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Market Commentary
Market Commentary for Monday 16 October 2017.

The All Share Index opened higher by 352.50 points or 0.61% on Monday and continued to hold onto its gains throughout the trading session to close the day 0.50% in the black. Financials edged higher by 0.12%, with the likes of Barclays Africa and Standard Bank both trading higher by 0.58% and 0.30% respectively. Resources closed firmer by 1.16%, led by BHP Billiton which gained 1.63%. The Gold miners rallied 3.13%, led by Goldfields and AngloGold Ashanti which closed the trading session stronger by 3.79% and 3.46% respectively. On the company front, Greenbay Properties announced that the company has made a firm offer of intention to acquire Group Five’s European assets and businesses for an aggregate cash price of R1.6bn. Greenbay advised that the target assets are consistent with its investment policy and would provide the company with a further platform to grow through the provision of sufficient capital and access to operating experience in Europe. The offer remains open for acceptance by Group Five until 1700 on Friday, 20 October 2017. Calgro M3 Holdings announced their results for the half year ending 31 August 2017 and the company advised that revenue had increased 40.24% to R1bn whilst HEPS had declined 26.74% to 47.71c compared to the 65.13c disclosed for the previous comparative period. No dividend was declared and the stock closed lower by 0.16%. Astral released a trading update and referred shareholders to the trading update issued on 20 September 2017 which indicated a year-on-year improvement of at least 65%, and advised that HEPS for the year ended 30 September 2017 will reflect an increase of between 80% to 100% compared to the HEPS of 965c disclosed for the previous comparable period. The further improvement is attributable to the fact that no further losses were incurred as result of the outbreak of Avian Influenza for the remainder of the 2017 financial year. The stock responded favourably to close the trading session 6.62% in the black. Implats announced a strategic investment into the Waterberg Development Project and will pay $30m in cash to acquire a 15% shareholding in the project from Platinum Group Metals Ltd (“PTM”) and Japan Oil, Gas and Metals National Corporation (“JOGMEC”). On the economic front, the Euro Area trade surplus narrowed to €16.1bn in August 2017 from €17.5bn in the corresponding month of the previous year and way below market expectations of €23.3bn. Exports rose 6.8% year-on-year to €171.5bn while imports grew at a faster 8.6% to €155.4bn. German Wholesale Prices increased 3.4% in September 2017 from the corresponding month of the preceding year. In August 2017 and in July 2017 the annual rates of change were 3.2% and 2.2% respectively. The New York Empire State Manufacturing Index in the US rose to 30.2 in October 2017 from 24.4 in the previous month, and way above market expectations of 20.7. It was the highest level since September 2014, as the Shipments Index climbed 11.3 points to 27.5, and the employment index rose 5 points to 15.6. Total value traded for the day was recorded at R21.250bn.

Market Commentary
The Day Ahead for Tuesday 17 October 2017.

The S&P 500 Index rose to a record as gains in oil and copper drove commodities to a six-month high whilst Treasuries declined after Federal Reserve Chair Janet Yellen suggested that gradual rate increases are warranted despite benign inflation. The Dow Jones Industrial Average closed higher by 0.37% whilst the S&P 500 and Nasdaq closed stronger by 0.17% and 0.28% respectively. The Asian bourses are mostly firmer this morning and Tencent is trading marginally lower by 0.11% despite the Hang Seng being up 0.18% thus far. BHP Billiton is higher by 1.34% in Australia as the Australian ASX is trading 0.73% in the black. European markets are set for a stronger open and traders can expect a bullish start to trading on our local bourse this morning.

News Articles
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Fin24.com | #StateCapture Live: Is Eskom corrupt, or is it a few rotten apples?
10/17/2017 11:37:45 AM

Parliament's public enterprises committee has started its first state capture inquiry, starting with allegations of corruption and capture at Eskom.

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Fin24.com | Critical time for SA’s water, sanitation planning
10/17/2017 10:52:53 AM

The financial sector should help close the water services infrastructure funding gap of R30bn per year, says an official at the Department of Water and Sanitation.

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Fin24.com | #StateCapture Live: Gigaba treated ex-Eskom boss 'appallingly' - Eberhard
10/17/2017 10:30:22 AM

Parliament's public enterprises committee has started its first state capture inquiry, starting with allegations of corruption and capture at Eskom.

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Fin24.com | #StateCapture Live: Don’t get distracted by Molefe - Eberhard
10/17/2017 10:23:49 AM

Parliament's public enterprises committee has started its first state capture inquiry, starting with allegations of corruption and capture at Eskom.

