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Market Commentary
Market Commentary for Thursday 14 February 2019

The All Share Index opened lower by 129.5 points or 0.24% on Thursday as the Asian markets ended their session in negative territory. Our local bourse gained throughout the day, and eventually we surrendered all our gains and closed 0.03% in the red. Industrials closed higher by 0.50% mostly due to a 1.98% increase in Naspers. Financials were the worst performing sector and the index closed lower by 1.80%, led by Absa and Firstrand which closed lower by 3.52% and 2.69% respectively. The gold miners closed higher by 2.33% whilst listed property surrendered 0.74%. On the company reporting front, Dischem announced a trading update for the 22 weeks ending 2 February 2019 and the company advised that they recorded Group revenue growth of 10.7% to R9.4bn compared to the corresponding prior period, with the biggest market share gains coming in October and November on the back of a successful ‘MicroPopz’ promotional campaign. The campaign saw 500 000 new customers walking through their doors with a high conviction rate in terms of turning these customers into loyalty members. The current ongoing industrial action heavily impacted December trade and continues to affect the Group. As a result, the December trading month saw retail revenue growth of 6.2% and retail comparable store revenue decline 2.5%. The stock declined 6.17%. City Lodge released their results for the half year ended 31 December 2018, and the salient features were a 6% decline in normalised diluted HEPS with an ROE of 17% and average group occupancies disclosed at 58%. The stock closed lower by 3.81%. Assore released a trading statement for the half year ended 31 December 2018, and the company guided for HEPS to be between R26.85 to R29.08, being an increase of between 13% and 22% compared to the R23.79 disclosed for the previous comparative period. The stock closed marginally higher by 0.04%. On the economic front, the Japanese economy grew at an annualized 1.4% in the December quarter of 2018, after an upwardly revised 2.6% contraction in the September quarter, and matching market consensus. The German economy expanded at a calendar-adjusted 0.6% year-on-year in the fourth quarter of 2018, following a 1.1% growth in the previous three-month period. Mining production in South Africa decreased 4.8% year-on-year in December 2018, following an upwardly revised 5.8% fall in November and compared with market expectations of a 0.6% decline. The GDP in the Euro Area expanded 1.2% in the fourth quarter of 2018, over the same quarter of the previous year. The number of Americans filing for unemployment benefits increased by 4000 to 239 000 in the week ending 9 February 2019 from the previous week’s unrevised level of 235 000 and compared to market expectations of 225 000. Total value traded for the day was recorded at R20.787bn

Market Commentary
The Day Ahead for Friday 15 February 2019

US stocks edged lower in trading as disappointing economic data and reports that the president will declare a national emergency overshadowed news that another government shutdown will be averted. The Dow Jones Industrial Average and S&P 500 closed weaker by 0.41% and 0.21% respectively whilst the Nasdaq closed higher by 0.09%. The Asian bourses are all trading lower this morning and Tencent is lower by 2.63% whilst the Hang Seng has declined 1.86% thus far. BHP Billiton has shed 0.55% in Australia whilst the Australian ASX is trading 0.11% in the black so far. European markets are set for a weaker open and traders can expect a bearish start to trading on our local bourse this morning.

News Articles
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Fin24.com | 5 questions: Total's Adewale Fayemi on Brulpadda – and hitting the ground running
2/16/2019 6:24:41 PM

Fin24 talks to Total's Adewale Fayemi about the company's significant find at Brulpadda, and how the next steps will unfold.

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Fin24.com | South Africans feel less happy than 5 years ago - survey
2/16/2019 6:21:46 PM

About 71% of South Africans surveyed by Pernod Ricard feel the country is less convivial - or happy - than five years ago.

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Fin24.com | Load shedding not likely over the next few days: Eskom
2/16/2019 12:33:39 PM

Eskom says there is low probability of load shedding over the next few days, but may cut power at short notice

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Fin24.com | SA likely lost R1bn per load shedding stage per day - analyst
2/16/2019 12:07:32 PM

Based on previous losses, it is likely that the loss to SA's GDP due to Eskom load shedding since last Sunday has been about R1bn per load shedding stage per day, says an analyst.

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Fin24.com | Load shedding: This is how Eskom plans to turn things around
2/16/2019 9:57:40 AM

A look at the nine-point plan that Eskom hopes will turn its fortunes around.

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Fin24.com | Auditing board wraps up disciplinary hearing of Gupta-linked ex-KPMG auditor
2/15/2019 9:00:36 PM

IRBA has concludes the disciplinary hearing of a former KPMG auditor who worked on the books of a Gupta-linked company.

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Fin24.com | Uganda deports MTN chief over 'national security'
2/15/2019 8:05:16 PM

Uganda has deported the Belgian head of South African telecoms giant MTN's local branch, the company said Friday, making him the fourth employee to be kicked out of the country this year.

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Fin24.com | SA's ex-ambassador seized over MTN Iran license win
2/15/2019 8:01:52 PM

South African police arrested a former ambassador to Iran on corruption charges related to the award of a mobile-phone license to MTN after it was initially given to Turkcell Iletisim Hizmetleri.

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Fin24.com | Total offshore find fits with Operation Phakisa, says Cabinet
2/15/2019 7:31:14 PM

During the 2019 Mining Indaba petroleum and gas giant Total announced that it found offshore gas deposits at it’s Brulpadda prospects in the Outeniqua basin, some 175km off the coast of South Africa.

