Market Commentary News Research  
Market Commentary
Market Commentary for Thursday 22 February 2018

The All Share Index opened lower by 383.5 points or 0.65% on Thursday in response to the negative Asian trading sessions. Our local bourse slid further to close the day 0.77% in the red. Resources shed 0.63%, despite positive moves on BHP Billiton and Anglo American, which closed higher by 0.74% and 0.12% respectively. Financials were the worst performing sector and the index surrendered 1.03% led by Firstrand and Barclays Africa which declined 1.20% and 0.81% respectively. The Iron Ore producers sold off heavily with Assore and Kumba Iron Ore trading lower by 5.47% and 2.61% respectively. On the company front, there was a slew of corporate reporting. Massmart released their results for the 53 weeks ended 31 December 2017 and the salient features were that total sales increased 2.7% to R93.7bn and group operating profit (Excluding foreign exchange movements and interest) increased by 4.8% to R2.8bn whilst HEPS increased by 14% to R1.5bn. A gross final dividend of 216.8c was declared and the stock surged 8.81%. Woolworths released their results for the 26 weeks ended 24 December 2017 and the company disclosed a 2.5% rise in turnover to R38.8bn, a 14% decline in trading profit and a 15% decline in HEPS to 206.3c. SA food was the notable performer with overall food sales up 9.4% and comparable sales up 5.3%. The board declared a 108.5c gross dividend and the stock closed firmer by 1.85%. British American Tobacco released their results for the full year ended 31 December 2017 and advised shareholders that group revenue grew 37.6% with profit from operations up 39.1% due to the acquisition of Reynolds American Inc (RAI). Diluted EPS increased 600% largely due to a gain of ?23.3bn related to the acquisition of RAI and a deferred tax credit of ?9.6bn. The group’s cigarette market share increased 40 basis points driven by the Global Drive Brand (GDB) portfolio. Truworths released their results for the 26 weeks ended 31 December 2017 and the company reported retails sales of R10.3bn, a 52.4% increase in gross margin, a 24% increase in operating margin and a 10% increase in NAV per share, whilst HEPS declined 3%. A gross interim dividend of 261c was declared and the stock rose 2.32%. Anglo American released their results for the year ended 31 December 2017 and reported a 93% increase in attributable cash flow to $4.9bn, a 47% reduction in net debt to $4.5bn and a 45% increase in EBITDA to $8.8bn. A final gross dividend of R6.31692 was declared and the stock closed 0.12% higher. On the economic front, bond investments by Japanese abroad decreased by ?553.10 billion in the week ending 17 February 2018 whilst stock investments by foreigners in Japan increased by ?127.10 billion during the same period. The Ifo Business Climate Index for Germany fell by 2.2 points from the previous month to 115.4 in February 2018, missing market expectations of 117.1 and it was the lowest reading since June last year. The British economy expanded by 1.4% year-on-year in the fourth quarter of 2017, below a preliminary estimate of 1.5% and compared with an upwardly revised 1.8% growth in the previous period. The growth rate was the weakest pace of expansion since the second quarter of 2012. Business investment in the UK was flat at ?46bn in the last 3 months of 2017, following an upwardly revised 0.90% rise in the third quarter and compared with market expectations of a 0.50% gain. The number of Americans filing for unemployment benefits fell by 7000 to 222 000 in the week ending 17 February 2018 and the data release was below market expectations of 230 000. Total value traded for the day was recorded at R24.749bn

Market Commentary
The Day Ahead for Friday 23 February 2018

US stocks eked out a gain to halt a two-day slide, but this came after the US indices erased gains that exceeded 1% as investors grappled with the threat of higher interest rates. Treasuries edged higher and the Dollar slumped. The Dow Jones Industrial Average and S&P500 closed firmer by 0.66% and 0.10% respectively, whilst the Nasdaq shed 0.11%. The Asian bourses are mostly stronger this morning and Tencent is higher by 0.85% as the Hang Seng is trading 0.70% in the black thus far. BHP Billiton is stronger by 1.46% in Australia whilst the Australian ASX is trading 0.82% higher. 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
imageattribute
Fin24.com | ANC top committee to meet on Sunday
2/23/2018 7:29:46 AM

The meeting of the national executive committee will be held against the backdrop of growing speculation that resident Cyril Ramaphosa is planning Cabinet changes.

More

imageattribute
Fin24.com | Public Protector finds Brown 'inadvertently' misled Parliament about Eskom-Trillian
2/23/2018 6:56:28 AM

The president now has 14 days to submit comments on the Public Protector’s report, and provide a report to Parliament on what action he will take against Brown.

