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Market Commentary
Market Commentary for Thursday 14 December 2017

Our local bourse started the trading session flat on Thursday but gradually ticked up as the morning progressed. The JSE continued to trade in the green throughout the afternoon with our market eventually finishing the day higher by 0.87% at the close. The best performer for the day was the Financial sector, appreciating 2.76% by market close. Leading the upside were Barclays Africa and Capitec, climbing by 5.50% and 5.28% respectively. Our Gold Mining sector bucked the trend and finished 1.67% lower, driven largely by Sibanye Gold which closed the day 7.08% softer. This was after Sibanye and Lonmin announced that they have reached agreement on the terms of a recommended all-share offer pursuant to which Sibanye, will acquire the entire ordinary share capital of Lonmin. Lonmin Shareholders will be entitled to receive 0.967 New Sibanye-Stillwater Shares for each Lonmin share. Lonmin closed the day 7.20% higher. On the company front, Steinhoff have announced that the 2016 consolidated financial statements will need to be restated and can no longer be relied upon. Alphamin have announced the closure of the private placement & that 9 951 178 Units will be issued to successful South African Participants at a price of ZAR3.40 per Unit, amounting to a total equity raise in South Africa of R33,8m . The final number of Shares that will therefore be listed on the AltX on Friday, 15 December 2017 amounts to 522 251 209 Shares. On the Economic front, South Africa recorded a Current Account deficit of R109 billion in the third quarter of 2017. The Eurozone PMI Composite Output Index increased to 58 in December from November`s final reading of 57.5 and above market expectations of 57.2. Producer prices in South Africa increased 5.1% year-on-year in November of 2017, following a 5.0% rise in the previous month and slightly above market expectations of 4.9%. Retail sales in the United Kingdom increased 1.6% year-on-year in November 2017, recovering from a 0.3% drop in the previous month and easily beating market expectations of a 0.3% rise. The Bank of England voted unanimously to keep the Bank Rate at 0.5% as widely expected, following a 25bps hike in the previous meeting. The ECB held its benchmark refinancing rate at 0%, as expected, and confirmed that from January 2018 the net asset purchases are intended to run at a monthly pace of €30 billion until the end of September next year, or beyond, if necessary. Retail Sales in the United States increased 5.80% in November of 2017 over the same month in the previous year. The number of Americans filing for unemployment benefits decreased by 11 thousand to 225 thousand in the week ended December 9th, below market expectations of 239 thousand. Composite Pmi in the United States decreased to 53 Index Points in December from 54.50 Index Points in November of 2017. Total value traded for the day was R 20, 66 bn.

Market Commentary
The Day Ahead for Friday 15 December 2017

Wall Street ended the day in negative territory on Thursday with the Dow Jones Industrial Average and the S&P500 slipping 0.31% and 0.41% respectively, as concern mounted that the Republican tax overhaul package may struggle to pass the Senate. Eastern markets are trading in mixed territory this morning with the Nikkei currently higher by 0.16% and the Hang Seng index currently lower by 0.97% respectively. Tencent is trading in the red by 1.36% whilst BHP Billiton has gained 0.18% this morning. The Australian ASX is trading weaker by 0.17% thus far. Traders can expect a negative start to trading on our local bourse this morning.

News Articles
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Fin24.com | Christo Wiese quits board as Steinhoff scandal deepens
12/15/2017 6:54:52 AM

Steinhoff International’s chairperson and largest shareholder, billionaire Christo Wiese, is stepping down from the supervisory board after an accounting scandal engulfed the retail giant.

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Fin24.com | Steinhoff chair Christo Wiese quits board amid accounting scandal
12/15/2017 6:38:21 AM

Steinhoff International’s chairperson and largest shareholder, billionaire Christo Wiese, is stepping down from the supervisory board after an accounting scandal engulfed the retail giant.

