Market Commentary News Research  
Market Commentary
The Day Ahead for Tuesday 24 May 2016

Wall Street ended the day in negative territory on Monday with the Dow Jones Industrial Average and the S&P500 slipping 0.05% and 0.21% respectively, as the worse than expected flash PMI for May weighed on markets. Eastern markets are trading in slightly negative territory this morning with the Nikkei and the Hang Seng index currently lower by 0.73% and 0.25% respectively. Tencent is trading in the black by 0.9% whilst BHP Billiton has gained 1.1% this morning. The Australian ASX is trading weaker by 0.1% thus far. Traders can expect a flat to negative start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Monday 23 May 2016

Our local bourse started the trading session lower by 0.5% on Monday against a backdrop of lower closes across Asia. The selling pressure and negative sentiment eased as American markets opened, with our market eventually finishing the day down by 0.02% at the close. The biggest loser for the day was the resources sector, depreciating 0.58% by market close. Leading the downside were Kumba Iron Ore and Lonmin, declining by 5.91% and 3.05% respectively. Our telecoms sector followed on closely and finished 0.5% lower, driven largely by MTN which closed the day 0.72% softer. On the company front, Rhodes Food Group released its reviewed consolidated interim results for the 6 months ended 27 March 2016. Key financial indicators included a 53.5% increase in turnover, gross profit margin increased by 60bps to 28.2%, profit after tax of R 110 million and normalised HEPS increased 36.9% to 50.1 cents per share. Mpact Limited shareholders were advised that the company’s EPS and HEPS for the 6 months ended 30 June 2016 are expected to be at least 20%, or 27.1 cents and 26.9 cents per share lower than the EPS and HEPS for 30 June 2015. PPC advised shareholders of the advanced state of an intended capital raise of R3 billion to R4 billion, which would be used to reduce current debt levels and fund existing committed expansion capital expenditure and investment projects. In addition, arising from its on-going engagement with a particular credit ratings agency, PPC has reason to believe that the outcome of this engagement is a probable credit rating downgrade of PPC. Mr Price released its final trading statement and final cash dividend declaration for the 53 weeks ended 2 April 2016. Basic Earnings Per Share of 1046.5 cents and Headline Earnings Per Share of 1057.8 cents per share was declared. The final gross dividend for the period was declared at 419 cents per share, with the final day to trade ‘cum’ the dividend being Friday 17 June 2016. On the Economic front, the Markit Flash Eurozone Manufacturing PMI came in at 51.5 in May of 2016, down from 51.7 in the previous month and compared to market expectations of 51.9. It is the lowest reading in three months and the second weakest since February 2015 meanwhile, German Manufacturing PMI came in at 52.4 in May of 2016, up from 51.8 in the previous month and above market expectations of 52. The flash estimate of the consumer confidence indicator in the Euro Area increased markedly by 2.3 points to -7 in May from -9.3 in April, beating market expectations of -9. It was the highest reading since January this year. Japan recorded a JPY 823.4 billion surplus in April of 2016, compared to a JPY 58.34 billion deficit a year earlier and beating market consensus of a JPY 492.80 billion surplus. It is the largest surplus since March 2010 as exports dropped by 10.1% year-on-year. Total value traded for the day was R 15.1bn.

News Articles
imageattribute
Fin24.com | Sibanye targeting gold acquisition by end of 2016
5/24/2016 7:36:48 PM

Sibanye Gold wants to buy a gold-producing asset by the end of the year, adding to its acquisitions of platinum operations in its home country, says CEO Neal Froneman.

More

imageattribute
Fin24.com | Adcorp prevails despite labour law changes
5/24/2016 7:20:40 PM

Listed workforce management group, Adcorp Holdings, announced group revenues increased by 17% to R15.6bn for the financial year ended February 29 2016.

More

imageattribute
Fin24.com | Glencore to complete $7.7bn loan amid turnaround push
5/24/2016 7:18:14 PM

Glencore finalised a $7.7bn loan from almost 60 banks as the commodity trader shores up its balance sheet following a raw-materials downturn.

More

imageattribute
Fin24.com | New Touchstone House offers trendy office space in CT
5/24/2016 6:54:53 PM

Rental office units form part of the offering in the new Touchstone House, located on the corner of Bree and Mechau Streets in Cape Town’s CBD.

More

imageattribute
Fin24.com | SA in discussions with S and P, Fitch - Treasury
5/24/2016 6:44:28 PM

The Treasury says a team from credit rating Standard and Poor's visited SA for meetings ahead of a review which could see the country's debt rating cut to junk.

More

imageattribute
Fin24.com | Bayer targets Monsanto in biggest-ever German takeover bid
5/24/2016 6:42:44 PM

German drugs and chemicals giant Bayer has offered $62bn for US agriculture group Monsanto as it seeks to create the world's biggest supplier of seeds, pesticides and genetically-modified crops.

