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Market Commentary
The Day Ahead for Tuesday 6 December 2016

Wall Street ended the day in positive territory on Monday with the Dow Jones Industrial Average and the S&P500 gaining 0.24% and 0.58% respectively, as the Dow Jones climbed to a new intraday all-time high and crude oil rose to the highest level since July. Eastern markets are trading in positive territory this morning with the Nikkei and the Hang Seng index currently higher by 0.35% and 0.68% respectively. Tencent is trading in the black by 0.26% whilst BHP Billiton has gained 1.19% this morning. The Australian ASX is trading stronger by 0.84% thus far. Traders can expect a flat to positive start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Monday 5 December 2016

Our local bourse started the trading session unchanged on Monday but quickly moved into positive territory as the morning progressed. The positive sentiment remained throughout the afternoon with our market eventually finishing the day up by 0.93% at the close. The best performer for the day was the general retail sector, appreciating 3.23% by market close. Leading the upside were Massmart and Truworths, climbing by 6.76% and 5.03% respectively. Our gold mining sector bucked the trend and finished 4.46% lower, driven largely by Harmony which closed the day 7.59% softer. On the company front, Resilient advised shareholders that slower retail sales had been recorded for the 4 months to October 2016. Black Friday sales, however, were substantially higher than the previous year, but will only reflect in the November 2016 sales figures. The Resilient board has also agreed to acquire a further 6% of Mafikeng Mall, at a yield of 8%. Resilient’s 2017 distributions are forecast to increase by between 15% and 17%. Fortress shareholders were advised that following the successful acquisition of Lodestone and following recent distribution guidance published by Greenbay, NEPI and Rockcastle the distributions on its B shares are now forecast to increase by approximately 25% for the 2017 financial year. Rockcastle announced that the EUR 160 million purchase of Focus Park and Focus Mall were completed, effective 30 November 2016. The consideration was settled from Rockcastle’s existing cash resources and represents an average acquisition yield of approximately 6.5%. Italtile announced system-wide sales of R 2.9 billion – an increase of 14.7% for the 5 month period to 30 November 2016. Like-on-like retail store turnover grew by 10%, with average price inflation at 7.9% On the Economic front, the South African Standard Bank PMI was recorded at 50.8 for the month of November 2016. Consumer confidence in Japan dropped to 40.9 in November of 2016 from 42.3 in October and missing market estimates of 43.8. It was the weakest reading since May as perception declined in all categories. The final Markit Germany Composite Output Index fell to 55 in November 2016, little-changed from October’s 55.1 and slightly higher than flash estimate of 54.9. The slight slowdown reflected in the composite figure was due to a weaker growth pace in manufacturing. Composite PMI in the Euro Area increased to 53.90 Index Points in November from 53.30 Index Points in October of 2016. The Eurozone`s retail sales increased by 2.4% year-on-year in October 2016, following a downwardly revised 1% growth in the previous month and beating market consensus of a 1.7% gain. The seasonally adjusted final Markit US Composite PMI Output Index came in at 54.9 in November 2016, unchanged from October’s 11-month high and in line with preliminary estimates. The ISM Non-Manufacturing PMI index fell to 54.8 in October of 2016 from 57.1 in September and below market expectations of 56. Activity, new orders and employment grew at a slower pace while prices increased for the seventh straight month. Total value traded for the day was R 19.4 bn.

News Articles
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Fin24.com | SA to import GM maize for first time from US
12/6/2016 10:33:57 AM

The government has approved imports of genetically modified maize from the US for the first time as it seeks to bring in the grain after its worst drought in decades.

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Fin24.com | German factory orders surge on investment goods demand
12/6/2016 10:20:35 AM

German factory orders have surged, suggesting growth in Europe’s largest economy will accelerate at the end of the year.

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Fin24.com | Further drop in GDP growth
12/6/2016 9:35:46 AM

South Africa’s GDP grew at a meagre 0.2% in the third quarter of 2016, according to Statistics South Africa.

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Fin24.com | Outa wants ‘rushed and defective’ energy plan trashed
12/6/2016 8:42:59 AM

Outa has written to Energy Minister Tina Joemat-Pettersson requesting her to withdraw the draft Integrated Resource Plan, it has announced.

