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Market Commentary
Market Commentary for Thursday 20 September 2018

The All Share Index opened higher by 72 points or 0.13% on Friday as the Asian markets closed in positive territory. Our local bourse edged higher in late trade and eventually we closed the trading session 0.18% in the black with a total value traded of R58.373bn due to futures close-out. Financials were the strongest performing sector and the index gained 0.35%, led by Firstrand and Investec Ltd which closed higher by 1.63% and 1.22% respectively. Resources were one of the worst performing sectors and the index closed higher by 0.21%, led by a mixed close with Anglo American appreciating 0.72% and BHP Billiton closing lower by 0.18%, whilst the industrials closed stronger by 0.30% led by a 0.41% improvement in Naspers. On the company reporting front, Pick n Pay Stores released a trading update for the 26 weeks ended 26 August 2018 and the salient features were that the group delivered turnover growth of 6.4% in the first half of the financial year, with like-for-like turnover growth of 3.8% whilst selling price inflation held at 0.3%. The group delivered like-for-like volume growth of 3.5% and their core South African division grew turnover 6.7%, demonstrating market share growth over the period. The group disclosed that its HEPS is likely to between 97.14c to 102.69c, being an increase of between 75% and 85% compared to the 61.88c disclosed for the previous comparative period. Their financial results are expected to be published on 16 October 2018, and the stock closed higher by 0.61%. Nampak released a voluntary trading update for the 11 month period ending 31 August 2018 and the highlights were improved cash transfer of R3.1bn from the rest of Africa (Including Angola), the securing of a long-term funding package of R12.8bn, the Angolan hedging programme protected cash against a R1.5bn devaluation in the Kwanza and further investments of R300m in Nigeria and Angola are to be announced. The stock responded positively and closed the trading session 2.02% in the black. On the economic front, the South African Reserve Bank held its benchmark repo rate at 6.5% as widely expected. The committed said the decision is accommodative given the current state of the economy. Policymakers noted risks and uncertainties at higher levels and a deterioration in the inflation outlook boosted by multiple supply-side factors. The consumer confidence indicator in the Euro Area decreased by 1 point to -2.9 in September 2018, the lowest reading since May 2017 and below market expectations of -2, a preliminary estimate showed. Retail sales in the UK rose 3.3% from a year earlier in August 2018, following an upwardly revised 3.8% growth in July and easily beating market expectations of a 2.3% gain. The Philadelphia Fed Manufacturing Index in the US climbed 11 points to 22.9 in September 2018. The number of Americans filing for unemployment benefits decreased by 3000 to 201 000, missing market expectations of 210 000. Total value traded for the day was recorded at R58.373bn

Market Commentary
The Day Ahead for Friday 21 September 2018

US stock indices reached new highs on news from China about tariff and currency moves that could ease trade tensions. The S&P500 surged to a record close led by healthcare, technology and financial shares and the index ended the session 0.78% in the black, whilst the Dow Jones Industrial Average and Nasdaq closed higher by 0.95% and 0.98% respectively. The Asian bourses are trading stronger this morning and Tencent is higher by 1.91% whilst the Hang Seng has escalated 1.13% thus far. BHP Billiton has gained 1.46% in Australia whilst the Australian ASX is trading 0.26% in the black so far. European markets are set for a firmer open and traders can expect a bullish start to trading on our local bourse this morning.

News Articles
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Fin24.com | Emerging markets face trade reality check after dollar breather
9/24/2018 8:00:02 PM

Mounting US-China trade tensions and a shadow-banking imbroglio in India keeping investors on edge

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Fin24.com | Eskom’s aging power plants raise supply concerns
9/24/2018 3:20:05 PM

Concern over Eskom's worsening generation plant performance impacting South Africa’s medium-term system adequacy outlook.

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Fin24.com | Oil traders say $100 coming as OPEC struggles to fill Iran gap
9/24/2018 1:15:20 PM

Major oil trading houses predict the return of $100 crude for the first time since 2014

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Fin24.com | Why Ramaphosa's land reform panel has difficult task - economist
9/24/2018 10:47:07 AM

The advisory panel appointed by President Cyril Ramaphosa to support the Inter-ministerial Committee on Land Reform has a difficult task, says an agricultural economist.

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Fin24.com | Ramaphosa stimulus package: it has been heard before - chamber
9/24/2018 9:04:03 AM

The SA Chamber of Commerce and Industry wants more detail on how many jobs would be created, where the funding would be reprioritised from, and how new legislation will work more effectively.

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Fin24.com | Here's what keeps SARB's MPC members up at night
9/23/2018 8:45:03 PM

A lack of trust, policy coherence and political infighting are among the issues keeping the SA Reserve Bank’s Monetary Policy Committee members up at night.

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Fin24.com | Japanese cars tops in SA for affordability, easy maintenance
9/23/2018 7:45:02 PM

Japanese-made cars dominate the top five positions in the newly-released Car Maintenance Index.

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Fin24.com | SARB on no rate cut: we are not the reason for SA's weak growth
9/23/2018 5:55:54 PM

The SA Reserve Bank might have made a different decision about interest rates last week, if economic growth was not so weak, says deputy governor Kuben Naidoo.

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Fin24.com | Val de Vie achieves record sales over past twelve months
9/23/2018 5:52:09 PM

Resale transactions in excess of R885m were concluded on the Val de Vie Estate near Paarl over the past twelve months.

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Fin24.com | UK's Labour Party mulls backing new Brexit referendum
9/23/2018 5:15:33 PM

Britain's Labour Party is facing a huge choice at its annual conference - whether to back a new referendum that could halt the country's departure from the EU.

