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Market Commentary
The Day Ahead for Thursday 28 July 2016

Wall Street ended the day in slightly negative territory on Wednesday with the Dow Jones Industrial Average and the S&P500 slipping 0.01% and 0.12% respectively, as the Federal Open Market Committee once again left the benchmark rate unchanged, as was widely expected. Eastern markets are trading in slightly negative territory this morning with the Nikkei and the Hang Seng index currently lower by 0.95% and 0.31% respectively. Tencent is trading in the red by 0.26% whilst BHP Billiton has gained 0.95% this morning. The Australian ASX is trading stronger by 0.48% thus far. Traders can expect a flat start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Wednesday 27 July 2016

Our local bourse started the trading session in the black on Wednesday but gradually slipped lower as the session progressed. The afternoon was highlighted by a strengthening Rand, anticipation of the Federal Reserve’s interest rate decision and substantially weaker oil prices after the release of inventories in the US. Our market eventually finished the day higher by 0.24% at the close. The best performer for the day was the gold mining sector, appreciating 1.65% by market close. Leading the upside were Goldfields and Harmony, climbing by 4.5% and 1.88% respectively. Our banking sector followed on closely and finished 0.77% higher, driven largely by First Rand which closed the day 1.52% stronger. On the company front, the Spur Corporation released a sales update for the first half of 2016, highlighting an increase of 13% in restaurant sales, international restaurant sales increased by 12.9% in Rand terms – applying a constant exchange rate, international sales increased by 2.8%. Sibanye shareholders were advised that earnings for the 6 months ended 30 June 2016 are expected to be significantly higher than the comparable period in 2015. HEPS are expected to be between 484% and 611% (or 92 cents and 116 cents per share) higher than the 19 cents reported for the same period in 2015. EPS are expected to be between 70% and 110% higher than the 20 cents reported in 2015. Fortress shareholders were referred to the Fortress Memorandum of Incorporation stating that the Fortress A dividend of 61.38 per share for the 6 months ended 30 June 2015 will escalate by the lower of 5% and the most recent CPI figure. With CPI at 6.35% the Fortress A dividend growth will be limited to 5%. The dividend per Fortress B share for the 6 months ended 30 June 2016 will be between 74.09 cents and 74.87 cents per share, between 89% and 91% higher than the 39.2 cents per share in the comparable period in 2015. On the Economic front, the GFK Consumer Climate for Germany is set to come in at 10.0 in August of 2016, compared to 10.1 in July and above market expectations of 9.9. Both economic and income expectations fell, affected by the Brits` decision to leave the EU. The UK’s economy advanced 2.2% year-on-year in the second quarter of 2016, accelerating from a 2% rise in the previous period and beating market expectations of a 2% growth. The CBI Business Optimism in the UK for the second quarter of 2016 worsened slightly to -5% from -4% in the previous period. New orders for US manufactured durable goods slumped 4% in June from May of 2016, following an upwardly revised 2.8% drop in the previous period. It is the biggest fall since August of 2014 and much worse than market expectations of a 1.1% decline. Contracts to buy previously owned US homes increased 1% year-on-year in June of 2016, recovering from a 0.2% fall in May. Stocks of crude oil in the United States rose by 1.67 million barrels in the week ended July 22nd 2016, following a 2.34 million fall in the previous week. It is the first increase in two months, compared to market expectations of a more than 2 million barrel drop. The Federal Reserve left the target range for its federal funds rate unchanged at 0.25% to 0.5% for the fifth time during its July 2016 meeting. Policymakers said that the labour market strengthened and near-term risks to growth decreased, suggesting a rate hike is still possible this year although dependent on incoming economic data. Total value traded for the day was R 24.75bn.

News Articles
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Fin24.com | StatsSA boss slams UN invoice-fraud report
7/28/2016 3:44:50 PM

Statistician-general Pali Lehohla has disputed the accuracy of a United Nations report on invoice fraud, which shows "discrepancies" in SA’s records of gold exports.

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Fin24.com | US jobless claims climb from a three-month low
7/28/2016 3:39:39 PM

The number of Americans who filed for unemployment benefits have risen from a three-month low, consistent with the Fed Reserve’s view of a stronger job market.

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Fin24.com | Shell profit drops on lower oil, weaker refining margins
7/28/2016 3:00:00 PM

Shell's second-quarter profit has plunged, missing analyst estimates by more than $1bn, as lower energy prices, weaker refining margins and production halts weighed in.

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Fin24.com | Turkish crisis leads to over 40% drop in visitors
7/28/2016 2:30:00 PM

The number of foreigners visiting Turkey has dropped over 40% to its lowest level this year as the impact of attacks and previous tensions with Russia cause havoc.

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Fin24.com | Petrol pumps could run dry in 3 days, warns union
7/28/2016 2:28:07 PM

At least 20 000 South African petroleum industry workers have downed tools, with the union warning that pumps at filling stations could run dry in about three days.