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Fin24.com | Ironic? Buffett’s Berkshire to get R400bn boost from Trump tax plan
12/6/2016 7:33:18 AM

Hillary Clinton supporter Warren Buffett’s Berkshire Hathaway could get a $29bn (R399.32bn) boost to its book value under tax-rate cuts advocated by Donald Trump.

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Fin24.com | Anglo faces platinum test in SA spinoff
12/6/2016 6:39:04 AM

Anglo American is facing a showdown with its biggest investor, PIC which wants the miner’s prized platinum assets included in any divestment of its local operations.

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Fin24.com | Eskom escapes Moody’s ratings downgrade
12/5/2016 9:28:28 PM

Moody's Investors Service has confirmed Eskom's rating after placing it on review for a downgrade.

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Fin24.com | Gloomy growth prospects for SA on the cards
12/5/2016 7:37:20 PM

The year is expected to end on a depressed note with subdued growth prospects for the last quarter of the year, according to the latest BER surveys.

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Fin24.com | Ratings risk remains for South Africa - experts
12/5/2016 7:17:51 PM

South Africa could experience a repeat of the recent stressful period, in which the three major global ratings agencies assessed country, in 2017, according to strategists at Old Mutual

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Fin24.com | EasyJet relaxes exec pay goals as CEO’s remuneration dives
12/5/2016 6:56:43 PM

EasyJet has relaxed performance targets for chief executive officer Carolyn McCall as the carrier seeks to bolster pay and retain top managers amid a downturn in the European aviation market.

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Fin24.com | Ehrenreich backs Ramaphosa for ANC presidency
12/5/2016 6:38:33 PM

Cosatu Western Cape has come out in support of Deputy President Cyril Ramaphosa to be the next ANC president, while also slamming the DA.

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Fin24.com | Heed the warning signs, economists urge govt
12/5/2016 4:59:13 PM

South Africa should use the time wisely following a ratings reprieve from the three biggest ratings agencies, economists say.

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Fin24.com | INFOGRAPHIC: Govt to fork out R7m on 9 luxury cars
12/5/2016 3:47:53 PM

Government is about to spend R7m on nine new luxury official vehicles for a number of ministers and deputy ministers. Take a look at the new vehicles in store for them.

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Fin24.com | Petrol bonus for motorists
12/5/2016 2:18:42 PM

Motorists are in for an early Christmas gift with a slightly cheaper price for a litre of petrol and diesel, says the department of energy.

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Fin24.com | UK services pickup keeps economy on track
12/5/2016 1:46:01 PM

The UK services sector has grown at the fastest pace in 10 months in November, keeping the economy on track to maintain its pace of expansion this quarter.

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Fin24.com | Eurozone gears for growth as companies look past political woes
12/5/2016 1:14:43 PM

The eurozone economy has expanded at the fastest pace this year in November as companies took on workers and kept political concerns at bay.

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Fin24.com | Eskom questions Exxaro’s reduced BEE shareholding
12/5/2016 12:42:43 PM

Mining company Exxaro’s plan to cut its black ownership to about 30% has sparked questions from state-owned electricity producer Eskom.

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Fin24.com | Business conditions continue to improve - PMI
12/5/2016 12:27:05 PM

South Africa's purchasing manager's index showed a slight uptick in November which could signal a continuation of better economic conditions.

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Fin24.com | Zim miners sound wage alarm for 2017 - survey
12/5/2016 11:10:39 AM

Zimbabwean mining firms, including SA's Sibanye Gold, Caledonia Mining Corporation and Anglo Platinum say they will not be able to afford salary raises in 2017.

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Fin24.com | Zimbabwe wants upfront payments for Eskom power
12/5/2016 9:32:31 AM

Zimbabwe’s state electricity distribution company has asked industrial customers to pay in advance in foreign currency for power imported from SA and Mozambique.

