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Market Commentary
Market Commentary for Thursday 21 February 2019

The All Share Index opened higher by 50.30 points or 0.09% on Thursday as the Asian markets ended their session in positive territory. Our local bourse traded flat for most of the day, and eventually we closed 0.37% in the red. Industrials closed lower by 0.91% mostly due to a 1.58% decline in Naspers. Financials were the best performing sector and the index closed higher by 1.31%, led by Absa and Standard Bank which closed higher by 3.65% and 1.81% respectively. The gold miners closed lower by 3.58% whilst listed property shed 0.68%. On the company reporting front, Woolworths released their interim results for the 26 weeks ended 23 December 2018 and the salient features were a 1.9% increase in turnover and concession sales to R39.40bn, a decline in ROE from 20.1% to 16.6% and a 2.9% decline in HEPS to 200.4c with adjusted diluted HEPS lower by 9.2%. An interim gross dividend of 92c was declared and the stock closed lower by 2.91%. Discovery released their results for the half-year ended 31 December 2018 and the company reports a 16% increase in core new business API to R9.049bn, an 11% rise in gross inflows under management to R67.541bn and a 13% increase in embedded value to R68.025bn, with 21% of group earnings invested in new initiatives. The directors declared an interim gross dividend of 506.71233c and the stock closed firmer by 0.55%. Anglo American released their results for the full year ended 31 December 2018 and the financial highlights were that underlying EBITDA increased 4% to $9.2bn, attributable free cash flow has reached $3.2bn, profit attributable to equity shareholders increased 12% to $3.5bn, net debt has been reduced 37% since 2017 and now equates to $2.8bn. The board has proposed a final dividend of $0.51 per share, which equals 40% of second half underlying earnings, and the stock bucked the sector weakness by closing 0.53% higher. On the economic front, the Nikkei Japan Manufacturing PMI declined to 48.5 in February 2019, compared to January’s final 50.3 and market expectations of 50.4 and the latest reading pointed to the first monthly contraction in manufacturing since June 2016. Germany’s annual inflation rate was confirmed at 1.4% in January 2019, the lowest since April last year and below December’s revised figure of 1.6%, mainly due to a slowdown in energy inflation. The IHS Markit Eurozone Manufacturing PMI dropped to 49.2 in February 2019 from January’s 50.5 and below market consensus of 50.3. The number of Americans filing for unemployment benefits fell by 23 000 to 216 000 in the week ending 16 February 2019 from the previous week’s unrevised level of 239 000 and compared to market expectations of 229 000. Total value traded for the day was recorded at R22.606bn

Market Commentary
The Day Ahead for Friday 22 February 2019

US stocks closed in negative territory on Thursday after the release of weak economic data. The Dow Jones Industrial Average and S&P 500 closed softer by 0.4% and 0.35%, respectively. The Asian bourses are mostly lower this morning with the Nikkei and the Hang Seng Index both currently trading 0.26% lower, while Tencent is trading in the red by 1.1%. BHP has shed 0.42% in Australia whilst the Australian ASX is trading 0.4% in the black so far. Traders can expect a negative start to trading on our local bourse this morning.

News Articles
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Fin24.com | Read Warren Buffett's just-released annual Berkshire Hathaway shareholder letter
2/23/2019 6:09:36 PM

Warren Buffett says he wants to spend Berkshire Hathaway Inc.’s growing pile of cash on a giant acquisition, but he doesn’t see that happening anytime soon.

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Fin24.com | Trump's trade chief lectures his boss and gets earful in return
2/23/2019 2:18:11 PM

An exasperated Robert Lighthizer, the US trade representative, tried to gently educate his boss, Donald Trump, on the meaning of a 'memorandum of understanding' in the Oval Office.

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Fin24.com | Theresa May is said to face calls to quit after Brexit
2/23/2019 12:29:59 PM

Theresa May must resign as British prime minister and Conservative leader later this year after delivering Brexit, according to politicians at the highest levels of her own government.