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Fin24.com | BoE seen on hold through 2018 after expected hike
10/17/2017 10:18:45 AM

If economists are to be believed, November could be the last live Bank of England meeting for quite some time.

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Fin24.com | LIVE: State capture inquiry begins with focus on Eskom
10/17/2017 10:09:04 AM

Parliament's public enterprises committee has started its first state capture inquiry, starting with allegations of corruption and capture at Eskom.

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Fin24.com | McKinsey admits lapse in judgement, but denies corruption
10/17/2017 7:35:12 AM

Global consultancy firm McKinsey has admitted that it found violations of its professional standards, but it denied that the firm was involved in any acts of bribery or corruption.

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Fin24.com | McKinsey admits lapse in judgment, but denies corruption
10/17/2017 7:31:37 AM

Global consultancy firm McKinsey has admitted that it found violations of its professional standards, but it denied that the firm was involved in any acts of bribery or corruption.

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Fin24.com | Treasury must look at alternative tax revenue streams - economist
10/16/2017 11:02:06 PM

Reducing medical tax credits, a wealth tax and a fuel levy are all on the table, says Sanisha Packirisamy of Momentum Investment.

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Fin24.com | Top 5 on Fin24: Bank licence for Discovery, Coovadia on mini budget, and exec denies Brown tender link
10/16/2017 10:51:35 PM

Monday's top economic and finance reads on Fin24.

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Fin24.com | Zuma corruption charges 'concerning' for SA economy - Gigaba
10/16/2017 9:55:55 PM

Minister of Finance Malusi Gigaba has said that it's 'quite concerning' for the South African economy that corruption charges against President Jacob Zuma have been reinstated.

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Fin24.com | Media win bid to cover Koko's hearing
10/16/2017 7:08:37 PM

Eskom's disciplinary hearing against suspended executive Matshela Koko has slowly sputtered to life, but was adjourned without the hearing making much headway.

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Fin24.com | It's up to Gigaba to rebuild trust and confidence in mini budget - Coovadia
10/16/2017 3:25:32 PM

Cas Coovadia from the SA Banking Association has called on Finance Minister Malusi Gigaba to reinstill trust and confidence when he delivers his mini budget in a week's time.

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Fin24.com | Kganyago's Best Governor award affirms SARB's good work - economist
10/16/2017 3:23:11 PM

Reserve Bank governor Lesetja Kganyago has been named Central Bank Governor of the Year for Sub-Saharan Africa, which affirms the good work of the bank, says an economist.

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Fin24.com | Atlantic Leaf interim results reflect stable environment
10/16/2017 2:23:19 PM

Mauritius based Atlantic Leaf Properties reports total assets under management of £304m for the 2017 interim results - up 15% from the interim results in 2016.

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Fin24.com | Weaker rand wipes out fuel price gains - AA
10/16/2017 12:51:58 PM

The latest data by the Central Energy Fund continues to show how vulnerable South African fuel users are to political and economic sentiment, says the AA.

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Fin24.com | SA money manager targets return from student digs
10/16/2017 12:18:14 PM

South African stock exchange investors are about to get their first opportunity to bet on income from housing students enrolled at campuses.

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Fin24.com | International visitors spend R35bn in Jozi to shop, sleep, eat
10/16/2017 10:28:14 AM

Johannesburg is the city in Africa where international visitors spent the most in 2016 - a total of about R35bn, while Cape Town came in second and Durban eighth.

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Fin24.com | Discovery gets bank licence approval
10/16/2017 9:02:22 AM

The Registrar of Banks has granted Discovery a banking licence, the JSE-listed company has announced.

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Fin24.com | There is 'no room for complacency' on global growth - IMF
10/16/2017 9:00:03 AM

The IMF’s steering committee warned that global growth is at risk of faltering in coming years given uncomfortably low inflation and rising geopolitical risks, injecting a cautious note into an otherwise improving economic outlook.

