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Market Commentary
The Day Ahead for Friday 29 July 2016

Wall Street ended the day in mixed territory on Thursday with the Dow Jones Industrial Average slipping 0.09% while the S&P500 gained 0.16%, as lower oil prices continue to exert pressure on stocks. Eastern markets are trading in negative territory this morning with the Nikkei and the Hang Seng index currently lower by 0.16% and 0.81% respectively. Tencent is trading in the red by 0.48% whilst BHP Billiton has lost 1.90% this morning. The Australian ASX is trading weaker by 0.23% thus far. Traders can expect a negative start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Thursday 28 July 2016

Our local bourse started the trading session in negative territory on Thursday and gradually slipped as the morning progressed. The selling pressure persisted throughout the afternoon with our market eventually finishing the day down by 0.90% at the close. The biggest loser for the day was the telecoms sector, depreciating 2.62% by market close. Leading the downside were MTN and Vodacom, declining by 3.12% and 0.69% respectively. Our platinum mining sector bucked the trend and finished 4.44% higher, driven largely by Impala Platinum which closed the day 6.45% stronger. In a strategic update from Sibanye the company indicated that its’ current and future value creation strategy continues to be underpinned by strongly cash generative gold operations and a strong balance sheet. The group has delivered a total share price return of over 400% since listing and a compound annual total shareholder return of 55% over the last 3 years. In half year results for Anglo American Plc for the six months ended 30 June 2016, net debt at 30 June 2016 decreased to $11.7 billion (vs. $12.9 billion as at 31 December 2015) through various cost reductions. Anglo American reported underlying earnings of $0.7 billion (H1 2015 $0.9 billion), with underlying EBIT decreasing by 27% to $1.4 billion. British American Tobacco released results for the half year ended 30 June 2016 which saw group revenue increase by 7.8% at constant rates of exchange, or 6.0% on an organic basis, driven by a strong volume performance and good pricing. Reported revenue was 4.2% higher than the same period last year. Group cigarette volume was 332 billion, an increase of 3.4% on the same period last year, or 2.1% on an organic basis. The Board has declared an interim dividend of 51.3p, being one third of the 2015 dividend, a 4% increase on last year. This will be paid on 28 September 2016. In an interim report by Intu properties, the company increased occupancy to 96.1% through the demand for new lettings (30 June 2015 95.1%) while cash and available facilities of GBP564 million at 30 June 2016 (31 December 2015 GBP588 million) was realised. On the Economic front, the number of Americans filing for unemployment benefits increased by 14,000 to 266,000 in the week ended July 23rd compared with the previous week`s downwardly revised level of 252,000. The figure came above market expectations of 260,000, the highest in four weeks. Producer Prices in South Africa increased to 126.50 Index Points in June from 125.80 Index Points in May of 2016. South Africa`s unemployment rate slightly decreased to 26.6% in the June quarter of 2016 from 26.7 in the three months to March. The number of unemployed fell by 1.6% and employment went down 0.8%.Total value traded for the day was R23.69bn.

News Articles
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Fin24.com | BOJ opts for limited stimulus expansion, plans to assess policy
7/29/2016 7:43:02 AM

The Bank of Japan has expanded its purchases of exchange-traded funds, while refraining from boosting the pace of bond purchases that form the main part of its monetary stimulus

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Fin24.com | Inside Labour: SABC and elections- portents of more political turbulence
7/29/2016 7:02:28 AM

Rebellious unionists may still put their crosses in what have been claimed as the divinely ordained boxes, writes Terry Bell.

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Fin24.com | Local elections crucial for SA, investors - economist
7/28/2016 9:00:00 PM

The August 3 local elections are crucial for South Africa and the risk narrative for investors, warns Peter Attard Montalto of Nomura.

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Fin24.com | SABMiller shareholders said to support AB InBev offer
7/28/2016 7:55:02 PM

Major SABMiller shareholders have signaled they favour Anheuser-Busch InBev’s revised $102bn takeover offer as the board prepares to meet in the coming days.

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Fin24.com | Eskom review endangers biggest Africa renewable power plan
7/28/2016 7:53:28 PM

Eskom is questioning the role of renewable energy, jeopardising a programme touted as one of the most attractive for wind and solar power producers in the world.

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Fin24.com | Anglo American head avoids feeling complacent
7/28/2016 7:50:11 PM

The head of Anglo American has seen the miner’s share price almost triple this year, topping gains in the benchmark FTSE 100 Index.

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Fin24.com | BAT hunts M and A as western Europe buoys first-half earnings
7/28/2016 7:46:51 PM

British American Tobacco has said it’s on the hunt for acquisitions as it reported earnings near analysts’ estimates, helped by increased sales in France and Romania.

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Fin24.com | Brexit's impact on Africa's insurance sector
7/28/2016 7:18:03 PM

Brexit may present opportunities for the insurance sector in Africa.

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Fin24.com | Eskom postpones IPP signing with Redstone
7/28/2016 7:01:58 PM

Eskom has postponed the signing of a 20-year power purchase agreement with power plant Redstone Solar Thermal Power.

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Fin24.com | SA can’t afford nuclear build on top of Medupi - Outa
7/28/2016 6:32:20 PM

SA should only start the process of building several nuclear stations after it has fully completed its current coal power station project, says Outa.

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Fin24.com | Commission rules on proposed Italtile merger
7/28/2016 5:50:57 PM

The Competition Commission has ruled on the proposed merger between Italtile and Ceramic Industries.

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Fin24.com | Ex-African Bank boss Leon Kirkinis has five days to take R30m bid
7/28/2016 4:45:12 PM

Former African Bank CEO Leon Kirkinis has five days to decide whether he is prepared to accept the latest offer for his ultramodern luxury False Bay coastal home.

