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Market Commentary
The Day Ahead for Wednesday 02 September 2015

Yesterday, US markets closed in the red with the Dow Jones Industrial Index and the S&P500 falling by 2.84% and 2.96% respectively. Asian markets are mixed this morning with the Nikkei trading higher by 0.35% while the Hang Seng is trading lower by 0.46%. Tencent is trading in the black by 1.26% whilst BHP Billiton has lost 0.65% in Australia this morning. The Australian ASX is down by 1.94% thus far. Traders can expect a flat to marginally positive start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Tuesday 30 September 2015

On Tuesday, markets fell as concerns around China’s growth mounted. The sell-off came on the back of weak data which showed China’s purchasing managers’ index decline to its lowest level in three years at 49.7. The selling continued throughout the day to see the All-Share Index close lower by 2.92%. In a sea of red, investors had to look hard for the gainers on the market yesterday. These were led by DRD Gold, Grindrod and ArcelorMittal up 13.97%, 6.48% and 4.42% respectively. Looking at the losers, we had Mr Price, Gold Fields and Mondi trade 13.25%, 5.71% and 5.37% lower on the day. On the company front, Cashbuild released its annual results showing that the company grew revenue, operating profit and headline earnings by 13%, 30% and 33% respectively. The company also announced a dividend of 712 cents per share, up 35% from the previous comparable period, and a 10% rise in net asset value per share. Equestra also released results reflecting a 10.6% increase in operating profit, an 11.5% increase in net asset value per share and 2.6% rise in headline earnings. The results also showed that revenue had declined by 5.2% to R9.46 billion. DRD Gold released fourth quarter and year ended 30 June 2015 results. The key features showed full year gold production was up 13% to 150,145oz, all-in sustaining costs were down 7% to $1,118oz. and operating profit was up 48% to R384.3 million. Mustek Limited’s results showed an 11.5% rise in revenue, a 24.2% climb in headline earnings and saw the company announce a 25% increased dividend of 35 cents per share. Looking at the highlights from Hyprop Investments, we saw the dividend up 15%, like-for-like NAV up 13.4% and 95% of debt fixed for 5.2 years. Mr Price released a trading statement for the 21 weeks ended 22 August 2015. The update showed that during the first 21 weeks (29 March 2015 to 22 August 2015) of the financial year ending 2 April 2016, Mr Price Group recorded total sales growth of 9.0% (comparable sales growth 4.6%) over the corresponding period in the prior year. The statement also said that high sales base, particularly in the MRP Apparel division, was previously brought to the attention of the investment community. Sales growth for the period was also impacted by low levels of consumer confidence, some poor fashion calls and the very late onset of winter. In addition, the Easter school holidays, which were included in the corresponding period, fell outside the current period. The market received this trading update poorly and we saw Mr Price end the day at its lows, down 13.25%. Ascendis Health also released a trading statement indicating that the company expects earnings to rise by between 48% and 55% while headline earnings are expected to be 55% to 62% higher. Then late in the day, RCL Foods released results for the 12 months ended 30 June 2015. The highlights showed revenue rose by 20.1%, headline earnings per share from continuing operations was up 112.2 cents and cash generated by operations was up 76%. The total value traded for the day was R18.1bn.

News Articles
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Fin24.com | SA could hike nuclear power share - report
2015/09/02 09:48:09 AM

South Africa's future energy mix could include an even higher share for nuclear power than the 9 600 MW already planned, according to a report.

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Fin24.com | Expose any nuclear corruption now, says minister
2015/09/02 08:38:16 AM

Energy Minister Tina Joemat-Pettersson has called for anyone with information that shows corruption in the the nuclear energy programme to report it now.

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Fin24.com | More pain as Zim moves from hyperinflation to deflation
2015/09/02 07:11:04 AM

Deflation comes with its own problems as it limits wage hikes, curbs tax receipts and worsens corporate and government debt burdens - problems Zimbabwe can ill afford.

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Fin24.com | Services export could be SA's new gold - report
2015/09/02 06:46:19 AM

Despite a thriving domestic services sector, SA’s share of exports of services remains small, even within its geographic region, cautions a new McKinsey report.

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Fin24.com | SA economy in bad shape, NDP 'all but forgotten'
2015/09/01 08:30:03 PM

The South African economy is in bad shape with the National Development Plan being all but forgotten, warn the experts.

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Fin24.com | SA needs to move away from 'staple' sectors - report
2015/09/01 07:40:46 PM

South Africa needs to seek opportunities over and above ‘status quo’ sectors like mining to unlock growth and job creation, according to a McKinsey report.

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Fin24.com | Lee Rochford to step down as Virgin Money CFO
2015/09/01 07:00:02 PM

British lender Virgin Money Holding has said Lee Rochford will step down as chief financial officer and executive director of the company with immediate effect.

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Fin24.com | Google unveils its new logo design
2015/09/01 06:49:43 PM

The search giant has unveiled a major redesign of its logo, which went live on its landing page across the globe on Tuesday.

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Fin24.com | Rate hike, rand rout hit new car sales
2015/09/01 06:25:03 PM

July’s interest rate hike and the rand’s dismal performance have taken a toll on the new vehicle market, says an industry leader.

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Fin24.com | Cotton On continues SA expansion
2015/09/01 06:20:04 PM

Australia-based retail group Cotton On has reported double-digit growth every month since the group opened its first store in South Africa.

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Fin24.com | Transnet Port Terminals honoured
2015/09/01 06:09:42 PM

Transnet Port Terminals has been nominated among the top three finalist of the 2015 Business Continuity Institute Africa Awards.

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Fin24.com | Sun International finalises deal in Latin America
2015/09/01 05:55:21 PM

Sun International has entered into binding transaction agreements with Chile-based Dream to merge its casino and hotel assets in its Latin American portfolio.

