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Market Commentary
The Day Ahead for Wednesday 27 May 2015

Wall Street ended the day in negative territory on Tuesday with the Dow Jones Industrial Average and the S&P500 both slipping 1.04%, as investors eyed renewed strength in the U.S. dollar and mixed data that could strengthen the case for a rate hike. Eastern markets are trading mixed this morning with the Nikkei up by 0.15% but the Hang Seng index is lower by 0.79% following an unimpressive lead from Wall Street overnight. Tencent is trading in the red by 0.25% whilst BHP Billiton has lost 1.84% this morning. The Australian ASX is trading weaker by 0.81% thus far. Traders can expect a flat to slightly negative start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Tuesday 26 May 2015

Our local bourse started the trading session in the black on Tuesday but slipped into negative territory very early on. The selling pressure persisted throughout the day with our market eventually finishing the day down by 1.89% at the close. The biggest loser for the day was the construction and materials sector, depreciating 3.84% by market close. Leading the downside were PPC and Aveng, declining by 7.2% and 6.81% respectively. Our resource sector followed on closely and finished 3.02% lower, driven largely by Anglo American and BHP Billiton closing the day 3.51% and 3.13% softer respectively. On the company front, Taste Holdings Ltd reported their results for the period ended February 2015 which show that they achieved growth in revenue of 25% to R723.7 million and core headline earnings rose by 17% to R36.1 million compared to R31 million in 2014. Alexander Forbes Group Ltd released a trading statement showing that they expect headline earnings per share for the year ended 31 March 2015 to be between 160% and 170% higher compared to the reported loss of 52 cents per share in the previous financial year. Vukile Property Fund Ltd distributed their audited results for the year ended 31 March 2015 which detail an increase in earnings per share of 21% to 278.01 cents as well as an increase in headline earnings per share of 14.1% to 186.81 cents. Adcorp Holdings Ltd released consolidated results for the year ended 28 February 2015 which show revenue for the year increased by 13% to R13.3 billion and headline earnings per share increased by 58% to 298.5 cents per share. Nampak Ltd released their unaudited results for the half year ended 31 March 2015 showing group revenue from continuing operations rose 16% but headline earnings per share decreased by 8%. On the Economic front, The Gross Domestic Product in South Africa expanded an annualized 1.3% in the first quarter of 2015 over the previous quarter. The Unemployment Rate in South Africa increased to 26.40% in the first quarter of 2015 from 24.30% in the fourth quarter of 2014. Durable Goods Orders in the United States decreased 0.50% in April of 2015 over the previous month. The Case-Shiller Home Price Index in the United States increased to 173.67 Index Points in February of 2015 from 172.81 Index Points in January of 2015 and New Home sales climbed nearly 7% in April. Total value traded for the day was 16.83bn.

News Articles
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Fin24.com | Tongaat's Zim unit posts moderate growth
2015/05/27 12:45:20 PM

Tongaat Hulett has experienced modest full-year growth in its Zimbabwe-based operations, as improved market protection boosted local sales.

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Fin24.com | Pensions beat take-home salaries in inflation stakes
2015/05/27 12:20:06 PM

For the fifth month in a row, pensions are increasing faster than take-home salaries and pensioners saw an average increase of 10% on their income, shows an index.

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Fin24.com | Electricity constraints a major concern for Sarb
2015/05/27 12:19:23 PM

There were binding constraints coming from the electricity supply uncertainties, says Reserve Bank deputy governor Francois Groepe.

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Fin24.com | Foreign investor buys stake in Mugabe dairy rival
2015/05/27 11:59:59 AM

A foreign investor has snapped up a 27% stake in Zimbabwe’s second largest dairy firm Dendairy, which competes with the Mugabe family's dairy interests.

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Fin24.com | Lewis Group gains market share
2015/05/27 10:16:50 AM

Furniture retailer Lewis Group has reported a strong second-half performance and gained market share in a competitive environment, says CEO Johan Enslin.

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Fin24.com | Kganyago’s rate resolve seen unmoved by slowdown
2015/05/27 10:09:47 AM

Weak growth and the highest unemployment rate in 12 years may not be enough to dent Reserve Bank governor Lesetja Kganyago’s resolve to tackle accelerating inflation.

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Fin24.com | German consumer confidence hits 13.5-year high
2015/05/27 09:42:30 AM

Consumer confidence in Germany is at its highest in 13.5 years, as the positive economic outlook and low inflation persuade consumers to open their purses.

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Fin24.com | SOEs can spark radical economic transformation - Ramaphosa
2015/05/27 09:28:47 AM

State-owned enterprises have the potential to stimulate “reindustrialisation and radical economic transformation”, says Deputy President Cyril Ramaphosa.

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Fin24.com | Investment fund CEOs call for greenhouse gas cuts
2015/05/27 09:04:23 AM

Some of the world's biggest investment funds have urged the G7 to commit to a long-term goal to cut global greenhouse gas emissions as part of a UN climate deal.

