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Market Commentary
Market Commentary for Monday 15 January 2018

The All Share Index opened higher by 72.2 points or 0.12% in response to a positive trading session in Asia. Our local bourse continued to edge higher, and eventually we closed the day 0.26% in the black. Resources were the best performing sector and the index closed higher by 1.04%, led by Anglo American which gained 1.28%. The Gold miners followed suit by closing 2.74% stronger, led by Anglogold Ashanti and Goldfields which closed firmer by 4.4% and 2.19% respectively. The Iron Ore producers rallied with Assore finishing the trading session higher by 3.59% and Kumba Iron Ore marginally higher by 0.37%. On the company front, Aspen confirmed that the China Food and Drug Administration (CFDA) announced on Friday, 12 January 2018 that it had approved the registration of Aspen’s infant milk formula brand Alula. The approval authorises Aspen to continue with exports of its infant milk formula to China following the successful launch of the Alula infant milk formula brand in October 2017. Redefine International announced an acquisition of an 80% interest in a portfolio of four established, strategically located and high quality flexible offices in Central London. The properties were acquired from Forum Partners, Kailong Group and Office Space in Town (OSIT) for a total consideration of ?161.7m, which equates to an anticipated net initial yield of over 6%. Woolworths announced a trading update for the 26 weeks ended 24 December 2017 and the salient features were that group sales had increased by 2.5% over the prior period and by 2.9% in constant currency terms, whilst David Jones’ sales performance improved in the last 6 weeks of the half, with sales increasing by 0.6% in comparable stores. The company expects HEPS to be between 200.1c and 212.3c, being a decrease of between 12.5% and 17.5% compared to the 242.6c reported for the previous comparative period. The stock had shed 5.5% by the close of trade. On the economic front, the Euro Area trade surplus widened to EUR 26.3bn in November 2017 from EUR 23.8bn in the same month of the previous year, easily beating market expectations of EUR 22.4bn. It was the largest trade surplus since March, as exports rose 7.7% to EUR 197.5bn while imports increased at a softer 7.3% to EUR 171.2bn. Total value traded for the day was recorded at R13.986bn

Market Commentary
The Day Ahead for Tuesday 16 January 2018

Despite a US holiday, the Dollar was the focal point on Monday as the currency headed for a fourth day of declines, weakening against every major currency. The Euro’s jump weighed on European stocks, while gold gained. The Dollar Index approached its lowest level in three years as the Euro extended gains that have pushed it to the strongest since 2014. The Asian bourses are mostly higher this morning and Tencent has risen 0.23% whilst the Hang Seng is higher by 1.13% thus far. BHP Billiton has shed 0.75% in Australia as the Australian ASX is trading 0.47% in the red. 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 | British politician claims UK law firm complicit in state capture in SA
1/16/2018 8:50:10 AM

UK politician and peer Peter Hain has accused law firm Hogan Lovells of being either ‘willingly gullible’ or a ‘malevolent accomplice' of SARS head Tom Moyane in its probe of Jonas Makwakwa.

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Fin24.com | British MP claims UK law firm complicit in state capture in South Africa
1/16/2018 7:35:40 AM

Peter Hain has accused Hogan Lovells of being either ‘willingly gullible’ or a ‘malevolent accomplice' of SARS head Tom Moyane in its investigation of top SARS executive Jonas Makwakwa.

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Fin24.com | Montblanc expands sports watches in Rolex price range
1/15/2018 10:00:03 PM

Montblanc, the penmaker that began making Swiss watches two decades ago, is shoring up its credentials as it expands with sports models near the Rolex price range.

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Fin24.com | Barometer: 57% chance of interest rate staying same
1/15/2018 9:09:55 PM

SARB's Monetary Policy Committee is likely to leave the repo rate the same when it meets later this week, according to an interest rate barometer.

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Fin24.com | Bitcoin fever hits US real estate market
1/15/2018 7:54:27 PM

Bitcoin fever has hit the US real estate market, especially that of Florida, offering foreign investors a way to dodge currency controls at home and US economic sanctions.

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Fin24.com | Aspen gets green light for baby milk formula exports to China
1/15/2018 7:37:47 PM

Aspen Pharmacare has received approval from the China Food and Drug Administration to register its Aspen infant milk formula Alula in China.

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Fin24.com | Experts explain why fuel prices could drop
1/15/2018 5:24:15 PM

Fuel prices could bring welcome news for motorists in February, says an independent economist and the AA.

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Fin24.com | Top5 on Fin24: 910 carat diamond found in Lesotho, Steinhoff sells stake in e-retailer at a loss
1/15/2018 5:16:42 PM

ICYMI: A roundup of Monday's must-read financial and economic news.

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Fin24.com | Pizza Hut to open shop in Zim
1/15/2018 5:13:18 PM

American restaurant chain and international franchise Pizza Hut is set to open its doors in Zimbabwe for the first time on February 2 2018.

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Fin24.com | Steinhoff sells stake in e-retailer to supermarket giant at a loss
1/15/2018 3:34:50 PM

International supermarket chain Carrefour will acquire a stake in Showroomprivé from a subsidiary of embattled global retail group Steinhoff.

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Fin24.com | SWISS carries more passengers than ever with fewer flights
1/15/2018 3:07:57 PM

Swiss International Air Lines transported 16 896 233 passengers in 2017, a further 2.3% improvement on last year’s record result.

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Fin24.com | JSE may suspend Eskom bonds over late financials
1/15/2018 2:36:26 PM

The JSE has issued a warning to holders of Eskom debt securities, saying it will suspend the listing if the power utility fails to submit its interim report by January 31.

