 3 percent on Tuesday after the cement firm reported a 38. . . Full story |
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| Shares of Barloworld rose more than 3 percent in early trade on Tuesday after the South African automotive and mining equipment leasing firm reported a sharp recovery in first earnings, aided by an upswing in demand from miners.. . . Full story |
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Company News | The company announced that in relation to the cautionary announcements dated 24 December 2010, 04 February 2011, 18 March 2011 and. . . Full story | | Anglo announced provisional interim dividend dates:
* Announcement date (amount declared in USD with ZAR equivalent): Friday 29 July
* Last. . . Full story | | Further to the trading statement released on SENS on 13 May 2011, a review of the financial results for the twelve. . . Full story | | Afdawn advised shareholders that the company expects a turnaround in the loss per share ("LPS") and headline loss per share ("HLPS"). . . Full story |
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| David Graham Jones was appointed as financial director to the board of ELB with effect from 17 May 2011. Anthony Garth. . . Full story | | Shareholders were previously advised that Sishen Iron Ore Company (Pty) Ltd ("SIOC") and ArcelorMittal South Africa Ltd ("AMSA") had on 22. . . Full story | | At the ninety fourth (94th) annual general meeting of the shareholders of Delta held on 17 May 2011, all the ordinary. . . Full story | | Shareholders of Ceramic ("shareholders") are advised that the board of directors of Ceramic ("the board") has declared a special dividend of. . . Full story |
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Company Results | Revenue for the year ended 28 February 2011 improved to R281.8 million (February 2010: R188.7 million) and gross profit rose to. . . Full story | | Revenue decreased slightly, by 2%, to R4.2 billion (R4.3 billion). Operating profit was up 23% to R375.4 million (R304.3 million) and. . . Full story | | Revenue increased marginally by 3.2% to R11.4 billion (R11 billion) and gross profit also grew by 1.7% to R4.7 billion (R4.6. . . Full story | | Revenue for the year ended 31 March 2011 increased to R61.2 billion (2010: R58.5 billion). Operating profit rose to R13.7 billion. . . Full story |
World Markets (Spot Prices)
| Name | Time | RP | Move | % Move | | JSE Overall | 17:00 | 31843.91 | -312.10 | -0.97% | | JSE Top 40 | 17:00 | 28601.68 | -327.98 | -1.13% | | JSE Gold | 17:00 | 2543.24 | -31.22 | -1.21% | | JSE Financial | 17:00 | 21411.27 | -90.60 | -0.42% | | JSE Industrial | 17:00 | 32792.52 | -247.96 | -0.75% | | JSE Indust 25 | 17:00 | 27586.05 | -246.70 | -0.89% | | JSE Resource | 17:00 | 54420.47 | -813.13 | -1.47% | | DJ Futures | 19:20 | 12380.00 | -95.00 | -0.76% | | DJ Ind | 19:45 | 12443.02 | -105.35 | -0.84% | | SP 500 | 19:46 | 1324.54 | -4.93 | -0.37% | | Nasdaq | 19:46 | 2771.58 | -10.73 | -0.39% | | FTSE 100 | 17:35 | 5861.00 | -62.69 | -1.06% | | DAX | 18:00 | 7256.65 | -130.89 | -1.77% | | CAC40 | 17:40 | 3941.58 | -48.24 | -1.21% | | Nikkei | 08:26 | 9567.02 | 8.72 | 0.09% | | Shanghai | 09:22 | 2852.77 | 2.82 | 0.10% | | Hang-Seng | 10:36 | 22901.08 | -59.55 | -0.26% | | All Ords | 08:38 | 4753.00 | 28.80 | 0.61% | | NZSE 50 | 07:32 | 3558.05 | 14.19 | 0.40% |
