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Market Commentary
The Day Ahead for Thursday 26 May 2016

Wall Street ended the day in positive territory on Wednesday with the Dow Jones Industrial Average and the S&P500 gaining 0.82% and 0.7% respectively. Eastern markets are trading in mixed territory this morning with the Nikkei up by 0.44% and the Hang Seng index currently lower by 0.26%. Tencent is trading in the red by 0.9%% whilst BHP Billiton has gained 3.12% this morning. The Australian ASX is trading stronger by 0.3% thus far. Traders can expect a flat to positive start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Wednesday 25 May 2016

Our local bourse started the trading session higher by 0.6% on Wednesday and continued moving higher as the morning progressed. The positive momentum persisted throughout the afternoon with our market eventually finishing the day up by 1.27% at the close. The best performer for the day was the resource sector, appreciating 1.6% by market close. Leading the upside were Lonmin and Glencore, climbing by 5.09% and 3.58% respectively. Our financial sector followed on closely and finished 1.34% higher, driven largely by Nedbank which closed the day 1.81% stronger. On the company front, Tsogo Sun released its reviewed consolidated results for the year ended 31 March 2016. Highlights included income of R 12.3 billion – an increase of 8%, an increase of 12% in adjusted HEPS to 196.5 cents and a final dividend of 67 cents was declared. SABMiller were informed by Anheuser-Busch Inbev that the European commission has approved its recommended combination with SAB. The approval of phase 1 of the EU merger review process is a significant milestone for the deal, allowing for closing thereof in the second half of 2016. Taste holdings’ audited results for the year ended 29 February 2016 pointed to an increase of core revenue of 41%, system wide sales grew by 9%, core HEPS decreased to 1.5 cents from 16.1 cents in 2015 and a decrease in EBITDA to R 47.2 million. No dividend for the year was declared. Highlights from Reinet’s audited results for the year ended 31 March 2016 included a Net Asset Value increase of 3% to EUR 5.221 billion, Net Asset Value per share of EUR 26.65, dividends received from British American Tobacco totalled EUR 149 million, proceeds of the sale of 6.25 million British American Tobacco realised proceeds of EUR 307 million. A dividend of EUR 0.161 per share was proposed, payable after the 2016 AGM. Mediclinic released its audited results for the year ended 31 March 2016 pointing to revenue of GBP 2.107 billion, operating profit of GBP 382 million, basic EPS of 29.6 pence, net debt at year end of GBP 1.536 billion and a dividend per share of 7.9 pence was declared. On the Economic front, the GFK Consumer Climate for Germany came in at 9.8 in June 2016, compared to 9.7 in May and beating market consensus of 9.7. The Caixin Manufacturing PMI in China stood at 49.4 in April of 2016 compared to 49.7 in March and below market consensus. Output was broadly unchanged while new orders stagnated and new export orders fell for the 5th straight month. Mortgage applications in the United States rose 2.3% in the week ended May 20th 2016 from the prior period, recovering from a 1.6% drop in the previous week, data from the Mortgage Bankers Association showed. Composite PMI in the United States decreased to 50.80 Index Points in May from 52.40 Index Points in April of 2016. Total value traded for the day was R 23.4 bn.

News Articles
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Fin24.com | Cabinet praises Zuma as ratings agencies ponder 'junk'
5/26/2016 5:24:15 PM

Cabinet has praised President Jacob Zuma for his interventions to boost economic growth as the country moves to avoid being downgraded to “junk status”.

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Fin24.com | Cabinet approves EU trade agreement
5/26/2016 5:18:17 PM

Cabinet has approved an economic partnership agreement be submitted to Parliament that will establish a single trade regime between Southern Africa and the EU.

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Fin24.com | Competition Commission raids paper suppliers
5/26/2016 2:20:47 PM

Due to allegations of collusion, the Competition Commission has raided the Gauteng and Free State premises of two paper supply giants.

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Fin24.com | Fitch warns SA of 'quick fixes' ahead of elections
5/26/2016 1:58:26 PM

South African authorities should avoid populist measures such as introducing a minimum wage in the run up to local elections in August, says ratings agency Fitch.

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Fin24.com | Sasol starts drilling in Mozambique
5/26/2016 1:43:44 PM

Sasol has started the drilling of its first well in terms of its production sharing agreement licence in Mozambique.

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Fin24.com | Energy Fund downplays 'secret' oil sale
5/26/2016 1:32:17 PM

The Central Energy Fund has defended its "secret" sale of oil, saying SA still has access to 90 days of crude oil reserves, which is 30 days more than the required volumes.

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Fin24.com | Standard Bank steps up fraud controls as losses to fines mount
5/26/2016 12:53:43 PM

Standard Bank is bolstering internal controls after shareholders criticised managers and executives at Africa’s biggest bank by assets for a series of fines and losses tied to fraud.

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Fin24.com | PPI slows to 7% in April
5/26/2016 12:05:40 PM

SA's producer price index increased by 7% increase in April, a slight decrease from the 7.1% increase recorded in March, Stats SA has announced.

