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Market Commentary
The Day Ahead for Wednesday 25 May 2016

Yesterday, US markets performed well as strong housing data reinforced confidence in the strength of the US economy and sparked strong gains in financials. The Dow Jones Industrial Average and the S&P500 closed the day higher by 1.22% and 1.37% respectively. Asian markets are following suit this morning with the Hang Seng climbing by 2.47% while the Nikkei is up 1.73%. Tencent is trading higher by 2.18% whilst BHP Billiton has gained 3.43% in Australia this morning. The Australian ASX has risen 1.67% thus far and traders can expect a positive start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Tuesday 24 May 2016

On Tuesday, local markets opened strongly and continued to climb throughout the day. The gains were largely driven by the financial sector which rose 1.63% on the day. By the close of trade the All-Share Index had gained 0.80% with international markets continuing to climb after our close. US financials followed suit and drove the S&P 500 to deliver its biggest gains in more than two months. On the company front, Tiger Brands released interim results. These showed that for continuing operations, the company increased turnover by 9%, operating income by 7%, earnings per share by 7% and headline earnings remained unchanged at R10.21 per share. The company also announced a 7% increase in its interim dividend at R3.63. Brait released a trading statement advising shareholders that the companies NAV is anticipated to have increased by 74% to 80% in Rand terms or by 35% to 40% in Euro terms thanks to strong operational performances from Brait’s investment portfolio and the strengthening of the GBP to the ZAR. Ascendis Health announced that the company has entered into agreements to purchase Remedica, a Cyprus based pharmaceutical company, for a consideration of EUR260 million and Scitec a European based sports nutrition company for a consideration of EUR170 million. These deals are expected to result in more than half of the earnings of Advanced Health to be generated from outside of South Africa. The announcement of these deals saw Advanced Health become one of the top performers on the market yesterday, rising more than 11%. Anglo American announced the value of rough diamond sales for De Beers’ fourth sales cycle of 2016, amounted to $630 million compared with the $666 million of the third sales cycle of 2016. Adcorp Holdings released full year results for the year ended 29 February 2016. The key features showed that revenue increased 17%, normalised earnings rose 4% and operating profit climbed 2%. Earnings per share declined 19% while headline earnings per share increased by 0.4%. The company also declared a final dividend of 75 cents per share. The total value traded for the day was R20.47bn.

News Articles
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Fin24.com | What's up with second passports?
5/25/2016 10:00:01 PM

Dr Johann van Rooyen, author of Residency and Citizenship through Investment: The 2016 Report for Emigrants, Expatriates and Investors, talks to Fin24.

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Fin24.com | SA salaries to decline in real terms - index
5/25/2016 9:00:00 PM

Salaries in South Africa can be expected to decline in real terms, according to the latest BankservAfrica Disposable Salary Index.

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Fin24.com | Old Mutual takes stake in agri investment group
5/25/2016 7:03:49 PM

Old Mutual Investment Group has announced a deal to increase its overall effective equity stake in an African agriculture investment group.

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Fin24.com | Ministers stall on banks intervention over Gupta blacklisting
5/25/2016 5:59:25 PM

The ministers tasked with intervening in the ongoing stand-off between South Africa’s big four banks and the Gupta-owned Oakbay Investments have missed their deadline.

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Fin24.com | R100m plant a boost for Limpopo tomato farmers
5/25/2016 5:49:10 PM

Tomato farmers in the Mopani district of Limpopo are set for a huge boost following the launch of a R100m processing plant in Modjadjiskloof, Tzaneen by Dursots-All Joy.

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Fin24.com | Molefe denies finmin job offer, says Gordhan doing good job
5/25/2016 4:36:11 PM

Eskom CEO Brian Molefe has told Eyewitness News that he has not been asked by the president to be the new finance minster, and says Pravin Gordhan is doing a fine job.

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Fin24.com | ArcelorMittal says Saldanha steel plant will keep operating
5/25/2016 2:48:15 PM

ArcelorMittal's Saldanha plant will keep operating, says its chairperson, after the facility was placed under review earlier this year due to low steel prices and rising costs.

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Fin24.com | Sarb wants vigilance after Standard Bank ATM heist in Japan
5/25/2016 2:40:53 PM

The theft of about R204m from ATMs in Japan using counterfeit cards from Standard Bank has prompted a call for vigilance from the SA Reserve Bank.

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Fin24.com | Zwane denies joining Guptas on trip to Switzerland
5/25/2016 1:56:59 PM

Mines minister Mosebenzi Zwane has once again denied tagging along with the Guptas on their trip to Switzerland in January to persuade Glencore to sell Optimum to Oakbay.

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Fin24.com | Eskom to waive Soweto users’ debt - on condition
5/25/2016 1:25:03 PM

Eskom will waive Soweto residents’ debt repayments as an incentive to convert to prepaid meters, but the offer comes with strings attached.

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Fin24.com | DA urges IDC to give Guptas 'a wide berth'
5/25/2016 1:22:58 PM

The Industrial Development Corporation should “follow the lead of the commercial banks and give the president’s pals a wide berth in future”, says the Democratic Alliance.

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Fin24.com | Computerised trader beats banks in top currency ranks
5/25/2016 1:19:32 PM

Computerised trading firm XTX Markets has come from nowhere to dethrone major banks in the rankings of the world’s biggest spot currency traders.

