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Market Commentary
The Day Ahead for Friday 12 February 2016

US markets closed sharply lower on Thursday, but well off their lows, following comments from the energy minister of the UAE about a possible OPEC production cut. The Dow Jones Industrial Average and the S&P500 closed lower by 1.6% and 1.23%, respectively. Eastern markets are trading in negative territory this morning with the Nikkei and the Hang Seng currently lower by 3.52% and 0.77%, respectively. Tencent is trading in the red by 2.06%, whilst BHP Billiton has lost 0.85%. The Australian ASX is trading weaker by 1.1% thus far. Traders can expect a positive start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Thursday 11 February 2016

Yesterday, our market took its cue from global markets and started the session in negative territory. The sell-off intensified as the day progressed, resulting in the All Share Index closing weaker by 1.78% ahead of the the State of the Nation address by President Zuma. Among the biggest drivers of the decline were Woolworths, MTN and Naspers, which all dropped by 7.65%, 5.68% and 4.54%, respectively. Despite a stronger rand, gold shares all posted significant gains as the flight into safe haven assets pushed the gold price above $1230 per ounce. Gold Fields jumped 11.25%, while Harmony finished higher by 9.99%. On the company front, Woolworths released results for the 26 weeks ended 27 December 2015, highlighting an increase of 30.6% in Headline earnings per share (HEPS), while Adjusted HEPS were higher by 3.6%. The interim dividend increased by 37.8% to R1.33 with a Return on Equity of 24.7%. The JSE Limited advised shareholders that HEPS for the year ended 31 December 2015 is expected to be higher by between 35% and 45%, compared to the prior corresponding period. The secondary listing of Astoria Investments on the Namibian Stock Exchange was approved with effect from 10 February 2016, while Taste Holdings indicated that they expect Earnings per share and HEPS for the year ending 29 February 2016 to be negative. Glencore released a production report for the year ended 31 December 2015 showing that copper, nickel and coal production were lower, while the production of zinc, ferrochrome and oil in particular increased compared to the previous corresponding period. On the economic front, South African Manufacturing production increased by 1.8% in December of 2015 over the previous month, while the Mining production increased by 1.5% on a monthly basis. In the US, the number of Americans filing for unemployment benefits came in below market expectations at 269 000 in the week ended February 6th, a decrease of 16 000 compared to the previous week. Total value traded for the day came in at R22.9bn.

News Articles
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Fin24.com | Coca-Cola stops making drinks at 3 Indian plants
2/14/2016 7:30:00 PM

Coca-Cola has halted manufacturing at three plants in India temporarily as the US giant faces challenges from activists over alleged depletion of groundwater.

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Fin24.com | The 'myth' about SA house price growth
2/14/2016 7:00:01 PM

The man in the street is not getting the full picture about house price growth in South Africa, according to a property economist.

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Fin24.com | India's capital to resume car ban in April
2/14/2016 6:30:02 PM

New Delhi will restart driving restrictions that will take around a million cars off the roads, to combat air quality in the world's most polluted capital.

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Fin24.com | Oil bosses upbeat on market rebound
2/14/2016 5:23:10 PM

Movers and shakers from the oil industry have expressed optimism over a sharp rebound in the beleaguered crude market later this year.

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Fin24.com | Italtile results show consistency
2/14/2016 4:57:47 PM

The trading environment in the six months remained consistent with recent years, featuring moderate demand in the renovation and commercial projects markets.

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Fin24.com | Investec innovation rewarded in Europe
2/14/2016 4:21:54 PM

Investec Bank’s Structured Products division has scooped the Best Distributor in Africa award at the 2016 Europe Structured Products and Derivatives conference.

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Fin24.com | ArcelorMittal SA seeks producer for new plant
2/14/2016 3:30:49 PM

ArcelorMittal SA is looking for an independent power producer to build a gas-fired power station at its Saldanha steel works to help ensure its survival.

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Fin24.com | US economy, banks resilient to shocks - Fed official
2/14/2016 3:30:01 PM

A top Federal Reserve official says the US economy and its banking system are strong enough to weather large shocks, amid worries of risks from global market turbulence.

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Fin24.com | Gupta company: No help from minister with mining deal
2/14/2016 2:24:55 PM

Any person or company should be free to compete fairly for any business, says the Gupta family company in reaction to allegations of ministerial help in a deal.

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Fin24.com | Fresh protests in Athens over pension reforms
2/14/2016 12:30:00 PM

Thousands of demonstrators gathered in Athens on Saturday in solidarity with farmers who have blocked roads in recent weeks in protest over a pensions overhaul.

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Fin24.com | Subdued casino trading impacts Sun International
2/14/2016 12:16:49 PM

Sun International is currently finalising its results for the six months ended December 31 2015, which are expected to be released before the end of February.

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Fin24.com | Changes coming to unsustainable use of Cape Town's roads
2/14/2016 11:00:14 AM

The City of Cape Town would like public comment on a plan to address the cost associated with the current unsustainable use of the city’s road infrastructure.