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Fin24.com | Eskom commits to publishing interim results by January 31
1/15/2018 2:19:13 PM

The power utility says it will release its interim financial results by the JSE's deadline of January 31, after the stock exchange earlier warned it may delist its bonds.

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Fin24.com | Woolworths shares down on news of profit drop
1/15/2018 1:51:40 PM

The multinational retail group has announced a decrease in headline earnings per share for the six months to December 24 2017.

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Fin24.com | Ramaphosa says no one should be nervous over land
1/15/2018 12:27:43 PM

Ramaphosa has also said he would like a study of farms that have been reclaimed or redistributed since 1994.

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Fin24.com | Eurozone economic boom to roll on after strong start to '18
1/15/2018 11:43:55 AM

Europe’s growth resurgence is showing little sign of losing steam yet and economists have taken notice.

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Fin24.com | Exceptional 910 carat gem diamond found in Lesotho
1/15/2018 10:02:16 AM

A 910 carat gem diamond has been recovered in a Lesotho mine - the fifth largest gem quality diamond ever recovered.

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Fin24.com | Unruly passengers on planes still a challenge - report
1/15/2018 9:27:13 AM

Between 2007 and 2016 more than 58 000 incidents involving unruly passengers were reported to Iata, an analysis by the industry body shows.

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Fin24.com | KPMG investigation widens
1/15/2018 7:39:57 AM

The investigation by the Independent Regulatory Board for Auditors into audit firm KPMG has now extended beyond the initial investigation.

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Fin24.com | Jarana steers SAA out of the storm
1/15/2018 7:29:13 AM

New CEO knows what’s wrong with the airline – it’s just a matter of treating the maladies and taking flight.

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NPK
Heads up: Nampak FY17 results
12/20/2017

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SRR
Heads up: STAR FY17 results - Catch a falling STAR
12/12/2017

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EOH
Heads up: EOH - a crisis of confidence
12/11/2017

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SNH
Heads up: Steinhoff International - Investigation into accounting practices and resignation of CEO
12/6/2017

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CIL
Heads up: Consolidated Infrastructure Group Limited (CIG) FY17 results
12/6/2017

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PFG
Heads up: Pioneer Foods FY17 results - Looking forward to a better 2018
12/5/2017

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S32
Heads up: South32 update
12/4/2017

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TBS
Heads up: Tigerbrands FY17 results - Steady performance, fully valued
11/29/2017

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OCT
Heads up: Octodec FY17 results- Perfect storm
11/29/2017

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SPP
Heads up: SPAR FY17 results - Sales growth slows in tough SA environment
11/23/2017

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  25,803.19   228.46  0.9%
DJ Trans  11,373.38   89.06  0.8%
NASDAQ  7,261.06   49.28  0.7%
NYSE S and P500 INDEX  2,786.24   18.68  0.7%
FTSE 100  7,769.14   -9.50  -0.1%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  13,200.51   -44.52  -0.3%
HONG KONG HANG SENG INDEX  31,757.01   418.14  1.3%
NIKKEI 225 INDEX  23,951.81   236.93  1.0%
Major JSE Indices*
Name Value Move
OVERALL  60241   0.00  0.0%
TOP 40  53432   0.00  0.0%
ALL GOLD  1368   0.00  0.0%
INDUSTRIAL  79597   0.00  0.0%
FINANCIAL  17158   0.00  0.0%
RESOURCES  39850   0.00  0.0%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  9.67   0.00 0.0%
ZAR/ / CHF  13.00   0.00 0.0%
USD/ / EUR  1.23   0.01 0.6%
ZAR/ / EUR  15.11   0.04 0.3%
USD/ / GB  1.38   0.01 0.5%
ZAR/ / GBP  16.98   0.02 0.1%
YEN/ / ZAR  0.00   -8.92 -100.0%
JPY/ / USD  110.80   0.24 0.2%
ZAR/ / USD  12.33   -0.05 -0.4%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  70.04   -0.19 -0.3%
Palladium  1,127.15   -3.25 -0.3%
Platinum  995.21   -3.43 -0.3%
Silver  17.33   -0.01 -0.1%
Gold  1,341.11   1.03 0.1%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Sekunjalo Inv Ltd  13.0
ANOORAQ RESOURCES CORP  11.6
Sacoil Holdings Ltd  11.1
AFLEASE GOLD LTD  4.8
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Coal of Africa Ltd  -14.3
Delta Africa Prop Hldg  -7.0
Premier Food Fishing L  -3.3
Allied Electronics Cor  -2.7

PRICES (15 minute delay)

Allied Electronics Cor : ATN 2375  -124 | Db x-trackers MSCI Jap : DBXJP 1126  -4 | Banks : BANK 47824  450 | ACC-ROSS HOLDINGS LTD : ACC 100  3 | eRAFI SA Industrial 25 : RAFIND 6197  -48 |

SENS (15 minute delay)

| VLE : Directors dealing in securities| PREFTX : Delisting of 600 000 Preftrax Securities| SHP : Operational update| FCR : Board, Company Secretary and Administrative Changes| GLPROP : Listing of 150 000 additional GLPROP Securities| HLM : Notice of an acquisition of a beneficial interest in securities| ORE : Amended Annual General Meeting Notice and Form of Proxy| MAQ116 : New Financial Instrument Listing| NGPLD : NGPLD/ NGNPLD - Partial de-listing of NewGold Palladium Debentures| FBR : Retirement Of Independent Non-Executive Director| MMI : Changes in Leadership| AIP : Trading statement| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details