Market Commentary News Research  
Market Commentary
The Day Ahead for Friday 22 May 2015

U.S stocks closed modestly higher on Thursday, with the Nasdaq outperforming, as investors eyed slightly lower bond yields and mostly shrugged off mixed economic data. The Dow Jones Industrial Average finished flat whilst the S&P500 advanced by 0.23% for the session. Eastern markets are trading in positive territory this morning with the Nikkei and Hang Seng trading higher by 0.16% and 1.77% respectively. Shanghai shares in China have hit fresh seven-year highs in early trade while the Bank of Japan has maintained its expansionary monetary stimulus at the conclusion of its two-day meeting on Friday. Tencent is trading in the black by 1.72% whilst BHP Billiton has gained 0.31% thus far. The Australian ASX is trading much unchanged so far. Traders can expect a positive start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Thursday 21 May 2015

Our local bourse started its trading session in negative territory tracking the marginal weakness seen in US markets overnight. After moving back into positive territory shortly after the open, the market once again sold off into the afternoon before recovering in late trade to end the day hardly unchanged. Our Resources sector bounced back from the weakness seen in recent sessions as a drop in the dollar added support to commodity prices across the board. The index added 0.55% with the likes of Kumba, Anglo Platinum and African Rainbow advancing 3.07%, 1.38% and 1.36% respectively. On the data front, the South African Reserve bank kept interest rates on hold as was widely expected by the market while decreasing their forecast for GDP growth to 2.1% in 2015 and 2.2% in 2016. Out of the Euro area, the Flash Manufacturing PMI index came in at 52.3, beating expectations for a number of 51.8 whilst the Flash Services PMI index printed a number of 53.3 slightly below expectations for a number of 53.9. U.K Retail sales rose more than forecast in April as warm weather helped to boost clothing demand by the most in four years. Retail sales increased by 1.2% compared to a decrease of -0.7% seen in the previous month. Out of the US, the number of people that filed for unemployment claims increased to 274K compared to the previous figure of 264K whilst The Philly Fed manufacturing index came in at 6.7, below the forecasted number of 8.1. On the company front, Tsogo Sun released their financial results for the year ended 31 March 2015 highlighting that income rose by 5% to R11.3 billion whilst adjusted HEPS was down 1% to 175 cents. They reflected on how trading during the financial year remained under pressure due to the macro-economic environment and weaker demand seen from consumers. Mediclinic released their group results for the year ended 31 March 2015 indicating that they saw strong growth in patient numbers whilst managing to successfully raise R3.1bn in capital from the market. Basic normalised headline earnings per share increased by 9% to 408.2 cents whilst declaring a final dividend per ordinary share 75.5 cents, which is an 11% increase from the prior year. Investec also released their financial results for the year ended 31 March 2015 showing that adjusted earnings per share was up 10.2% from 43.1 pence to 47.5 pence. Operating profit excluding once offs increased by 15% to GBP505 million whilst growing third party assets under management by 13.7%. Choppies released the results of their private placement indicating that Choppies together with their selling shareholders had successfully placed 277 million offer shares at an offer price of R4.90 per share. The total value of the shares offered came in at R1359 million. Aspen released a SENS announcement that certain of its wholly owned Australian subsidiaries (collectively known as Aspen Australia), have entered into an agreement with Strides Pharma Pty Ltd, in which they will divest a portfolio of approximately 130 products for a consideration of approximately A$265 million. The portfolio of products in the Australian Transaction comprises a generic pharmaceutical business together with certain branded pharmaceutical assets. In a separate transaction, Aspen Global Incorporated (AGI), has also entered into an agreement with Strides Pharma Global Pte Limited (Strides Singapore), in terms of which AGI will divest to Strides Singapore, a portfolio of six branded prescription products, for a consideration of approximately US$92 million. Total value traded for the day came in at R13.3bn.

News Articles
imageattribute
Fin24.com | Winning Women – Busisiwe Mabuza: Taking the bite out of risk
2015/05/24 09:37:40 PM

New IDC chair Busisiwe Mabuza believes the development finance institution should be more accessible to people who want to develop a business.