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Fin24.com | 6 ways the #EskomCrisis debate was appropriated to campaign for May 8 votes
2/23/2019 11:16:18 AM

Members of Parliament used an urgent debate on the energy crisis on Thursday to campaign for the national election instead. Here's how they did it.

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Fin24.com | NASA says SpaceX’s Crew Dragon is ready to fly to space station
2/23/2019 10:13:36 AM

Billionaire Elon Musk’s SpaceX is ready to fly its first commercially-built spacecraft designed for humans to the International Space Station, NASA said Friday after a high-level agency review of the project in the final week before the flight.

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Fin24.com | The week that was: Fin24's top 5 stories
2/23/2019 9:48:28 AM

From Patrice Motsepe's business dealings to Finance Minister Tito Mboweni's Budget Speech, here is the week that was.

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Fin24.com | Forget cigarette smuggling. The big money is in stealing coal
2/23/2019 8:55:30 AM

We’ve heard about gold theft, but coal theft is the biggest game in town. It’s costing Eskom and coal companies billions of rands a year.

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Fin24.com | Swedbank scandal puts spotlight on CEO's history of denials
2/22/2019 8:15:05 PM

Swedbank was forced to backtrack on its previous assertions and has now acknowledged that it also handled suspicious transactions, which it says have been reported to the police.

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Fin24.com | 'I am guilty as charged': Zim central bank governor on overvalued bond notes
2/22/2019 6:16:22 PM

Zimbabwe central bank governor Dr John Mangudya has admitted prejudicing the country’s exporters by exchanging their US dollar earnings at parity with the local bond note, when rates on the parallel market were at a 400% premium.

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Fin24.com | 'Unfathomable' that AMCU wants sympathy strikes - Minerals Council CEO
2/22/2019 12:28:07 PM

Fifteen mining companies have received notices of secondary strike action from trade union AMCU, the Minerals Council said in a statement on Friday, adding the companies would do 'everything in their power' to avert the sympathy strikes.

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Fin24.com | SA central bank sees CPI target staying as range
2/22/2019 11:05:20 AM

South Africa’s central bank is unlikely to officially pursue a single point-inflation target soon even though it prefers to anchor price growth close to the 4.5% mid-point of its goal range, an adviser to Governor Lesetja Kganyago said.

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Fin24.com | ALERT: FNB warns of new debit order scam following investigation
2/22/2019 10:21:23 AM

FNB has detected a new debit order scam, by parties known as Procall and Mzansi, and is working to pursue criminal charges.

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Fin24.com | Gordhan: New Eskom board appointments will be made soon to help with turnaround
2/22/2019 7:44:35 AM

Public Enterprises Minister Pravin Gordhan told members of Parliament that government will appoint additional members to Eskom's board soon. He said these would be people who have engineering skills and experience in turning around ailing institutions.

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Fin24.com | EOH CEO in fight to save graft-tainted IT company
2/22/2019 7:27:23 AM

EOH Holdings Chief Executive Officer Stephen Van Coller is in a race against the clock to restructure the sprawling South African IT business before shareholders and lenders run out of patience.

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Fin24.com | ‘Rocketman’ looks to duplicate commercial success of ‘Bohemian Rhapsody’
2/21/2019 9:44:20 PM

After Twentieth Century Fox’s Bohemian Rhapsody became the highest-grossing musical biopic of all time, Viacom’s Paramount Pictures is looking to find success with another legendary artist: Elton John.

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Fin24.com | Google to show opioid disposal sites in Maps searches
2/21/2019 7:54:50 PM

Alphabet’s Google will show drug-disposal locations on its Maps programme.

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Fin24.com | SA yet to decide on Mozambique extradition, state says
2/21/2019 7:48:00 PM

South Africa is still considering whether to extradite Mozambique’s former finance minister, Manuel Chang, to his home country or the US, a Department of International Relations and Cooperation official said.