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Fin24.com | DBSA's financial health steady as it runs tight ship
9/23/2018 4:58:18 PM

The Development Bank of Southern Africa has had a rocky few years after publicly falling out with previous Eskom leadership on governance challenges.

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Fin24.com | Mediclinic Parkview Hospital opens in Dubai
9/23/2018 4:25:58 PM

Mediclinic Parkview Hospital, a brand new 182-bed in- and outpatient facility has opened in Dubai six months ahead of the original schedule.

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Fin24.com | Clicks reveals new CEO to lead the group
9/23/2018 4:13:28 PM

The Clicks Group has announced the name of its new group CEO who will take over from David Kneale in January 2019.

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Fin24.com | Ramaphosa's stimulus package: concerns about capacity, damaging legislation
9/23/2018 3:55:22 PM

There is a danger that the proposed R400bn infrastructure fund could be used without the necessary capacity, cautions prof. Imran Valodia of Wits University.

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Fin24.com | Samro's rocky place
9/23/2018 2:56:09 PM

SA’s only performing rights society for songwriters faces a serious liquidity crisis as its ‘dodgy Dubai deal’ shocks members.

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Fin24.com | Zimbabwe's economy is worsening
9/23/2018 12:56:22 PM

Mnangagwa’s new Cabinet is already knee-deep ineconomic woes, with a sombre forecast owing to forex issuesand the black market.

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Fin24.com | MultiChoice BEE scheme gains R3.8bn
9/23/2018 12:03:40 PM

The value of MultiChoice SA’s empowerment scheme Phuthuma Nathi, which has a 20% stake in the company, gained as much as R3.8 billion this week on the news that Naspers would unbundle video interestsinto a new group called the MultiChoice Group.

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Fin24.com | Last gasp for Guptas' VR Laser
9/23/2018 10:59:30 AM

A last-ditch attempt to stop the winding down of the Gupta family’s VR Laser was squashed in court this week, clearing the path for its business rescue practitioners to auction off the company’s machinery.

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Fin24.com | How to get South Africa out of recession
9/23/2018 10:37:54 AM

Since 2011, South Africans have experienced weak economic growth, high unemployment, low commodity prices, declining investment levels, greater household dependency on credit and policy uncertainty.

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Fin24.com | Cosatu hits a cash crunch
9/23/2018 9:01:59 AM

Auditors issue ‘adverse finding’ as affiliate unions face dire financial state of affairs.

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ARI
Heads up: African Rainbow Minerals - review of results for the year ended 30 June 2018
9/19/2018

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RMI
Heads up: RMI FY18 results - Exceptional OUTsurance underwriting margins
9/19/2018

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AVI
Heads up: AVI FY18 results - Margin gains despite volume pressure
9/19/2018

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APN
Heads up: Aspen FY18 results review
9/17/2018

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MFL
Heads up: Metrofile FY18 results - Increasing leverage and a reduction in the dividend
9/17/2018

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ACT
Heads up: Afrocentric FY18 results - Playing the long game
9/17/2018

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AIL
Heads up: African Rainbow Capital Investments FY18 results - A compelling opportunity
9/14/2018

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SUR
Heads up: Spur FY18 results - Tough environment contributing to weak results
9/12/2018

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DSY
Heads up: Discovery FY18 results - How sizeable will Vitality Group become internationally?
9/12/2018

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MMI
Heads up: MMI 1H18 results - Resetting the base
9/12/2018

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  26,575.75   -167.75  -0.6%
DJ Trans  11,365.16   -167.40  -1.5%
NASDAQ  7,975.82   -11.13  -0.1%
NYSE S and P500 INDEX  2,919.31   -10.36  -0.4%
FTSE 100  7,458.41   -31.82  -0.4%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  12,356.88   -74.00  -0.6%
HONG KONG HANG SENG INDEX  27,499.39   -454.19  -1.6%
NIKKEI 225 INDEX  23,869.93   195.00  0.8%
Major JSE Indices*
Name Value Move
OVERALL  57164   617.45  1.1%
TOP 40  50987   589.96  1.2%
ALL GOLD  1036   -11.97  -1.1%
INDUSTRIAL  71197   697.65  1.0%
FINANCIAL  17061   422.32  2.5%
RESOURCES  43732   129.07  0.3%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.35   -0.10 -0.9%
ZAR/ / CHF  14.82   -0.18 -1.2%
USD/ / EUR  1.18   0.00 0.1%
ZAR/ / EUR  16.78   -0.06 -0.4%
USD/ / GB  1.31   0.01 0.4%
ZAR/ / GBP  18.71   -0.13 -0.7%
YEN/ / ZAR  7.90   0.04 0.6%
JPY/ / USD  112.62   0.01 0.0%
ZAR/ / USD  14.26   -0.07 -0.5%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  80.69   2.01 2.6%
Palladium  1,048.90   5.80 0.6%
Platinum  832.50   3.80 0.5%
Silver  14.39   0.08 0.6%
Gold  1,201.61   2.17 0.2%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Impala Platinum Hlgs L  21.7
Grand Parade Inv Ltd  16.9
Ellies Holdings Ltd  14.3
Rolfes Technology Hldg  13.7
Top 5 Losers -- Delayed
Europa Metals Limited  -25.0
Cafca Limited  -20.9
Kibo Energy plc  -18.8
Workforce Holdings Ltd  -17.2
Forbes & Manhatt Coal  -16.7

PRICES (15 minute delay)

Interwaste Hldgs Ltd : IWE 86  -2 | Emira Property Fund Lt : EMI 1512  12 | Afrimat Limited : AFT 2550  10 | M&S Holdings Ltd : MSA 300  0 | AfricaPalladium Debs : ETFPLD 14710  -232 |

SENS (15 minute delay)