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Market Commentary
The Day Ahead for Friday 24 April 2015

U.S stocks closed stronger on Thursday, with the Nasdaq setting a new all-time closing high. The Dow Jones Industrial Average and the S&P500 advanced by 0.11% and 0.24% respectively. Asian markets are trading mixed this morning as investors booked profits after the region’s recent run-up to new highs. Uncertainty over a “Grexit” is back on the radar as the nation prepares for a meeting with the Eurogroup later in the day. The Nikkei is trading lower by 0.7% whilst the Hang Seng is weaker by 0.84% thus far. The Australian ASX is enjoying a strong session this morning taking its lead from the material and energy sectors which are higher on the back of support from firmer iron ore, gold and crude oil prices. Tencent is trading just under half a percent weaker whilst BHP Billiton has added gains of 3% thus far. Traders can expect a flat start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Thursday 23 April 2015

Our local bourse started its trading session in positive territory following on from the US markets which ended higher overnight. The JSE All share index continued to rally throughout the day, once again setting new all-time highs, with the index closing stronger by 0.75% for the session. Our resource index was responsible for much of the upside gaining 2.65% by market close. Iron Ore miners Kumba and Assore advanced by 8.29% and 2.39% respectively after iron ore prices had its biggest one-day jump since 2012. This was on the back of news that BHP Billiton is slowing the pace of its planned expansion in iron ore production in a bid to conserve cash as commodity prices slump and demand in China weakens. Our gold miners struggled to move into positive territory giving away 1.3% for the day as gold miner Anglogold dropped 3% for the session. On the data front, the Flash Manufacturing PMI in the Euro area came in at 51.9, which was lower than the forecasted figure of 52.6. Retail sales out of Britain indicated a 0.5% decrease mm compared to the previous figure of a 0.6% increase. Out of the US, Unemployment claims increased by 1k to 295k compared to the previous weeks figure of 294K. April data indicated slower growth in momentum for the U.S manufacturing sector, with production volumes and incoming new work both expanding at weaker rates than in the previous month. The Flash Manufacturing PMI index dropped to 54.2 from the previous number of 55.6. On the company front, MTN released their quarterly update for the period ended 31 March 2015. Highlights included a satisfactory growth of 1.8% QoQ, adding 4.1 million subscribers. Reported data revenue increased by 16.7% YoY, now contributing 20.8% to total revenue. Clicks also released their interim consolidated results for the six months ended 28 February 2015 indicating that group turnover was up by 14.1%, diluted headline EPS increased by 12.8% whilst managing a return on equity of 53.6%. The group indicated that trading conditions continued to be challenging over the past six months as consumers remained cash constrained and value conscious. Kumba Iron ore released their production and sales report for the quarter ended 31 March 2015 in which they showed that total production increased by 7% compared to Q1 2014 and was 2% lower compared to the previous quarter. Total export volumes increased by 22% compared to Q1 2014 and decreased by 2% compared to the previous quarter. Anglo American Platinum also released their production report for the first quarter of 2015, indicating that group equivalent refined platinum production increased to 536 koz, up 50% over the strike affected Q1 of 2014. Value traded for the day came in at R16.3bn.

News Articles
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Fin24.com | Standard Bank says sorry for ATM glitch
2015/04/24 10:49:24 PM

No one wants to struggle to draw money at an ATM on payday, but that’s exactly what happened with several Standard Bank clients on Friday.

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Fin24.com | Will 'magic' Molefe spot Eskom's BEE thieves?
2015/04/24 09:58:15 PM

The proponents of Eskom's BEE procurement policies are among its biggest thieves, energy analyst Ted Blom has told the Cape Town Press Club.

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Fin24.com | Singapore becoming cheaper to call home
2015/04/24 06:17:39 PM

Expats in Singapore have voiced concerns about high living expenses, tightening foreign labour policies and education costs at international schools.

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Fin24.com | UK's richest hedge fund managers
2015/04/24 05:05:37 PM

Britain's top-25 richest hedge fund managers' wealth has risen by £1.8bn to £14.8bn over the past year, shows the Sunday Times Rich List.

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Fin24.com | 'Smaller, simpler' mantra rings through banking
2015/04/24 04:36:46 PM

Deutsche Bank's expected move to sell much of its retail banking business will see it join a growing list of banks choosing to shrink and simplify to survive.

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Fin24.com | Xenophobia will cause ‘incredible’ damage to economy
2015/04/24 04:20:08 PM

South African tourism and the economy are set to suffer a major blow following recent violence against foreign nationals, says Protea Group founder Otto Stehlik.

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Fin24.com | Brait still has R24bn to spend - Christo Wiese
2015/04/24 04:13:16 PM

The investment company is seeking to buy businesses that are cash generative and have a proven management team, according to its largest shareholder Christo Wiese.

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Fin24.com | Former Treasury officials soothe investors in new roles
2015/04/24 03:18:54 PM

SA is increasingly turning to Treasury officials from the first decade of democratic rule to help steer key economic institutions and boost investor confidence.

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Fin24.com | Gambling revenue expected to rise
2015/04/24 02:20:52 PM

SA’s gambling revenue is expected to increase over the next three years after the opening of a new casino by Peermont Hotels, Casinos and Resorts in Limpopo.