| | | Name | Time | RP | Move | % Move | | Gold | 19:59 | 1481.41 | -8.35 | -0.56% | | Gold/Rand | 20:00 | 10318.17 | -99.10 | -0.95% | | Gold/R kg | 20:00 | 331729 | -5687 | -1.69% | | Silver | 19:59 | 33.7180 | .1580 | 0.47% | | Platinum | 19:58 | 1759.20 | 7.70 | 0.44% | | Palladium | 19:56 | 716.50 | 8.17 | 1.15% | | R157 | 17:06 | 7.64 | -.08 | -1.04% | | R204 | 17:06 | 8.30 | -.09 | -1.07% | | Brent Crude | 19:56 | 109.58 | -2.30 | -2.06% | | Rand / Dollar | 19:59 | 6.9651 | -0.0280 | -0.40% | | Rand / Pound | 19:55 | 11.2840 | -0.0180 | -0.16% | | Rand / Euro | 19:55 | 9.8986 | -0.0079 | -0.08% | | Rand / NZD | 19:58 | 5.4339 | -0.0265 | -0.49% | | Rand / AUD | 19:55 | 7.3683 | -0.0320 | -0.43% | | Yen / Dollar | 19:59 | 81.4600 | 0.6200 | 0.77% | | Euro / Dollar | 19:55 | 0.7036 | -0.0023 | -0.33% | | Dollar / Euro | 19:54 | 1.4207 | 0.0049 | 0.35% | | Pound / Dollar | 19:55 | 0.6154 | -0.0017 | -0.28% |
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Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics
| Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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| 17/05/2011 | 127 | 213 | 75 | 415 | 313,772,839 | R13,420,246,840 | 104943 | 2189249 | | 16/05/2011 | 154 | 162 | 83 | 399 | 240,222,858 | R10,809,816,699 | 88615 | 2006548 | | 13/05/2011 | 233 | 109 | 82 | 424 | 272,874,593 | R11,830,088,101 | 91675 | 1964298 | | 12/05/2011 | 83 | 236 | 79 | 398 | 264,465,126 | R13,048,737,068 | 96422 | 1997646 | | 11/05/2011 | 159 | 181 | 85 | 425 | 282,588,135 | R15,255,496,872 | 110989 | 2238489 |
Index Summary | Index Name | RP | Move | % Move | | Top 40 | 28,601.68 | -327.98 | -1.13% | | Industrial | 32,792.52 | -247.96 | -0.75% | | Mid Cap | 41,491.62 | -24.51 | -0.06% | | Small Cap | 32,176.76 | -46.98 | -0.15% | | Resource 20 | 54,420.47 | -813.13 | -1.47% | | Industrial 25 | 27,586.05 | -246.70 | -0.89% | | Financial 15 | 8,087.90 | -45.20 | -0.56% | | Financial & Ind. 30 | 30,691.95 | -252.91 | -0.82% | | All Share | 31,843.91 | -312.10 | -0.97% | | Oil & Gas | 26,792.87 | -542.23 | -1.98% | | Mining | 35,802.07 | -504.45 | -1.39% | | Gold Mining | 2,543.24 | -31.22 | -1.21% | | Platinum Mining | 69.91 | -1.43 | -2.00% | | Oil & Gas Producers | 14,406.03 | -291.55 | -1.98% | | Basic Materials | 30,243.21 | -409.61 | -1.34% | | Chemicals | 13,764.66 | -98.48 | -0.71% | | Forestry & Paper | 14,731.08 | -112.88 | -0.76% | | Industrial Metals | 28,004.43 | -224.76 | -0.80% | | Industrials | 27,449.23 | 37.20 | 0.14% | | General Industrials | 75,422.11 | -65.26 | -0.09% | | Consumer Goods | 27,745.68 | -166.00 | -0.59% | | Automobiles & Parts | 3,158.92 | .00 | 0.00% | | Household Goods | 151.95 | -3 | -1.97% | | Health Care | 32,327.08 | 75.48 | 0.23% | | Beverages | 86.31 | -.63 | -0.72% | | Food Producers | 46,976.48 | -119.78 | -0.25% |
