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Market Commentary
The Day Ahead for Friday 12 February 2016

US markets closed sharply lower on Thursday, but well off their lows, following comments from the energy minister of the UAE about a possible OPEC production cut. The Dow Jones Industrial Average and the S&P500 closed lower by 1.6% and 1.23%, respectively. Eastern markets are trading in negative territory this morning with the Nikkei and the Hang Seng currently lower by 3.52% and 0.77%, respectively. Tencent is trading in the red by 2.06%, whilst BHP Billiton has lost 0.85%. The Australian ASX is trading weaker by 1.1% thus far. Traders can expect a positive start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Thursday 11 February 2016

Yesterday, our market took its cue from global markets and started the session in negative territory. The sell-off intensified as the day progressed, resulting in the All Share Index closing weaker by 1.78% ahead of the the State of the Nation address by President Zuma. Among the biggest drivers of the decline were Woolworths, MTN and Naspers, which all dropped by 7.65%, 5.68% and 4.54%, respectively. Despite a stronger rand, gold shares all posted significant gains as the flight into safe haven assets pushed the gold price above $1230 per ounce. Gold Fields jumped 11.25%, while Harmony finished higher by 9.99%. On the company front, Woolworths released results for the 26 weeks ended 27 December 2015, highlighting an increase of 30.6% in Headline earnings per share (HEPS), while Adjusted HEPS were higher by 3.6%. The interim dividend increased by 37.8% to R1.33 with a Return on Equity of 24.7%. The JSE Limited advised shareholders that HEPS for the year ended 31 December 2015 is expected to be higher by between 35% and 45%, compared to the prior corresponding period. The secondary listing of Astoria Investments on the Namibian Stock Exchange was approved with effect from 10 February 2016, while Taste Holdings indicated that they expect Earnings per share and HEPS for the year ending 29 February 2016 to be negative. Glencore released a production report for the year ended 31 December 2015 showing that copper, nickel and coal production were lower, while the production of zinc, ferrochrome and oil in particular increased compared to the previous corresponding period. On the economic front, South African Manufacturing production increased by 1.8% in December of 2015 over the previous month, while the Mining production increased by 1.5% on a monthly basis. In the US, the number of Americans filing for unemployment benefits came in below market expectations at 269 000 in the week ended February 6th, a decrease of 16 000 compared to the previous week. Total value traded for the day came in at R22.9bn.

News Articles
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Fin24.com | Land expropriation needed, Malema tells Cape businesses
2/12/2016 11:13:34 PM

EFF leader Julius Malema has told Cape Town heads of industry that land expropriation without compensation was needed in South Africa.

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Fin24.com | The cost of moving Parliament to Pretoria
2/12/2016 7:30:01 PM

Moving South Africa’s parliament from Cape Town to Pretoria could cost R7bn and bring a savings of around R500m to R750m a year, according to Cosatu and an economist.

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Fin24.com | Zuma releases guide for new era of state-owned entities
2/12/2016 6:16:30 PM

President Jacob Zuma has released a report that will guide the state’s reformation of South Africa’s State Owned Enterprises.

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Fin24.com | Gupta-Zuma coal deal cleared with vow to keep SA jobs
2/12/2016 3:09:51 PM

A company controlled by the Gupta family says it will preserve jobs at a mine that it bought together with the son of President Jacob Zuma from Glencore.

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Fin24.com | Zuma's silence on Eskom privatisation worrying - Cosatu
2/12/2016 2:24:07 PM

Cosatu says it is 'very worrying' that President Jacob Zuma is 'silent on Treasury’s crude plans to privatise Eskom' during his State of the Nation address.

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Fin24.com | Cosatu: It can't be business as usual on jobs, corruption
2/12/2016 1:21:18 PM

Cosatu has voiced concern that President Jacob Zuma’s State of the Nation address was “thin on details” regarding the country’s unemployment crisis.

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Fin24.com | Zuma’s son, Guptas own firm that bought Glencore mine
2/12/2016 11:22:59 AM

President Jacob Zuma’s son, Duduzane, has a stake in a firm that’s buying Glencore's Optimum Coal mine along with the Gupta family, the country’s antitrust regulator says.

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Fin24.com | Investing in infrastructure will save economy - Zuma
2/12/2016 10:34:20 AM

President Jacob Zuma on Friday said a greater investment in the country’s infrastructure would assist it during tough economic times.

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Fin24.com | ArcelorMittal bets on steel protection as loss balloons
2/12/2016 9:16:46 AM

ArcelorMittalSA expects SA to adopt tariffs as a safeguard against cheap imports as the steelmaker posted an annual loss that ballooned 23 times from a year earlier.

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Fin24.com | Zuma fails to appease investors, rating agencies - economist
2/12/2016 7:44:22 AM

President Jacob Zuma’s State of the Nation speech was filled with old ideas, says Nomura emerging markets economist Peter Attard Montalto.

