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Market Commentary
Market Commentary for Monday 23 October 2017.

The All Share Index opened higher by 81.2 points or 0.14% on Monday as the weaker domestic currency buoyed Rand hedge and dual-listed stocks. Our local bourse struggled to hold onto its gains throughout the trading session and closed the day 0.09% in the black. Financials edged higher by 0.06%, with the likes of Barclays Africa and Firstrand both trading higher by 0.97% and 0.34% respectively. Resources closed firmer by 0.79%, led by Anglo American which gained 2.34%. The Gold miners were virtually unchanged and closed 0.09% in the black, led by AngloGold Ashanti which closed the trading session stronger by 1.55%. The Iron Ore producers had an upbeat close as Kumba Iron and Assore finished higher by 1.88% and 0.08% respectively. On the company front, Pioneer Food Group announced released a trading update for the full year ended 30 September 2017 and advised shareholders that revenue decreased by between 4% and 6% from the R20.6bn in the comparative period due to a combination of deflation, volume declines and resistance to price increases. The company expects adjusted HEPS to be between 433c and 503c being a decline of between 43% and 51% when compared to the 883c reported for the previous corresponding period. The stock was lower by 2.92% by the close of trade. Mediclinic made an announcement confirming it had approached Spire regarding a possible offer for the entire issued share capital not already owned by it, and advised that the proposal was rejected by the independent directors of Spire. Under the proposal, Spire shareholders would receive 0.232 Mediclinic shares and 150 pence in cash for each Spire share. Based on the closing price of Mediclinic shares as at 17 October 2017 (The last business day prior to the proposal), the proposal valued each Spire share at 300 pence which represents a 30% premium to the closing price of Spire shares on 17 October 2017 and a 31% premium to the VWAP of Spire shares in the month prior to and including 17 October 2017. Mediclinic’s share price closed weaker by 2.39%. Efficient Group Ltd announced a trading update for the full year ended 31 August 2017 and indicated that HEPS are expected to be between 73.48c and 79.70c, reflecting an increase of between 76.9% and 91.9% compared to the HEPS of 41.53c for the previous comparative period. On the economic front, the Leading Economic Index in Japan increased to 107.20 Index Points in August from 105.20 Index Points in July 2017. Business Confidence in the UK decreased to -11 in the fourth quarter of 2017 from 5 in the third quarter of 2017. Consumer Confidence in the Euro Area increased to -1 in October from -1.20 in September 2017. The Chicago Fed National Activity Index in the US rose to 0.17 from a downwardly revised -0.37 in August, beating market expectations of -0.1. It is the highest reading in five months as the contribution from production-related indicators increased to 0.10 from -0.33 in August. Total value traded for the day was recorded at R16.953bn

Market Commentary
The Day Ahead for Tuesday 24 October 2017.

The S&P 500 Index and Dow Jones Industrial Average both fell on Monday by 0.40% and 0.23% respectively, pulled down by technology and industrial stocks, whilst the Nasdaq shed 0.64%. West Texas crude approached $52 a barrel after OPEC reported record compliance with pledged production cuts and the Dollar advanced to a 14-week high. The Asian bourses are mostly firmer this morning and Tencent is trading marginally higher by 0.11% whilst the Hang Seng is up 0.03% thus far. BHP Billiton is higher by 0.23% in Australia as the Australian ASX is trading 0.06% in the black. European markets are set for a stronger open and traders can expect a bullish start to trading on our local bourse this morning.

News Articles
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Fin24.com | Land grab without compensation could affect all in SA - legal expert
10/24/2017 12:02:57 PM

Expropriation of land without compensation will not only affect farmers or those in rural areas, but could snowball into a situation that touches all South Africans.

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Fin24.com | How Moody’s rated Discovery for the first time
10/24/2017 11:51:55 AM

Ratings agency Moody’s has given a first time rating to financial services group Discovery Limited, just a few days after it received approval for a banking licence.

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Fin24.com | ArcelorMittal SA CEO to retire
10/24/2017 11:28:23 AM

ArcelorMittal South Africa says its CEO Wim de Klerk will retire at the end of January 2018, and it will start a process to find his successor.

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Fin24.com | Mining communities ask to join case against Mining Charter
10/24/2017 10:38:22 AM

About 150 community-based organisations and activists will apply to join an existing case brought by mining companies to challenge the government’s Mining Charter.

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Fin24.com | Molefe’s pension trial date set for three days
10/24/2017 9:56:47 AM

Former Eskom CEO Brian Molefe’s court date has been set to be heard in Pretoria’s North Gauteng High Court for three days at the end of November.

