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Market Commentary
The Day Ahead for Friday 20 January 2017

Wall Street ended the day in negative territory on Thursday with the Dow Jones Industrial Average and the S&P500 slipping 0.37% and 0.36% respectively, as investors eagerly await the inauguration of Donald Trump. Eastern markets are trading in mixed territory this morning with the Nikkei currently higher by 0.38% while the Hang Seng index currently trades lower by 0.67%. Tencent is trading in the red by 0.40% whilst BHP Billiton has lost 1.12% this morning. The Australian ASX is trading weaker by 0.52% thus far. Traders can expect a negative start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Thursday 19 January 2017

Our local bourse started the trading session relatively flat on Thursday but gradually strengthened in early morning trading. A reversal was shortly experienced soon after with a gradual selloff in most sectors. The All Share closed the day marginally lower by 0.06% at the close. The worst performer for the day was the Gold Mining sector, depreciating 3.65% by market close. Leading the downside were Sibanye and Harmony, declining by 6.21% and 4.45% respectively. Our Food and Drug Retail sector bucked the trend and finished 0.46% higher, driven largely by Bid Corporation which closed the day 1.72% stronger. On the company front, Sibanye Gold announced that the company and Stillwater mining had received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the proposed acquisition of Stillwater by Sibanye. The effect of the early termination is that the antitrust condition required for the transaction has now been satisfied. In a cautionary announcement by Dawn, the company advised shareholders that the board of directors of DAWN are currently considering various initiatives to strengthen the businesses’ balance sheet to allow for the alignment of its capital structure to its business model and current environment. South32 published a quarterly report for December 2016 which highlighted that the business remains on track to achieve production guidance for the majority of their operations. On the Economic front, the number of Americans filing for unemployment benefits decreased by 15 thousand to 234 thousand in the week ended January 14th, 2017, from the previous week`s revised level of 249 thousand. The Philadelphia Fed Manufacturing Index rose to 23.6 in January of 2017 from a downwardly revised 19.7 in December of 2016 and beating market expectations of 15.8. It is the highest reading since November 2014. Building permits in the United States fell 0.2% month-over-month to a seasonally adjusted annualized rate of 1210 thousand in December 2016 from 1212 thousand in November while markets were expecting a 1.1% gain to 1225 thousand. The FNBBER Consumer Confidence Index (CCI) in South Africa dropped to -10 in the December quarter of 2016 from -3 in the previous quarter, highlighting households` concerns about the weak outlook of the economy. Total value traded for the day was R16.99bn.

News Articles
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Fin24.com | Gupta lawyer lambasts ‘mischievous’ Gordhan over FIC document
1/21/2017 9:01:01 AM

The lawyer for Gupta-linked Oakbay Investments has denied that 72 of the company’s transactions, which were flagged by the Financial Intelligence Centre, are suspicious.

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Fin24.com | Gordhan responds: Guptas’ claims are politically-driven and sensational
1/20/2017 11:44:49 PM

Finance Minister Pravin Gordhan says the Guptas have made politically-driven and sensational claims in its press statement that summarised its responding affidavit.

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Fin24.com | Oakbay: 6 reasons the FIC certificate is unlawful
1/20/2017 9:55:08 PM

Gupta-owned Oakbay Investments wants the certificate, listing 72 transactions amounting to almost R7bn, to be disregarded in its entirety.

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Fin24.com | Guptas hit back banks saga - as it happened
1/20/2017 9:13:31 PM

In one of the more hard-hitting allegations from the affidavit submitted by Oakbay Investments' lawyers, Finance Minister Pravin Gordhan is believed to have met with 60 'captains of industry' and said that 'steps must be taken to clip the wings' of the Guptas.

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Fin24.com | 72 transactions 'don't warrant investigation' - Oakbay CEO
1/20/2017 9:12:04 PM

The so-called 72 suspicious transactions involving the Gupta brothers do not warrant further investigation, says Oakbay Investments in an affidavit.

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Fin24.com | Gupta link with Duduzane Zuma no risk - Oakbay CEO
1/20/2017 8:06:15 PM

Oakbay Investments puts in perspective the affiliation of President Jacob Zuma's son Duduzane with certain of its businesses.

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Fin24.com | Oakbay: We never claimed Gordhan has power to intervene with banks
1/20/2017 6:52:42 PM

Oakbay Investments wants parts of Finance Minister Pravin Gordhan's affidavit to prevent him from intervening with banks on the company's behalf, struck out.

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Fin24.com | Oakbay outlines how Gordhan targeted the Guptas
1/20/2017 6:37:47 PM

Oakbay Group says a statement by Finance Minister Pravin Gordhan led to several businesses and banks cutting ties with the group.

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Fin24.com | Oakbay CEO slams bank risk fears on Gupta accounts
1/20/2017 6:37:07 PM

Oakbay's bank accounts present low risk for money-laundering activities, the company's CEO said in court documents.

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Fin24.com | Here is the Guptas' full affidavit
1/20/2017 3:59:54 PM

Oakbay Investments has filed its affidavit in the North Gauteng High Court as it takes aim at Finance Minister Pravin Gordhan and South Africa's banks.

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Fin24.com | Absa's Ramos: We have no reason not to trust the public protector
1/20/2017 3:39:48 PM

Absa CEO Maria Ramos said that although it is unfortunate the public protector’s preliminary report was leaked, the bank still respects the institution.

