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Market Commentary
Market Commentary for Monday 21 May 2018

Yesterday, the All Share index finished the day unchanged, or 0.03% higher, despite strong gains in US markets. Our mining sector was the best performer, adding 1.61%, with Glencore, BHP Billiton and Anglo American all advancing by 1.9%. Brait jumped 6.3% to close at R40.92, while EOH and Tongaat closed in the black by 4.79% and 4.74%, respectively. On the other side of the spectrum, we saw a 1.29% drop in our health care sector, driven by a 2.59% fall in Aspen. Dis-Chem declined a further 3.2%, while Vodacom and Distell each lost 2.3%. On the company front, Texton Property Fund announced the acquisition of a portfolio of logistics properties for an aggregate purchase consideration of R205.3 million at a proposed acquisition yield of 9.4%. Pioneer Food Group released results for the six months ended 31 March 2018 highlighting that turnover decreased by 3% to R9.9 billion, gross profit increased by 12% to R2.9 billion, earnings per share (EPS) increased by 34% to 332.5 cents and headline earnings per share (HEPS) increased by 30% to 317.1 cents per share. Barloworld showed in results for the six months ended 31 March 2018 that operating profit went up by 6% to R2 billion, HEPS from continuing operations went up 14% to 457 cents, while an interim dividend of 145 cents per share was declared, an increase of 16%. Greenbay Properties announced that the per share cash dividend will be 4.31651 cents per share when converted from the 0.2285 euro cents per share declared on 15 May 2018. Taste Holdings notified shareholders that Mr Evan Tsatsarolakis has resigned as Chief Financial Officer with effect from 31 May 2018 and Mr Dylan Pienaar has been appointed as acting CFO. In a quiet day on the economic front, the Chicago Fed National Activity Index rose to 0.34 in April from an upwardly revised 0.32 in the previous month and easily beating market expectations of 0.14. Total value traded for the day was R15.2 billion.

Market Commentary
The Day Ahead for Tuesday 22 May 2018

US markets closed in positive territory on Monday as the US-China trade war is placed on hold. The Dow Jones Industrial Average and the S&P500 gained 1.21% and 0.74%, respectively. Eastern markets are trading mostly lower this morning with the Nikkei currently in the red by 0.1%. The Australian ASX is weaker by 0.75% with BHP Billiton 0.8% softer thus far. Traders can expect a flat to negative start to trading on our local bourse this morning.

News Articles
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Fin24.com | 17 district municipalities in 'financial distress' - Treasury
5/22/2018 1:40:09 PM

Treasury’s state of local government and financial management report for 2016/17 revealed that 17 district municipalities were identified as being in financial distress.

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Fin24.com | Ramaphosa appoints new presiding officer for Tom Moyane disciplinary inquiry
5/22/2018 12:27:03 PM

President Cyril Ramaphosa has appointed Advocate Azhar Bham, SC, as the presiding officer into the disciplinary charges against suspended SARS commissioner Tom Moyane.

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Fin24.com | Treasury vows to protect poorest from VAT rate hike, cites zero-rated items
5/22/2018 12:24:49 PM

Minister of Finance Nhlanhla Nene says National Treasury will protect South Africa’s poorest citizens from the impact of the increase in the value added tax rate to 15%.

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Fin24.com | Woolworths Australian boss John Dixon shown the door
5/22/2018 10:38:25 AM

The retailer says the axing of the regional Australian CEO position is part of a move to simplify its regional leadership structure.

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Fin24.com | Trump retreats from China tariffs amid White House trade discord
5/22/2018 10:24:51 AM

US President Donald Trump retreated from imposing tariffs on billions of dollars' worth of Chinese goods because of White House discord over trade strategy and concern about harming negotiations with North Korea.

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Fin24.com | Toyota, BMW, Ford battle over SA support plan
5/22/2018 10:01:30 AM

South Africa is proposing automakers including Toyota, Ford and BMW more than double production – in return for tax breaks so generous that the companies can ship the cars to Europe.

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Fin24.com | From Zuma to Moyane: The legal cases ensnaring prominent SA officials
5/22/2018 8:18:41 AM

A slew of legal cases involving politicians and officials, including former President Jacob Zuma, are working their way through the courts, with some prominent public figures at risk of being jailed or losing their jobs.

