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Market Commentary
The Day Ahead for Wednesday 28 September 2016

Yesterday, US markets ended the day in positive territory with the Dow Jones Industrial Average and the S&P500 closing higher by 0.74% and 0.64% respectively. Asian markets are weaker this morning with the Hang Seng trading lower by 0.64% while the Nikkei has dropped 1.46%. Tencent is trading flat whilst BHP Billiton has lost 0.72% in Australia this morning. The Australian ASX has declined 0.07% thus far and traders can expect a flat to negative start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Tuesday 27 September 2016

Yesterday was a weak day on the markets with almost all indices closing lower. The rand showed strength, reaching R13.45 to the US$ by our close. This followed on from international markets which were weak following S&PCase Shiller US Home prices that increased 5%, marginally less than the 5.1% forecast. This international weakness did start to turn around after US consumer confidence numbers, which at 104.1 were well ahead of consensus, however this was not in time to push our local markets into positive territory before the close. By the end of the session, the All-Share Index was lower by 1.13%. On the company front, Capitec Bank released results for the six months ended 31 August 2016. These showed that headline earnings per share rose 19% to R15.17, headline earnings increased 19% to R1.754 billion and the interim dividend per share has been increased 20% to R4.50. The company reported a return on equity of 26% and confirmed it now has 7.9 million active clients. Ecsponent also released interim results to the 30 June 2016. Through these the company expressed that the access to capital through the issue of preference shares resulted in continued improvement in the group’s performance and generated increased returns for the 6 months ended 30 June 2016. The highlights showed that total revenue increased by 74.7% to R116.7 million, gross profits increased by 97.8% to R95.8 million, operating profits increased by 166.7% to R58.4 million and profits before tax increased by 61.5% to R28.5 million. Current assets increased by 265.3% to R652.9 million while total assets increased by 163.6% to R777.1 million. Earnings per share rose by 26.3% to 2.23 cents per share. Sirius Real Estate announced the completion of the acquisition of the Dresden business park for €28.6 million (including acquisition costs). The site has 53,200 sqm of gross lettable area of which 45.9% is offices and 39.3% is warehouses and the rest is a structural vacancy with an opportunity for development into further office space. The occupancy upon acquisition is 65.7% across a broad base of 60 tenants paying a total annual rental income of €2.78 million with a weighted average lease length remaining of 3.3 years. Raubex Group released a trading statement advising shareholders that the company expects its earnings per share and headline earnings per share for the six month period ended 31 August 2016 to be between 20% and 25% higher compared to the corresponding period to 31 August 2015. This translates in earnings per share ranging between 129.6 and 135.0 cents per share and headline earnings per share ranging between 128.4 and 133.8 cents per share. York Timber released results for the year ended 30 June 2016. These showed that revenue is up 15%, EBITDA increased to R243 million as a result of improved product mix, plant efficiencies and an increase in lumber market share of 4%. Cash generated from operations was R285 million, up R102 million from the prior year and net biological asset value increased by 9% to R2.334 billion. Underlying TNAV rose 13% to 834 cents per share while earnings per share increased by 135% and core earnings per share increased by 63%. The total value traded for the day was R23.7bn.

News Articles
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Fin24.com | Eskom at fault, yet Khumalos must pay for free electricity
9/29/2016 6:35:38 AM

Public Protector Thuli Madonsela says Eskom wrongfully disconnected a Khayelitsha family's power supply, but rules they must pay for the years of free electricity.

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Fin24.com | Trump vs Clinton: Who will best serve Africa?
9/28/2016 9:00:02 PM

It will be a win for Africa should Hillary Clinton be the next US president because she has a deep understanding of the continent, says US Senator Christopher Coons.

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Fin24.com | Prasa owes suppliers R796m - minister
9/28/2016 8:39:07 PM

Cash flow problems at the Passenger Rail Agency of South Africa have made it difficult for the parastatal to pay service providers on time.

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Fin24.com | Reality: salaries down -0.4% so far this year
9/28/2016 8:03:05 PM

For the first eight months this year real take-home salaries in South Africa have declined by -0.4%, shows the latest BankservAfrica Disposable Salary Index.

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Fin24.com | Business satisfaction improves slightly
9/28/2016 7:50:58 PM

Business people's satisfaction with prevailing business conditions has improved slightly in the third quarter of 2016, according to the FNB/BER index.

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Fin24.com | Glaxo to sell rest of stake in SA’s Aspen
9/28/2016 7:43:57 PM

GlaxoSmithKline will dispose of its remaining stake in Aspen Pharmacare less than a month after selling the SA company a portfolio of anaesthetic medicines.

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Fin24.com | Competition Commission raids shipping companies suspected of collusion
9/28/2016 6:07:05 PM

The Competition Commission has carried out a search and seizure operation at six global shipping companies on suspicion of price fixing and collusion.

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Fin24.com | Why millennials want flexibility in the workplace
9/28/2016 5:45:39 PM

One in four millennials consider leaving their jobs in the next year, because they want their work to have a sense of purpose, a survey shows.

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Fin24.com | ArcelorMittal SA plans $170m BEE stake
9/28/2016 5:30:46 PM

ArcelorMittal SA plans a R2.3bn deal as it seeks to meet the government’s objectives of boosting the participation of black people in the economy.

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Fin24.com | Zim Nando’s operator bets on Africa’s fast food appetite
9/28/2016 4:11:04 PM

Amid Africa's growing appetite for quick serve restaurant foods, Zimbabwe’s Simbisa Brands - which runs Nando’s and Steers counters - is investing heavily into new outlets.

