Market Commentary News Research  
Market Commentary
The Day Ahead for Thursday 5 May 2016

Wall Street ended the day in negative territory on Wednesday with the Dow Jones Industrial Average and the S&P500 slipping 0.56% and 0.59% respectively, as the first reading for the labour market in April disappointed ahead of Friday’s jobs report. Eastern markets are also trading in negative territory this morning with the Hang Seng index currently lower by 0.32%. Tencent is trading in the red by 0.45% whilst BHP Billiton has lost 2.53% this morning. The Australian ASX is trading weaker by 0.06% thus far. Traders can expect a flat to negative start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Wednesday 4 May 2016

Our local bourse started the trading session lower by 0.24% on Wednesday taking a lead from a lower close in the US and throughout Asia. Another day of persistent selling in the mining sector dominated throughout the morning. A quiet afternoon’s trade saw the selling pressure ease slightly our market eventually finished the day down by 0.07% at the close. The worst performer for the day was the telecoms sector, depreciating 3.58% by market close. Leading the downside were MTN and Telkom, declining by 4.69% and 1.87% respectively. Our mining sector followed on closely and finished 2.39% lower, driven largely by BHP Billiton which closed the day 3.99% softer. On the company front, The Federal Public Prosecution Service announced that it has commenced proceedings against Samarco, Vale and BHP Billiton Brazil for approximately US$ 43 billion for social, environmental and economic compensation in relation to the failure of the Fundao tailings dam on 5 November 2015. Glencore released its first quarter of 2016 production report. The production cuts announced and actioned in 2015 led to period-on-period reductions of 4% in copper production, a 28% reduction in zinc production, coal production was reduced by 17%. There was however an increase of 16% in nickel production. Full year production guidance was left unchanged, except for a 0.3 million bbl reduction in E&P oil. Highlights from Anheuser-Busch Inbev’s Q1 2016 results included a revenue growth of 3.1%, EBITDA grew 2.5% to USD 3.462 billion, normalised profit attributable to AB Inbev shareholders was USD 844 million, normalised EPS decreased to USD 0.51 from USD 1.4 in Q1 2015. The currency exchange rate for the EU 2.00 declared dividend was announced at EURZAR 16.783. On the Economic front, the seasonally adjusted Markit UK Construction PMI came in at 52 in April 2016, down from 54.2 in the previous month and missing market consensus of 54. Retail sales in the Eurozone declined 0.5% in March from February of 2016, following an upwardly revised 0.3% rise in the previous month. It is the first drop in five months and the biggest since July of 2014. Private businesses in the United States hired 156 000 workers in April of 2016 compared to a downwardly revised 194 000 in March and much below market expectations of 196 000. The US trade gap narrowed to USD 40.44 billion in March of 2016 from a downwardly revised USD 46.96 billion deficit in the previous month and below market expectations of USD 41.5 billion. It is the smallest gap since February last year as goods imports hit a 5-year low. The ISM Non-Manufacturing PMI index increased 1.1 percentage points to 55.5% in March of 2016, higher than market expectations of 54. It is the highest reading so far this year. Total value traded for the day was R 27.59 bn.

News Articles
imageattribute
Fin24.com | ArcelorMittal sees boost from higher steel prices
5/6/2016 10:42:23 AM

ArcelorMittal South Africa expects its “overall liquidity” to normalise at acceptable levels after the continent’s biggest steelmaker raised prices in the first quarter.

More

imageattribute
Fin24.com | AngloGold files dispute with Ghana on illegal miners
5/6/2016 9:52:07 AM

AngloGold Ashanti has filed a dispute with Ghana at an international panel due to the country’s failure to protect the company’s Obuasi operation from illegal miners.

More

imageattribute
Fin24.com | Is nuclear energy the driver of corruption in ANC?
5/6/2016 8:22:13 AM

A key issue regarding the 9.6GW nuclear new build programme that is not being explored enough is the “whispering” of a major corrupt deal, nuclear energy experts have warned.

More

imageattribute
Fin24.com | Inside Labour: Shopfloor democracy and a 'confusion of unions'
5/6/2016 6:42:10 AM

The best way to describe the situation in the labour movement at present is that it is in a state of flux: of ongoing change in conditions of instability, writes Terry Bell.

