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Market Commentary
Market Commentary for Friday 14 December 2018

The All-Share index opened trade 0.75% lower on Friday, taking a lead from Asian shares which tumbled earlier in the day after China reported weak economic data, fuelling worries of a sharp slowdown in the world’s second largest economy and investor’s concerned about a yet unresolved US-China trade dispute. The rand weakened more than 1% in early trade, in line with a rise in bond yields, as investor appetite for riskier assets dimmed ahead of an expected US interest rate hike early next week. The equity market remained in negative territory throughout the afternoon, and eventually finished 0.35% lower. The worst performer for the day was the financial sector, depreciating 0.55% by market close, our industrial sector followed on closely and finished 0.52% lower, while the resource sector bucked this trend to end 0.43% higher. On the company front, based upon enquiries received since issuing the Pre-Close Statement released on SENS after market close on 13 December 2018, Aspen clarified that agreement was reached with Aspen`s syndicate of funders during the period to November 2018, providing multi- currency facilities to negotiate a conditional and temporary adjustment to Aspen`s leverage ratio covenant as at 31 December 2018 as reported in Thursday`s SENS. On the Economic front, Business Confidence in Japan remained unchanged at 19 Index Points in the fourth quarter of 2018 from 19 Index Points in the third quarter of 2018. The Nikkei Japan Manufacturing PMI rose to 52.4 in December of 2018 from a 15-month low of 52.2 in the previous month and slightly above market consensus of 52.3, flash figure showed. Output increased the most since April, while new orders and buying activity expanded at faster rates. Industrial Production in Japan increased 4.2% in October of 2018 over the same month in the previous year. The IHS Markit Germany Composite PMI declined to 52.2 in December 2018 from 52.3 in the previous month and below market forecasts of 52.5. The latest reading pointed to the weakest pace of expansion in the private sector since December 2014 as service sector expansion was the second-weakest seen in over two years (PMI at 52.5 vs 53.3 in November) and manufacturing growth slowed to a near three-year low (PMI at 51.5 vs 51.8 in November). The IHS Markit Eurozone Composite fell to 51.3 from 52.7 in the previous month and below market expectations of 52.8, a preliminary estimate showed. The reading pointed to the weakest expansion in the private sector activity since November 2014, as both manufacturing (51.4 from 51.8) and services (51.4 from 53.4) slowed. New business inflows almost stalled, job creation slipped to a two-year low and business optimism deteriorated. US retail trade rose by 0.2% from a month earlier in November 2018, following an upwardly revised 1.1% growth in October and matching market expectations. An increase in sales of furniture, electronics and a range of other goods was partially offset by a decline in trade at gasoline stations on cheaper fuel. Industrial production in the United States increased 3.9% year-on-year in November of 2018, following a downwardly revised 3.8% rise in October. Manufacturing production in the United States rose 2% year-on-year in November of 2018, following a downwardly revised 2.2% rise in October. It is the lowest annual growth rate in five months. Total value traded for the day was R 14.4bn.

Market Commentary
The Day Ahead for Tuesday 18 December 2018

Wall Street ended the day in negative territory on Monday with the Dow Jones Industrial Average and the S&P500 slipping 2.11% and 2.08% respectively, on concerns about slowing economic growth ahead of a highly anticipated decision from the Federal Reserve this week on the course of US interest-rate hikes. Eastern markets are trading in negative territory this morning with the Hang Seng index currently lower by 1.14%, and Nikkei lower by 1.7%. Tencent is trading in the red by 2.59% whilst BHP Billiton has gained 3.11% this morning. The Australian ASX is trading weaker by 1.24% thus far. Traders can expect a negative start to trading on our local bourse this morning.

News Articles
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Fin24.com | As global equities take a hit, gold miners are doing fine
12/18/2018 10:02:09 PM

Global equity markets are getting beaten up, but gold miners have been spared as haven demand swells and bullion’s outlook brightens.

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Fin24.com | Huawei defends global ambitions amid security fears
12/18/2018 9:43:55 PM

Huawei has defended its global ambitions and network security in the face of Western fears that the Chinese telecom giant could serve as a Trojan horse for Beijing's security apparatus.

