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Market Commentary
The Day Ahead for Wednesday 31 August 2016

Yesterday, US markets closed in the red, with the Dow Jones Industrial Average and the S&P 500 closing lower by 0.26% and 0.20% respectively. Asian markets are trading mixed this morning with the Nikkei stronger and the Hang Seng lower by 0.99% and 0.01% respectively. Tencent is weaker by 1.17% whilst BHP Billiton has shed 2.98% in Australia this morning. The Australian ASX is trading lower by 0.79% thus far. Traders can expect a flat to negative start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Tuesday 30 August 2016

Yesterday was a relatively lacklustre day on the JSE, with the All-Share Index closing the day 0.22% lower following a marginally stronger start. A broad decline in commodity prices saw the Resource and Gold sectors lead the losses on the market, giving back 1.18% and 2.99% respectively. The rand continued to lose ground to most major currencies as nervous investors shy away from the standoff between treasury and the Hawks and the possibility of a downgrade before the end of the year grows. This propped up the predominantly foreign-earning Industrial index but hurt the Financial sector. On the company front, Cashbuild released annual results showing that revenue rose by 13%, headline earnings climbed 41% and there was a 15% increase in net asset value. The company also upped its total annual dividend by 41%. DRD Gold released results for the year ended 30 June 2016. The key features showed that operating profit rose 13% to R434.8 million, headline earnings rose 28% to 12.7cents and the dividend was increased to 62 cents per share. Homechoice released interim results showing that the company grew revenue by 15.8% to R1,152 million Pan-African sales increased by 27,9% to 11,6% of total sales and EBITDA increased by 15,5% to R310 million. Cash generated from operations increased by 18,3% to R145 million and retail sales through digital channels increased 17,8% to 11,6% of total sales. Comair released a trading statement indicating that for the year ended 30 June 2016, it expects earnings per share to be within 20% of those reported for the year ended 30 June 2015. However the Company expects headline earnings per share to be at least 25% (at least 11.9 cents) lower than HEPS of 47.9 cents reported for the previous corresponding period. The expected decrease is primarily due to profit arising on the disposal of retired aircraft and profit on a claim against insured aircraft equipment. Interwaste released interim results showing that revenue from continuing operations grew 6%, profit from operating activities grew 28% and profit from continuing operations grew 34%. An after-tax loss from discontinued operations of R5.4 million was incurred comprising of a profit of R3.9 million on the sale of the Earth 2 Earth business, and a loss of R9,3 million on the Enbitec investment. RCL Foods released full year results for the 12 months ended 30 June 2016. The highlights showed that revenue was up 6.8% while EBITDA declined 20.6%, headline earnings from continuing operations declined 11.9% and the dividend was decreased by 31.8% to 15 cents. The total value traded for the day was R17.88bn.

News Articles
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Fin24.com | SAA warned to file financials, overhaul board
8/31/2016 3:38:42 PM

Parliament's Standing Committee on Finance is concerned about an SAA advert seeking R16.bn in funding as well as possible deregistration of the airline.

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Fin24.com | Standard Bank Zim unit profitable but can't grow assets
8/31/2016 3:00:52 PM

Stanbic Bank, which is owned by Standard Bank, says it has not been able to match growth in deposits with asset creation because of Zimbabwe's fragile economy.

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Fin24.com | SA's trade surplus shrinks to R5.22bn in July
8/31/2016 2:31:12 PM

South Africa's trade surplus shrank to R5.22bn in July versus a revised surplus of R12.47bn in June, according to data.

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Fin24.com | Molefe: Zuma a nice old man, Gordhan right for job
8/31/2016 1:52:59 PM

Eskom CEO Brian Molefe has praised Finance Minister Pravin Gordhan as "the right man for the job" and says President Jacob Zuma is "a very nice old man”.

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Fin24.com | Gordhan probe will undo efforts to avoid downgrade - CEOs
8/31/2016 1:08:06 PM

The CEOs Initiative says it is disappointed in the way Gordhan and the Treasury are being “attacked” by people who are “not concerned” about damage done to the economy.

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Fin24.com | Eurozone inflation undershoots forecast
8/31/2016 12:54:06 PM

Eurozone inflation has failed to accelerate in August, adding to signs that the eurozone’s economic outlook deteriorated ahead of a European Central Bank meeting.

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Fin24.com | Ngubane: Campaign to kill trust in Eskom
8/31/2016 12:48:41 PM

There is a campaign to “kill trust in Eskom”, chairperson Ben Ngubane has told Parliament.

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Fin24.com | Campaign to kill trust in Eskom - Ngubane
8/31/2016 12:33:22 PM

There is a campaign to “kill trust in Eskom”, chairperson Ben Ngubane has told Parliament.