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Fin24.com | Abe warns G7 leaders on risk of Lehman-scale crisis
5/26/2016 11:29:23 AM

Japanese Prime Minister Shinzo Abe has alerted G7 leaders to the risk of the world economy falling into a Lehman-like shock if policy measures aren’t taken.

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Fin24.com | Diamond's Atlas Mara group reports $2m loss
5/26/2016 11:18:17 AM

Atlas Mara, the African investment vehicle of ex-Barclays boss Bob Diamond has reported a $2mn loss for the first quarter, blaming weaker African currencies.

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Fin24.com | Gordhan says he cannot predict ratings outcome
5/26/2016 11:05:59 AM

Finance Minister Pravin Gordhan says it was still unclear whether SA's debt could be downgraded by Standard and Poor's and Fitch after holding discussions with them.

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Fin24.com | Massmart to open 13 new stores in 2016 despite tough conditions
5/26/2016 10:41:08 AM

Massmart says it will open 13 stores in 2016, despite tough economic trading conditions caused by high inflation and low economic growth in South Africa.

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Fin24.com | Abil still has R250m after paying creditors
5/26/2016 10:14:52 AM

African Bank Investment Limited says that after paying all its creditors in full to the tune of R1bn, the company still has cash reserves of R250m.

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Fin24.com | African Bank still has R250m after paying creditors
5/26/2016 9:24:24 AM

African Bank said on Thursday after paying all its creditors in full to the tune of R1bn, the company still has cash reserves of R250m.

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Fin24.com | AB Inbev gets SAB merger nod from Sarb
5/26/2016 8:39:03 AM

AB InBev has secured exchange control approval from the South African Reserve Bank for its proposed merger with SABMiller, it has announced.

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Fin24.com | BREAKING: AB Inbev gets SAB merger nod from Sarb
5/26/2016 8:20:08 AM

AB InBev has secured exchange control approval from the South African Reserve Bank for its proposed merger with SABMiller, it has announced.

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Fin24.com | Banks that lured Diamond to Africa stumble on fading economies
5/26/2016 7:06:27 AM

Bob Diamond followed other lenders to Africa's young population, rising wealth and decades of growth. Now, its fading economies risk taking down more lenders with them.

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Fin24.com | Sluggish SA economy forcing higher rate of early retirement
5/26/2016 6:53:14 AM

The slow economic growth may be forcing a higher rate of early retirement and increasing the number of pensioners, shows the BankservAfrica Disposable Salary Index.

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Fin24.com | What's up with second passports?
5/25/2016 10:00:01 PM

Dr Johann van Rooyen, author of Residency and Citizenship through Investment: The 2016 Report for Emigrants, Expatriates and Investors, talks to Fin24.

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Fin24.com | SA salaries to decline in real terms - index
5/25/2016 9:00:00 PM

Salaries in South Africa can be expected to decline in real terms, according to the latest BankservAfrica Disposable Salary Index.

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REI
Heads up: Reinet FY16 results - slowly diversifying
5/26/2016

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CFR
Heads up: Richemont - FY16 results review
5/25/2016

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SNV
Heads up: Santova FY16 results - Diversification paying off
5/23/2016

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ARL
Heads up: Astral 1H16 results - Better than anticipated, but not yet out of the woods
5/19/2016

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SPP
Heads up: The Spar Group 1H16 results - Solid performance from SA and Ireland
5/19/2016

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DTC
Heads up: Datatec FY16 results - impacted by once off costs
5/18/2016

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NTC
Heads up: Netcare Limited - Results for the six months ended 31 March 2016
5/17/2016

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RDF
Heads up: Redefine 1H16 results- Further Diversification
5/11/2016

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LHC
Heads up: Life Healthcare Group - Interim Results for the six months ended 31 March 2016
5/11/2016

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HSP
Heads up: Holdsport FY16 results - A sporting performance
5/6/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  17,827.33   -24.18  -0.1%
DJ Trans  7,707.92   -35.79  -0.5%
NASDAQ  4,895.40   0.51  0.0%
NYSE S and P500 INDEX  2,088.49   -2.05  -0.1%
FTSE 100  6,255.05   -7.80  -0.1%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,265.41   60.20  0.6%
HONG KONG HANG SENG INDEX  20,397.11   29.06  0.1%
NIKKEI 225 INDEX  16,772.46   15.11  0.1%
Major JSE Indices*
Name Value Move
OVERALL  53921   199.12  0.4%
TOP 40  47836   108.49  0.2%
ALL GOLD  1965   44.76  2.3%
INDUSTRIAL  73004   136.95  0.2%
FINANCIAL  15405   44.47  0.3%
RESOURCES  31953   235.00  0.7%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  11.27   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.12   0.00 0.4%
ZAR/ / EUR  17.45   0.00 0.0%
USD/ / GB  1.47   0.01 0.5%
ZAR/ / GBP  22.90   0.03 0.1%
YEN/ / ZAR  7.06   6.92 4,880.4%
JPY/ / USD  109.78   -0.39 -0.4%
ZAR/ / USD  15.62   -0.04 -0.3%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  49.32   -0.56 -1.1%
Palladium  536.00   5.00 0.9%
Platinum  991.00   0.00 0.0%
Silver  16.32   0.03 0.2%
Gold  1,221.20   -2.80 -0.2%
Top 5 Gainers -- Delayed
African Dawn Capital L  100.0
SABLE PLATINUM LTD  31.9
Visual International H  30.8
Bauba Platinum Limited  14.3
Pan African Resource p  13.4
Top 5 Losers -- Delayed
Stratcorp Ltd  -50.0
Beige Holdings Limited  -33.3
Tawana Resources NL  -23.3
Forbes & Manhatt Coal  -16.7
Diamondcorp plc  -16.0