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Fin24.com | Davies: SA preparing for all Brexit outcomes
12/18/2018 9:37:01 PM

SA's Department of Trade and Industry is preparing for all eventualities regarding Brexit - with its focus on ensuring trade is not interrupted.

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Fin24.com | Lengthy strike over Gold Fields job cuts ends
12/18/2018 8:50:22 PM

An agreement has been reached, bringing the 45-day strike by NUM members to an end.

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Fin24.com | Glencore billionaire among directors banned, fined by Canada
12/18/2018 8:48:06 PM

Glencore’s billionaire head of copper trading, Aristotelis Mistakidis, was among executives fined and banned from being a director by Canada after admitting that its Congolese copper and cobalt unit misstated how much metal it mined.

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Fin24.com | 5 key takeaways from Bain's statement on SARS
12/18/2018 7:29:07 PM

Global management consultancy Bain and Company – hired by former SARS commissioner Tom Moyane – has given its version of how the controversial R164m contract unfolded.

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Fin24.com | Dramatic rise in spam, scam calls in SA - report
12/18/2018 7:29:07 PM

South Africans are among the most affected by spam calls in the world, according to the 2018 Truecaller Insights report by mobile app company Truecaller.

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Fin24.com | Non-profits push Facebook to change leadership over 'hatred, bigotry'
12/18/2018 5:50:50 PM

Facebook, reeling from criticism about Russian influence campaigns on its platform, now faces calls for changes to its top management from a collection of 31 civil rights groups.

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Fin24.com | Brexit update: UK plans for chaos as May presses case for deal
12/18/2018 5:49:55 PM

Theresa May’s Cabinet agreed to step up plans for a no-deal Brexit as the prime minister tries to convince members of Parliament to back her divorce agreement.

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Fin24.com | Zuma's legal mire deepens as Zimbabwe farmers seek R1.9bn
12/18/2018 4:37:35 PM

A group of white farmers in Zimbabwe who lost their land say they will sue both Jacob Zuma and the SA government, and they hope to file their court papers "in the next few days".

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Fin24.com | Updated: Former Prasa boss wants police to find creator of 'manufactured' AG report
12/18/2018 3:22:52 PM

Collins Letsoalo says he will lodge a complaint of fraud against a journalist to enable police to investigate who created a "manufactured" auditor general report that he says tarnished his name as a dedicated civil servant.

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Fin24.com | Bain says it made 'significant errors of judgement' in SARS work
12/18/2018 2:34:44 PM

The global management consultancy has said its grasp of SA politics was naïve, and it let the country down in the work it did for the revenue collection agency under its axed head Tom Moyane.

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Fin24.com | UK economy heads for bleak 2019 as BOE's Brexit worries mount
12/18/2018 1:33:18 PM

The warning signs of 2019 are lighting up for the UK economy as Brexit comes to a head.

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Fin24.com | IMF head Christine Lagarde in SA, will meet with Ramaphosa and Kganyago
12/18/2018 1:22:42 PM

Lagarde, visiting South Africa as part of the IMF head's annual African trip, will host a joint press conference with SA Reserve Bank Governor Lesetja Kganyago on Wednesday afternoon in Pretoria.

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Fin24.com | Naspers becomes largest firm to list on A2X exchange
12/18/2018 12:03:47 PM

The global media giant says its shares have been approved to trade on A2X stock exchange with effect from December 27, 2018.

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Fin24.com | UK said to prepare migration policy favouring high earners
12/18/2018 6:15:01 AM

Under the proposals, preference will be given to higher earners and people from favoured nations - likely to be countries whose citizens are currently allowed to use e-passports to enter Britain.

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Fin24.com | Google to invest $1 billion in New York campus
12/18/2018 5:45:02 AM

Google became the latest US tech giant to announce a major expansion plan, unveiling a $bn investment to create a new campus that could double its New York City workforce to 14 000.

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Fin24.com | Naspers leads R7.7 billion investment in Indian edtech startup
12/17/2018 11:15:04 PM

The startup, BYJU'S, is an educational technology company that offers personalised learning programmes for primary and high school pupils in India.

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Fin24.com | Former Prasa boss wants police to find creator of 'manufactured' AG report
12/17/2018 7:59:53 PM

Collins Letsoalo says he will lodge a complaint of fraud against a journalist to enable police to investigate who created a "manufactured" auditor general report that he says tarnished his name as a dedicated civil servant.