More

imageattribute
Fin24.com | SAA financial result delay a huge concern - opposition
2/22/2018 7:41:41 PM

South Africa Airways again failed to table its 2016/17 annual financial statements and has still not held its annual general meeting.

More

imageattribute
Fin24.com | Koko says he's 'moved on', despite Eskom court victory
2/22/2018 7:22:04 PM

The Labour Court has ruled in favour of controversial former Eskom executive Matshela Koko, but he says it is too little too late and he has already moved on. Court rules Eskom's ultimatum to Koko unlawful but he has 'moved on'.

More

imageattribute
Fin24.com | Glencore M and A firepower undiminished after $2.9bn dividend
2/22/2018 7:19:02 PM

Glencore might have announced a whopping $2.9bn dividend, but that doesn’t mean the company’s dealmaking firepower is diminished.

More

imageattribute
Fin24.com | Consumers likely to buy after watching video - research
2/22/2018 6:57:54 PM

Consumers are 64% more likely to buy a product after viewing a product video, according to Desiree Gullan, executive creative director at G and G Digital.

More

imageattribute
Fin24.com | Top 5 on Fin24: Striking Gupta mineworkers demand answers, experts weigh in on #Budget2018
2/22/2018 5:39:49 PM

A roundup of Thursday's top economic and finance reads on Fin24.

More

imageattribute
Fin24.com | Mining churns out cash as Anglo boosts profit and dividend
2/22/2018 5:18:44 PM

Mining giants BHP Billiton, Glencore and Rio Tinto have all reported major profit growth, but it was Anglo's rebound that was one of the most impressive after it was on the brink of disaster in 2015.

More

imageattribute
Fin24.com | Ramaphosa's swift changes a cause for celebration
2/22/2018 4:55:13 PM

Investor favourite President Cyril Ramaphosa's strength and conviction when it comes to his reforms is likely to build momentum, according to Overberg Asset Management.

More

imageattribute
Fin24.com | Cathay Pacific launches direct flight to Cape Town
2/22/2018 4:19:23 PM

Cathay Pacific will launch a seasonal non-stop service to Cape Town later this year, directly linking with Hong Kong for the first time.

More

imageattribute
Fin24.com | PPC shareholder Prudential said to demand chairperson's exit
2/22/2018 4:15:22 PM

One of PPC’s largest shareholders is pushing for chairperson Peter Nelson to be replaced after talks with potential suitors failed and the company seeks to grow independently.

More

imageattribute
Fin24.com | Striking Gupta mineworkers demand answers about their future
2/22/2018 3:05:49 PM

Workers at Gupta-owned Optimum Coal Mine have demanded to know if they will be paid and asked to be informed of plans to pay outstanding debt to creditors, in a memo to the CEO.

More

imageattribute
Fin24.com | UK net migration falls more than a quarter since Brexit vote
2/22/2018 12:41:25 PM

Net migration to the UK has fallen by 92 000 since the June 2016 Brexit referendum as European Union nationals arrive in fewer numbers.

More

imageattribute
Fin24.com | Market cheers Massmart profit rise as online sales shine
2/22/2018 10:33:40 AM

Retailer Massmart has posted a rise in annual profit, on the back of operational cut costs and solid growth in its online division.

More

imageattribute
Fin24.com | Top 5 on Fin24: #Budget2018 - VAT hike from April 1, risks to SA economic outlook remain
2/21/2018 6:37:41 PM

In case you missed it, here is a roundup of Wednesday's top Budget reads on Fin24.

More

imageattribute
Fin24.com | Eurozone hits speed bump on road to faster economic growth
2/21/2018 1:30:02 PM

A speed bump in economic momentum won’t interrupt the eurozone's upswing.

More

imageattribute
Fin24.com | UK wages pick up with fewer foreign nationals in the workforce
2/21/2018 12:46:07 PM

Pay for workers in Britain has picked up in the fourth quarter and productivity gained as fewer non-nationals were in the workforce.

More

imageattribute
Fin24.com | Formal inquiry into DMR on cards after Zwane ducks and dives again
2/21/2018 12:28:29 PM

The portfolio committee on mineral resources has agreed to pursue a formal inquiry into the Department of Mineral Resources, after Minister Mosebenzi Zwane failed to appear for a meeting.