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Fin24.com | SA sheds 129 000 jobs in Q2
7/28/2016 1:39:23 PM

The second quarter of 2016 saw a decline in jobs of 129 000, compared to the previous quarter, according to the latest quarterly labour force survey.

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Fin24.com | Slight drop in unemployment rate
7/28/2016 1:33:26 PM

The official unemployment rate in the second quarter of 2016 declined slightly with 0.1 of a percentage point to 26.6%, Statistics South Africa has announced.

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Fin24.com | Petrol strike has not stopped operations at SA's largest oil refinery
7/28/2016 1:32:02 PM

UPDATE: South Africa's largest oil refinery has not stopped operations due to a strike over wages, contradicting an earlier union claim.

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Fin24.com | BREAKING: Slight drop in unemployment rate
7/28/2016 12:30:19 PM

The official unemployment rate in the second quarter of 2016 declined slightly with 0.1 of a percentage point to 26.6%, Statistics South Africa has announced.

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Fin24.com | German unemployment falls as companies shrug off Brexit woes
7/28/2016 12:00:01 PM

German unemployment has extended its decline in July, in a sign that the economy is showing resilience to uncertainty unleashed by a Brexit vote.

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Fin24.com | Sibanye sees gold output over 1 million ounces for 12 yrs
7/28/2016 11:55:16 AM

Sibanye Gold says investments in its operations mean it will maintain output at more than 1 million ounces annually for at least 12 years.

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Fin24.com | PPI increased to 6.8% in June - Stats SA
7/28/2016 11:39:47 AM

The headline Producer Price Index has increased slightly to 6.8% year-on-year in June in line with expectations, Statistics South Africa has announced.

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Fin24.com | PPI increased to 6.8% in June
7/28/2016 11:36:40 AM

The headline Producer Price Index has increased slightly to 6.8% year-on-year in June in line with expectations, Statistics South Africa has announced.

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Fin24.com | Petrol strike stops operations at SA's largest oil refinery
7/28/2016 11:24:25 AM

South Africa's largest oil refinery has stopped operations due to a strike over wages, while Cheveron's South African unit has prepared for the strike.

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Fin24.com | VW brand’s profit falls amid emissions scandal
7/28/2016 10:28:16 AM

Volkswagen’s reeling namesake passenger-car brand has posted a 38% drop in profit as the carmaker set aside more money for litigation over its emissions scandal.

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Fin24.com | Energy minister orders review of fuel fund contracts
7/28/2016 9:55:58 AM

Energy Minister Tina Joemat-Pettersson has ordered the Central Energy Fund to conduct a review of Strategic Fuel Fund contracts since 2014.

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Fin24.com | Adidas raises forecast amid boost from Chelsea payment
7/28/2016 9:30:00 AM

Adidas has increased its full-year forecast as brand sales benefited from the Euro 2016 soccer tournament.

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Fin24.com | Anglo American profit drops 23% on commodity rout
7/28/2016 9:15:45 AM

Anglo American, which is seeking to turnaround its business to withstand a collapse in commodity prices, said first-half profit dropped 23%. Its net debt declined to $11.7bn.

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Fin24.com | Gordhan warns of junk status impact on SA debt
7/28/2016 7:31:37 AM

SA will soon owe close to R2trn in debt and if SA gets a ratings downgrade the interest that needs to be paid on these loans will increase significantly, says Pravin Gordhan.

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Fin24.com | US Fed begins crawl toward rate hike as near-term risks diminish
7/28/2016 6:42:01 AM

Federal Reserve policy makers have taken a step toward raising interest rates later this year but stopped short of signaling that the move could come as soon as September.

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AMS
Heads up: Anglo American Platinum 1H16 results - Portfolio repositioning coming through
7/26/2016

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NPN
Heads up: Naspers FY16 results - impressive inroads have been made
7/26/2016

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OMN
Heads up: Omnia Ltd FY16 results to March 2016 - weathering the bottom of the cycle
7/15/2016

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RDF
Heads up: Redefine Accelerated Bookbuild
7/13/2016

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NEP
Heads up: NEPI Accelerated Bookbuild
7/13/2016

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KEH
Heads up: Keaton Final results to 31 March 2016
7/8/2016

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SSS
Heads up: Stor-Age REIT FY16 results- Better than expected
6/21/2016

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MTN
Heads up: MTN update on the Nigerian fine
6/15/2016

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PIK
Heads up: Pick n Pay Stores Ltd & Pick n Pay Holdings Ltd - Elimination of PWK pyramid structure
6/14/2016