More

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Fin24.com | Goldman Sachs faces first criminal charges in 1MDB scandal
12/17/2018 1:25:15 PM

Malaysian authorities allege that Goldman misled investors when the bank knew that proceeds from 1MDB bond sales it arranged would be misappropriated.

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PFG
Heads up: Pioneer Foods FY18 Results - Recovery Derailed by Tougher H2
12/12/2018

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NPK
Heads up: Nampak FY18 Results Review
12/6/2018

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VOD
Heads up: Vodacom Limited - 1H19 Results for the six months ended 30 September 2018
12/5/2018

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QFH
Heads up: Quantum Foods FY18 Results - Strong, but unsustainable
12/5/2018

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TBS
Heads up: Tigerbrands FY18 Results - 2H18 Collapse
12/3/2018

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LHC
Heads up: Life Healthcare FY18 results review
11/26/2018

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CML
Heads up: Coronation FY18 results Review
11/26/2018

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CSG
Heads up: CSG Holdings 1H19 Results Review
11/26/2018

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MRP
Heads up: Mr Price Group Interim results review
11/22/2018

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FBR
Heads up: Famous Brands 1H19 Results Review
11/21/2018

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  23,804.32   211.34  0.9%
DJ Trans  9,480.58   77.05  0.8%
NASDAQ  6,910.67   -159.66  -2.3%
NYSE S and P500 INDEX  2,567.29   21.35  0.8%
FTSE 100  6,720.08   -53.16  -0.8%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,789.81   17.61  0.2%
HONG KONG HANG SENG INDEX  25,814.25   -273.73  -1.0%
NIKKEI 225 INDEX  21,115.45   -391.43  -1.8%
Major JSE Indices*
Name Value Move
OVERALL  51237   -323.39  -0.6%
TOP 40  45227   -301.71  -0.7%
ALL GOLD  1328   26.18  2.0%
INDUSTRIAL  61945   -398.63  -0.6%
FINANCIAL  15690   -236.99  -1.5%
RESOURCES  39823   67.10  0.2%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.27   -0.03 -0.3%
ZAR/ / CHF  14.38   -0.13 -0.9%
USD/ / EUR  1.14   0.00 0.0%
ZAR/ / EUR  16.23   -0.03 -0.2%
USD/ / GB  1.27   0.00 0.1%
ZAR/ / GBP  18.07   -0.03 -0.2%
YEN/ / ZAR  7.89   0.05 0.6%
JPY/ / USD  112.57   -0.26 -0.2%
ZAR/ / USD  14.27   -0.01 0.0%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  58.84   0.14 0.2%
Palladium  1,186.40   -1.30 -0.1%
Platinum  792.40   -1.90 -0.2%
Silver  14.75   0.02 0.1%
Gold  1,247.24   1.31 0.1%
Top 5 Gainers -- Delayed
Resource Generation Lt  50.0
SABLE PLATINUM LTD  31.9
Randgold & Expl Co Ltd  17.6
Brimstone Inv Corp Ltd  17.5
Micromega Holdings Ltd  15.6
Top 5 Losers -- Delayed
Trans Hex Group Ltd  -27.1
Adcock Ingram Hldgs Op  -27.0
Taste Hldgs Ltd  -20.0
Eastern Platinum Ltd  -17.9
Kaydav Group Ltd  -16.7

PRICES (15 minute delay)

Ecsponent Limited : ECS 20  0 | RAFI 40 : J260 9958  -94 | UBS ABSPA 22Aug23 : UABSPA 8916  39 | Share Top 40 : J400 9875  -92 | Rafi All Share Capped : J283 9749  -84 |