PRICES (15 minute delay)

Resource 10 : J210 31953  235 | PSG Group Ltd : PSG 19188  -204 | Hyprop Inv Ltd : HYP 12152  96 | Sibanye Gold Limited : SGL 4655  -10 | Sekunjalo Inv Ltd : SKJ 339  24 |

SENS (15 minute delay)

| MTN : Results of Annual General Meeting| MMG : Provisional Audited Condensed Annual Consolidated Results for the Year Ended 31 M| HUG : Provisional reviewed consolidated annual results for the year ended 29 February 2| TFGP : Preference dividend announcement| TFGP : CANCELLATION OF S372107 Preference dividend announcement| DTC : Share incentive schemes and dealing in securities by a director| EXX : EXX - Results of the 15th Annual General Meeting of shareholders of Exxaro| WIL : Audited provisional consolidated financial results| TFGP : Preference dividend announcement| CCO : Notification of Major Interests in Shares| NT1 : Net1?s Transact24 obtains Payment Intermediary Services Licences in Mauritius| TFG : Reviewed Preliminary Condensed Consolidated Results for the Year Ended 31 March 2| TFS139 : TFS139 - Listing of New Instrument| AFX : Results of annual general meeting| IVA634 : IVA634 and IVP635 - Listing of New Instruments| ERN : Results of AGM, changes to the board and change in auditor| MSM : Trading of Massmart ordinary shares on behalf of the Massmart Share Trust and Sha| IBL89 : IBL89 - New Listing| CMO : Updated Trading Statement| SY1287 : Interest Rate Reset - SY1287| EFG : Dealing In Securities By An Associate Of A Director Of A Subsidiary Of The Compan| MPT : Confirmation of Competition Commission raid on Mpact premises| BTC130 : BTC130 - Instrument Listing| MSM : Results of Annual General Meeting| LOM01 : LOM01 - Interest Rate Reset| WSL : Water use licence for Wescoal's Khanyisa Colliery| WSL : Water use licence for Wescoal's Khanyisa Colliery| NQ1A17 : Interest Rate Reset| JSE : IMPUMELELO CP NOTE PROGRAMME 1 (RF) LIMITED| GRT07 : GRT07 - Interest Rate Reset| BVTIHB : Adjustment Announcement - BVTIHB| TWR : Dealings in securities by the company secretary of the company| GPT37 : GPT37 - New Financial Instrument Listing| MND : Mondi Ltd\Mondi Plc - Notification of change in Director?s details| ROC : Cautionary Announcement| BCF : Dealing in Securities by an Associate of a Director| COH001 : Interest Rate Reset Announcement| APN : Dealings in Aspen securities by the Aspen Share Incentive Trust| IPF : Director Associate?s Dealings in Securities| MIX : Pro forma financial effects relating to the specific repurchase of shares and wit| SOLSBS : SCIB - Issue of stock warrants - SOLSBB/SOLSBS| MIX : Group financial results for the quarter and year ended| GRH1A2 : Moody's Assigns Definitive Ratings to Notes Issued by Greenhouse Funding (RF) Lim| TOPDWZ : Termination of Listing: TOPDWZ| SNV : Dealing in securities by an associate of a director| GRH1A2 : Amendments to Greenhouse Funding (RF) Limited Agreements| MSM : CEO?s AGM Statement| SAB : Rule 2.10 announcement| MAQ084 : New Financial Instrument Listing| PAN : Acquisition of a further interest in Shanduka Gold and vendor placing| VKE : Condensed audited results for the year ended 31 March 2016| SBK : Update on the group's performance for the four months to 30 April 2016| SYG : Condensed consolidated interim financial statements for the six months ended 31 M| JSE : Trading Halt - Please wait, downloading details| ANB : South African Reserve Bank grants exchange control approval for the proposed comb| ESR : Abridged Consolidated Results for the Year Ended 29 February 2016 and Notice of A| OCE : Voluntary announcement relating to the disposal of Lamberts Bay Foods Limited| FBR : Strategic coup for Famous Brands with acquisition of Lamberts Bay Foods| REN : Notification in terms of Section 122(3) of the Companies Act and Paragraph 3.83(b| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details