More

imageattribute
Fin24.com | Want to be a billionaire...?
2015/05/24 09:34:26 PM

The plan to create 100 black industrialists has made significant steps in recent weeks – something that might silence the naysayers.

More

imageattribute
Fin24.com | Trust deficit is tearing SA apart
2015/05/24 09:29:30 PM

All of South Africa’s problems can be fixed if business, labour and government find a way to work together, says Ralph Mupita, the CEO of Old Mutual Emerging Markets.

More

imageattribute
Fin24.com | State’s proposal to increase legal drinking age to 21, restrict advertising
2015/05/24 06:29:09 PM

A raft of alcohol control measures intended to curb South Africans’ rampant alcohol abuse, published in the Government Gazette, will bring major changes to the way we live and entertain ourselves.

More

imageattribute
Fin24.com | Greek PM on final stretch towards deal with lenders
2015/05/24 04:20:01 PM

PM says Greece was on the final stretch of negotiations with its international lenders on a cash-for-reforms deal that would not involve further pension cuts and harsh austerity.

More

imageattribute
Fin24.com | Investor cash is streaming into SA
2015/05/24 03:00:06 PM

Doomsayers who preach that the lack of coherent economic policy is driving investors away must brush up on official data, writes Rob Davies

More

imageattribute
Fin24.com | Training in the workplace
2015/05/24 03:00:03 PM

An increasing number of companies are turning to in-service for employees with potential, a survey of skills shortages in the workplace by recruiting group Manpower has found.

More

imageattribute
Fin24.com | Gloomy mining chiefs see copper-tinted light at end of tunnel
2015/05/24 12:19:11 PM

The world’s biggest mining companies haven’t agreed on much lately as they argue about how to deal with a glut of iron ore and coal.

More

imageattribute
Fin24.com | Eskom implements load shedding
2015/05/24 09:53:01 AM

Eskom has announced that it will implement stage 1 load shedding from 7am to 10pm.

More

imageattribute
Fin24.com | State wage deal to cost extra R66bn
2015/05/23 12:13:05 PM

A wage deal agreed with nurses, teachers and other civil servants will cost the government an additional R66bn, says acting Public Service Minister Nkosinathi Mthethwa.

More

imageattribute
Fin24.com | Load shedding starts at 6am
2015/05/23 07:11:57 AM

Eskom says it will start implementing load shedding from as early as 06:00 today.

More

imageattribute
Fin24.com | Eskom moves to stage 2 load shedding
2015/05/23 07:08:46 AM

Eskom has announced in a tweet that load shedding will move to stage 2 from 12:00.

More

imageattribute
Fin24.com | Zim mining needs switch from beneficiation - chamber
2015/05/22 07:10:14 PM

Zimbabwe's Chamber of Mines has called for government policy to switch to exploration and development instead of railroading beneficiation policies.

More

imageattribute
Fin24.com | Thousands flock to giant new mall
2015/05/22 05:15:07 PM

Eager shoppers are flocking through the doors of South Africa’s newest regional mall, the R1.7bn Baywest Mall in Port Elizabeth.

More

imageattribute
Fin24.com | Italian utility to claw into Africa energy market
2015/05/22 04:38:13 PM

Italian utility Enel plans huge investments in renewable energy and grids in Africa, where it expects to find the kind of growth it has enjoyed in Latin America.

More

imageattribute
Fin24.com | Skywise increases fleet
2015/05/22 04:07:27 PM

Skywise Airlines has increased its fleet, which has enabled it to have four supplementary flights..

More

imageattribute
Fin24.com | Tsogo Sun may list property unit separately
2015/05/22 03:00:04 PM

Gaming and hotel group Tsogo Sun is considering listing its property portfolio worth R30bn separately as a Real Estate Investment Trust.

More

imageattribute
Fin24.com | Global banks await huge currency rigging fines
2015/05/22 02:30:05 PM

US regulators have fined Swiss bank UBS $342m for manipulation of foreign exchange markets, as other global lenders prepared for even larger penalties.