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Fin24.com | Steinhoff chair Christo Wiese quits supervisory board after scandal
12/14/2017 11:09:32 PM

Steinhoff International Holdings NV’s chairperson and largest shareholder, South African billionaire Christo Wiese, is stepping down from the supervisory board after an accounting scandal engulfed the retail giant.

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Fin24.com | Fund manager lays criminal charges against Jooste, wants Wiese to step down
12/14/2017 10:39:20 PM

A Johannesburg-based fund manager has laid criminal charges against former Steinhoff CEO Markus Jooste, and asked Christo Wiese and the entire Steinhoff board to step down immediately.

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Fin24.com | WATCH: Cabinet reshuffle was SA's worst point - economist
12/14/2017 8:39:47 PM

The Cabinet reshuffle at the end of March this year was likely the worst point in SA's gradual deterioration, says Nazmeera Moola of Investec Asset Management.

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Fin24.com | ANC leadership race: The type of leader SA needs
12/14/2017 8:02:05 PM

With just days to go before the ANC’s elective conference, economists have shared expectations of what characteristics would make for a good leader.

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Fin24.com | Civil construction confidence lifts, but pessimism remains - survey
12/14/2017 7:22:49 PM

Although confidence in the civil construction industry has lifted from a 17-year low, most of the respondents to a FNB/BER survey still remain pessimistic.

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Fin24.com | Helen Suzman Foundation, Wierzycka sue ministers, Zuma and Guptas over capture at Eskom
12/14/2017 7:19:02 PM

The Helen Suzman Foundation and Sygnia Asset Management CEO Magda Wierzycka have approached the courts to deal with the capture of Eskom.

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Fin24.com | Top reads on Fin24: Explosive rand moves expected, troubled Steinhoff financials and ANC policy proposals
12/14/2017 6:56:47 PM

ICYMI: A roundup of Thursday's must-read financial and economic news.

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Fin24.com | Comair acquires new training facility
12/14/2017 6:39:11 PM

Comair has acquired EPT Aviation Training as part of ongoing diversification of its non-airline operations.

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Fin24.com | Call for more liberal African skies
12/14/2017 6:14:36 PM

Governments in Africa need to make a concerted effort to further liberalise its skies in order to promote internal connectivity, says Iata's CEO.

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Fin24.com | Moyane wants FIC report implicating Makwakwa out of public eye
12/14/2017 5:46:23 PM

SARS commissioner Tom Moyane has again attempted to keep damaging information implicating Jonas Makwakwa on alleged financial misconduct out of the public eye, claiming that making it public violates the FIC Act.

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Fin24.com | Standard Bank SA appoints ex-Treasury DG Lungisa Fuzile as CEO
12/14/2017 4:54:26 PM

Standard Bank South Africa has appointed former Treasury director general Lungisa Fuzile as its new CEO, with Sim Tshabalala moving to the position of group CEO.

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Fin24.com | Steinhoff says 2016 financials also need to be restated
12/14/2017 4:40:59 PM

Global retail giant Steinhoff International has announced that its financials for 2016 will also need to be restated and can no longer be relied upon.

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Fin24.com | SA inequality grows as rich take larger share - report
12/14/2017 2:57:25 PM

New research has found that inequality in SA has increased, with wealth becoming ever more concentrated among the rich.

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Fin24.com | Sibanye buying long-suffering Lonmin in R5.17bn deal
12/14/2017 1:05:19 PM

Sibanye Gold has offered £285m to buy Lonmin, the world’s third-biggest platinum miner.

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Fin24.com | PICS: Clifton villa sold for R120m
12/14/2017 12:55:07 PM

A house in Cape Town's Atlantic Seaboard suburb of Clifton has been sold for R120m by Dogon Group Properties.

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Fin24.com | 5 ANC policy proposals that could change SA's economy
12/14/2017 11:57:18 AM

Key policy proposals on the table at the ANC’s 54th national conference, added during the national policy conference in June/July, could change SA's economic trajectory.

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Fin24.com | Eurozone activity surges as manufacturing posts record growth
12/14/2017 11:49:50 AM

Economic momentum in the eurozone has unexpectedly accelerated to the fastest pace in almost seven years as manufacturing posted record growth at the end of 2017.