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Fin24.com | China factory sector decline continues
2015/09/01 05:51:52 PM

Activity in China's factory sector shrank at its fastest rate in at least three years in August as domestic and export orders tumbled, increasing investors' fears.

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Fin24.com | Medical schemes healthy despite fewer members joining
2015/09/01 05:09:01 PM

The medical scheme industry is financially sound despite low growth in membership, says the Council for Medical Schemes.

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Fin24.com | Eqstra operating profit up despite challenges
2015/09/01 04:42:48 PM

Eqstra Holdings has reported a rise of 10.6% in operating profit, driven primarily by improving efficiencies, restructuring and identifying excess assets.

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Fin24.com | W Cape eyes 100 000 jobs with new tourism plan
2015/09/01 04:04:59 PM

A new tourism growth strategy aims to create 100 000 jobs in the Western Cape, says provincial Minister of Economic Opportunities Alan Winde.

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Fin24.com | Mr Price declines on 'poor fashion calls'
2015/09/01 03:51:50 PM

Mr Price Group shares have fallen the most in almost three years as the clothing and household-goods retailer says low levels of consumer confidence curbed sales.

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Fin24.com | Crucial nuclear power deal issue cleared
2015/09/01 03:20:31 PM

The agreements that SA signed with five countries in preparation for its nuclear energy procurement programme are not financially binding, a committee has heard.

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Fin24.com | Gaming cushions GPI's gamble on food
2015/09/01 02:13:14 PM

Grand Parade Investments has posted an increase to 10.53 cents in headline earnings per share from 3.17c, with the bulk coming from the gaming division.

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Fin24.com | Apple explores competing against Netflix
2015/09/01 02:07:06 PM

Entertainment executives in Hollywood have held talks with Apple about producing exclusive shows for Apple TV, according to reports.

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SUI
Heads up: Sun International FY15 results - Restructure done, tougher times ahead
2015/08/31

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SNT
Heads up: Santam 1H15 results - Favourable underwriting conditions
2015/08/31

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GRT
Heads up: Growthpoint FY15 results- A steady ship
2015/08/31

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AIP
Heads up: Adcock Ingram- Review of FY15 results
2015/08/27

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MFL
Heads up: Metrofile FY15 results - good growth in a challenging environment
2015/08/27

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BIL
Heads up: BHP Billiton - FY15 results - progressive dividend remains intact
2015/08/27

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GND
Heads up: Grindrod Limited - 1H15 results for the six months ended 30 June 2015
2015/08/26

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IPL
Heads up: Imperial FY15 results - a lot more resilient than the market gave it credit for
2015/08/26

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MTA
Heads up: Metair 1H2015 results - Short-term slowdown in production offset by strong aftermarket
2015/08/25

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TRU
Heads up: Truworths - Review of FY15 results
2015/08/25

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  16,058.35   -469.68  -2.8%
DJ Trans  7,677.32   -167.83  -2.1%
NASDAQ  4,636.11   -140.40  -2.9%
NYSE S and P500 INDEX  1,913.85   -58.33  -3.0%
FTSE 100  6,077.85   19.31  0.3%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,086.72   71.15  0.7%
HONG KONG HANG SENG INDEX  20,992.83   -192.60  -0.9%
NIKKEI 225 INDEX  18,095.40   -70.29  -0.4%
Major JSE Indices*
Name Value Move
OVERALL  48999   484.00  1.0%
TOP 40  43467   487.35  1.1%
ALL GOLD  945   -16.82  -1.7%
INDUSTRIAL  63115   669.27  1.1%
FINANCIAL  15954   126.33  0.8%
RESOURCES  34776   611.41  1.8%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  9.45   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.13   0.01 0.5%
ZAR/ / EUR  15.12   0.26 1.7%
USD/ / GB  1.53   0.00 -0.3%
ZAR/ / GBP  20.53   0.21 1.0%
YEN/ / ZAR  8.98   8.87 7,965.3%
JPY/ / USD  119.97   0.42 0.4%
ZAR/ / USD  13.45   0.19 1.5%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  49.18   0.56 1.2%
Palladium  574.34   1.34 0.2%
Platinum  1,009.20   6.10 0.6%
Silver  14.62   0.01 0.1%
Gold  1,141.10   1.20 0.1%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Hwange Colliery Ltd  25.0
Sekunjalo Inv Ltd  13.0
ANOORAQ RESOURCES CORP  11.6
DRD Gold Ltd  7.8
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Tawana Resources NL  -16.7
Purple Group Ltd  -6.3
Niveus Investments Ltd  -5.5
Glencore plc  -3.7

PRICES (15 minute delay)

Industrial Engineering : INDE 72790  3822 | Tawana Resources NL : TAW  0 | Hudaco Industries Ltd : HDC 11351  -149 | Wesizwe Platinum Ltd : WEZ 55  0 | Anchor Group Limited : ACG 1260  10 |

SENS (15 minute delay)

| GLD : Additional Listing of NewGold Debentures| SCP : Results of General Meeting| SOLSBD : SCIB: The Standard Bank of South Africa Limited - Issue of Stock Warrants| S32 : Notification of Change of Interests of| VKE : TRP121: Notification of acquisition of beneficial interest in shares| TAW : Change in Directors Interest Notice| AFT : Director Dealings| EHS : Creditors? Committee Meeting and Update on Sales Process| WCC : Further Cautionary Announcement and Update on Voluntary Suspension| AFX : Afrox retains R130 million Massbuild contract| JSE : Trading Halt - Please wait, downloading details| NT1 : Notification of directors' dealings in Net1 securities| ECS : Trading Statement for the six months ended 30 June 2015| SAR : Declaration And Finalisation Announcement In Respect Of The Safari Rights Offer| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details