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Fin24.com | Steinhoff operating profit jumps 32%
8/31/2016 11:51:10 AM

Furniture chain Steinhoff has provided an unaudited trading update, which shows, among others, a 33% increase in revenue.

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Fin24.com | Molefe: I am captured by the Constitution, not Guptas
8/31/2016 11:49:59 AM

Eskom CEO Brian Molefe says the only thing he has been captured by is the constitution, and that it sounds as if the Guptas have been found guilty by a kangaroo court.

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Fin24.com | German unemployment falls
8/31/2016 11:30:00 AM

German unemployment has continued its decline in August, signalling that consumption driven by a strong labour market may cushion its economy from Brexit blow.

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Fin24.com | Nigeria slides into recession as economy contracts by 2.06%
8/31/2016 11:05:07 AM

Nigeria's gross domestic product contracted by 2.06% in the second quarter, sending Africa's biggest economy into a recession after a decline in the first quarter.

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Fin24.com | Load shedding is history, says Eskom as another Ingula unit goes live
8/31/2016 10:36:43 AM

The third unit at Ingula Pumped Storage Scheme has been brought into commercial operation, Eskom CEO Brian Molefe has announced.

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Fin24.com | June credit growth slows
8/31/2016 10:16:21 AM

Growth in credit demand by the private sector slowed to 6.78% year-on-year in July from a revised 7.23% in June, according to Reserve Bank data.

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Fin24.com | Zwane wanted Sarb role changed after Gupta blacklisting - report
8/31/2016 9:19:09 AM

Mines Minister Mosebenzi Zwane has reportedly recommended to Cabinet a drastic change to the Banks Act that would allow the finance minister to control bank licences.

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Fin24.com | Zwane suggested changing Sarb role after Gupta blacklisting - report
8/31/2016 9:13:06 AM

Mines Minister Mosebenzi Zwane has reportedly recommended to Cabinet a drastic change to the Banks Act that would allow the finance minister to control bank licences.

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Fin24.com | UK house prices rise as supply shortage offsets weaker demand
8/31/2016 8:55:00 AM

UK house prices have risen the most in five months in August as a shortage of supply supported values even amid weaker demand.

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Fin24.com | Zwane suggested pulling Sarb role after Gupta blacklisting - report
8/31/2016 8:40:40 AM

Mines Minister Mosebenzi Zwane has reportedly recommended to Cabinet a drastic change to the Banks Act that would allow the finance minister to control bank licences.

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Fin24.com | Zwane suggested Sarb role changed after Gupta blacklisting - report
8/31/2016 7:59:05 AM

Mines Minister Mosebenzi Zwane has reportedly recommended to Cabinet a drastic change to the Banks Act that would allow the Finance minister to control bank licenses.

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Fin24.com | Denel tears into Gordhan, defends Guptas
8/30/2016 11:22:59 PM

Denel has strongly criticised Finance Minister Pravin Gordhan and National Treasury over a joint venture with Gupta-linked VR Laser Asia.

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ADH
Heads up: Advtech 1H16 results
8/30/2016

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SHP
Heads up: Shoprite FY16 results - Rest of Africa buoys performance
8/29/2016

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BID
Heads up: Bidcorp FY16 results - a trophy asset at a trophy price
8/29/2016

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GLN
Heads up: Glencore 1H16 results - Delivering on deleveraging
8/26/2016

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FFA
Heads up: Fortress FY16 results- boosted by M&A activity
8/25/2016

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FFB
Heads up: Fortress FY16 results- boosted by M&A activity
8/25/2016

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MTA
Heads up: Metair 1H16 results - Still challenged by new model launch
8/25/2016

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ROC
Heads up: Rockcastle 1H16 results- Executing its strategy
8/24/2016

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AGL
Heads up: Anglo American 1H16 results
8/22/2016