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Fin24.com | Lawyer brawl sets back Koko hearing
10/24/2017 9:32:31 AM

Suspended Eskom executive Matshela Koko’s disciplinary hearing will now only commence on November 23, after only two witnesses have testified so far.

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Fin24.com | Over 1 100 Lonmin workers could be retrenched before Christmas
10/24/2017 7:48:50 AM

Lonmin plans to retrench 1 139 workers before Christmas, said trade union Solidarity, which will embark on a negotiation process with the platinum miner.

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Fin24.com | CEF to probe PetroSA, SFF deals and will seek legal action over fuel sale
10/24/2017 6:32:36 AM

The Central Energy Fund's board wants a court to declare an illegal sale of SA's strategic oil reserves void, and plans to launch a full-scale probe into the Strategic Fuel Fund and PetroSA, a source told Fin24.

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Fin24.com | CEF to probe PetroSA and SFF contracts and will seek legal action over fuel sale
10/24/2017 6:01:17 AM

The board of the Central Energy Fund wants a court to make void an illegal sale of SA's strategic oil reserve, and plans to launch a full-scale forensic investigation into the Strategic Fuel Fund and PetroSA, a source told Fin24.

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Fin24.com | SA can't be 'trust fund kid' living solely off mineral resources - Patel
10/24/2017 6:00:47 AM

South Africa’s can’t be a "trust fund kid" living off its mineral resources but not developing new skills, Minister of Economic Development Ebrahim Patel told a group of entrepreneurs on Monday.

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Fin24.com | Patrice Motsepe's ARM drops KPMG
10/23/2017 10:04:37 PM

African Rainbow Minerals has dropped KPMG as its internal auditors, the company said.

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Fin24.com | Moody’s rates Discovery, sees expansion plans as risky
10/23/2017 10:04:15 PM

Ratings agency Moody’s has given a first time rating to financial services group Discovery Limited, just a few days after it received approval for a banking licence.

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Fin24.com | Top5 on Fin24: Motsepe drops KPMG, and Russia denies meddling in SA Cabinet changes
10/23/2017 8:39:48 PM

ICYMI: A roundup of Monday's most important finance and economic news.

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Fin24.com | Russia denies meddling in SA Cabinet reshuffle
10/23/2017 7:17:06 PM

The Russian Embassy in South Africa has rejected weekend reports that it had a hand in SA's most-recent Cabinet reshuffle as 'fake news' and 'slanderous'.

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Fin24.com | SA not in a crisis - economist
10/23/2017 4:01:22 PM

South Africa is not necessarily in a crisis, according to Lesiba Mothata, executive chief economist at Alexander Forbes Investments.

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Fin24.com | BLSA willing to work with Eskom - on certain conditions
10/23/2017 2:37:56 PM

Business Leadership South Africa says it is open to working with Eskom to address "activities that are legally or ethically questionable".

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Fin24.com | Threat of court action if govt steps out of line with nuclear plans
10/23/2017 1:22:18 PM

Should the details of any progress on pushing through a costly nuclear programme not be open to the public, the DA will not hesitate to go to court.

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Fin24.com | Pioneer shares drop after profit warning
10/23/2017 12:33:41 PM

Pioneer’s shares dropped by 2.8% after the food company warned shareholders that its profit would likely be 48% lower for the year ended September 2017.

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Fin24.com | Top UK hospital firm rejects Mediclinic takeover offer
10/23/2017 10:03:05 AM

Spire Healthcare Group has rejected a takeover proposal from its biggest shareholder Mediclinic International, saying an offer that values the UK private hospital operator at £1.2bn “significantly undervalues Spire and its prospects.

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Fin24.com | Farmers' court victory gains Karoo fracking reprieve
10/23/2017 8:26:49 AM

Farmers have put the brakes on fracking in the Karoo for now, as the mining ministry mulls whether it should appeal a court ruling that declared fracking regulations invalid.