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Fin24.com | Numsa calls for 'rolling mass action' to stop Eskom unbundling
2/21/2019 4:26:31 PM

The leadership of the National Union of Mineworkers has called for "rolling mass action" to stop the unbundling of Eskom, saying the state is trying to privatise the power utility by stealth.

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Fin24.com | Absa said to court SA Central Bank's Mminele as CEO
2/21/2019 3:45:49 PM

Absa is considering South African Reserve Bank Deputy Governor Daniel Mminele as a potential replacement for departing Chief Executive Officer Maria Ramos, according to people familiar with the matter.

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Fin24.com | Zimbabwe's inflation rate is being misread, Ncube says
2/21/2019 3:07:18 PM

Zimbabwean Finance Minister Mthuli Ncube says the country’s inflation rate, which surged to the highest annual level since a hyperinflation blowout a decade ago, is being misread.

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BID
Heads up: Bidcorp 1H19 results
2/21/2019

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GLN
Heads up: Glencore FY18 results - Focusing on value
2/21/2019

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AMS
Heads up: Amplats FY18 results - Palladium moves higher
2/19/2019

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COH
Heads up COH FY18 Results - Well positioned for continued growth
2/18/2019

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ARH
Heads up: ARB Holdings 1H19 Results Review
2/18/2019

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HDC
Heads up: Hudaco FY18 Results - A Quality SA Inc Cyclical
2/4/2019

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VOD
Heads up: Vodacom Limited - Weak 3Q19 Results
2/4/2019

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SAP
Heads Up: Sappi FY18 Results review
1/9/2019

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BAT
Heads Up: Brait 1H19 Results - Disappointing, but portfolio optimisation could unlock value
1/9/2019

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SAP
Heads Up: Sappi FY18 Results review
1/9/2019

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  25,850.63   -103.81  -0.4%
DJ Trans  10,632.49   5.00  0.0%
NASDAQ  7,459.71   -29.36  -0.4%
NYSE S and P500 INDEX  2,774.88   -9.82  -0.4%
FTSE 100  7,167.39   -61.23  -0.8%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  11,423.28   21.31  0.2%
HONG KONG HANG SENG INDEX  28,629.92   115.87  0.4%
NIKKEI 225 INDEX  21,425.51   -38.72  -0.2%
No Data at Present
Currencies
Name Value Move
ZAR/ / AUD  9.98   0.01 0.1%
ZAR/ / CHF  14.00   -0.02 -0.1%
USD/ / EUR  1.13   0.00 0.0%
ZAR/ / EUR  15.87   0.01 0.1%
USD/ / GB  1.30   0.00 0.1%
ZAR/ / GBP  18.26   0.03 0.2%
YEN/ / ZAR  7.91   0.03 0.3%
JPY/ / USD  110.69   -0.04 0.0%
ZAR/ / USD  13.98   0.00 0.0%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  67.14   0.20 0.3%
Palladium  1,451.70   9.95 0.7%
Platinum  844.25   18.85 2.3%
Silver  15.89   0.13 0.8%
Gold  1,330.20   6.75 0.5%
Top 5 Gainers -- Delayed
Spanjaard Limited  47.9
SABLE PLATINUM LTD  31.9
Eastern Platinum Ltd  22.0
Micromega Holdings Ltd  15.6
Sekunjalo Inv Ltd  13.0
Top 5 Losers -- Delayed
Acsion Limited  -45.5
Aveng Group Limited  -25.0
Pembury Lifestyle Grp  -25.0
Tongaat Hulett Ltd  -20.4
Etion Limited  -17.6

PRICES (15 minute delay)

Value Group Ltd : VLE 570  0 | Satrix 40 Portfolio : STX40 4987  42 | Delta Property Fund Lt : DLT 328  3 | Gold Mining : GLDX 2342  -15 | Forbes & Manhatt Coal : FMC 250  0 |

SENS (15 minute delay)