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Fin24.com | Lufthansa announces acquisition
9/28/2016 4:02:25 PM

The supervisory board of Lufthansa has approved the exercising of a call option to acquire the remaining shares in SN Airholding.

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Fin24.com | Rights-conscious consumers turn to Fais ombud in droves
9/28/2016 3:35:44 PM

The Office of the Fais Ombud received more than 4 000 legitimate complaints in the last financial year as more South Africans become aware of their rights.

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Wheels24.co.za | Maserati SA solidifies itself as independent Italian brand
9/28/2016 2:39:59 PM

Wheels24's Charlen Raymond paid Maserati's Cape Town dealership a visit to find out what's next for the famous Italian carmaker.

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Fin24.com | Confusion over request for proposals on nuclear
9/28/2016 2:15:55 PM

Confusion reigned at a media briefing over whether government's request for proposals for nuclear energy would go ahead in the absence of an updated energy resource plan.

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Fin24.com | Steinhoff to raise up to R36.5bn in share sale
9/28/2016 2:13:51 PM

Steinhoff International is set to raise up to $2.7bn (R36.5bn) by selling shares, to strengthen its finances after recent acquisitions by the South African furniture and clothing retailer.

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Fin24.com | Anheuser-Busch InBev clinches R1.4trn SABMiller deal
9/28/2016 1:00:46 PM

Anheuser-Busch InBev has clinched its $103bn takeover of SABMiller after the British brewer’s investors approved the deal, sealing the union of the world’s two biggest beermakers.

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Fin24.com | Billionaire Christo Wiese invests over R24bn more in Steinhoff
9/28/2016 12:24:48 PM

Christo Wiese, SA's richest man, is investing a further $1.8bn in Steinhoff International to help finance the furniture retailer’s buying spree in Europe and North America.

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Fin24.com | Remgro to raise R9.9bn as Johann Rupert mulls Distell deal
9/28/2016 11:10:08 AM

Remgro plans to raise over R9.9bn as the company controlled by billionaire Johann Rupert considers deals, including a right to buy SABMiller's stake in Distell Group.

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Fin24.com | Sainsbury sales weaken on lower prices
9/28/2016 10:00:00 AM

Sainsbury has reported slightly weaker sales as it offered customers fewer promotions and switched to permanent price cuts on everyday items.

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Fin24.com | Zuma to repeal current preferential procurement act
9/28/2016 9:23:12 AM

President Jacob Zuma says a “flexible” preferential procurement programme will be introduced which is responsive to government objectives.

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CHP
Heads up: Choppies FY16 results - Rapid expansion weighs on earnings
9/27/2016

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SLM
Heads up: Sanlam 1H16 results - diversifying away from life insurance pays off
9/23/2016

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RMH
Heads up: RMH Limited - Solid FY16 results
9/23/2016

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REM
Heads up: Remgro FY16 results - Defensive performance, thanks to Mediclinic
9/22/2016

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MMI
Heads up: MMI FY16 results - low quality, but attractively priced
9/22/2016

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SNT
Heads up: Santam 1H16 results - base effects come through to bite, but still well positioned
9/22/2016

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AVL
Heads up: Advanced Health FY16 results - will patient investors be rewarded?
9/22/2016

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GPL
Heads up: Grand Parade FY16 results - Burger King making progress
9/21/2016

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FSR
Heads up: FirstRand Limited - Solid FY16 results
9/21/2016

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SOL
Heads up: Sasol FY16 results
9/19/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,339.24   110.94  0.6%
DJ Trans  8,004.94   23.85  0.3%
NASDAQ  5,318.55   12.84  0.2%
NYSE S and P500 INDEX  2,171.37   11.44  0.5%
FTSE 100  6,849.38   41.71  0.6%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,438.34   76.86  0.7%
HONG KONG HANG SENG INDEX  23,731.97   112.32  0.5%
NIKKEI 225 INDEX  16,724.86   259.46  1.6%
Major JSE Indices*
Name Value Move
OVERALL  51774   873.84  1.7%
TOP 40  45234   837.13  1.9%
ALL GOLD  2059   -12.02  -0.6%
INDUSTRIAL  68710   1,401.02  2.1%
FINANCIAL  14732   202.77  1.4%
RESOURCES  31269   504.58  1.6%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.47   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.12   0.00 0.1%
ZAR/ / EUR  15.30   0.21 1.4%
USD/ / GB  1.30   0.00 0.0%
ZAR/ / GBP  17.70   0.22 1.2%
YEN/ / ZAR  7.47   7.34 5,423.9%
JPY/ / USD  101.47   0.73 0.7%
ZAR/ / USD  13.62   0.18 1.3%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  48.65   -0.18 -0.4%
Palladium  716.00   6.00 0.8%
Platinum  1,034.00   7.00 0.7%
Silver  19.23   0.06 0.3%
Gold  1,324.40   3.00 0.2%
Top 5 Gainers -- Delayed
Nutritional Holdings L  100.0
SABLE PLATINUM LTD  31.9
Sekunjalo Inv Ltd  13.0
ANOORAQ RESOURCES CORP  11.6
Purple Group Ltd  10.5
Top 5 Losers -- Delayed
African Dawn Capital L  -66.7
Stratcorp Ltd  -50.0
Forbes & Manhatt Coal  -16.7
Diamondcorp plc  -9.6
Central Rand Gold Ltd  -8.3

PRICES (15 minute delay)

KAP Industrial Hldgs L : KAP 743  8 | Satrix RAFI 40 Portfol : STXRAF 1191  10 | Sup Services : J279 1784  -35 | Satrix FINI Portfolio : STXFIN 1472  5 | Woolworths Holdings Lt : WHL 7834  -141 |

SENS (15 minute delay)