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Fin24.com | Gauteng turns to drone technology to monitor construction projects
5/22/2018 7:13:52 AM

The Gauteng Department of Infrastructure Development has launched a drone to monitor and collect data in a bid to improve inefficiencies and reduce on project delays.

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Fin24.com | Zanu PF aims to move Zim from pariah to global partner
5/22/2018 6:33:35 AM

Zimbabwe's ruling Zanu PF says that if it is re-elected in the forthcoming elections, it will focus on opening the country for business, fighting corruption and making land productive again.

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Fin24.com | Live stream for Zuckerberg's European hearing over privacy scandal
5/21/2018 10:38:10 PM

Facebook co-founder Mark Zuckerberg’s testimony to the European Parliament on the Cambridge Analytica scandal will be broadcast live online on Tuesday.

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Fin24.com | Lodestone share sale shouldn't be 'one horse race', says Markus Jooste's son-in-law
5/21/2018 8:30:25 PM

A 'one horse race' with only one bidder would not be in the best interests of shareholders of fast-moving consumer goods business Lodestone, says Markus Jooste's son-in-law Stefan Potgieter.

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Fin24.com | Business debt stress in SA continues to improve – index
5/21/2018 6:32:36 PM

Business debt stress conditions in South Africa continued to improve in the first quarter of 2018, according to the latest Experian Business Debt Index.

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Fin24.com | Top 5 on Fin24: Govt says unions agree to wage deal 'in principle' and rand back to bad old ways
5/21/2018 6:00:58 PM

A roundup of Monday's top economic and finance reads on Fin24.

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Fin24.com | Capitec broadens its horizons with funeral plan offering
5/21/2018 5:30:00 PM

Capitec Bank is entering the insurance market with a funeral product positioned to offer affordable and flexible insurance for the South African market.

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Fin24.com | The price of Elon Musk's Tesla Model 3 just more than doubled
5/21/2018 4:43:44 PM

Elon Musk’s Model 3, once touted as Tesla’s $35 000 car for the masses, can now set a buyer back almost $80 000.

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Fin24.com | Record boost for Barloworld's Russian Equipment division
5/21/2018 4:43:29 PM

Barloworld has delivered promising interim results for the six months ending March 31 2018, with a record boost in its Russian Equipment division.

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Fin24.com | SA more relaxed ahead of S and P credit rating
5/21/2018 4:27:40 PM

Last year everybody was an expert on it. Now some of the pros don’t even mention that S and P Global Ratings will be announcing its latest assessment of South Africa’s debt this week.

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Fin24.com | Dlodlo a no show at wage briefing, govt still getting union signatures
5/21/2018 3:41:02 PM

While the department of public service and administration has said that unions have “in principle” agreed to the public sector wage agreement, at least one union says it is not backing the offer.

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Fin24.com | UAE to allow 100% business ownership to foreign investors
5/21/2018 3:39:36 PM

The United Arab Emirates plans to allow full foreign ownership in companies and grant long-term visas to some investors and professionals as the Gulf economy seeks to attract more investments.

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Fin24.com | Glencore said to be near R12.78bn deal for Chevron's Cape Town refinery, other assets
5/21/2018 2:38:19 PM

Switzerland based miner and trader is close to a deal to buy Chevron's southern African assets, according to three people familiar with the matter.

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SAP
Heads up: Sappi - Better than expected 2Q18 results
5/22/2018

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RDF
HEADS UP: Redefine 1H18 results - staying afloat
5/21/2018

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AEL
Heads up: Altron FY18 results
5/21/2018

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ARL
Heads up: Astral Foods 1H18 results - When the stars align
5/21/2018

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SNV
Heads up: Santova FY18 results - Further margin improvement
5/18/2018

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NTC
Heads up: Netcare interim results review - Goodbye UK
5/18/2018

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DCP
Heads up: Dis-Chem FY18 - Wholesale weighs on robust retail performance
5/11/2018

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CLS
Heads up: Clicks 1H18 results - Continues to impress
5/10/2018

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PSG
Heads up: PSG Konsult - FY18 results
4/25/2018

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PIK
Heads up: Pick n Pay FY18 results - Sales growth finds momentum in 4Q18
4/23/2018

