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Market Commentary
Market Commentary for Wednesday 16 January 2019

Yesterday, our market finished 0.47% higher with investors turning their attention to a confidence vote on Theresa May’s government on Wednesday evening. Our industrial sector was the best performers on the day, adding 1.22%, while resource stocks came under pressure on the back of a stronger rand and closed 1.26% softer. Brait SE and Barloworld both gained more than 3.8% by the close, while on the losing side, we saw a 5.3% drop in Sasol to R416.02 and a 2.64% fall in Kumba Iron Ore to R279.65 per share. On the company front, Choppies advised shareholders that the company is still progressing the matters regarding the delay in the publication of the financial results and the trading of shares on both the Botswana Stock Exchange (“BSE”) and Johannesburg Stock Exchange remains suspended until the company complies with the BSE listing requirements or until further notice. Sibanye-Stillwater announced, in an update on the ongoing strike, that AMCU refuses to co-operate with the verification process. The share closed 2.42% weaker at R9.66. Regarding the unbundling of Multichoice to Naspers shareholders, the company announced that Multichoice is finalising its pre-listing statement for purposes of submission to the JSE for formal approval, together with an application for approval of the listing of the Multichoice shares on the JSE as a primary listing. On the economic front, Germany’s annual inflation rate slowed to an eight-month low of 1.7% in December from 2.3% in the previous month. In the UK, the inflation rate declined to 2.1% in December from 2.3% in the previous month, while the retail price index increased by 0.4% month-on-month compared to expectations of 0.5%. In the US, export prices declined 0.6% month-over-month, following a revised 0.8% fall in November and in line with expectations. US import prices fell 1% from a month earlier in December, compared with expectations of a 1.3% decrease. The NAHB housing market index for the US edged up to 58 in January from 56 in December. In South Africa, retail sales increased by 3.3% in November 2018 over the previous month, which was above market expectations of a 2.5% increase. Total value traded for the day was R12.9 billion.

Market Commentary
The Day Ahead for Thursday 17 January 2019

US markets closed in positive territory on Wednesday as investors cheered strong quarterly earnings from Goldman Sachs and Bank of America. The Dow Jones Industrial Average and S&P500 added 0.59% and 0.22%, respectively. Eastern markets are mostly lower this morning with the Nikkei currently 0.22% weaker and the Hang Seng Index trading just under the flat line. Tencent is trading in the black by 1.5%, whilst BHP has lost 0.18%. The Australian ASX is 0.27% stronger thus far. Traders can expect a positive start to trading on our local bourse this morning.

News Articles
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Fin24.com | MONEY CLINIC: Desperate for cash? Should you dig into your savings or use your credit card?
1/17/2019 10:24:43 PM

Have a money problem that needs solving? Fin24 can help! This month our focus is on debt. Send your question to editor@fin24.com or find the Money Clinic box on the right of our homepage.

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Fin24.com | Moody’s: Rising government debt hampers banking sector
1/17/2019 9:42:10 PM

Rising public debt levels affect a country’s banking sector, with banks preferring to lend to government, which is seen as lower risk, according to Moody's senior vice president.

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Fin24.com | Sibanye-Stillwater appoints new non-executive director
1/17/2019 9:03:14 PM

Harry Kenyon-Slaney’s arrival as non-executive director comes at a time when Sibanye-Stillwater is shrugging off the impact of industrial action and occupational challenges including mine deaths that occurred last years.

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Fin24.com | Chinese company pays R618m back to Transnet, more expected
1/17/2019 8:58:06 PM

State-owned freight rail company Transnet has been paid back R618m by a Chinese company that it concluded a maintenance deal with in 2016.

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Fin24.com | I have my lawyers and nothing to hide, says Brian Molefe on Transnet summons
1/17/2019 7:19:45 PM

Former Transnet CEO says it is typical of individuals to put together flimsy summonses only to go quiet and non-responsive to them when lawyers reply to the summons.

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Fin24.com | SPECIAL REPORT What would really happen to data costs without bundles?
1/17/2019 6:37:16 PM

Why is data in South Africa so expensive? Why does it 'expire'? And is there anything that anyone can do about it? Fin24 unpacks the issues in the final instalment of this four-part series on the cost of data in SA.

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Fin24.com | EU says it is taking 'very seriously' the possibility of a no-deal Brexit
1/17/2019 5:32:48 PM

The European Commission says it is 'not taking any chances' in preparing for Brexit as the possibility of a no-deal divorce was seen to increase after UK Prime Minister Theresa May’s withdrawal agreement suffered a historic defeat.

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Fin24.com | Reserve Bank mandate is enshrined in the Constitution - Kganyago
1/17/2019 4:22:22 PM

The central bank governor was speaking in the wake of calls to expand the bank's mandate by taking into account employment creation and economic growth in addition to protecting the value of the currency.

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Fin24.com | Reserve Bank keeps repo rate unchanged at 6.75%
1/17/2019 3:22:12 PM

Governor of the SA Reserve bank Lesetja Kganyago announced the benchmark rate at a media briefing in Pretoria.

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Fin24.com | Zim internet restored, but partial social media blackout 'until further notice'
1/17/2019 2:37:37 PM

The Zimbabwean government has restored some internet connectivity in the country, but a partial social media blackout remains.

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Fin24.com | Foreign holdings of SA debt lowest in nearly two years
1/17/2019 2:32:48 PM

Foreign ownership of South African government debt is declining, but that’s not necessarily a bad thing.

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Fin24.com | Confidence key to SA agriculture amid land, climate fears - Wandile Sihlobo
1/17/2019 2:17:54 PM

The issue of confidence comes up over and over again when talking about investment in the agricultural sector, says the agricultural economist.