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NPN
Heads up: Tencent exceptional 1H16 results - the strong becoming stronger
8/22/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,434.30   -20.00  -0.1%
DJ Trans  7,892.28   -17.84  -0.2%
NASDAQ  5,217.77   -5.22  -0.1%
NYSE S and P500 INDEX  2,171.76   -4.36  -0.2%
FTSE 100  6,807.49   -13.30  -0.2%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,632.90   -24.74  -0.2%
HONG KONG HANG SENG INDEX  22,976.88   -39.23  -0.2%
NIKKEI 225 INDEX  16,887.40   162.04  1.0%
Major JSE Indices*
Name Value Move
OVERALL  52804   -644.43  -1.2%
TOP 40  46348   -471.47  -1.0%
ALL GOLD  2344   -58.99  -2.5%
INDUSTRIAL  71346   -636.95  -0.9%
FINANCIAL  14709   -85.80  -0.6%
RESOURCES  31312   -809.39  -2.5%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.99   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.11   0.00 -0.3%
ZAR/ / EUR  16.30   0.18 1.1%
USD/ / GB  1.31   0.00 0.0%
ZAR/ / GBP  19.12   0.28 1.5%
YEN/ / ZAR  7.09   6.95 4,951.4%
JPY/ / USD  103.29   0.31 0.3%
ZAR/ / USD  14.64   0.24 1.7%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  47.89   -0.49 -1.0%
Palladium  674.00   -2.00 -0.3%
Platinum  1,053.00   -2.00 -0.2%
Silver  18.67   0.11 0.6%
Gold  1,309.80   -0.70 -0.1%
Top 5 Gainers -- Delayed
African Dawn Capital L  100.0
SABLE PLATINUM LTD  31.9
Ferrum Crescent Limite  20.0
New Frontier Prop Ltd  18.2
Mazor Group Ltd  17.0
Top 5 Losers -- Delayed
PPC Limited  -31.2
Chrometco Ltd  -18.8
Forbes & Manhatt Coal  -16.7
Mr Price Group Ltd  -16.7
Nu-World Hldgs Ltd  -10.7

PRICES (15 minute delay)

Mid Cap : MIDC 49213  409 | Wescoal Holdings Ltd : WSL 170  -5 | Texton Property Fund L : TEX 800  10 | SABMiller plc : SAB 84400  900 | Rockcastle Global Real : ROC 3605  -65 |

SENS (15 minute delay)

| VKE : Dealings in securities by a director of the company| ADW : No Change Statement And Notice Of Annual General Meeting| PGFP : Declaration Of Preference Share Dividend| APKP : Report on proceedings at the annual general meeting| MRP : Trading update for the 18 weeks ended 6 August 2016| MMI : Trading Statement| ZA050 : Exercise of Warrants Relating to FTSE/JSE Africa To 40 Index - ZA050| DAW : Voluntary operational update| TPC : Directors dealing in securities| ZA029 : Redemption of Certificated Relating to Cadiz SA Tracker Risk Controlled 15% ER In| SNT : Reviewed condensed consolidated interim financial statements for the six months e| RDF : Dealings in securities by an associate of a director of the company| DST : Summarised audited results of the Group for the year ended 30 June 2016 and cash| PGR : Dealings in securities by an associate of a director of the company| OML : Form 8.3 - Public Opening Position Disclosure - Deutsche Boerse AG| TON : Dealings in securities by Company Secretary| IVA636 : IVA636-Listing of Tap Issue| IVA649 : IVA649- New Instrument Listing| ITU : Notification of Major Interests in Shares| INL : Investec plc ? Voting rights and capital| SAP : Announces Release of Security over Existing Debt| PPE : Resignation of a director, change in the functions of directors, change in compos| PIV : No change statement and notice of annual general meeting| ALP : Dealings in securities by a director and by an associate of a director of the com| WHL : Disclosure of significant holding of Woolworths Holdings ordinary shares| NWL : Dealings in securities by directors of Nu-World and its major subsidiary and the| IVT : Associate of director?s dealing in securities| SPG : Update on Sandown Motors Acquisition and Property Acquisition| AVL : Appointment of new Chief Financial Officer and change in role| WIL : Report on the proceedings of the annual general meeting| SHP : Dealing in securities by alternate director of main subsidiary| SAC : Dealing in securities by a director| NILB14 : Tap Issue of Nedbank Limited Senior Unsecured Notes: NILB14| NILB15 : Tap Issue of Nedbank Limited Senior Unsecured Notes: NILB15| TAW : Change in substantial holding and Becoming a substantial holder| SAH : Change in Company Secretary| SAB : Rule 2.10 announcement| STX40 : Listing of Additional Satrix 40 Securities - STX40| EOH : Trading Statement| STX40 : Partial Delisting of Satrix 40 Securities - STX40| NEP : Notice to NEPI shareholders in respect of an election to receive either a cash di| RDF : Pre-close webcast| AFT : Closed Period Share Repurchase Programme| GLD : GLD/ NGNGLD - Listing of additional NewGold Debentures| NEP : Appointment of alternate director - Replacement announcement| FCR : Further Nil-cost Extension of Option to Acquire Interests in Lead-Zinc Exploratio| SNH : Unaudited Financial Update For The Twelve Months Ended 30 June 2016| VUN : Results of annual general meeting| VUN : Dealings in securities by directors| EPP : Abridged pre-listing statement - Opening of offer, the listing of EPP on the Main| CPIP : Declaration Of A Dividend Of 440.11 Cents Per Non-Redeemable, Non-Cumulative, Non| ECSP1 : August 2016 Preference Share Dividend Finalisation Announcement| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details