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Fin24.com | Rupert to pay Reinet shareholders 2.5% more in dividends
5/25/2016 12:45:20 PM

Reinet Investments chairperson Johann Rupert has announced that the company wants to pay €0.161 per share to shareholders, increasing its dividend by 2.5%.

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Fin24.com | Investors ditch Starbucks SA owner amid profit slump
5/25/2016 12:24:27 PM

Starbucks owner Taste Holdings’ ambitious plans to fund expansion and the implementation of a corporate store ownership strategy saw its year-end profits dive in 2016.

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Fin24.com | German business sentiment ignores Brexit fears
5/25/2016 12:08:58 PM

German business sentiment has improved to the strongest level in five months in May, a sign that growth momentum in the economy remains strong.

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Fin24.com | Lewis, hit by new credit rules, sees 26.5% profit drop
5/25/2016 12:04:24 PM

The Lewis Group has posted a 26.5% fall in profits, due to tough trading conditions and the introduction of new affordability assessment regulations by the NCR.

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Fin24.com | Tsogo profits up 12% despite visa rules debacle
5/25/2016 12:04:07 PM

Casino group Tsogo Sun says while it was adversely impacted by the contentious visa regulations, it still managed to increase profit by 12%.

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Fin24.com | Greece wins pledge for debt relief as IMF bows to Euro proposal
5/25/2016 12:02:48 PM

Greece’s creditors have reached a preliminary accord to ease the country’s debt burden but left the important details to be hammered out after Germany’s election next year.

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Fin24.com | Big five SA banks losing market share
5/25/2016 12:02:38 PM

Although South Africa’s banking sector is still dominated by the five largest banks, international banks are slowly eating away at their market share, a report shows.

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Fin24.com | Sibanye targeting gold acquisition by end of 2016
5/25/2016 10:09:20 AM

Sibanye Gold wants to buy a gold-producing asset by the end of the year, adding to its acquisitions of platinum operations in its home country, says CEO Neal Froneman.

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CFR
Heads up: Richemont - FY16 results review
5/25/2016

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SNV
Heads up: Santova FY16 results - Diversification paying off
5/23/2016

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ARL
Heads up: Astral 1H16 results - Better than anticipated, but not yet out of the woods
5/19/2016

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SPP
Heads up: The Spar Group 1H16 results - Solid performance from SA and Ireland
5/19/2016

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DTC
Heads up: Datatec FY16 results - impacted by once off costs
5/18/2016

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NTC
Heads up: Netcare Limited - Results for the six months ended 31 March 2016
5/17/2016

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RDF
Heads up: Redefine 1H16 results- Further Diversification
5/11/2016

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LHC
Heads up: Life Healthcare Group - Interim Results for the six months ended 31 March 2016
5/11/2016

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HSP
Heads up: Holdsport FY16 results - A sporting performance
5/6/2016

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OCT
Heads up: Octodec Investments Limited - Investing for Growth
5/4/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  17,860.34   154.29  0.9%
DJ Trans  7,742.37   61.22  0.8%
NASDAQ  4,885.04   23.98  0.5%
NYSE S and P500 INDEX  2,090.68   14.62  0.7%
FTSE 100  6,257.68   38.42  0.6%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,201.95   144.64  1.4%
HONG KONG HANG SENG INDEX  20,368.05   537.62  2.7%
NIKKEI 225 INDEX  16,757.35   258.59  1.6%
Major JSE Indices*
Name Value Move
OVERALL  53722   671.12  1.3%
TOP 40  47727   693.49  1.5%
ALL GOLD  1920   -94.01  -4.7%
INDUSTRIAL  72867   768.75  1.1%
FINANCIAL  15360   321.98  2.1%
RESOURCES  31718   499.76  1.6%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  11.29   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.12   -0.01 -0.5%
ZAR/ / EUR  17.51   -0.13 -0.7%
USD/ / GB  1.47   0.02 1.5%
ZAR/ / GBP  23.05   0.32 1.4%
YEN/ / ZAR  7.04   6.90 4,855.8%
JPY/ / USD  110.14   0.16 0.1%
ZAR/ / USD  15.69   -0.02 -0.1%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  49.25   0.24 0.5%
Palladium  530.00   -1.00 -0.2%
Platinum  991.00   -6.00 -0.6%
Silver  16.29   0.09 0.6%
Gold  1,222.70   -4.20 -0.3%
Top 5 Gainers -- Delayed
Nutritional Holdings L  100.0
Mine Restoration Inv L  50.0
Bauba Platinum Limited  40.0
SABLE PLATINUM LTD  31.9
Atlatsa Resources Corp  20.0
Top 5 Losers -- Delayed
African Dawn Capital L  -33.3
Forbes & Manhatt Coal  -16.7
Chrometco Ltd  -11.1
Kibo Mining plc  -10.0
Randgold & Expl Co Ltd  -9.9

PRICES (15 minute delay)

DB MSCICH ETN 05JUL202 : DBCHIN 5432  -51 | AVI Ltd : AVI 8483  82 | Gen Industry : J272 156  4 | AfricaPalladium Debs : ETFPLD 8225  -118 | Db x-trackers FTSE 100 : DBXUK 14500  102 |

SENS (15 minute delay)