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Fin24.com | SA, Nigerian growth challenges could be unlocked post-elections - Deloitte
1/17/2019 1:48:43 PM

Structural impediments to economic growth in South Africa and Nigeria could be unlocked after the two largest economies in Africa go to the polls in the first half of 2019, says Deloitte's Dr Martyn Davies.

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Fin24.com | Popo Molefe says new board found 'horror show' at Transnet
1/17/2019 1:08:01 PM

The state-owned freight rail company has issued summons to former top executives implicated in financial mismanagement with a view of recouping some of the squandered money.

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Fin24.com | SPECIAL REPORT Data costs are falling, say Vodacom, MTN, Cell C, Telkom
1/17/2019 12:18:50 PM

Why is data in South Africa so expensive? Why does it 'expire'? And is there anything that anyone can do about it? Fin24 unpacks the issues in the second report in this four-part series published daily on the cost of data in SA.

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Fin24.com | SPECIAL REPORT This is why data still costs you twice what it could
1/17/2019 12:18:34 PM

Why is data in South Africa so expensive? Why does it 'expire'? And is there anything that anyone can do about it? Fin24 unpacks the issues in the first of this four-part series that will be published daily this week on the cost of data in SA.

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Fin24.com | SPECIAL REPORT Are we being overcharged for data? How SA stacks up against 9 peer countries
1/17/2019 12:18:18 PM

Why is data in South Africa so expensive? Why does it 'expire'? And is there anything that anyone can do about it? Fin24 unpacks the issues in the third report in this four-part series published daily on the cost of data in SA.

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Fin24.com | Govt said to want Eskom to table turnaround strategy before Budget
1/17/2019 11:18:30 AM

The government is pushing Eskom to present a credible turnaround strategy before the National Budget on February 20, a person familiar with the situation said.

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Fin24.com | All eyes on the Reserve Bank for first rate decision of 2019
1/17/2019 8:49:14 AM

The Monetary Policy Committee of the SA Reserve Bank will make its first interest rate announcement of 2019 on Thursday.

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Fin24.com | May faces tough talks with opponents to get a new Brexit deal
1/17/2019 7:54:48 AM

British Prime Minister Theresa May is entering the most delicate and dangerous negotiations of the country’s split from the European Union as she searches for a compromise with her political enemies that will deliver a Brexit deal.

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SAP
Heads Up: Sappi FY18 Results review
1/9/2019

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BAT
Heads Up: Brait 1H19 Results - Disappointing, but portfolio optimisation could unlock value
1/9/2019

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SAP
Heads Up: Sappi FY18 Results review
1/9/2019

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PFG
Heads up: Pioneer Foods FY18 Results - Recovery Derailed by Tougher H2
12/12/2018

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NPK
Heads up: Nampak FY18 Results Review
12/6/2018

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VOD
Heads up: Vodacom Limited - 1H19 Results for the six months ended 30 September 2018
12/5/2018

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QFH
Heads up: Quantum Foods FY18 Results - Strong, but unsustainable
12/5/2018

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TBS
Heads up: Tigerbrands FY18 Results - 2H18 Collapse
12/3/2018

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LHC
Heads up: Life Healthcare FY18 results review
11/26/2018

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CML
Heads up: Coronation FY18 results Review
11/26/2018

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  24,162.38   -44.78  -0.2%
DJ Trans  9,651.50   43.20  0.4%
NASDAQ  7,034.69   10.86  0.2%
NYSE S and P500 INDEX  2,617.04   0.94  0.0%
FTSE 100  6,842.27   -20.41  -0.3%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,913.36   -17.88  -0.2%
HONG KONG HANG SENG INDEX  26,755.63   -146.47  -0.5%
NIKKEI 225 INDEX  20,402.27   -40.48  -0.2%
Major JSE Indices*
Name Value Move
OVERALL  53436   -350.53  -0.7%
TOP 40  47298   -366.80  -0.8%
ALL GOLD  1354   32.94  2.5%
INDUSTRIAL  64702   -702.80  -1.1%
FINANCIAL  16918   -207.11  -1.2%
RESOURCES  40649   193.18  0.5%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  9.89   0.02 0.2%
ZAR/ / CHF  13.89   0.05 0.4%
USD/ / EUR  1.14   0.00 -0.1%
ZAR/ / EUR  15.71   0.01 0.1%
USD/ / GB  1.29   0.00 0.0%
ZAR/ / GBP  17.83   0.04 0.2%
YEN/ / ZAR  7.89   -0.08 -0.9%
JPY/ / USD  108.98   -0.13 -0.1%
ZAR/ / USD  13.81   0.10 0.7%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  60.56   -0.77 -1.3%
Palladium  1,353.55   30.65 2.3%
Platinum  808.90   -0.30 0.0%
Silver  15.50   -0.13 -0.8%
Gold  1,289.91   -3.64 -0.3%
Top 5 Gainers -- Delayed
Group Five Ltd  40.0
SABLE PLATINUM LTD  31.9
Universal Partners Ltd  27.0
Sea Harvest Group Ltd  16.7
Micromega Holdings Ltd  15.6
Top 5 Losers -- Delayed
Mr Price Group Ltd  -16.7
Forbes & Manhatt Coal  -16.7
Coal of Africa Ltd  -14.3
Trans Hex Group Ltd  -11.8
South Ocean Holdings L  -11.8

PRICES (15 minute delay)

Allied Electronics Cor : ATN 2375  -124 | MTN Group Ltd : MTN 8500  -125 | Sibanye Gold Limited : SGL 1000  50 | Support Services : SUPS 2362  -4 | Nonlife Insurance : NLIF 41984  128 |

SENS (15 minute delay)