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DST
Heads up: Distell FY17 results - Robust SA performance offset by offshore weakness
10/6/2017

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MDI
Heads up: Master Drilling 1H17 results - light at the end of the tunnel
10/6/2017

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SUI
Heads up: Sun International 1H17 results - Rights issue on the cards?
10/6/2017

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KST
Heads up: PSG Konsult - 1H18 results
10/6/2017

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HSP
Heads up: Holdsport 1H18 results - Going Long4Life
10/5/2017

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YRK
Heads up: York Timber FY17 results - discount to underlying TNAV substantial
10/5/2017

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CPI
Heads up: Capitec Bank Holdings Limited - 1H18 results
10/5/2017

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ASC
Heads up: Ascendis FY17 results
10/5/2017

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ZED
Heads up: Zeder 1H18 results - Improving return outlook
10/4/2017

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More

CND
Heads up: Conduit Capital FY17 results - Investing for the long-term
10/3/2017

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  22,956.96   85.24  0.4%
DJ Trans  9,857.15   -79.07  -0.8%
NASDAQ  6,624.00   18.20  0.3%
NYSE S and P500 INDEX  2,557.64   4.47  0.2%
FTSE 100  7,525.04   -1.93  0.0%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  12,991.98   -11.72  -0.1%
HONG KONG HANG SENG INDEX  28,697.49   4.69  0.0%
NIKKEI 225 INDEX  21,336.12   80.56  0.4%
Major JSE Indices*
Name Value Move
OVERALL  57949   -214.29  -0.4%
TOP 40  51540   -173.18  -0.3%
ALL GOLD  1306   -30.17  -2.3%
INDUSTRIAL  79292   -393.33  -0.5%
FINANCIAL  15740   -41.33  -0.3%
RESOURCES  36319   -40.75  -0.1%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.50   0.00 0.0%
ZAR/ / CHF  13.76   0.01 0.1%
USD/ / EUR  1.18   -0.01 -0.5%
ZAR/ / EUR  15.72   0.04 0.2%
USD/ / GB  1.33   0.00 -0.2%
ZAR/ / GBP  17.68   0.09 0.5%
YEN/ / ZAR  8.43   -0.01 -0.2%
JPY/ / USD  112.16   0.02 0.0%
ZAR/ / USD  13.37   0.11 0.8%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  58.10   0.18 0.3%
Palladium  985.94   11.09 1.1%
Platinum  928.81   0.81 0.1%
Silver  17.09   -0.11 -0.6%
Gold  1,289.73   -6.52 -0.5%
Top 5 Gainers -- Delayed
Orion Real Estate Ltd  40.0
SABLE PLATINUM LTD  31.9
Hulisani Limited  23.8
Mazor Group Ltd  15.6
Sekunjalo Inv Ltd  13.0
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Sabvest Ltd -N-  -15.1
Esor Limited  -14.3
Trans Hex Group Ltd  -12.5
Jasco Electron Hldgs L  -12.1

PRICES (15 minute delay)

Ashburton Mid Cap ETF : ASHMID 745  -12 | Merafe Resources Ltd : MRF 156  -1 | Satrix FINI Portfolio : STXFIN 1588  2 | Master Plastics Limite : MAP 179  0 | ALSI Net TRI : JN23 57948  -216 |

SENS (15 minute delay)

| EQU : Completion of Acquisition of Distribution Centre in Coventry, England| ETFPLD : Redemption of AfricaPalladium debentures - ETFPLD| CTOP50 : Listing of 21 641 300 Additional CoreShares Top 50 Securities - CTOP50| RLF : Notification of dealings by an associate of a director| EXX : EXX - Section 122 Notification| CLR : Appointment of the new chief financial officer (?CFO?)| ISB : Withdrawal of Cautionary| RSG : Director Resignation| GEN : GEN ? GENERAL - ORION REAL ESTATE LIMITED| AGL : Anglo American rough diamond sales value for De Beers? eighth sales cycle of 2017| WSL : Provision of financial assistance and further funding arrangement| VRI708 : Availability of the Latest Investor Report - VRI708| REN : Trading Statement| NGPLT : NGPLT/NGNPLT:Partial De-Listing of NewGold Platinum Debentures.| RDI : Rockwell Issues Second Quarter Results Of Fiscal 2018| GLD : GLD/NGNGLD:Partial De-Listing of NewGold Debentures.| CRP : Result of scrip dividend election| FCR : Directorate Changes| SPIB21 : New Listing SIB21| MND : Symbol [MND]| MEI : 2017/18 Interim Trading Update| RDI : Unaudited Interim Consolidated Financial Statements| FCR : Revised Toral Lead-Zinc Exploration Strategy and Appointment of Executive Directo| CFR : Significant movement in operating profit and profit for the period for the six mo| PIK : Unaudited Condensed Consolidated Interim Results For The 26 Weeks Ended 27 August| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details