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DST
Heads up: Distell FY17 results - Robust SA performance offset by offshore weakness
10/6/2017

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MDI
Heads up: Master Drilling 1H17 results - light at the end of the tunnel
10/6/2017

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SUI
Heads up: Sun International 1H17 results - Rights issue on the cards?
10/6/2017

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KST
Heads up: PSG Konsult - 1H18 results
10/6/2017

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HSP
Heads up: Holdsport 1H18 results - Going Long4Life
10/5/2017

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YRK
Heads up: York Timber FY17 results - discount to underlying TNAV substantial
10/5/2017

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CPI
Heads up: Capitec Bank Holdings Limited - 1H18 results
10/5/2017

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ASC
Heads up: Ascendis FY17 results
10/5/2017

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ZED
Heads up: Zeder 1H18 results - Improving return outlook
10/4/2017

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CND
Heads up: Conduit Capital FY17 results - Investing for the long-term
10/3/2017

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  23,273.96   -54.67  -0.2%
DJ Trans  9,939.39   -32.71  -0.3%
NASDAQ  6,586.83   -42.23  -0.6%
NYSE S and P500 INDEX  2,564.98   -10.23  -0.4%
FTSE 100  7,527.19   2.74  0.0%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  13,024.10   20.96  0.2%
HONG KONG HANG SENG INDEX  28,154.97   -150.91  -0.5%
NIKKEI 225 INDEX  21,805.17   108.52  0.5%
Major JSE Indices*
Name Value Move
OVERALL  57823   -176.29  -0.3%
TOP 40  51512   -158.30  -0.3%
ALL GOLD  1331   -1.70  -0.1%
INDUSTRIAL  79449   -229.49  -0.3%
FINANCIAL  15556   -75.03  -0.5%
RESOURCES  36338   -81.68  -0.2%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.67   0.00 0.0%
ZAR/ / CHF  14.00   -0.02 -0.1%
USD/ / EUR  1.18   0.00 -0.2%
ZAR/ / EUR  16.12   0.05 0.3%
USD/ / GB  1.32   0.00 -0.1%
ZAR/ / GBP  18.04   0.08 0.4%
YEN/ / ZAR  8.33   0.01 0.1%
JPY/ / USD  113.75   0.29 0.3%
ZAR/ / USD  13.73   0.09 0.7%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  57.47   0.13 0.2%
Palladium  966.42   7.22 0.8%
Platinum  925.33   -1.07 -0.1%
Silver  17.05   0.00 0.0%
Gold  1,278.31   -3.60 -0.3%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Adrenna Property Grp L  15.9
Alaris Holdings Ltd  14.7
Sekunjalo Inv Ltd  13.0
ANOORAQ RESOURCES CORP  11.6
Top 5 Losers -- Delayed
African Dawn Capital L  -20.0
Forbes & Manhatt Coal  -16.7
eXtract Group Limited  -16.7
Pembury Lifestyle Grp  -12.5
WG Wearne Ltd  -12.5

PRICES (15 minute delay)

Ashburton Top 40 ETF : ASHT40 5155  1 | Resilient REIT Limited : RES 14014  -136 | NewFunds S&P GIVI SA F : GIVFIN 3859  0 | Industrial En : J275 6812  106 | Telkom SA SOC Ltd : TKG 5410  -87 |

SENS (15 minute delay)

| SBV : Symbol [SBV]| WBO : Availability of The Integrated Report, No Change Statement and Notice of Annual G| ASR : Posting of Integrated Annual Report and Annual Financial Statements and Notice of| CCO : Notification of Major Interests in Shares| ALH : No Change Statement and Notice of Annual General Meeting| ECS : Symbol [ECSP7]| HC1M3 : HC1M3 - Revised Issuance| HC1M2 : HC1M2 - Revised Issuance| HC1M1 : HC1M1 - Revised Issuance| MDI : Broad Based Black Economic Empowerment Act (the "BBBEE Act"): Annual Compliance R| SFN : Symbol [SFN]| MSM : Trading of Massmart ordinary shares on behalf of the Massmart Share Trust and Sha| AVL : Results of Annual General Meeting| SOV : Update regarding the Transaction| ACL : ACL - Changes to the Board| PFB : Summarised Financial Results For The Year Ended 31 August 2017 And Maiden Cash Di| MSP : Confirmation of posting of notice of annual shareholders? meeting| TRE : Textainer announces date for the third quarter 2017 earnings release and conferen| GTC : Change in the date of publication of consolidated quarterly report for the third| SSS : Opening of Accelerated Bookbuild| AFE : Presentation: AECI plant & animal health strategic growth pillar| CSP500 : Listing of 200 000 additional CSP500 Securities| TAW : Tawana Completes Earn in to Bald Hill| SNH : Steinhoff Repurchases 78 Million Shares| ATT : Appointment of interim chief executive officer| AMS : Production report for the third quarter ended 30 September 2017| AGL : Production report for the third quarter ended 30 September 2017| KIO : Kumba Iron Ore Limited production and sales report for the quarter ended 30 Septe| DTC : Cancellation of AIM listing| ITU : Notification of Trading Update| S32 : Daily Share Buy-Back Notice| MTN : Quarterly update for the period ended 30 September 2017| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details