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Fin24.com | StatsSA boss slams UN invoice-fraud report
7/28/2016 3:44:50 PM

Statistician-general Pali Lehohla has disputed the accuracy of a United Nations report on invoice fraud, which shows "discrepancies" in SA’s records of gold exports.

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Fin24.com | SA sheds 129 000 jobs in Q2
7/28/2016 3:44:09 PM

The second quarter of 2016 saw a decline in jobs of 129 000, compared to the previous quarter, according to the latest quarterly labour force survey.

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Fin24.com | US jobless claims climb from a three-month low
7/28/2016 3:39:39 PM

The number of Americans who filed for unemployment benefits have risen from a three-month low, consistent with the Fed Reserve’s view of a stronger job market.

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Fin24.com | Shell profit drops on lower oil, weaker refining margins
7/28/2016 3:00:00 PM

Shell's second-quarter profit has plunged, missing analyst estimates by more than $1bn, as lower energy prices, weaker refining margins and production halts weighed in.

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Fin24.com | Fill up as strike action due to start - AA
7/28/2016 2:38:26 PM

An industrial action by CEPPAWU has been scheduled and the Automobile Association advises motorists of the possible impact.

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Fin24.com | Petrol pumps could run dry in 3 days, warns union
7/28/2016 2:32:49 PM

At least 20 000 South African petroleum industry workers have downed tools, with the union warning that pumps at filling stations could run dry in about three days.

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Fin24.com | Turkish crisis leads to over 40% drop in visitors
7/28/2016 2:30:00 PM

The number of foreigners visiting Turkey has dropped over 40% to its lowest level this year as the impact of attacks and previous tensions with Russia cause havoc.

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Fin24.com | Slight drop in unemployment rate
7/28/2016 1:33:26 PM

The official unemployment rate in the second quarter of 2016 declined slightly with 0.1 of a percentage point to 26.6%, Statistics South Africa has announced.

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AMS
Heads up: Anglo American Platinum 1H16 results - Portfolio repositioning coming through
7/26/2016

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NPN
Heads up: Naspers FY16 results - impressive inroads have been made
7/26/2016

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OMN
Heads up: Omnia Ltd FY16 results to March 2016 - weathering the bottom of the cycle
7/15/2016

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RDF
Heads up: Redefine Accelerated Bookbuild
7/13/2016

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NEP
Heads up: NEPI Accelerated Bookbuild
7/13/2016

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KEH
Heads up: Keaton Final results to 31 March 2016
7/8/2016

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SSS
Heads up: Stor-Age REIT FY16 results- Better than expected
6/21/2016

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MTN
Heads up: MTN update on the Nigerian fine
6/15/2016

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PIK
Heads up: Pick n Pay Stores Ltd & Pick n Pay Holdings Ltd - Elimination of PWK pyramid structure
6/14/2016

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PWK
Heads up: Pick n Pay Stores Ltd & Pick n Pay Holdings Ltd - Elimination of PWK pyramid structure
6/14/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,456.35   -15.82  -0.1%
DJ Trans  7,864.13   2.68  0.0%
NASDAQ  5,154.98   15.17  0.3%
NYSE S and P500 INDEX  2,170.06   3.48  0.2%
FTSE 100  6,721.06   -29.37  -0.4%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,274.93   -44.62  -0.4%
HONG KONG HANG SENG INDEX  21,995.74   -178.60  -0.8%
NIKKEI 225 INDEX  16,474.33   -2.51  0.0%
Major JSE Indices*
Name Value Move
OVERALL  53282   0.00  0.0%
TOP 40  46390   0.00  0.0%
ALL GOLD  2823   0.00  0.0%
INDUSTRIAL  70773   0.00  0.0%
FINANCIAL  15156   0.00  0.0%
RESOURCES  32212   0.00  0.0%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.64   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.11   0.00 0.2%
ZAR/ / EUR  15.66   -0.10 -0.6%
USD/ / GB  1.32   0.00 -0.2%
ZAR/ / GBP  18.59   -0.21 -1.1%
YEN/ / ZAR  7.34   7.21 5,322.6%
JPY/ / USD  103.53   -1.76 -1.7%
ZAR/ / USD  14.13   -0.13 -0.9%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  42.58   -0.03 -0.1%
Palladium  698.00   2.00 0.3%
Platinum  1,135.00   4.00 0.4%
Silver  20.13   0.02 0.1%
Gold  1,334.50   -0.10 0.0%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Sekunjalo Inv Ltd  13.0
ANOORAQ RESOURCES CORP  11.6
AFLEASE GOLD LTD  4.8
Vunani Prop Inv Fund L  4.7
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Delta Africa Prop Hldg  -7.0
Allied Electronics Cor  -2.7
Allied Elec Corp Pref  -2.2
Mvelaphanda Group Ltd  -1.9

PRICES (15 minute delay)

Mvelaphanda Group Ltd : MVG 205  -1 | Pharmaceuticals & Biot : PHAR 14385  237 | AFLEASE GOLD LTD : AFO 197  7 | Industrial Engineering : INDE 72790  3822 | Tobacco : TABA 5373  57 |

SENS (15 minute delay)

| ANB : Addendum to Press Release: Anheuser-Busch InBev reports Second Quarter and Half Y| SBV : Unaudited interim results for the six months ended 30 June 2016 and cash dividend| ANB : Anheuser-Busch InBev reports Second Quarter and Half Year 2016 Results| LBH : Financial Results for the six months ended 30 June 2016| ABSP : Unaudited condensed consolidated interim financial results for the reporting peri| ACL : Reviewed condensed consolidated financial?statements for the six months ended 30| BGA : Unaudited condensed consolidated interim financial results for the reporting peri| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details