More

imageattribute
Fin24.com | Zim's new 'zombie' money draws scorn from critics
5/6/2016 6:34:29 AM

A new currency printed by Zimbabwe’s central bank to ease a cash shortage has drawn scorn from critics attacking it as signaling a return to the hated local dollar.

More

imageattribute
Fin24.com | Volkswagen SA brings together black-owned suppliers
5/5/2016 8:23:16 PM

Volkswagen wants to work with new black- and women-owned manufacturing suppliers to help South Africa reach its economic transformation goals.

More

imageattribute
Fin24.com | Zim on course to get funding from the IMF
5/5/2016 6:26:35 PM

Zimbabwe is now on course to receive funding in support of its development agenda, the International Monetary Fund says.

More

imageattribute
Fin24.com | Post office workers tired of low pay, no toilet paper, fixing own bikes
5/5/2016 5:24:04 PM

SA Post Office workers have marched in Cape Town to demand improvements in the state-owned entity, saying they are “gatvol” with their working conditions.

More

imageattribute
Fin24.com | Denel tells Gordhan: We are not arrogant and belligerent
5/5/2016 3:32:01 PM

Denel’s board has said Finance Minister Pravin Gordhan’s accusation that the board and executives are “arrogant and belligerent … are unsubstantiated, baseless and unfounded”.

More

imageattribute
Fin24.com | Rousseff vows to seek return if forced from office
5/5/2016 3:04:04 PM

Brazilian President Dilma Rousseff has vowed during a defiant interview broadcast to 'continue to keep fighting' to return to power if she is forced from office.

More

imageattribute
Fin24.com | Siegel worried machines will take jobs
5/5/2016 2:11:45 PM

David Siegel, co-founder of $35bn quantitative hedge fund firm Two Sigma, says he’s very worried that machines could soon cost large swaths of the workforce their jobs.

More

imageattribute
Fin24.com | Private sector output falls further
5/5/2016 2:09:14 PM

Activity in private sector has contracted again in April, albeit at a slower pace than it had in the previous month, as output and new orders fell and companies cut jobs.

More

imageattribute
Fin24.com | Commission to further scrutinise SABMiller deal
5/5/2016 12:48:04 PM

SA's competition watchdog will ask for another extension to scrutinise Anheuser-Busch InBev's planned R1.6trn takeover of SABMiller, its spokesperson has revealed.

More

imageattribute
Fin24.com | Hundreds of $ millionaires ditch SA for Mauritius
5/5/2016 11:21:25 AM

The strong growth in millionaires in Mauritius has been driven by strong economic growth and secure ownership rights and as such has become a major retirement destination.

More

imageattribute
Fin24.com | Brexit uncertainty drags UK economy near stagnation
5/5/2016 11:15:56 AM

UK companies are feeling the strain from the upcoming European Union referendum, with a gauge of services falling to its lowest level in more than three years in April.

More

imageattribute
Fin24.com | Nedbank’s first-quarter income rise as assets grow
5/5/2016 10:46:16 AM

Nedbank Group has said first-quarter net interest income expanded at least 10%, boosted by the country’s highest interest rates in six years.

More

imageattribute
Fin24.com | Junk rating a matter of time as economy falters
5/5/2016 8:45:00 AM

The ratings agencies simply cannot overlook the government’s inability to address the problem, says an emerging-market strategist.

More

imageattribute
Fin24.com | No economic case for SA nuclear plan - research
5/5/2016 7:50:30 AM

There is no economic case to be made for a firm commitment to commissioning a full fleet of 9.6GW of nuclear power by 2030, a study by the Energy Research Centre reveals.

More

imageattribute
Fin24.com | Final report says African Bank directors failed in duties - source
5/5/2016 6:36:34 AM

The final report into African Bank's collapse is said to have found that directors failed in their duties to manage and protect the lender before its downfall almost two years ago.

More

imageattribute
Fin24.com | Sustainability reporting: Why SA companies must up their game
5/4/2016 9:30:02 PM

Research shows that SA companies are neglecting the more challenging aspects of sustainability reporting, say academics Miemie Struwig and Heidi Janse Van Rensburg.

More

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

.....

More

CLS
Heads up: Clicks 1H16 results - Resilient, but not cheap
4/25/2016

.....

More

REB
Heads up: Rebosis 1H16 result- Solid core business
4/20/2016

.....