More

imageattribute
Fin24.com | Pick n Pay celebrates 49 years
5/24/2016 6:18:28 PM

Forty-nine years ago, founder of Pick n Pay Raymond Ackerman took a bold step.

More

imageattribute
Fin24.com | Seven new projects to up Cape Town CBD value
5/24/2016 6:02:58 PM

The Cape Town CBD has gained at least seven development projects since January 2016, according to the Cape Town Central City Improvement District.

More

imageattribute
Fin24.com | Samsa head resigns suddenly
5/24/2016 6:01:45 PM

The executive head of the SA Maritime Safety Authority has resigned with immediate effect, reports Netwerk24.

More

imageattribute
Fin24.com | Japan an alluring target for Standard Bank ATM thieves
5/24/2016 4:49:36 PM

Criminals who stole millions of dollars from ATMs across Japan in a three-hour spree probably chose the country because banks consider it a low fraud risk, experts say.

More

imageattribute
Fin24.com | Acsa appoints new GM for 6 regional airports
5/24/2016 4:28:25 PM

Airports Company SA has appointed a new general manager to lead its six regional airports.

More

imageattribute
Fin24.com | Sustainable certification worth it - Fairtrade
5/24/2016 4:16:54 PM

As consumers become more discerning, all aspects of systems in the supply chain need to be accountable, says Arianna Baldo, executive director of Fairtrade SA.

More

imageattribute
Fin24.com | DA slates IDC response on Oakbay loan restructure
5/24/2016 3:47:13 PM

The Industrial Development Corporation has “jumped from the frying pan into the fire with a questionable restructuring deal” with Gupta-owned Oakbay, the DA has explained.

More

imageattribute
Fin24.com | DA slates IDC response on Oakbay loan restucture
5/24/2016 3:41:46 PM

The Industrial Development Corporation has “jumped from the frying pan into the fire with a questionable restructuring deal” with Gupta-owned Oakbay, the DA has explained.

More

imageattribute
Fin24.com | IDC met with Atul Gupta over Oakbay loan, but never at Saxonwold
5/24/2016 3:18:27 PM

Industrial Development Corporation officials met with Atul Gupta and members of his business ahead of providing financial assistance to Oakbay, it has been revealed.

More

imageattribute
Fin24.com | IDC met with Atul Gupta, but never at Saxonwold - CEO
5/24/2016 2:12:38 PM

Industrial Development Corporation officials met with Atul Gupta and members of his business ahead of providing financial assistance to Oakbay, it was revealed.

More

imageattribute
Fin24.com | De Beers sells R9.87bn of diamonds at auction
5/24/2016 1:35:48 PM

De Beers has completed a fourth offering of rough diamonds this year, signaling a stronger-than-expected demand during what is usually a weaker quarter.

More

imageattribute
Fin24.com | Zuma praises Toyota as expansion adds 4 000 jobs
5/24/2016 12:51:57 PM

President Jacob Zuma has praised Toyota for its expansion project in Durban, which will result in the employment of 4 000 people to make the Hilux and Fortuner models.

More

imageattribute
Fin24.com | Fitch cuts Mozambique’s rating to CC over hidden debt
5/24/2016 10:55:54 AM

Fitch Ratings has cut Mozambique’s credit to CC, indicating that a default of some kind is probable, after the country disclosed more than $1bn of previously hidden debt.

More

imageattribute
Fin24.com | Monsanto trading below Bayer offer shows regulatory anxiety
5/24/2016 10:54:34 AM

Monsanto shares have closed 13% below Bayer’s all-cash offer amid concern that regulators may complicate the proposed $62bn takeover.

More

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

.....

More

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

.....

More

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

.....

More

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

.....

More

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

.....

More

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

.....

More

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

.....

More

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

.....

More

OCT
Heads up: Octodec Investments Limited - Investing for Growth
5/4/2016

.....

More

CLS
Heads up: Clicks 1H16 results - Resilient, but not cheap
4/25/2016

.....