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Fin24.com | Cosatu's list of wage demands for government
2015/04/24 02:15:10 PM

Cosatu has tabled its demands for all public service workers at the Department of Finance, Treasury and the Department of Public Service and Administration.

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Fin24.com | Government forcing us to protest, says Cosatu
2015/04/24 01:20:46 PM

The Western Cape’s Cosatu provincial executive committee says the Treasury has been bargaining in bad faith during the public sector wage negotiations.

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Fin24.com | Stats SA pleads for input on living conditions
2015/04/24 12:34:47 PM

Statistics South Africa has launched an urgent appeal for South Africans to participate in a survey on their living conditions.

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Fin24.com | US abusive in chicken talks, says Bheki Cele
2015/04/24 12:05:17 PM

The US has been abusive in talks with South Africa as it demands the lifting of import duties for chicken meat, Deputy Agriculture Minister Bheki Cele says.

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Fin24.com | Nigeria's Heineken unit profit falls 2%
2015/04/24 12:00:38 PM

Nigerian Breweries, a unit of Dutch brewer Heineken, says its first quarter pre-tax profit has fallen 2% to 14.43 billion naira from a year ago.

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Fin24.com | Malawi not backing call to boycott SA products
2015/04/24 11:46:59 AM

Malawi’s government says it doesn’t support a call by a consumer group for a boycott of South African products in protest against deadly attacks on foreign nationals.

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Fin24.com | Honda unveils first business jet
2015/04/24 11:15:01 AM

Honda has unveiled its first private jet before it hits the market this summer, as the Japanese giant, targets deep-pocketed business flyers.

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Fin24.com | Inside Labour: The bane of spin
2015/04/24 11:12:52 AM

Labour's bitter breaches need to be understood within the context of history and are issues for debate and discussion, not for spin, says Terry Bell.

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Fin24.com | Deutsche Bank fined record $2.5bn
2015/04/24 11:07:17 AM

Deutsche Bank has agreed with US and British authorities to pay a record $2.5bn to resolve investigations it manipulated benchmark interest rates.

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Fin24.com | Lackay: SARS didn’t spy on Zuma
2015/04/24 10:53:16 AM

SARS did not operate a “rogue” unit that spied on President Jacob Zuma and other politicians, says former SARS media spokesperson Adrian Lackay.

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Fin24.com | China unemployment rate eases
2015/04/24 09:30:07 AM

China's urban unemployment rate have ticked down to 4.05% at the end of March from 4.1% at the end of 2014, says the labour ministry.

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CLS
Heads up: Clicks 1H15 results - Another solid set of results
2015/04/23

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PSG
Heads up: PSG FY15 results
2015/04/22

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PIK
Heads up: Pick n Pay Stores Ltd - results for the 52 weeks ended 1 March 2015
2015/04/22

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REB
Heads up: Rebosis 1H15 results- solid portfolio performance
2015/04/21

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ADH
Heads up: Advtech Holdings FY14 results - building for the future
2015/04/16

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PGL
Heads up: Pallinghurst Resources Limited FY14 results
2015/04/10

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PIK
Heads up: Pick n Pay Stores Ltd - trading statement
2015/04/10

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RES
Heads up: Resilient site visit - great assets, but steamy price
2015/04/07

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FSR
Heads up: FirstRand Limited - 1H15 results for the six months ended 31 December 2014
2015/04/07

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ASC
Heads up: Ascendis 1H15 results - on an aggressive growth strategy
2015/03/25

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,084.65   25.96  0.1%
DJ Trans  8,883.48   -21.20  -0.2%
NASDAQ  5,093.25   37.19  0.7%
NYSE S and P500 INDEX  2,117.87   4.94  0.2%
FTSE 100  7,077.16   23.49  0.3%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  11,798.93   75.35  0.6%
HONG KONG HANG SENG INDEX  28,060.98   233.28  0.8%
NIKKEI 225 INDEX  20,020.04   -167.61  -0.8%
No Data at Present
Currencies
Name Value Move
ZAR/ / AUD  9.51   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.09   0.01 1.4%
ZAR/ / EUR  13.16   0.07 0.5%
USD/ / GB  1.52   0.01 0.9%
ZAR/ / GBP  18.36   0.02 0.1%
YEN/ / ZAR  9.86   9.76 9,635.4%
JPY/ / USD  118.96   -0.63 -0.5%
ZAR/ / USD  12.13   -0.08 -0.7%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  65.02   0.11 0.2%
Palladium  769.25   -1.25 -0.2%
Platinum  1,125.00   -12.00 -1.1%
Silver  15.70   -0.20 -1.3%
Gold  1,176.98   -16.95 -1.4%
Top 5 Gainers -- Delayed
Erin Energy Corporatio  87.1
SABLE PLATINUM LTD  31.9
CENMAG HOLDINGS LTD  22.0
Mine Restoration Inv L  16.7
BSI Steel Limited  16.0
Top 5 Losers -- Delayed
Northam Platinum Ltd N  -18.9
Forbes & Manhatt Coal  -16.7
African Dawn Capital L  -12.5
Tawana Resources NL  -11.1
Efficient Group Ltd  -9.6

PRICES (15 minute delay)

Kruger Rand : KR 1500000  10000 | Financials : J580 46934  -48 | RESI 10 EQWI : J3EQ 1258  19 | RAFI All Share : RALS 6625  91 | Poynting Hldgs Ltd : POY 250  1 |

SENS (15 minute delay)