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  25,013.29   298.20  1.2%
DJ Trans  10,867.32   136.86  1.3%
NASDAQ  7,394.04   39.70  0.5%
NYSE S and P500 INDEX  2,733.01   20.04  0.7%
FTSE 100  7,871.52   12.35  0.2%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  13,115.97   38.25  0.3%
HONG KONG HANG SENG INDEX  31,234.35   186.44  0.6%
NIKKEI 225 INDEX  22,960.34   -42.03  -0.2%
Major JSE Indices*
Name Value Move
OVERALL  58010   188.61  0.3%
TOP 40  51500   188.69  0.4%
ALL GOLD  1004   -7.26  -0.7%
INDUSTRIAL  74821   467.90  0.6%
FINANCIAL  16937   199.91  1.2%
RESOURCES  41125   -377.66  -0.9%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  9.54   -0.07 -0.7%
ZAR/ / CHF  12.62   -0.10 -0.8%
USD/ / EUR  1.18   0.00 0.1%
ZAR/ / EUR  14.84   -0.11 -0.7%
USD/ / GB  1.35   0.00 0.1%
ZAR/ / GBP  16.90   -0.12 -0.7%
YEN/ / ZAR  8.83   0.07 0.8%
JPY/ / USD  110.98   -0.06 -0.1%
ZAR/ / USD  12.57   -0.11 -0.9%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  79.49   0.05 0.1%
Palladium  1,004.05   11.50 1.2%
Platinum  907.79   6.65 0.7%
Silver  16.58   0.07 0.4%
Gold  1,294.06   1.22 0.1%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Purple Group Ltd  21.7
Verimark Holdings Ltd  15.5
Alphamin Resources Cor  15.5
Transcend Res Prop Fd  13.8
Top 5 Losers -- Delayed
Niveus Investments Ltd  -36.0
Trans Hex Group Ltd  -30.2
Marshall Monteagle plc  -18.9
Eastern Platinum Ltd  -17.8
Aveng Group Limited  -17.5

PRICES (15 minute delay)

Primeserv Group Ltd : PMV 60  0 | Life Healthc Grp Hldgs : LHC 2777  35 | Adcorp Holdings Limite : ADR 1761  0 | Bell Equipment Ltd : BEL 1386  56 | Satrix RAFI 40 Portfol : STXRAF 1459  -8 |

SENS (15 minute delay)

| HMN : Holdings in Company ? Withdrawal of announcement published on 21 May 2018| RBX : Notification in terms of Section 122(3) of The Companies Act and Section 3.83(b)| PFG : Dealing In Company Shares By A Director| T15OM1 : Symbol [TH15D1]| ANA : Trading Statement| CVH : Symbol [CVH]| TDHBP : Cumulative, Redeemable "B" Preference Share Cash Dividend & Voluntary Partial Red| T14A10 : Symbol [TH14D2]| WSL : Trading Statement and Voluntary Strategic and Operational Update| CCO : Listing Application in Connection with the Capital & Counties Properties Plc Scri| DGH : Abridged prospectus| T13A10 : Symbol [TH13D4]| T12A10 : Symbol [TH12D3]| CTOP50 : Listing of 100 000 Additional CoreShares Top 50 Securities - CTOP50| DIVTRX : Listing of 100 000 additional DivTrax Securities - DIVTRX| EQU : Announcement of dividend reinvestment price and confirmation of finalisation info| MED : Appointment of auditors| AEE : Unaudited Interim Results For The Period Ended 28 February 2018| AFEP : Declaration of preference share dividend no. 160 - AFEP/AECI| GLPROP : Index rebalance announcement| PMM39 : Symbol [PMM42]| SPDA10 : Symbol [SPDA8]| ASC : Secondary listing on the A2X| JSE : ATON GmbH| KST : Cautionary Announcement| FCR : Completion of Fundraising, Issue of Equity and Options and Directors? Dealings| S32 : Daily Share Buy-Back Notice| TAW : Replacement Appendix 3B| TFS139 : Symbol [TFS139]| SYGUS : Partial Delisting of SYGUS Securities-SYGUS| SYGP : Index Constituent and Weight Change - SYGP| AGL : Anglo American rough diamond sales value for De Beers? fourth sales cycle of 2018| RFG : Appointment of lead independent director| RFG : Reviewed condensed consolidated interim results| CML : Interim Results for the six months ended 31 March 2018| WHL : Symbol [WHL]| VMK : Summarised audited consolidated financial statements for the year ended| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details