SENS (15 minute delay)

| ORE : Disposal of Promenade Rental Enterprise, Option to subscribe for shares, New Caut| LHC : No change statement, notice of annual general meeting and annual compliance repor| NRP : Moody?s affirms NEPI Rockcastle?s Baa3 long-term credit rating and changes outloo| AHL : Results of Annual General Meeting| TRU : Dealings in the company?s securities by directors and the company secretary| STXEMG : Listing of Additional SATRIXEMG Securities| GFI : South Deep and NUM reach agreement to end strike action| IMP : Acceptance of shares in terms of the Performance Share Plan and Bonus Share Plan| BAYA45 : Symbol [BAYB14]| AGL : Notification of transactions by Directors and PDMRs| ADH : Dealings in securities by a Director of the Company| ING196 : Symbol [ING196]| TCS : Condensed Consolidated Financial Statements for the Year Ended 29 February 2016| GAM : Det Cautionary ann relating to potential disposal of LFS Assets Pty Ltd & Renewal| TCS : Condensed Consolidated Financial Statements for the Year Ended 28 February 2015| AWA : No change statement and notice of annual general meeting| SNT : Dealing in Securities| TCS : Condensed Consolidated Financial Statements| RED701 : Publication of Quarterly Report - RED701| JBL : change in hareholding| ADR : Change To The Board Of Directors| RACP : Notification of share dealings by an associate of a director of the Company| ABFN18 : Symbol [ABN87]| JSC : Dealing in securities - Jasco Employee Share Incentive Trust| RES : Symbol [RES40]| LTE : Dealing in securities by an associate of a director of the company| ASC : Dealings in securities by associates of a director| OMU : Dealings in securities by Directors of the Company and Company Secretary| OMU : Dealings in securities on behalf of Employee Share Incentive Scheme| MMP : Provisional reviewed results for the year ended 30th September 2018 and proposed| JSE : GOLDMAN SACHS INTERNATIONAL| CPV01 : Monthly Report - CPV1| IPL : Dealings in securities by a director of Imperial| ETFGRE : Listing Of Additional ETFGRE Securities| CHP : Change in finance director| CGR25 : Symbol [CGR33]| GTR : Year-End Note to Investors| VMK : Posting of Circular, Notice of General Meeting and Important Dates and Times| FRS185 : FRS182 - Interest Payment Notification| ETFPLD : Redemption Of AfricaPalladium Debentures ? ETFPLD And ENXPLD (NSX)| CGR : Dealings in securities by a director| VOD : Vesting of forfeitable shares| ETFPLD : Listing Of Additional AfricaPalladium Debentures ? ETFPLD / ENXPLD (NSX)| AFH : Acceptance of awards by the Group Chief Executive Officer| JBL : Change in shareholding| MFL : Dealing In Securities By Director Of A Major Subsidiary| HPF11 : HPF11 - Interest Payment Notification| SNV : Dealing in securities by executive director| GPL : Disclosure of Disposal of Securities| ORN : Landmark Resource Upgrade Sets Strong Foundation For Development of Prieska Zinc-| SCP : Dealings in securities by an associate of a director| NED : Results of the Odd-Lot Offer and Payment Mechanics| BTISTG : SCIB: The Standard Bank Of South Africa - Dividend announcement in relation BTI s| LBR : Change to the board of directors| BWZ21B : Interest Payment Notification - BWZ21B| BWZ20A : Interest Payment Notification - BWZ20A| MRI : Unaudited interim results for the 6 months ended 31 August 2018| SCP : Dealing in securities by a director| HMN : Transaction in Own Shares| GLPROP : Listing of 100 000 additional GLPROP Securities| AGL : Anglo American rough diamond sales value for De Beers? tenth sales cycle of 2018| HMN : Transaction in Own Shares| NPN : Secondary Listing on A2X| EPS : Eastplats Announces First Chrome Concentrate at its Barplats Zandfontein UG2 Tail| GLN : GLN - Transactions in own shares ? 17 December 2018| S32 : Daily Share Buy-Back Notice| ACS : Director's dealings in securities| GLN : GLN - Transactions in own shares ? 14 December 2018| STX500 : Partial Delisting Of Satrix STX500 Securities - STX500| RNI : Reinet Investments S.C.A. share buyback programme ? update 18 December 2018| STXEMG : Listing of Additional Securities-STXEMG| MRF : Ferrochrome price announcement for the first quarter of 2019| JBL : Commissioning of fine chrome operation commences| GML : Singapore Ruby Auction Results| BAW : Symbol [BAW]| BHP : BHP buy-back completion and special dividend| GML : Zambian Revenue Authority Clears Kagem| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details