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Market Commentary
Market Commentary for Wednesday 19 September 2018

Our local bourse started the trading session largely flat on Wednesday but gradually slipped as the morning progressed. The selling pressure persisted throughout most of the day as the rand hedges weighed on the market. The all share rallied in the late afternoon trade with our market eventually finishing the day slightly higher by 0.11% at the close. The best performer for the day was the Financial sector, appreciating 1.41% by market close. Leading the upside were Standard Bank and Absa Group, climbing by 3.21% and 2.77% respectively. Our Industrial sector bucked the trend and finished 0.99% lower, driven largely by Aspen Pharmacare which closed the day 7.98% softer. On the company front, Astral Foods have advised shareholders that the earnings per share for the 12 months ending 30 September 2018 is expected to be at least 80% up on the previous year. This implies that the EPS is expected to be at least 3 506 cents per share. Headline Earnings per Share is expected to be at least 85% up on the previous year. This implies that the HEPS is expected to be at least 3 513 cents per share. Pan African Resources PLC released their provisional audited results for the year ended 30 June 2018. Profit after taxation from the group`s continuing operations came in at R202.0 million. The group incurred a once-off impairment charge of R1.78 billion associated with the cessation of Evander Mines` underground operations and the resultant retrenchment costs of R161 million. Continuing operations` earnings per share decreased to 11.16 cents per share. Continuing operations` headline earnings per share decreased to 18.71 cents per share. Revenue from continuing operations decreased to R1,873.9 million. On the Economic front, The annual inflation rate in South Africa dropped to 4.9% in August 2018 from a 10-month high of 5.1% in July and against market expectations of 5.2%. Core consumer prices in South Africa increased 4.20% in August of 2018 over the same month in the previous year. Consumer price inflation in the UK rose to an annual rate of 2.7% in August 2018 from 2.5% in the previous month and comfortably above market expectations of 2.4%. Construction output in the Euro Area increased by 2.6% from a year earlier in July 2018, following an upwardly revised 3% growth in the previous month and beating market expectations of 1.7%. Mortgage applications in the United States increased 1.6% in the week ended September 14th 2018 The US current account deficit narrowed to USD 101.5 billion or 2.0% of the GDP in the second quarter of 2018 from a downwardly revised USD 121.7 billion gap or 2.4% of the GDP in the first three months of the year and compared to market expectations of a USD 103.5 billion shortfall. Housing starts in the US jumped 9.2% from a month earlier to an annualized rate of 1,282,000 in August of 2018, recovering from a 0.3% drop in July and beating market expectations of a 5.8% rise. Total value traded for the day was R17.31 bn.

Market Commentary
The Day Ahead for Thursday 20 September 2018

Wall Street ended the day in positive territory on Wednesday with the Dow Jones Industrial Average and the S&P500 gaining 0.61% and 0.13% respectively, as investors took escalating trade tensions in stride to instead focus on improving economic fundamentals. Eastern markets are trading in mixed territory this morning with the Nikkei currently higher by 0.23% and the Hang Seng index currently lower by 0.17%. Tencent is trading in the black by 0.37% whilst BHP Billiton has gained 1.44% this morning. The Australian ASX is trading weaker by 0.23% thus far. Traders can expect a positive start to trading on our local bourse this morning.

News Articles
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Fin24.com | SA needs 'wholly new' approach to stimulate economy - Mathews Phosa
9/20/2018 10:19:36 PM

South Africa needs a "wholly new" approach to lift the economy out of its current slump, says former ANC treasurer Mathews Phosa.

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Fin24.com | ANC sends, then retracts SARB monetary policy statement
9/20/2018 9:19:47 PM

A retracted statement by the ANC ahead of the SARB interest rate decision, claimed the party believes monetary policy is a "critical legislative instrument".

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Fin24.com | Next interest rate move in November: experts weigh in
9/20/2018 8:07:20 PM

This time SARB decided to keep interest rates the same, but what could happen at the next MPC meeting in November?

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Fin24.com | Makwakwa: SARS inquiry biased
9/20/2018 7:05:43 PM

The former head of business and individual taxes at SARS claims the Nugent Inquiry is biased.

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Fin24.com | Emirates denies plans to take over Etihad
9/20/2018 6:42:59 PM

Dubai's Emirates Airline has denied reports it is in talks to acquire struggling Abu Dhabi carrier Etihad.

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Fin24.com | Presidency said to play central role in economic stimulus package rollout
9/20/2018 5:45:54 PM

Senior government sources say President Cyril Ramaphosa's stimulus package will be run out of the office of the Presidency, where the top team has been finalised.

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Fin24.com | Jack Ma says he can’t create 1 million jobs after all
9/20/2018 5:16:12 PM

Alibaba co-founder Jack Ma says his promise to create 1 million jobs in the US is impossible to fulfill because of the US-China trade war.

