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Market Commentary
The Day Ahead for Friday 26 August 2016

US markets closed marginally lower on Thursday ahead of Janet Yellen’s speech at Jackson Hole later today. The Dow Jones Industrial Average and S&P500 lost 0.18% and 0.14%, respectively. Eastern markets are trading mixed this morning with the Nikkei currently lower by 0.75%, while the Hang Seng index is stronger by 0.51%. Tencent is trading in the black by 0.95%, whilst BHP Billiton has lost 0.5% this morning. The Australian ASX is weaker by 0.31% thus far. Traders can expect a flat start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Thursday 25 August 2016

On Thursday, The All Share index followed global markets lower in morning trade. We did however see a recovery in afternoon trading as our currency weakened back to R14.25$ by the close, which saw our rand hedge companies regaining momentum to the upside. Our market eventually finished weaker by just 0.15%. The resource sector lost 0.72% by the close, driven by a 2.09% fall in Glencore, while Anglo American dropped 1.23%. Our property sector was among the best performers on the day, adding 1.1%, as Hyprop and New Europe Properties advanced 2% and 1.51%, respectively. On the company front, Discovery advised shareholders that normalised profit from operations for the year ended 30 June 2016 is expected to increase by between 10%-15%, while the normalised Headline earnings is expected to be higher by between 5%-10%. Massmart, in its interim results for the 26 weeks ended 26 June 2016, highlighted that sales increased by 8.7% to R42.31 billion, operating profit went up by 19% to R406 million, while a dividend per share of 74.1 cents was declared, which was a decrease of 49.2% compared to the prior corresponding period. Woolworths showed in results for the 52 weeks ended 30 June 2016 that group sales increased 16.4%, Headline earnings per share went up by 23.2% with an increase of 26.7% in its total dividend per share. Woolworths’ return on equity came in at 25.6%. Sibanye Gold dropped 2.45% after releasing results for the six months ended 30 June 2016 in which it declared an interim dividend of 85 cents per share, while the operating profit increased 128% to R5.4 billion. On the economic front, the German Ifo Business Climate Index fell sharply to 106.2 in August from 108.3 in the previous month. Producer Prices in South African rose 7.4% year-on-year in July, following a 6.8% gain in June and above market expectations of a 6.9% increase. US durable goods jumped 4.4% in July following a 4.2% drop in the previous period. The number of Americans filing for unemployment benefits decreased by 1000 to 261 000 in the week ended August 20th compared to the previous week. The Services PMI in the US came in at 50.9 in August, down from the 51.4 reading in the previous month and below market expectations. Total value traded for the day was R23.7bn.

News Articles
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News24.com | Gupta family to sell all shares in SA
8/27/2016 9:33:31 PM

The Gupta family has announced its intention to sell all of its shareholding in South Africa by the end of the year.

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Fin24.com | The colonel's secret recipe revealed? Not so fast, says KFC
8/26/2016 8:41:05 PM

KFC says the recipe behind its famous chicken remains confidential, despite a report claiming to expose one of the most legendary secrets in the history of fast food.

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Fin24.com | Eskom mulls extending comment period for nuclear sites
8/26/2016 8:21:53 PM

Eskom says it is considering extending the comment period for its nuclear site applications in Thyspunt and Duynefontyn.

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Fin24.com | Whistleblowers raise more alarms at Lewis
8/26/2016 8:21:39 PM

The plot thickens in a high court case by Lewis directors, defending charges of being delinquent in the way customer accounts are handled.

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Fin24.com | SAA rejects allegations of business rescue, liquidation
8/26/2016 6:55:06 PM

SAA is not in a state where business rescue is needed and there is no rift between chair Dudu Myeni and Finance Minister Pravin Gordhan, says the airline.

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Fin24.com | How Sarb aims to help grow the ailing economy
8/26/2016 5:53:41 PM

The SA Reserve Bank will focus on achieving price and financial stability, for long term growth, says deputy governor Daniel Mminele.

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Fin24.com | Gordhan probe poses significant downgrade risk - economists
8/26/2016 3:53:34 PM

South Africa's credit rating is set to be cut to junk status this year, according to a Reuters poll taken just days after police summoned Finance Minister Pravin Gordhan.

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Fin24.com | A Gordhan exit will have ripple effect on all in SA
8/26/2016 3:39:52 PM

An asset manager unpacks the full cost for South Africans should Finance Minister Pravin Gordhan get the boot.

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Fin24.com | World's biggest pension fund loses $52bn
8/26/2016 3:25:37 PM

The world’s biggest pension fund has posted a $52bn loss last quarter as stocks tumbled and the yen surged, wiping out investment gains.

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Fin24.com | Ascendis Health concludes R7.3bn acquisitions
8/26/2016 2:47:18 PM

Health and care brands company Ascendis Health has completed all conditions pertaining to the R7.3bn acquisitions of two European companies.

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Fin24.com | Consumers and businesses spurred UK economy
8/26/2016 12:30:00 PM

UK consumers have stepped up their spending in the second quarter and businesses increased investment as the economy showed few signs of reticence.

