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Market Commentary
Market Commentary for Thursday 19 July 2018

The All Share Index opened lower by 127.4 points or 0.23% on Thursday as the Asian indices closed in negative territory. Our local bourse traded sideways for most of the session and eventually we closed the day 0.07% in the black. Financials were the worst performing sector and the index closed lower by 0.38%, led by Absa and Firstrand which closed lower by 1.80% and 1.01% respectively. Resources closed lower by 0.10% led by Anglo American which closed lower by 1.95%. The gold miners followed suit to close lower by 0.82% whilst listed property surrendered 0.35%. On the company reporting front, Woolworths announced a trading update and statement for the 52 week ended 24 June 2018 and the company advised that group sales increased by 1.6% compared to the prior year and by 2.9% in constant currency, whilst HEPS are expected to be between 336.7c and 357.8c, being a decrease of between 15% and 20% compared to the 420.9c disclosed for the previous comparative period. The stock declined initially and ended the day firmer by 0.53%. Dischem announced their trading update for the 4 months ended 30 June 2018 and recorded group sales growth of 11.1% to R7bn over the corresponding period in the prior year, whilst the group expects full-year EPS to be between 92.3c and 98.7c implying an increase of between 16% and 24% compared to the EPS of 79.6c for the 12 months ended 28 February 2018. The stock reacted positively and closed the trading session 7.07% in the black. Anglo American released a production report for the second quarter ended 30 June 2018 and the salient features were that De Beers production increased by 3% to 9m carats, copper production increased by 12% to 158 000 tonnes, Kumba Iron Ore production increased by 2% to 11.6m tonnes, metallurgical coal production increased by 33% to 5.3m and thermal coal export production decreased by 1% to 7.2m tonnes. On the economic front, the bank lending rate in South Africa remained unchanged at 10% following yesterday’s MPC meeting. Retail sales in the UK increased 2.9% from a year earlier in June 2018, following an upwardly revised 4.1% advance in May but missing market expectations of 3.7%. The number of Americans filing for unemployment benefits fell by 8000 to 207 000 in the week ending 14 July, from the previous week’s upwardly revised level of 215 000. The Philadelphia Fed Manufacturing Index in the US rose by 5.8 points to 25.7 in July 2018 from the previous month’s 20-month low of 19.9 and above market expectations of 21.5. Total value traded for the day was recorded at R17.449bn

Market Commentary
The Day Ahead for Friday 20 July 2018

Wall Street ended the day in negative territory on Thursday with the Dow Jones Industrial Average and the S&P500 slipping 0.53% and 0.40% respectively. Eastern markets are trading in negative territory this morning with the Nikkei and the Hang Seng index currently lower by 0.84% and 0.47% respectively. Tencent is trading in the red by 0.85% whilst BHP Billiton has lost 2.07% this morning. The Australian ASX is trading stronger by 0.28% thus far. Traders can expect a negative start to trading on our local bourse this morning.

News Articles
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Fin24.com | Wiese: This is the first time I've been sued by SARS
7/22/2018 7:00:03 PM

SA billionaire businessman Christo Wiese maintains his tax affairs are in order and says this is the first time he has ever been sued by SARS.

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Fin24.com | Zim's tobacco sales hit new record
7/22/2018 5:25:20 PM

Zimbabwe is set to ease its foreign currency challenges after the country reported record breaking tobacco sales for the 2017/18 marketing season.

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Fin24.com | The story behind Google's secret offer to settle EU's android probe
7/22/2018 4:25:59 PM

European Union Competition Commissioner Margrethe Vestager coolly hit Google with a €4.3bn fine, the biggest penalty in the history of antitrust enforcement. But it didn’t have to be that way.

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Fin24.com | Finbond appoints new auditors after giving KPMG the boot
7/22/2018 2:30:40 PM

Deloitte has been appointed as the new external auditors of Finbond Group Limited after the mutual bank dumped scandal-hit KPMG.

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Fin24.com | WATCH: IMF warns G20 that tariffs hurting economy
7/22/2018 2:14:10 PM

The International Monetary Fund is warning world economic leaders that the recent wave of trade tariffs would significantly harm global growth.

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Fin24.com | INFOGRAPHIC: How SA stacks up on the Big Mac Index
7/22/2018 2:12:53 PM

According to the latest Big Mac Index, the rand is undervalued by 25% - adjusted to GDP.

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Fin24.com | Western Cape drought erodes SA status as wheat importer
7/22/2018 1:29:16 PM

SA is traditionally a net importer of wheat, but the Western Cape drought resulted in an increase in wheat imports to the second-highest level on record, says Agbiz.

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Fin24.com | State-actors blamed in Singapore cyberattack
7/22/2018 1:27:54 PM

State-actors were likely behind Singapore's biggest ever cyberattack to date, security experts say, citing the scale and sophistication of the hack which hit medical data of about a quarter of the population.

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Fin24.com | Google shrugs off EU fine, damage to hinge on rivals' plans
7/22/2018 12:07:47 PM

Europe’s record $5bn fine against Google marks the biggest regulatory attack yet on technology giants. But investors and analysts shrugged off the ruling’s potential to dent Google’s business.

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Fin24.com | Township and rural part of radical economic change, says Mabuza
7/22/2018 10:24:07 AM

Deputy President David Mabuza says township and rural economies form part of calls for radical economic transformation in the country – but businesspeople warn it should not just pay lip service.