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Fin24.com | EU tells Facebook 'patience at limit' on consumer rules
9/20/2018 5:15:06 PM

The EU has warned Facebook to bring its consumer terms in line with the bloc's rules by the end of the year or risk financial penalties.

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Fin24.com | FULL STATEMENT: SA Reserve Bank keeps repo rate unchanged
9/20/2018 4:42:25 PM

Read the full statement by the Reserve Bank's governor Lesetja Kganyago delivered at a media briefing in Pretoria.

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Fin24.com | SA Reserve Bank keeps repo rate unchanged at 6.5%
9/20/2018 3:12:52 PM

The announcement was made by the central bank's governor Lesetja Kganyago at a media briefing in Pretoria.

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Fin24.com | Ramaphosa to unveil economic stimulus package on Friday
9/20/2018 2:50:36 PM

SA is currently in its first technical recession since 2009 following two successive quarters of negative economic growth.

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Fin24.com | Rand will be stronger if SA Reserve Bank resists the urge to hike rates
9/20/2018 2:37:51 PM

Any attempt to shore-up the rand by hiking interest rates would probably backfire, leading instead to a weakening in the currency, says Overberg Asset Management.

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Fin24.com | Revised Mining Charter approved by Cabinet
9/20/2018 1:40:12 PM

President Cyril Ramaphosa is expected to speak about the revised Charter - which has not been made public yet - when he unveils his economic stimulus plan on Friday.

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Fin24.com | Court rules Infinity Media Networks must reinstate employees
9/20/2018 12:41:36 PM

A labour court has ruled that Infinity Media Networks – which ran the Afro Worldview news channel – reinstate employees because they were not properly dismissed.

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Fin24.com | Zondo dismisses Lynne Brown's application to cross examine Jonas
9/20/2018 11:13:49 AM

Deputy Chief Justice Raymond Zondo has dismissed former public enterprise minister Lynne Brown's application to cross-examine Mcebisi Jonas.

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Fin24.com | JUST IN: Ramaphosa to unveil economic stimulus package on Friday
9/20/2018 10:50:02 AM

SA is currently in a technical recession following two successive quarters of negative economic growth.

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Fin24.com | MTN surges as Nigeria softens tone on $8.1bn claim
9/20/2018 10:49:45 AM

MTN shares rose the most in more than six months after the Nigerian central bank softened its stance over claims that Africa’s biggest wireless carrier illegally transferred $8.1bn out of the country.

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Fin24.com | Up, down or stay: All eyes turn to SARB on rates
9/20/2018 8:35:36 AM

Weaker than expected consumer inflation for August may have reduced pressure on the central bank to hike interest rates on Thursday afternoon.

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Fin24.com | Big day for borrowers, savers with SA Reserve Bank set to announce interest rates
9/20/2018 8:29:52 AM

Weaker than expected consumer inflation for August may have reduced pressure on the central bank to hike interest rates on Thursday afternoon.

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Fin24.com | Big day for borrowers, savers as SARB set to announce rates move
9/20/2018 8:06:00 AM

The weaker than expected CPI inflation outcome for August will reduce the pressure somewhat on SARB to hike interest rates, most experts forecast.

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ARI
Heads up: African Rainbow Minerals - review of results for the year ended 30 June 2018
9/19/2018

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RMI
Heads up: RMI FY18 results - Exceptional OUTsurance underwriting margins
9/19/2018

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AVI
Heads up: AVI FY18 results - Margin gains despite volume pressure
9/19/2018

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APN
Heads up: Aspen FY18 results review
9/17/2018

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MFL
Heads up: Metrofile FY18 results - Increasing leverage and a reduction in the dividend
9/17/2018

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ACT
Heads up: Afrocentric FY18 results - Playing the long game
9/17/2018

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AIL
Heads up: African Rainbow Capital Investments FY18 results - A compelling opportunity
9/14/2018

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SUR
Heads up: Spur FY18 results - Tough environment contributing to weak results
9/12/2018

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DSY
Heads up: Discovery FY18 results - How sizeable will Vitality Group become internationally?
9/12/2018

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MMI
Heads up: MMI 1H18 results - Resetting the base
9/12/2018