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Fin24.com | SA accounts for 79% of Zim's import bill
1/20/2017 3:36:24 PM

Zimbabwe exported goods worth $2.8bn in 2016 against an import bill of $5.2bn, with at least $2.2bn worth of goods exported to South Africa, latest figures show.

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Fin24.com | INFOGRAPHIC: Timeline of the Guptas' bank woes
1/20/2017 3:34:18 PM

Have a look at this infographic tracking the wealthy Gupta family's battle with the banks.

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Fin24.com | Gordhan told big business to ‘clip the Guptas’ wings’ – affidavit
1/20/2017 3:22:11 PM

Finance Minister Pravin Gordhan’s bid to obtain a court order on the closure of Oakbay’s bank accounts is ‘unnecessary’ and part of a ‘smear campaign’, says the Gupta family.

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Fin24.com | Gupta response to Gordhan under the microscope
1/20/2017 1:52:19 PM

In responding to Finance Minister Pravin Gordhan's bid to prevent him from intervening with banks on their behalf, the Guptas seem to have put the focus on politics.

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Fin24.com | UK retail-sales slump hints at cracks in Brexit boom
1/20/2017 1:16:40 PM

UK Chancellor of the Exchequer has told a Davos gathering that an inflation pickup will put a damper on consumers this year. The first signs may already be appearing.

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Fin24.com | FULL STATEMENT: Oakbay's response to Gordhan's court application
1/20/2017 1:02:30 PM

Read the full statement issued by Oakbay Investments on the court documents it filed for the dismissal of Finance Minister Pravin Gordhan's application.

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Fin24.com | Naspers objects to new auditing framework
1/20/2017 11:11:06 AM

Naspers has added its voice to objections to a proposed new framework of how companies appoint auditors, challenging the way an auditing body wants to introduce the new measures.

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Fin24.com | Battle for jobs: Motsoaledi takes swipe at 'picky' doctors
1/20/2017 8:31:51 AM

Health Minister Aaron Motsoaledi has sought to set the record straight on claims that there are no jobs in public service for hundreds of trainee doctors and pharmacists.

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Fin24.com | Guptas' bank war: D-Day for responding court papers
1/20/2017 8:21:42 AM

The Guptas are expected to file papers in Tshwane’s North Gauteng High Court on Friday in their response to a 2016 application by Finance Minister Pravin Gordhan.

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OMN
Heads up: Omnia Ltd 1H17 results to September 2016 - good rains priced in
1/19/2017

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WHL
Heads up: Woolworths Holdings Limited - trading update for the 26 weeks to 25 December 2016
1/17/2017

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ASC
Heads up: Ascendis FY16 results - On an acquisitive growth path
1/16/2017

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BAT
Heads up: Brait 1H17 results - New Look under pressure
12/7/2016

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QFH
Heads up: Quantum Foods FY16 results - Recovery in sight?
12/1/2016

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HCI
Heads up: HCI 1H17 results
11/30/2016

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NPK
Heads up: Nampak FY16 results - currency exchange losses, partially offset by operational turnaround in Glass
11/29/2016

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VKE
Heads up: Vukile 1H17 results - De-risking the portfolio
11/29/2016

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SSS
Heads up: Stor-Age 1H17 results- Better than expected
11/29/2016

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PFG
Heads up: Pioneer Foods FY16 results - Looking to the future
11/28/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  19,823.65   91.25  0.5%
DJ Trans  9,187.53   23.57  0.3%
NASDAQ  5,560.49   20.41  0.4%
NYSE S and P500 INDEX  2,272.90   9.21  0.4%
FTSE 100  7,202.39   -6.05  -0.1%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  11,617.90   21.01  0.2%
HONG KONG HANG SENG INDEX  22,885.91   -164.05  -0.7%
NIKKEI 225 INDEX  19,137.91   65.66  0.3%
No Data at Present
Currencies
Name Value Move
ZAR/ / AUD  10.21   0.00 0.0%
ZAR/ / CHF  13.58   0.02 0.1%
USD/ / EUR  1.07   0.00 0.0%
ZAR/ / EUR  14.47   -0.01 0.0%
USD/ / GB  1.23   0.00 0.0%
ZAR/ / GBP  16.67   -0.01 -0.1%
YEN/ / ZAR  8.51   8.39 7,149.3%
JPY/ / USD  114.96   0.09 0.1%
ZAR/ / USD  13.55   0.01 0.1%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  55.68   1.49 2.7%
Palladium  775.00   24.00 3.2%
Platinum  972.00   16.00 1.7%
Silver  17.02   0.04 0.2%
Gold  1,202.90   -1.80 -0.1%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Adrenna Property Grp L  16.0
Sekunjalo Inv Ltd  13.0
ANOORAQ RESOURCES CORP  11.6
Winhold Ltd  11.1
Top 5 Losers -- Delayed
Rockwell Diamonds Inc  -32.0
Phumelela Game Leisure  -18.4
Forbes & Manhatt Coal  -16.7
Randgold & Expl Co Ltd  -8.3
Coal of Africa Ltd  -7.0

PRICES (15 minute delay)

SB Wheat ETN : SBAWHT 700  -5 | Venture Cap : J231 281  0 | Phumelela Game Leisure : PHMN 400  0 | Eqstra Holdings Ltd : EQS 264  -3 | JSE Socially Responsib : SRIS 6246  76 |

SENS (15 minute delay)