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PWK
Heads up: Pick n Pay Stores Ltd & Pick n Pay Holdings Ltd - Elimination of PWK pyramid structure
6/14/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,472.17   -1.58  0.0%
DJ Trans  7,861.45   -118.85  -1.5%
NASDAQ  5,139.81   29.76  0.6%
NYSE S and P500 INDEX  2,166.58   -2.60  -0.1%
FTSE 100  6,741.57   -8.86  -0.1%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,313.69   -5.86  -0.1%
HONG KONG HANG SENG INDEX  22,174.34   -44.65  -0.2%
NIKKEI 225 INDEX  16,476.84   -187.98  -1.1%
Major JSE Indices*
Name Value Move
OVERALL  53396   -368.51  -0.7%
TOP 40  46506   -368.24  -0.8%
ALL GOLD  2851   65.73  2.4%
INDUSTRIAL  70918   -843.05  -1.2%
FINANCIAL  15165   -182.60  -1.2%
RESOURCES  32414   437.94  1.4%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.70   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.11   0.01 1.0%
ZAR/ / EUR  15.79   0.00 0.0%
USD/ / GB  1.32   0.00 0.1%
ZAR/ / GBP  18.67   -0.17 -0.9%
YEN/ / ZAR  7.40   7.26 5,391.1%
JPY/ / USD  104.89   -0.41 -0.4%
ZAR/ / USD  14.23   -0.12 -0.9%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  43.26   -0.11 -0.3%
Palladium  701.00   1.00 0.1%
Platinum  1,138.00   2.00 0.2%
Silver  20.29   -0.03 -0.1%
Gold  1,340.50   0.80 0.1%
Top 5 Gainers -- Delayed
African Dawn Capital L  50.0
Ascendis Health Ltd NP  44.0
SABLE PLATINUM LTD  31.9
Allied Electronics Cor  13.2
Sekunjalo Inv Ltd  13.0
Top 5 Losers -- Delayed
Nutritional Holdings L  -50.0
WG Wearne Ltd  -22.2
Ferrum Crescent Limite  -20.0
Forbes & Manhatt Coal  -16.7
PSV Holdings Ltd  -13.2

PRICES (15 minute delay)

Greenbay Properties Lt : GRP 153  3 | Pick n Pay Stores Ltd : PIK 7830  -160 | Allied Electronics Cor : ATN 2375  -124 | DRD Gold Ltd : DRD 1132  -43 | Transpaco Ltd : TPC 2370  0 |

SENS (15 minute delay)

| OML : Form 8.3 - Public Opening Position Disclosure - RPC Group Plc| APF : Dealings in Securities by Director and Company Secretary| APF : Appointment of Company Secretary| OML : Form 8.3 - Public Opening Position Disclosure - 888 Holdings Plc| ZED : Internalisation of Management Agreement and Withdrawal of Cautionary Announcement| EOH : Changes to the Board of Directors - Appointment and Resignation of Directors| BTI : Publication of Supplementary Prospectus| SSK : Beneficial Interest in Securities| AFE : Dealings in securities by directors, the group company secretary and directors of| DTC : Notification of major interest in shares| HYP : Accelerated Book Build| HYP : Accelerated Book Build| ITU : Notification of a Change to a Director's Details| FCR : Exercise of Options and Issue of Equity| TTO : Global Credit Rating upgrades Trustco?s credit rating| DTC : Dealing in securities by directors, an associate and the company secretary| ITE : Trading Statement for the Year Ended 30 June 2016| KST : Disclosure Of Acquisition Of Securities| NRL : Dealings in securities by an associate of a director of Newpark| NVS : Changes to the Board - Appointment of CEO and CFO| GRP : Acquisition of the Tivoli Development| KSB007 : Delivery of compliance certificate| ECSP15 : Issue and listing of Series 5, Class C Preference shares and Dividend Declaration| TL20 : Publication of Annual Financial Statements For Year Ended 31 March 2016| CRD : Part conversion of convertible securities issuance deed, Issue of Equity and Tota| ASHT40 : Listing of Additional Ashburton Top 40 ETF Securities| TAW : Quarterly Activities Report and Appendix 5B| VIS : Announcement regarding the disposal of land and renewal of cautionary announcemen| SAB : Rule 2.10 announcement| SGI005 : Listing of SG1005| GLD : GLD/ NGNGLD - Listing of additional NewGold Debentures| NEWUSD : NEWUSD - Listing of additional NewWave USD Exchange Traded Notes| ADCB02 : Full capital redemption - ADCB02| PRE1A3 : Precinct Funding 1 (RF) Limited - Investor report - 30 June 2016| HYP : Accelerated Book Build| MAQ086 : New Financial Instrument Listing| MTN : MTN Nigeria takes steps towards listing and appoints transaction advisors| SAR : Results Of The Annual General Meeting Of Safari| AGL : Half year financial report for the six months ended 30 June 2016| BTI : Half-year report to 30 June 2016| ITU : Interim Report for the six months ended 30 June 2016| BTI : British American Tobacco Announces Board Appointment| RPS002 : Availability of annual financial statements| OML : OM Asset Management Plc ? Offering of 5.125% Notes Due 2031 and Press Release on| SGL : Sibanye strategic update| ASN078 : ASN078 - Partial Redemption| BIL : Update Samarco| TDH : Withdrawal of cautionary| ACL165 : ACL165 - Partial Redemption| IHL : Financial statements for the nine months ended 31 May 2016| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details