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QFH
Heads up: Quantum Foods FY16 results - Recovery in sight?
12/1/2016

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HCI
Heads up: HCI 1H17 results
11/30/2016

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NPK
Heads up: Nampak FY16 results - currency exchange losses, partially offset by operational turnaround in Glass
11/29/2016

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VKE
Heads up: Vukile 1H17 results - De-risking the portfolio
11/29/2016

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SSS
Heads up: Stor-Age 1H17 results- Better than expected
11/29/2016

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PFG
Heads up: Pioneer Foods FY16 results - Looking to the future
11/28/2016

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NPN
Heads up: Naspers 1H17 results - impressive inroads continue
11/28/2016

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INL
Heads up: Investec - interim results for the six months ended 30 September 2016
11/25/2016

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INP
Heads up: Investec - interim results for the six months ended 30 September 2016
11/25/2016

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TBS
Heads up: Tigerbrands FY16 results - From unloved to loved - HOLD
11/25/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  19,216.24   45.82  0.2%
DJ Trans  9,081.61   32.65  0.4%
NASDAQ  5,308.89   53.24  1.0%
NYSE S and P500 INDEX  2,204.71   12.76  0.6%
FTSE 100  6,742.90   -3.93  -0.1%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,697.25   12.42  0.1%
HONG KONG HANG SENG INDEX  22,675.15   169.60  0.8%
NIKKEI 225 INDEX  18,360.54   85.55  0.5%
Major JSE Indices*
Name Value Move
OVERALL  49333   -381.00  -0.8%
TOP 40  42778   -414.15  -1.0%
ALL GOLD  1352   -11.57  -0.8%
INDUSTRIAL  61860   -381.86  -0.6%
FINANCIAL  14551   -6.47  0.0%
RESOURCES  32381   -753.72  -2.3%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.12   0.00 0.0%
ZAR/ / CHF  13.61   -0.11 -0.8%
USD/ / EUR  1.08   0.01 1.0%
ZAR/ / EUR  14.64   -0.08 -0.5%
USD/ / GB  1.28   0.00 0.3%
ZAR/ / GBP  17.32   -0.21 -1.2%
YEN/ / ZAR  8.42   8.30 6,908.8%
JPY/ / USD  114.03   0.19 0.2%
ZAR/ / USD  13.63   -0.16 -1.2%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  54.62   0.45 0.8%
Palladium  746.00   3.00 0.4%
Platinum  939.00   5.00 0.5%
Silver  16.78   0.07 0.4%
Gold  1,170.80   0.70 0.1%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Sekunjalo Inv Ltd  13.0
ANOORAQ RESOURCES CORP  11.6
Central Rand Gold Ltd  10.0
Allied Electronics Cor  9.5
Top 5 Losers -- Delayed
Rebosis Property Fd NP  -60.0
Forbes & Manhatt Coal  -16.7
Ecsponent Limited  -14.3
Trustco Group Hldgs Lt  -10.6
Mix Telematics Ltd  -8.8

PRICES (15 minute delay)

Technology : J590 57661  32 | Rainbow Chicken Ltd : RBW 1650  -10 | Invicta Holdings Ltd : IVT 7250  -49 | PSG Financial Serv Pre : PGFP 7800  0 | Ellies Holdings Ltd : ELI 24  2 |

SENS (15 minute delay)

| WIL : Voluntary disclosure of significant holding of wilderness ordinary shares| WIL : Additional share listing - share incentive and share option scheme| SXEIIB : Investec Autocall Index Warrants - SXEIIB| RFG : No change statement and notice of annual general meeting| ECN20 : Symbol [ES33]| ASR : Retirement of Chief Executive Officer| AVL : Dealing by a Director| TDH : Dealings in Securities by Director of Company Secretary and by Director of Compan| BILIHA : Symbol [SBKIHJ]| PGR : TRP121: Notification of an acquisition of beneficial interest in shares| SBK15 : SBK15-Redemption of Tier II Capital Notes| JSE : Suspension of MED - Please wait, downloading details| L2D : Dealings in securities by a director of the manager and by an associate of a dire| DMCCB : Notice to Noteholders regarding the Corporate and Operational Update of the Diamo| FRB22 : FRB22 - Listing of New Instrument| AEL : Symbol [AEL]| PPC : Results of General Meeting| 1TM : Renewal of Cautionary Announcement| PREFTX : Additional listing of 250 000 Preftrax Securities - PREFTX| RPL : Notice of Capital Markets Day| JSE : General suspension - Please wait, downloading details| JSE : GEN ? General - Suspension of Listing Announcement| TPF : Dealing in securities by an associate of a director of Transcend| BIL : Submission of winning bid for Trion in Mexico| MRP : Acceptances of long term incentives by directors| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details