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Fin24.com | SA's CA deficit narrows to 2.3% of GDP
12/14/2017 11:14:10 AM

South Africa's current account deficit has narrowed slightly to 2.3% of GDP in the third quarter, as a rise in agricultural exports was offset by a dip in sales of mining and manufactured goods.

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SRR
Heads up: STAR FY17 results - Catch a falling STAR
12/12/2017

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EOH
Heads up: EOH - a crisis of confidence
12/11/2017

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SNH
Heads up: Steinhoff International - Investigation into accounting practices and resignation of CEO
12/6/2017

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CIL
Heads up: Consolidated Infrastructure Group Limited (CIG) FY17 results
12/6/2017

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PFG
Heads up: Pioneer Foods FY17 results - Looking forward to a better 2018
12/5/2017

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S32
Heads up: South32 update
12/4/2017

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TBS
Heads up: Tigerbrands FY17 results - Steady performance, fully valued
11/29/2017

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OCT
Heads up: Octodec FY17 results- Perfect storm
11/29/2017

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SPP
Heads up: SPAR FY17 results - Sales growth slows in tough SA environment
11/23/2017

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MRP
Heads up: Mr Price Group Limited - review of interim results for the period ended September 2017
11/23/2017

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  24,508.66   -76.77  -0.3%
DJ Trans  10,327.95   -71.03  -0.7%
NASDAQ  6,856.53   -19.27  -0.3%
NYSE S and P500 INDEX  2,652.01   -10.84  -0.4%
FTSE 100  7,448.12   -48.39  -0.6%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  13,068.08   -57.56  -0.4%
HONG KONG HANG SENG INDEX  28,877.59   -288.79  -1.0%
NIKKEI 225 INDEX  22,662.78   -31.67  -0.1%
Major JSE Indices*
Name Value Move
OVERALL  57846   0.00  0.0%
TOP 40  51498   0.00  0.0%
ALL GOLD  1228   0.00  0.0%
INDUSTRIAL  78834   0.00  0.0%
FINANCIAL  16361   0.00  0.0%
RESOURCES  35944   0.00  0.0%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  10.35   0.00 0.0%
ZAR/ / CHF  13.75   -0.01 -0.1%
USD/ / EUR  1.18   0.00 -0.4%
ZAR/ / EUR  15.89   -0.01 -0.1%
USD/ / GB  1.34   0.00 0.2%
ZAR/ / GBP  18.10   0.09 0.5%
YEN/ / ZAR  8.36   -0.04 -0.5%
JPY/ / USD  112.29   -0.13 -0.1%
ZAR/ / USD  13.50   0.05 0.3%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  63.37   -0.09 -0.1%
Palladium  1,035.14   -0.51 0.0%
Platinum  881.71   -0.34 0.0%
Silver  15.91   0.04 0.3%
Gold  1,254.94   2.04 0.2%
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)

RMB Inflation X : RMBINF 2027  7 | Property Loan Stock : PULS 1706  1 | Db x-trackers Col in U : DBXUS 3072  44 | ABSOLUTE HOLDINGS LTD : ABO 300  -5 | Technology : TECH 29581  436 |

SENS (15 minute delay)

| MRF : Ferrochrome price announcement first quarter 2018| SGL : Rule 2.9 announcement ? relevant securities in issue| AMS : Anglo American Platinum trading statement for the twelve months ending 31 Decembe| NEWGBP : NEWGBP: Additional Listing of NewWave GBP ETN| SYG4IR : Listing Of Additional Securities-SYG4IR| SNH : Dealing In Securities By A Director| SNH : Steinhoff ? Automatic Termination Of Voting Pool Arrangements| NVS : Cautionary Announcement-Media 24 Printing Agreements| SRR : No Change Statement,Publication Of Audited Consolidated Annual Financial Statemen| SNH : Steinhoff ? Changes To The Supervisory Board| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details