| | | Index Name | RP | Move | % Move | | Personal Goods | 440.95 | -1.40 | -0.32% | | Consumer Services | 53,323.36 | -675.14 | -1.25% | | General Retailers | 40,932.37 | -459.21 | -1.11% | | Travel & Leisure | 3,687.45 | 15.02 | 0.41% | | Media | 85.14 | -1.73 | -1.99% | | Support Services | 2,388.37 | -13.26 | -0.55% | | Telecommunications | 67,731.93 | -944.48 | -1.38% | | Financials | 21,411.27 | -90.60 | -0.42% | | Banks | 40,173.86 | -236.26 | -0.58% | | Non-life Insurance | 31,050.96 | -957.84 | -2.99% | | Life Insurance | 15,819.00 | -78.61 | -0.49% | | General Financial | 2,240.49 | -11.07 | -0.49% | | Technology | 21,508.90 | 65.69 | 0.31% | | SHARIAH TOP40 | 3,157.30 | -45 | -1.41% | | FTSE/JSE SHARIAH ALL | 3,218.04 | -42 | -1.27% | | COAL MINING | 22,095.03 | -129 | -0.58% | | FTSE JSE Fledgling | 4,541.22 | 20 | 0.45% | | FTSE/JSE Alt X | 1,014.28 | 4 | 0.36% | | SA LISTED PROPERTY | 371.32 | | 0.21% | | CAPPED PROPERTY | 311.57 | | 0.27% | | RESOURCE | 30,039.78 | -447 | -1.47% | | DIVIDEND PLUS | 167.59 | -1 | -0.43% | | FTSE/JSE RAFI 40 | 6,643.03 | -70 | -1.04% | | Capped Top 40 | 14,908.49 | -167 | -1.11% | | Capped All Share | 16,028.31 | -154 | -0.95% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** | Code | Company Name | Status | Updated | | LHC | LIFE HEALTHCARE GRP HLDG ... | HOLD | 12 May | | CMP | CIPLA MEDPRO SA LTD | SELL | 11 May | | SUI | SUN INTERNATIONAL LTD | HOLD | 11 May | | FPT | FOUNTAINHEAD PROP TRST | HOLD | 11 May | | SPP | THE SPAR GROUP LTD | HOLD | 11 May |
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Results Expected** | Expected | Company Name | Fin. Date | | 18 May 2011 | ANSYS | February 2011 (Final) | | 18 May 2011 | RAC PREFS | March 2011 (Final) | | 18 May 2011 | RECM | March 2011 (Final) | | 18 May 2011 | TIGBRANDS | March 2011 (Interim) | | 19 May 2011 | AUSTRO | February 2011 (Interim) |
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Recent Dividends** | Share Name | Dec-Date | LDT | Pay-Date | Amount | | ASTRAL | 11-05-16 | 11-06-09 | 11-06-20 | R 3.0500 | | VODACOM | 11-05-16 | 11-06-24 | 11-07-04 | R 2.8000 | | RAUBEX | 11-05-16 | 11-06-03 | 11-06-13 | R 0.6800 | | NETCARE | 11-05-16 | 11-07-15 | 11-07-25 | R 0.2200 | | JDGROUP | 11-05-16 | 11-06-17 | 11-06-27 | R 1.0000 |
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Ex Div** | Share Name | Dec-Date | LDT | Pay-Date | Amount | | OCTODEC | 11-04-26 | 11-05-12 | 11-05-23 | R 0.6500 | | PREMIUM | 11-04-26 | 11-05-12 | 11-05-23 | R 0.5820 | | AFGRI | 11-03-02 | 11-05-12 | 11-05-23 | R 0.2415 |
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Upcoming AGMs** | Code | Company Name | Date | Status | | DTA | Delta EMD Ltd | 17/05/2011 | Confirmed | | ADH | ADvTECH Ltd | 17/05/2011 | Confirmed | | SAC | SA Corporate Real Estate Fund | 17/05/2011 | Confirmed | | RES | Resilient Property Income Fund Ltd | 17/05/2011 | Confirmed | | GFI | Gold Fields Ltd | 17/05/2011 | Confirmed |
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![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-05-17T102015Z_01_AJOE74G0SPT00_RTROPTP_3_OZABS-SAFRICA-INFLATION-20110517.JPG "A women walks past a shop advertising a sale in Sandton")
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