More

imageattribute
Fin24.com | Sharp drop in consumer inflation
2/21/2018 12:21:58 PM

South Africa's consumer price inflation came out at 4.4% in January 2018, in line with expectations and down from 4.7% in December 2017.

More

imageattribute
Fin24.com | Safcei: We want to tell MPs in fancy cars that SA doesn't need nuclear
2/21/2018 12:13:19 PM

A handful of protesters from the Southern African Faith Communities’ Environment Institute held anti-nuclear placards outside Parliament ahead of the Budget Speech.

More

WHL
Heads up: Woolworths Holdings Limited - results for the 26 weeks ended 25 December 2017
2/22/2018

.....

More

GLN
Heads up: Glencore FY17 results - In a sweet spot, @spot
2/22/2018

.....

More

JSE
Heads up: JSE FY17 results - Pulling all the levers
2/22/2018

.....

More

COH
Heads up: Curro FY17 results - M&A back on the table
2/21/2018

.....

More

NPN
Heads up: Naspers update
2/21/2018

.....

More

AMS
Heads up: Anglo American Platinum FY17 results - A return to dividends
2/20/2018

.....

More

KIO
Heads up: Kumba Iron Ore FY17 results
2/20/2018

.....

More

IPL
Heads up: Imperial 1H18 results
2/20/2018

.....

More

ARH
Heads up: ARB Holdings 1H18 results
2/20/2018

.....

More

CLH
Heads up: City Lodge 1H18 results - Improved outlook
2/20/2018

.....

More

Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  24,962.48   164.70  0.7%
DJ Trans  10,428.87   56.81  0.5%
NASDAQ  7,210.09   -8.14  -0.1%
NYSE S and P500 INDEX  2,703.96   2.63  0.1%
FTSE 100  7,252.39   -29.18  -0.4%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  12,461.91   -8.58  -0.1%
HONG KONG HANG SENG INDEX  31,167.73   202.05  0.7%
NIKKEI 225 INDEX  21,859.63   123.19  0.6%
Major JSE Indices*
Name Value Move
OVERALL  58155   0.00  0.0%
TOP 40  51259   0.00  0.0%
ALL GOLD  1100   0.00  0.0%
INDUSTRIAL  76538   0.00  0.0%
FINANCIAL  18293   0.00  0.0%
RESOURCES  35215   0.00  0.0%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  9.13   0.04 0.4%
ZAR/ / CHF  12.48   -0.03 -0.2%
USD/ / EUR  1.23   0.00 0.2%
ZAR/ / EUR  14.36   0.03 0.2%
USD/ / GB  1.39   0.00 0.3%
ZAR/ / GBP  16.28   0.05 0.3%
YEN/ / ZAR  9.16   0.00 0.0%
JPY/ / USD  106.98   0.24 0.2%
ZAR/ / USD  11.67   0.01 0.1%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  66.29   0.06 0.1%
Palladium  1,040.36   0.91 0.1%
Platinum  996.92   -0.25 0.0%
Silver  16.57   -0.04 -0.2%
Gold  1,327.43   -4.79 -0.4%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Sekunjalo Inv Ltd  13.0
ANOORAQ RESOURCES CORP  11.6
Sacoil Holdings Ltd  11.1
AFLEASE GOLD LTD  4.8
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Coal of Africa Ltd  -14.3
Delta Africa Prop Hldg  -7.0
Premier Food Fishing L  -3.3
Allied Electronics Cor  -2.7

PRICES (15 minute delay)

Steinhoff Int Hldgs Lt : SHF 8100  -119 | Shareholder Weighted T : DTOP 6485  76 | Fixed Line Telecommuni : FTEL 607  7 | Db x-trackers MSCI Jap : DBXJP 1126  -4 | eRAFI SA Industrial 25 : RAFIND 6197  -48 |

SENS (15 minute delay)

| EPF007 : Symbol [EPF007]| ZPLP : Release of Reviewed Interim Results| STXSWX : Listing of Additional Securities Satrixswix Top 40-STXSWX| STXQUA : Listing of Additional Securities-STXQUA| GTR : Exploring Listing On The Main Market Of The London Stock Exchange| NHM : Symbol [NHM002]| STXPRO : Listing of Additional Satrixpro Securities-STXPRO| ACE : Condensed Consolidated Financial Statements for the six months ended 31 December| CPV01 : Announcement - CPV01| JSE : Suspension BTIIHH - Please wait, downloading details| NT1 : Notification of directors? dealings in Net1 securities| AFT : Voluntary Business Update| DST : Unaudited Group results for the six months ended 31 December 2017 and cash divide| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details