More

KST
Heads up: PSG Konsult - FY16 results
4/18/2016

.....

More

BIL
Heads up: BHP Billiton 1H16 results
4/13/2016

.....

More

GPL
Heads up: Grand Parade 1H16 results
4/8/2016

.....

More

MDI
Heads up: Master Drilling FY15 results - delivering in a tough industry
4/8/2016

.....

More

CPI
Heads up: Capitec Bank Holdings Limited - FY16 results
4/8/2016

.....

More

MTA
Heads up: Metair FY15 results - Short-term outlook remains challenging
4/6/2016

.....

More

ADH
Heads up: Advtech Holdings - FY15 results
4/4/2016

.....

More

Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  17,660.71   9.45  0.1%
DJ Trans  7,667.48   -88.66  -1.1%
NASDAQ  4,717.09   -8.55  -0.2%
NYSE S and P500 INDEX  2,050.63   -0.49  0.0%
FTSE 100  6,090.19   -27.06  -0.4%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  9,810.90   -40.96  -0.4%
HONG KONG HANG SENG INDEX  20,109.87   -339.95  -1.7%
NIKKEI 225 INDEX  16,106.72   -40.66  -0.3%
Major JSE Indices*
Name Value Move
OVERALL  51686   -248.02  -0.5%
TOP 40  45373   -250.79  -0.6%
ALL GOLD  2182   54.86  2.6%
INDUSTRIAL  69387   -342.78  -0.5%
FINANCIAL  14663   10.46  0.1%
RESOURCES  30561   -289.24  -0.9%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  11.05   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.14   -0.01 -0.5%
ZAR/ / EUR  17.12   -0.09 -0.5%
USD/ / GB  1.45   0.00 0.0%
ZAR/ / GBP  21.68   -0.01 -0.1%
YEN/ / ZAR  7.16   7.02 5,060.9%
JPY/ / USD  106.92   -0.37 -0.3%
ZAR/ / USD  15.00   0.03 0.2%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  44.71   -0.44 -1.0%
Palladium  599.00   2.00 0.3%
Platinum  1,061.00   -1.00 -0.1%
Silver  17.29   -0.02 -0.1%
Gold  1,278.90   1.30 0.1%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
Eastern Platinum Ltd  25.0
Ferrum Crescent Limite  25.0
Visual International H  13.3
Sekunjalo Inv Ltd  13.0
Top 5 Losers -- Delayed
Nutritional Holdings L  -50.0
Adcock Ingram Hldgs Op  -41.9
Labat Africa Ltd  -20.5
Forbes & Manhatt Coal  -16.7
Delta EMD Ltd  -12.3

PRICES (15 minute delay)

Novus Holdings Limited : NVS 1175  0 | African Dawn Capital L : ADW  0 | Royal Bafokeng Platinu : RBP 4260  0 | Adcorp Holdings Limite : ADR 1457  -63 | Trans Hex Group Ltd : TSX 390  0 |

SENS (15 minute delay)

| ELR : Exercise of options by a director of a major subsidiary| TMT : Dealing in Securities by a Director| DLA : Unaudited Consolidated Interim Financial Statements For The Nine Months Ended 31| GLD : GLD/ NGNGLD - Listing of additional NewGold debentures| IVA630 : IVA630-Partial Redepmtion| TDHP : Cumulative, Redeemable "A" Preference Share Cash Dividend - TDHP| DSY : Dealing in securities by a director| SAB : Rule 2.10 announcement| NT1 : Net 1 UEPS Technologies, Inc. Reports Third Quarter 2016 Results| ANB : Anheuser-Busch InBev announces a solicitation of participation to general bondhol| CCO : Trading Update| RPL : Finalisation Announcement In Respect Of The Interim Dividend For The Six Months E| CBL21 : Full Capital Redemption - CBL21| CBL11 : Full Capital Redemption - CBL11| ANB : Anheuser-Busch InBev SA/NV announces participation solicitation| BK1P : Update to preference shareholders - BK1P| JSE : Trading Halt - Please wait, downloading details| SOV : Voluntary Trading Update| BIL : Samarco (Brazil) Update| ANB : Dividend - revised calculation| ACL : Operational update| RSG : Heads of Agreement of the Coal Handling and Preparation Plant| EXX : EXX - Share dealings| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details