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  26,641.06   235.30  0.9%
DJ Trans  11,541.40   27.74  0.2%
NASDAQ  8,013.65   63.61  0.8%
NYSE S and P500 INDEX  2,928.13   20.18  0.7%
FTSE 100  7,367.32   36.20  0.5%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  12,333.12   114.10  0.9%
HONG KONG HANG SENG INDEX  27,477.67   70.30  0.3%
NIKKEI 225 INDEX  23,674.93   2.41  0.0%
Major JSE Indices*
Name Value Move
OVERALL  56547   101.23  0.2%
TOP 40  50397   125.18  0.2%
ALL GOLD  1048   -8.79  -0.8%
INDUSTRIAL  70500   214.20  0.3%
FINANCIAL  16638   57.75  0.3%
RESOURCES  43603   -22.09  -0.1%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.50   -0.01 0.0%
ZAR/ / CHF  15.01   -0.15 -1.0%
USD/ / EUR  1.17   0.00 -0.1%
ZAR/ / EUR  16.95   -0.01 -0.1%
USD/ / GB  1.32   0.00 -0.1%
ZAR/ / GBP  19.10   -0.03 -0.1%
YEN/ / ZAR  7.80   0.14 1.9%
JPY/ / USD  112.52   0.24 0.2%
ZAR/ / USD  14.43   -0.01 -0.1%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  78.82   -0.49 -0.6%
Palladium  1,038.70   10.40 1.0%
Platinum  829.00   4.80 0.6%
Silver  14.26   -0.02 -0.1%
Gold  1,204.17   0.18 0.0%
Top 5 Gainers -- Delayed
Europa Metals Limited  33.3
SABLE PLATINUM LTD  31.9
Jasco Electron Hldgs L  16.0
Impala Platinum Hlgs L  14.9
Wesizwe Platinum Ltd  14.7
Top 5 Losers -- Delayed
Group Five Ltd  -26.8
African Dawn Capital L  -25.9
Grand Parade Inv Ltd  -20.3
Trans Hex Group Ltd  -20.0
Aveng Group Limited  -20.0

PRICES (15 minute delay)

Industrial Me : J175 14015  -737 | Health & Serv : J453 7261  -86 | Equity Investment Inst : EQII 2354  18 | New Gold Platinum ETF : NGPLT 11788  88 | PSG Financial Serv Pre : PGFP 6955  5 |

SENS (15 minute delay)

| ENX01 : Symbol [EQS08A]| ENX : Notification Of The Acceptance Of A Credit Rating By enX Leasing Investments Prop| JSE : Dealings in securities by directors, the company secretary and the JSE LTIS 2018| OMN : Results of Annual General Meeting and Invitation to Dissenting Shareholders| BCF : Notification of Presentation to Analysts| INL : Symbol [INL]| INL : Symbol [INL]| RLF : NOTIFICATION OF DEALINGS BY AN ASSOCIATE OF A DIRECTOR| PEM : Audited Provisional Consolidated Condensed Results for the Year Ended 31 December| ASHGEQ : Listing of additional Ashburton Global 1200 Equity ETF Securities - ASHGEQ| RBP : Symbol [RBP]| NT1 : Notification of directors? dealings in Net1 securities| WSL : Dealing in securities by a director| TTO : Results of Annual General Meeting| YRK : Notification of change in external auditor| NPK : Voluntary trading update for the 11 month period ended 31 August 2018| MUR : Dealing in securities by Directors, Company Secretary and Murray & Roberts Holdin| DTC : Report on proceedings at the annual general meeting and changes to the board| HMN : TR-1: Standard form for notification of major holdings| CLN519 : Amendment Announcement - CLN519| SAR : Dealing in Securities by Director| S32 : Update to notification of dividend| UBNPNR : Symbol [UBNPNU]| PIK : Trading statement| CCO : Listing Application in Connection with the Capital & Counties Properties plc Scri| HPR : Dealing In Shares By A Director| MFL : Dealing In Securities By An Associate Of A Director| NTC21 : Symbol [NTC21]| APF : Pre-Close Update| AEG : Symbol [AEG]| SHFF : Symbol [SHFF]| REDX01 : Date: 20 September 2018| BWZ20A : Interest Payment Notification - BWZ20A| BWZ21B : Interest Payment Notification - BWZ21B| JSE : TAW Trading Halt - Please wait, downloading details| TAW : Trading Halt| TAW : CANCELLATION OF S405014 Trading Halt| GLN : GLN: Transactions In Own Shares - 19 September 2018| CTOP50 : Delisting of 350 000 CoreShares Top 50 Securities| TAW : Trading Halt| ETF5IT : Listing of Additional ETFSP5IT Securities| SHI02 : Availability of the Annual Financial Statements of the Issuer| S32 : Daily Share Buy-Back Notice| SPIB27 : New Listing- SPIB27| KAL : Dealing In Kaap Agri Securities| GLN : GLN: Glencore Announces Successful Placing Of Bonds>| STXPRO : Listing of Satrix Property Securities - STXPRO| ACL : ACL: Appointment Of Company Secretary.| AEG : Disclosure of Beneficial Interest in Securities| GLD : GLD/NGNGLD: Partial De-Listing Of NewGold Debentures.| STX40 : Listing of Additional Satrix 40 Securities - STX40| STXWDM : Listing of Additional Satrixwdm Securities - STXWDM| EUZ : JORC Mineral Resource Estimate Update, Toral Project, Spain| STXPRO : Listing of Satrix Property Securities - STXPRO| GLN : GLN: Glencore Announces Issuance Of Convertible Bonds.| BTI : British American Tobacco Announces CEO?s intention to retire on 1 April 2019| DTC : General repurchase of shares announcement| HMN : Transaction in Own Shares| HPF11 : HPF11 - Interest Payment Notification| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details