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Fin24.com | Basic grocery basket up R100 since Feb - Massmart
8/26/2016 12:29:02 PM

A food basket containing items such as pilchards, maize and soap now costs R100 more than it did in February, up to R874 from R774, says Massmart Holdings.

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Fin24.com | Ab InBev plans to cut 5500 jobs after SABMiller takeover
8/26/2016 11:54:04 AM

AB InBev is expecting to cut about 3% of its enlarged workforce in the three years after its takeover of SABMiller as it seeks to maximise savings from the merger.

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Fin24.com | China tightening risk seen looming as bonds surge
8/26/2016 11:30:00 AM

Frothiness in parts of China’s financial markets is pushing the central bank closer to tightening monetary policy.

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Fin24.com | VW dealer accord said to add $1.2bn to scandal costs
8/26/2016 11:00:00 AM

Volkswagen will pay about $1.2bn to reimburse US dealers for losses caused by the emissions-cheating scheme, says a person familiar with the matter.

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Fin24.com | Zim Reserve Bank soothes jittery investors
8/26/2016 10:26:09 AM

The Reserve Bank of Zimbabwe has reassured foreign investors that remittance of capital is a top payment priority, and that payments will still be made in dolllars.

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Fin24.com | Business backs Gordhan as Hawks intensify probe
8/26/2016 8:09:44 AM

Business leaders have rallied around Finance Minister Pravin Gordhan as he faces a Hawks probe into allegations that he oversaw the establishment of an illicit Sars unit.

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Fin24.com | Economist fears 5 years of doom for SA
8/25/2016 10:29:59 PM

South Africa’s economy is in a “in a bad place” and this trend is likely to continue over the next five years, according to FNB chief economist Sizwe Nxedlana.

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Fin24.com | Public Protector office clarifies Prasa probe order
8/25/2016 7:17:06 PM

Prasa’s forensic investigation has not been stopped, but told to speed up, Public Protector spokesperson Oupa Segalwe has explained.

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Fin24.com | Why SA needs to improve job prospects for youth
8/25/2016 6:46:10 PM

South Africa won’t realise its demographic benefit if the job prospects for younger working-age people don’t improve, says statistician general Pali Lehohla.

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GLN
Heads up: Glencore 1H16 results - Delivering on deleveraging
8/26/2016

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FFA
Heads up: Fortress FY16 results- boosted by M&A activity
8/25/2016

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FFB
Heads up: Fortress FY16 results- boosted by M&A activity
8/25/2016

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MTA
Heads up: Metair 1H16 results - Still challenged by new model launch
8/25/2016

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ROC
Heads up: Rockcastle 1H16 results- Executing its strategy
8/24/2016

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AGL
Heads up: Anglo American 1H16 results
8/22/2016

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NPN
Heads up: Tencent exceptional 1H16 results - the strong becoming stronger
8/22/2016

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RES
Heads up: Resilient FY16 results- Still resilient
8/19/2016

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ADI
Heads up: Adapt IT FY16 results - rather focus your attention on events coming down the pike
8/19/2016

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BIL
Heads up: BHP Billiton FY16 results
8/19/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,532.23   83.82  0.5%
DJ Trans  7,890.63   22.60  0.3%
NASDAQ  5,245.61   33.41  0.6%
NYSE S and P500 INDEX  2,183.90   11.43  0.5%
FTSE 100  6,843.40   26.50  0.4%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,585.47   55.88  0.5%
HONG KONG HANG SENG INDEX  22,909.54   82.67  0.4%
NIKKEI 225 INDEX  16,360.71   -195.24  -1.2%
No Data at Present
Currencies
Name Value Move
ZAR/ / AUD  10.78   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.12   0.00 -0.2%
ZAR/ / EUR  15.84   -0.13 -0.8%
USD/ / GB  1.32   -0.01 -0.5%
ZAR/ / GBP  18.52   -0.20 -1.1%
YEN/ / ZAR  7.19   7.05 4,984.2%
JPY/ / USD  101.01   0.47 0.5%
ZAR/ / USD  14.10   -0.09 -0.7%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  49.94   0.26 0.5%
Palladium  687.00   0.00 0.0%
Platinum  1,069.00   -2.00 -0.2%
Silver  18.71   0.21 1.1%
Gold  1,324.20   2.60 0.2%
Top 5 Gainers -- Delayed
African Dawn Capital L  50.0
Rare Holdings Ltd  41.3
Eastern Platinum Ltd  31.9
SABLE PLATINUM LTD  31.9
Bauba Platinum Limited  25.0
Top 5 Losers -- Delayed
Nutritional Holdings L  -50.0
Nampak Ltd 6%Pref  -41.2
Middle East Diamond Re  -30.0
WG Wearne Ltd  -27.3
E Media Holdings Ltd  -20.1

PRICES (15 minute delay)

SA Fini and Indi : J250 7859  -13 | SA Listed Property Ind : SAPY 447  1 | Advanced Health Ltd : AVL 169  4 | eRAFI SA Industrial 25 : RAFIND 6197  -48 | Pallinghurst Res Ltd : PGL 356  0 |

SENS (15 minute delay)