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Fin24.com | SONA 2016: Optimists see growth spurt, pessimists see junk
2/12/2016 7:22:51 AM

President Jacob Zuma’s State of the Nation address was seen as an important moment for him to change some policies and strategies to reverse SA's rapid decline.

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Fin24.com | Ministers upbeat after Zuma’s economy SONA
2/12/2016 7:15:40 AM

Deputy Finance Minister Mcebisi Jonas says President Jacob Zuma delivered a “good speech” that focused on ways to grow the economy.

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Fin24.com | SA will not reach growth target - Zuma
2/12/2016 7:05:29 AM

South Africa will not reach its growth target of 5% per year, president Jacob Zuma says.

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Fin24.com | Zuma performs balancing act on minimum wage
2/11/2016 10:24:34 PM

A national minimum wage will go a long way to improve labour relations in South Africa, but it must not undermine job creation, President Jacob Zuma has said.

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Fin24.com | SA to focus on financial service skills development - Zuma
2/11/2016 10:08:43 PM

South Africa will develop initiatives to grow its financial service industry for the good of all Africa, President Jacob Zuma says.

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Fin24.com | SOEs no longer relevant will be phased out, says Zuma
2/11/2016 9:56:41 PM

Economist Kevin Lings says President Jacob Zuma's announcements on the phasing out of state-owned firms is one of the most important of his address.

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Fin24.com | Zuma's full SONA speech
2/11/2016 9:44:26 PM

President Jacob Zuma has delivered his 2016 State of the Nation Address.

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Fin24.com | State-owned drug firm established - Zuma
2/11/2016 9:40:50 PM

A state-owned pharmaceutical company has been established, President Jacob Zuma has announced during his State of the Nation Address in Parliament.

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Fin24.com | Land reform remains important for transformation - Zuma
2/11/2016 9:36:23 PM

Around 120 000 new land claims have been received as of December, President Jacob Zuma has said during his State of the Nation Address.

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Fin24.com | Cost-cutting measures for executive - Zuma
2/11/2016 9:15:22 PM

President Jacob Zuma has announced some cost-cutting measures to curb wasteful expenditure.

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WHL
Heads up: Woolworths Holdings Limited - interim results for the 26 weeks to 27 December 2015
2/12/2016

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ADI
Heads up: Adapt IT 1H16 results - certain dividends are an expensive luxury
2/12/2016

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HDC
Heads up: Hudaco FY15 results - "you know it when you see it"
2/3/2016

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EOH
Heads up: EOH pre 1H16 discussion
2/2/2016

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NPN
Heads up: Naspers - Update on our Naspers investment thesis
1/21/2016

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MRP
Heads up: Mr Price Group Limited - 3rd quarter trading update
1/20/2016

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TON
Heads up: Tongaat Hulett - Significantly undervalued
1/19/2016

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MDC
Heads up: Mediclinic International - Election recommendations for Al Noor merger
1/19/2016

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VKE
Heads up: Vukile 1H16 results- expanding offshore
12/8/2015

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PFG
Heads up: Pioneer Foods FY15 results - Tougher times ahead
12/8/2015

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  15,832.42   172.24  1.1%
DJ Trans  6,972.12   88.63  1.3%
NASDAQ  4,292.38   25.54  0.6%
NYSE S and P500 INDEX  1,846.37   17.29  0.9%
FTSE 100  5,668.24   131.27  2.4%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  8,924.85   171.98  2.0%
HONG KONG HANG SENG INDEX  18,335.73   -182.85  -1.0%
NIKKEI 225 INDEX  14,952.61   -760.78  -4.8%
No Data at Present
Currencies
Name Value Move
ZAR/ / AUD  11.24   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.12   0.00 -0.4%
ZAR/ / EUR  17.80   -0.14 -0.8%
USD/ / GB  1.45   -0.01 -0.4%
ZAR/ / GBP  22.91   -0.18 -0.8%
YEN/ / ZAR  7.15   7.01 5,027.7%
JPY/ / USD  112.87   0.46 0.4%
ZAR/ / USD  15.85   -0.05 -0.3%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  31.52   0.72 2.3%
Palladium  524.00   2.00 0.4%
Platinum  957.00   -3.00 -0.3%
Silver  15.74   -0.02 -0.1%
Gold  1,237.40   -9.10 -0.7%
Top 5 Gainers -- Delayed
Imbalie Beauty Limited  40.0
Investec Australia Pro  33.3
SABLE PLATINUM LTD  31.9
ArcelorMittal SA Limit  24.2
Trematon Capital Inv L  17.5
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Central Rand Gold Ltd  -13.1
Keaton Energy Hldgs Lt  -10.5
Hwange Colliery Ltd  -5.9
E Media Holdings Ltd -  -5.0

PRICES (15 minute delay)

Trencor Ltd : TRE 3540  90 | Property Loan Stock : PULS 1706  1 | Brimstone Inv Corp Ltd : BRN 1044  2 | PPC Limited : PPC 1276  26 | SA Fini and Indi : J250 7353  139 |

SENS (15 minute delay)