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Fin24.com | Cabinet sets up high level Eskom committee for 'daily electricity updates'
2/15/2019 4:43:43 PM

Cabinet has announced that Deputy President David Mabuza will lead a special Cabinet Committee into the state of affairs at Eskom.

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Fin24.com | Comair awarded R1.1bn in final competition settlement with SAA
2/15/2019 4:35:19 PM

Comair has reached a final settlement with SAA regarding a case relating to SAA's incentive schemes for travel agents from 14 years ago.

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Fin24.com | Fuel prices look set to rise in March - AA
2/15/2019 3:23:26 PM

The price of petrol looks set to increase by 43 cents per litre in March according to unaudited mid-month fuel price data, the Automobile Association said on Friday.

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Fin24.com | Xi hails important progress, says trade talks to resume in US
2/15/2019 3:22:28 PM

President Xi Jinping says US-China trade talks would continue next week in Washington, as the two sides race to reach a deal that would avert a tariff increase on Chinese goods.

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Fin24.com | When SA cuts off power, cable thieves move in
2/15/2019 3:18:02 PM

While most South Africans spent the past week griping about rolling power cuts, the outages proved a blessing for cable thieves, who are able to work during the blackouts without fear of electrocution.

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Fin24.com | Find your load shedding schedule
2/15/2019 12:44:12 PM

Find your load shedding schedule for Johannesburg, Durban, Cape Town, Nelson Mandela Bay and Polokwane.

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Fin24.com | Dunkin Donuts, Baskin Robbins to close in SA
2/15/2019 12:31:20 PM

JSE-listed Grand Parade Investments has announced its exit of poor-performing assets Dunkin Donuts and Baskin Robbins as part of its value-based strategy.

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Fin24.com | Telkom says deal 'good idea' for SA mobile boost
2/15/2019 12:18:15 PM

Telkom sees an acquisition as one way to grow its mobile-phone business as it looks to boost profit and attract higher-paying customers.

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Fin24.com | Zim January inflation spirals to 57%
2/15/2019 11:06:18 AM

Zimbabwe's year-on-year inflation rate for the month of January stood at 56.90%, up from 42.09% in December 2018, according to Zimstats.

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Fin24.com | Lights out! Load shedding and the impact on local business
2/15/2019 10:35:50 AM

Businesses in South Africa have spent the past week struggling to operate amid rolling blackouts that affect their operations for as many as five hours at a time.

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Fin24.com | January 'dismal' as SA's lengthy slump continues - report
2/15/2019 10:03:24 AM

There are indications that the downswing phase in the SA business cycle is now nine months longer than its previous slump.

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HDC
Heads up: Hudaco FY18 Results - A Quality SA Inc Cyclical
2/4/2019

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VOD
Heads up: Vodacom Limited - Weak 3Q19 Results
2/4/2019

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SAP
Heads Up: Sappi FY18 Results review
1/9/2019

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BAT
Heads Up: Brait 1H19 Results - Disappointing, but portfolio optimisation could unlock value
1/9/2019

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SAP
Heads Up: Sappi FY18 Results review
1/9/2019

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PFG
Heads up: Pioneer Foods FY18 Results - Recovery Derailed by Tougher H2
12/12/2018

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NPK
Heads up: Nampak FY18 Results Review
12/6/2018

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VOD
Heads up: Vodacom Limited - 1H19 Results for the six months ended 30 September 2018
12/5/2018

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QFH
Heads up: Quantum Foods FY18 Results - Strong, but unsustainable
12/5/2018

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TBS
Heads up: Tigerbrands FY18 Results - 2H18 Collapse
12/3/2018

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  25,439.39   -103.88  -0.4%
DJ Trans  10,537.63   40.66  0.4%
NASDAQ  7,426.95   6.57  0.1%
NYSE S and P500 INDEX  2,745.73   -7.30  -0.3%
FTSE 100  7,197.01   6.17  0.1%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  11,089.79   -77.43  -0.7%
HONG KONG HANG SENG INDEX  28,432.05   -65.54  -0.2%
NIKKEI 225 INDEX  20,900.63   -239.08  -1.1%
No Data at Present
Currencies
Name Value Move
ZAR/ / AUD  10.05   -0.01 -0.1%
ZAR/ / CHF  14.02   -0.04 -0.3%
USD/ / EUR  1.13   0.00 -0.1%
ZAR/ / EUR  15.90   -0.03 -0.2%
USD/ / GB  1.28   0.00 0.0%
ZAR/ / GBP  18.10   -0.02 -0.1%
YEN/ / ZAR  7.82   0.01 0.2%
JPY/ / USD  110.51   0.03 0.0%
ZAR/ / USD  14.11   -0.02 -0.1%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  65.53   0.88 1.4%
Palladium  1,406.95   14.05 1.0%
Platinum  792.95   3.95 0.5%
Silver  15.59   0.01 0.0%
Gold  1,315.36   2.98 0.2%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Comair Limited  22.0
Micromega Holdings Ltd  15.6
EOH Holdings Ltd  14.6
Sekunjalo Inv Ltd  13.0
Top 5 Losers -- Delayed
Eastern Platinum Ltd  -74.4
RH Bophelo Limited  -48.1
African Dawn Capital L  -37.1
Spanjaard Limited  -33.6
Advanced Health Ltd  -20.0

PRICES (15 minute delay)

Go Life International : GLI 55  5 | Tiso Blackstar Group S : TBG 348  7 | AMI Big50 ex-SA ETF : AMIB50 1330  -5 | UTPN : JN0U 3696  49 | Santam Limited : SNT 29843  -157 |

SENS (15 minute delay)