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Fin24.com | Land expropriation needed, Malema tells Cape businesses
2/12/2016 11:13:34 PM

EFF leader Julius Malema has told Cape Town heads of industry that land expropriation without compensation was needed in South Africa.

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Fin24.com | The cost of moving Parliament to Pretoria
2/12/2016 7:30:01 PM

Moving South Africa’s parliament from Cape Town to Pretoria could cost R7bn and bring a savings of around R500m to R750m a year, according to Cosatu and an economist.

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Fin24.com | Zuma releases guide for new era of state-owned entities
2/12/2016 6:16:30 PM

President Jacob Zuma has released a report that will guide the state’s reformation of South Africa’s State Owned Enterprises.

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Fin24.com | Gupta-Zuma coal deal cleared with vow to keep SA jobs
2/12/2016 3:09:51 PM

A company controlled by the Gupta family says it will preserve jobs at a mine that it bought together with the son of President Jacob Zuma from Glencore.

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Fin24.com | Zuma's silence on Eskom privatisation worrying - Cosatu
2/12/2016 2:24:07 PM

Cosatu says it is 'very worrying' that President Jacob Zuma is 'silent on Treasury’s crude plans to privatise Eskom' during his State of the Nation address.

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Fin24.com | Cosatu: It can't be business as usual on jobs, corruption
2/12/2016 1:21:18 PM

Cosatu has voiced concern that President Jacob Zuma’s State of the Nation address was “thin on details” regarding the country’s unemployment crisis.

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Fin24.com | Zuma’s son, Guptas own firm that bought Glencore mine
2/12/2016 11:22:59 AM

President Jacob Zuma’s son, Duduzane, has a stake in a firm that’s buying Glencore's Optimum Coal mine along with the Gupta family, the country’s antitrust regulator says.

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Fin24.com | Investing in infrastructure will save economy - Zuma
2/12/2016 10:34:20 AM

President Jacob Zuma on Friday said a greater investment in the country’s infrastructure would assist it during tough economic times.

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WHL
Heads up: Woolworths Holdings Limited - interim results for the 26 weeks to 27 December 2015
2/12/2016

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ADI
Heads up: Adapt IT 1H16 results - certain dividends are an expensive luxury
2/12/2016

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HDC
Heads up: Hudaco FY15 results - "you know it when you see it"
2/3/2016

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EOH
Heads up: EOH pre 1H16 discussion
2/2/2016

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NPN
Heads up: Naspers - Update on our Naspers investment thesis
1/21/2016

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MRP
Heads up: Mr Price Group Limited - 3rd quarter trading update
1/20/2016

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TON
Heads up: Tongaat Hulett - Significantly undervalued
1/19/2016

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MDC
Heads up: Mediclinic International - Election recommendations for Al Noor merger
1/19/2016

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VKE
Heads up: Vukile 1H16 results- expanding offshore
12/8/2015

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PFG
Heads up: Pioneer Foods FY15 results - Tougher times ahead
12/8/2015

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  15,832.42   172.24  1.1%
DJ Trans  6,972.12   88.63  1.3%
NASDAQ  4,292.38   25.54  0.6%
NYSE S and P500 INDEX  1,846.37   17.29  0.9%
FTSE 100  5,668.24   131.27  2.4%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  8,924.85   171.98  2.0%
HONG KONG HANG SENG INDEX  18,335.73   -182.85  -1.0%
NIKKEI 225 INDEX  14,952.61   -760.78  -4.8%
No Data at Present
Currencies
Name Value Move
ZAR/ / AUD  11.24   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.12   0.00 -0.4%
ZAR/ / EUR  17.80   -0.14 -0.8%
USD/ / GB  1.45   -0.01 -0.4%
ZAR/ / GBP  22.91   -0.18 -0.8%
YEN/ / ZAR  7.15   7.01 5,027.7%
JPY/ / USD  112.87   0.46 0.4%
ZAR/ / USD  15.85   -0.05 -0.3%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  31.52   0.72 2.3%
Palladium  524.00   2.00 0.4%
Platinum  957.00   -3.00 -0.3%
Silver  15.74   -0.02 -0.1%
Gold  1,237.40   -9.10 -0.7%
Top 5 Gainers -- Delayed
Imbalie Beauty Limited  40.0
Investec Australia Pro  33.3
SABLE PLATINUM LTD  31.9
ArcelorMittal SA Limit  24.2
Trematon Capital Inv L  17.5
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Central Rand Gold Ltd  -13.1
Keaton Energy Hldgs Lt  -10.5
Hwange Colliery Ltd  -5.9
E Media Holdings Ltd -  -5.0

PRICES (15 minute delay)

Atlatsa Resources Corp : ATL 50  10 | Al Noor Hospitals Grp : MEI 19650  622 | Capped Top 40 Index : CTOP 15653  218 | Stellar Cap Partners L : SCP 210  0 | Astral Foods Ltd : ARL 10313  273 |

SENS (15 minute delay)