More

Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  17,695.23   182.37  1.0%
DJ Trans  7,711.58   58.94  0.8%
NASDAQ  4,845.15   72.57  1.5%
NYSE S and P500 INDEX  2,072.74   19.93  1.0%
FTSE 100  6,224.58   88.15  1.4%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,071.93   229.64  2.3%
HONG KONG HANG SENG INDEX  19,830.43   21.40  0.1%
NIKKEI 225 INDEX  16,498.76   -155.84  -0.9%
Major JSE Indices*
Name Value Move
OVERALL  53051   422.14  0.8%
TOP 40  47034   495.84  1.1%
ALL GOLD  2014   -69.27  -3.3%
INDUSTRIAL  72098   604.67  0.8%
FINANCIAL  15038   241.20  1.6%
RESOURCES  31218   204.34  0.7%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  11.24   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.11   -0.01 -0.6%
ZAR/ / EUR  17.43   -0.11 -0.6%
USD/ / GB  1.46   0.01 0.8%
ZAR/ / GBP  22.81   0.18 0.8%
YEN/ / ZAR  7.06   6.91 4,817.9%
JPY/ / USD  109.95   0.78 0.7%
ZAR/ / USD  15.64   -0.08 -0.5%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  48.96   0.56 1.2%
Palladium  540.00   -8.00 -1.5%
Platinum  1,004.00   -6.00 -0.6%
Silver  16.25   -0.10 -0.6%
Gold  1,231.50   -16.70 -1.3%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Atlatsa Resources Corp  23.1
Sekunjalo Inv Ltd  13.0
Diamondcorp plc  11.9
ANOORAQ RESOURCES CORP  11.6
Top 5 Losers -- Delayed
Nutritional Holdings L  -50.0
Visual International H  -31.6
Freedom Prop Fund Ltd  -17.6
Forbes & Manhatt Coal  -16.7
Winhold Ltd  -14.3

PRICES (15 minute delay)

Adcock Ingram Hldgs Lt : AIP 4099  -1 | Conduit Capital Ltd : CND 264  4 | Pallinghurst Res Ltd : PGL 352  -22 | RMB Mid Cap ETF : RMBMID 727  4 | Calgro M3 Hldgs Ltd : CGR 2130  -30 |

SENS (15 minute delay)

| PIV : Changes to the board of directors| TAW : Results of Annual General Meeting| TAW : CANCELLATION OF S371943 Results of Annual General Meeting| CLI : Directors Dealings In Clientele| SPP : Exercise of options by a director| TDH : Summary of the audited consolidated results of the| NUT : Audited Provisional Condensed Financial Results For The Year Ended 29 February 20| BG42A4 : Investor Report Availability| DRD : Exercise of options and sale of shares| BG32A2 : Investor Report Availability| BG22A2 : Availability of Investor Report| KST : Exercise Of Options And Dealings In Psg Konsult Shares By Directors and/or Their| SNT : Santam Limited ? Change in Directorate| ARL : Beneficial Interests In Securities| SGL : Results of AGM| ADH : Results of the 2016 Annual General Meeting| TWR : Results Of General Meeting And Proposed Bookbuild| OML : Form 8.3 - Public Opening Position Disclosure - Deutsche Boerse AG| STX40 : Partial Delisting of Satrix 40 Securities - STX40| RBP : RBPlat Employee Incentive Scheme Awards| CLR : Dealing in securities by a director| NQ1A21 : NQ1A21/NQ1A22 and NQF1D8 - New Financial Instruments Listing| HLM : Acceptance of rights to participate in share incentive plans| ADR : Audited summary consolidated and separate provisional results for the year ended| DLA : Implementation Of Naivasha Acquisition And Termination Of The Asset Management Ag| OML : Form 8.3 - Public Opening Position Disclosure ? London Stock Exchange Group| BTC110 : BTC110 Tap| RLO : Unaudited consolidated results and cash dividend declaration for the six months e| TRE : Textainer announces changes to board of directors| ZED : No Change Statement and Notice Of Annual General Meeting Of Zeder| TBG : Transaction in own shares| CPI : Notification In Terms Of Section 122(3)(B) Of The Companies Act (Act 71 Of 2008)| PNG : Renewal of Cautionary Announcement| DNB : Fulfillment Of All Conditions Precedent For The Acquisition Of Premier Rainwaterg| ANS : Trading Statement| EMN : Trading Statement| TWC177 : New Financial Instrument Listing - TWC177| ESPIB8 : ESPIB8 - New Listing| RDFC24 : Moody's Recalibrates SA's National Rating Scale & Repositions National Scale Rati| TAW : Results of Annual General Meeting| SCP : Section 45(5) notice in terms of the Companies Act| SAB : Rule 2.10 announcement| AGL : Anglo American rough diamond sales value for De Beers? fourth sales cycle of 2016| VUN : Reviewed Provisional Condensed Consolidated Results for the 14 Month Period ended| EQS : Renewal of cautionary announcement| NBK10A : Availability of Annual Financial Results| FDP : Disposal of Ligitprops 184 Proprietary Limited and cautionary announcement| OML : Response to Media Speculation| SNH : Level Of Acceptances At Fourth Closing Date And Extension Of The Final Offer| ASC : ASC - Acquisition of Remedica and Scitec and withdrawal of cautionary| CZA : Update: Recommended Offer for Universal Coal Plc - Extension of Co-operation Agre| TBS : Investor presentation| JSE : Trading Halt - Please wait, downloading details| BAT : Trading statement: Year ended 31 march 2016| TBS : Unaudited group results and dividend declaration for the six months ended 31 Marc| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details