More

imageattribute
Fin24.com | Affordability impacts residential building sector
2015/05/22 02:01:43 PM

Although the biggest demand in SA is for small housing units, fewer are built due to affordability and changing lifestyles, says an expert.

More

imageattribute
Fin24.com | US economy tepid, but jobs market resilient
2015/05/22 01:13:38 PM

The US economy was on a modest growth path early in the second quarter with home resales falling in April and manufacturing activity on the back foot in May.

More

SPP
Heads up: The Spar Group 1H15 results
2015/05/22

.....

More

RLO
Heads up: Reunert 1H15 results - a place to hide?
2015/05/21

.....

More

TBS
Heads up: Tigerbrands - mixed 1H15 results as expected
2015/05/21

.....

More

PFG
Heads up: Pioneer Foods 1H15 results - Delivering on strategic initiatives, but all in the price
2015/05/21

.....

More

ARL
Heads up: Astral 1H15 results - As good as it gets?
2015/05/20

.....

More

CML
Heads up: Coronation Fund Managers - 1H15 results
2015/05/20

.....

More

BAW
Heads up: Barloworld 1H15 results
2015/05/20

.....

More

NTC
Heads up: Netcare Limited - Results for the six months ended 31 March 2015
2015/05/19

.....

More

SOV
Heads up: Sovereign Foods FY15 results - Strong performance, but risks on the horizon
2015/05/18

.....

More

HPA
Heads up: Hospitality Property Fund Limited - CEO Suspended
2015/05/18

.....

More

Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,232.02   -53.72  -0.3%
DJ Trans  8,482.31   -68.97  -0.8%
NASDAQ  5,089.36   -1.43  0.0%
NYSE S and P500 INDEX  2,126.06   -4.76  -0.2%
FTSE 100  7,031.72   18.25  0.3%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  11,815.01   -49.58  -0.4%
HONG KONG HANG SENG INDEX  27,992.83   454.53  1.7%
NIKKEI 225 INDEX  20,405.01   140.60  0.7%
Major JSE Indices*
Name Value Move
OVERALL  54055   0.00  0.0%
TOP 40  47885   0.00  0.0%
ALL GOLD  1119   0.00  0.0%
INDUSTRIAL  68361   0.00  0.0%
FINANCIAL  17441   0.00  0.0%
RESOURCES  42904   0.00  0.0%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  9.31   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.10   -0.01 -1.1%
ZAR/ / EUR  13.08   -0.08 -0.6%
USD/ / GB  1.55   -0.02 -1.2%
ZAR/ / GBP  18.39   -0.13 -0.7%
YEN/ / ZAR  10.27   10.17 10,462.7%
JPY/ / USD  121.68   0.09 0.1%
ZAR/ / USD  11.91   0.07 0.6%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  65.36   -0.01 0.0%
Palladium  781.45   -0.93 -0.1%
Platinum  1,145.34   -0.26 0.0%
Silver  17.03   -0.04 -0.2%
Gold  1,203.80   -1.51 -0.1%
Top 5 Gainers -- Delayed
WG Wearne Ltd  37.5
SABLE PLATINUM LTD  31.9
CENMAG HOLDINGS LTD  22.0
African Dawn Capital L  20.0
Primeserv Group Ltd  17.9
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Mine Restoration Inv L  -12.5
South Ocean Holdings L  -10.0
African Media Ent Ltd  -8.9
Accentuate Limited  -7.5

PRICES (15 minute delay)

The Spar Group Ltd : SPP 19219  49 | Transaction Capital Lt : TCP 1040  1 | PrefEx Securities : PREFEX 1020  -5 | Fledgling : J204 6995  22 | Db x-trackers DJ eu ST : DBXEU 4892  -17 |

SENS (15 minute delay)

| TON : Audited Results for the year ended 31 March 2015| QFH : Unaudited Condensed Consolidated Interim Financial Statements for the Six Months| RFG : Reviewed condensed consolidated interim results| ILV : Preliminary report for the year ended 31 March 2015 and trading statement for the| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details