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Fin24.com | Brics Summit no 'talkshop'
7/22/2018 8:19:18 AM

The 10th Brics Summit, to be held in Johannesburg this week, will not be a mere talkshop, according to South Africa’s Brics ambassador, Anil Sooklal.

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Fin24.com | Moyane wants Ramaphosa, Gordhan grilled at his disciplinary
7/22/2018 7:54:02 AM

Suspended SARS commissioner Tom Moyane is demanding that President Cyril Ramaphosa and Public Enterprises Minister Pravin Gordhan appear before his disciplinary inquiry so they can face cross-examination.

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Fin24.com | PIC duo's shady payouts
7/22/2018 6:44:50 AM

Public Investment Corporation executives Paul Magula and Ernest Nesane both allegedly received monthly payments from Vele Investments for over a year, totalling around R5m each.

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Fin24.com | VBS CEO: I knew, heard nothing
7/22/2018 6:27:57 AM

Andile Ramavhunga claims ignorance of the fraudulently extracted R1.5 billion, though he does not deny it happened.

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Fin24.com | Calls for fuel levy cuts may fall on deaf ears
7/22/2018 6:05:05 AM

The calls by political parties and civil society for cuts to the fuel levy and the Road Accident Fund (RAF) levy could just be populist noise that might not get a hearing.

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Fin24.com | Dumped radio told us the real story
7/22/2018 6:05:05 AM

It was luck, I guess, and as they say, “in the long run, it is better to be lucky than good”. My luck started when I found a radio on a rubbish heap; someone had thrown it away.

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Fin24.com | Irba issues R2m in fines, shames some auditors
7/22/2018 6:05:05 AM

The Independent Regulatory Board for Auditors (Irba) handed out R2 million in fines this week to 21 auditors that contravened its professional standards, code of conduct and the law.

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Fin24.com | UAE may invest in SOEs
7/22/2018 6:05:05 AM

Ambassador says UAE is already in talks with SAA and Eskom, and has pledged $10 billion.

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Fin24.com | South Africa at nexus of multilateral discussions
7/22/2018 6:05:04 AM

This year South Africa is at the nexus of a number of important global discussions and in its best position yet to champion the case for Africa, as well as its own domestic growth agenda.

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Fin24.com | 'Township and rural are part of radical economic change'
7/22/2018 6:05:04 AM

Deputy President David Mabuza says township and rural economies form part of calls for radical economic transformation in the country – but businesspeople warn it should not just pay lip service.

More

WHL
Heads up: Woolworths Holdings Limited 52 week trading update - worse than expected
7/19/2018

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MRP
Heads up: Mr Price FY18 results review
7/13/2018

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BAT
Heads up: Brait FY18 results - Muted near-term outlook
7/10/2018

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HDC
Heads up: Hudaco 1H18 results - No "Ramaphoria"....yet
7/3/2018

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TON
Heads up: Tongaat Hulett FY18 results - Cheap, but beware further short-term headwinds
6/19/2018

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MEI
Heads up: Mediclinic FY18 results review
6/12/2018

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VOD
Heads up: Vodacom Limited - FY18 results
6/11/2018

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FBR
Heads up: Famous Brands FY18 result - Tough trading conditions
6/11/2018

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KST
Heads up: PSG Konsult - FY18 results
6/11/2018

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SPP
Heads up: Spar 1H18 results - Switzerland swings into profit
6/8/2018

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  25,105.10   40.60  0.2%
DJ Trans  10,770.45   22.80  0.2%
NASDAQ  7,845.63   20.33  0.3%
NYSE S and P500 INDEX  2,808.32   3.83  0.1%
FTSE 100  7,678.79   -5.18  -0.1%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  12,561.42   -124.87  -1.0%
HONG KONG HANG SENG INDEX  28,224.48   213.62  0.8%
NIKKEI 225 INDEX  22,697.88   -66.80  -0.3%
No Data at Present
Currencies
Name Value Move
ZAR/ / AUD  9.97   0.00 0.0%
ZAR/ / CHF  13.52   -0.05 -0.4%
USD/ / EUR  1.17   0.00 0.0%
ZAR/ / EUR  15.75   0.00 0.0%
USD/ / GB  1.31   0.00 0.0%
ZAR/ / GBP  17.63   0.01 0.0%
YEN/ / ZAR  8.31   0.00 0.0%
JPY/ / USD  111.82   -0.62 -0.6%
ZAR/ / USD  13.46   0.00 0.0%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  73.22   0.67 0.9%
Palladium  888.10   22.10 2.6%
Platinum  830.80   22.60 2.8%
Silver  15.51   0.18 1.1%
Gold  1,228.53   5.69 0.5%
Top 5 Gainers -- Delayed
Adcock Ingram Hldgs Op  178.6
Gold Brands Inv Ltd  66.7
Jasco Electron Hldgs L  52.2
SABLE PLATINUM LTD  31.9
Labat Africa Ltd  30.3
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Coal of Africa Ltd  -14.3
Transpaco Ltd  -14.1
African Dawn Capital L  -12.5
E Media Holdings Ltd  -11.1

PRICES (15 minute delay)

NewFunds S&P GIVI SA I : GIVIND 5444  24 | Shareholder Weighted A : DALS 7304  78 | Hulamin Ltd : HLM 535  -18 | City Lodge Hotels Ltd : CLH 15023  -256 | Eq Investment : J898 4048  78 |

SENS (15 minute delay)