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Fin24.com | Eskom wins 17-yr legal battle against Solidarity
2015/05/27 06:41:01 AM

Eskom is set to recover legal costs from Solidarity after the trade union lost a 17-year legal battle against the power utility.

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Fin24.com | Joburg gets R52.6bn budget
2015/05/26 08:00:05 PM

More than R42bn has been set aside for operating expenditure in Johannesburg's R52.6bn budget for the new financial year.

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Fin24.com | Adcorp results show value of bigger global reach
2015/05/26 05:54:46 PM

The next few years are likely to be an interesting time for the staffing industry as fresh models evolve and new global entrants emerge, says Adcorp's CEO.

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Fin24.com | Ramaphosa said to sign deal for business stakes sale
2015/05/26 05:54:12 PM

Deputy President Cyril Ramaphosa has completed talks for the sale of most of his business interests to a company led by MTN chair Phuthuma Nhleko, sources say.

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Fin24.com | Annual SA employment increases by 1.8%
2015/05/26 05:18:46 PM

South Africa’s employment rate has increased by 1.8% year-on-year to 15.5 million, according to statistician-general Pali Lehohla.

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Fin24.com | Rich nations must up aid budgets - campaigners
2015/05/26 04:12:58 PM

The world's rich donor nations must increase their overseas aid budgets and reverse the trend of declining funding for the poorest countries, an advocacy group says.

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Fin24.com | Alexander Forbes sees headline EPS much higher
2015/05/26 04:11:54 PM

Financial services firm Alexander Forbes Group expects improved full-year earnings after a capital restructuring and the sale of its insurance company.

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Fin24.com | 'High likelihood' of rate hikes
2015/05/26 04:03:51 PM

There's a high likelihood that the SA Reserve Bank will increase interest rates at its next few meetings, says one of its deputy governors.

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Fin24.com | Asia migrant workers rally to fight low pay
2015/05/26 04:03:43 PM

Governments need to tackle unscrupulous agencies that lure women into domestic work abroad and charge exorbitant fees, says an activist.

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Fin24.com | Nampak first-half profit falls
2015/05/26 03:38:00 PM

Nampak says first-half profit has fallen as declining margins at its South African unit offset gains elsewhere on the continent.

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Fin24.com | Business opportunities for SA in Peru
2015/05/26 03:24:37 PM

Low volumes of bilateral trade between SA and Peru offer opportunities for businesspeople from both countries to explore, says SA ambassador Elsa Dry.

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VKE
Heads up: Vukile Property Fund FY15 Results - A bigger fund
2015/05/27

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ILV
Heads up: Illovo Sugar FY15 results - Disappointing performance, and expected to get weaker
2015/05/27

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FBR
Heads up: Famous Brands FY15 results - strong balance sheet supportive of future growth
2015/05/27

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CFR
Heads up: Richemont - FY15 results review
2015/05/25

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TSH
Heads up: Tsogo Sun FY15 results
2015/05/25

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SPP
Heads up: The Spar Group 1H15 results
2015/05/22

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RLO
Heads up: Reunert 1H15 results - a place to hide?
2015/05/21

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TBS
Heads up: Tigerbrands - mixed 1H15 results as expected
2015/05/21

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PFG
Heads up: Pioneer Foods 1H15 results - Delivering on strategic initiatives, but all in the price
2015/05/21

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ARL
Heads up: Astral 1H15 results - As good as it gets?
2015/05/20

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,041.54   -190.48  -1.0%
DJ Trans  8,350.50   -131.81  -1.6%
NASDAQ  5,032.75   -56.61  -1.1%
NYSE S and P500 INDEX  2,104.20   -21.86  -1.0%
FTSE 100  6,990.06   41.07  0.6%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  11,628.25   3.12  0.0%
HONG KONG HANG SENG INDEX  28,081.21   -168.65  -0.6%
NIKKEI 225 INDEX  20,472.58   35.10  0.2%
Major JSE Indices*
Name Value Move
OVERALL  52748   -215.27  -0.4%
TOP 40  46730   -186.50  -0.4%
ALL GOLD  1058   -26.66  -2.5%
INDUSTRIAL  66959   -212.13  -0.3%
FINANCIAL  16859   -177.92  -1.0%
RESOURCES  41700   -38.94  -0.1%
Delay = 15 minutes
Currencies
Name Value Move
ZAR/ / AUD  9.35   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.09   -0.01 -0.9%
ZAR/ / EUR  13.17   0.07 0.6%
USD/ / GB  1.54   -0.01 -0.5%
ZAR/ / GBP  18.59   0.17 0.9%
YEN/ / ZAR  10.27   10.17 10,430.2%
JPY/ / USD  123.55   0.49 0.4%
ZAR/ / USD  12.11   0.18 1.5%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  63.85   -0.12 -0.2%
Palladium  781.02   -0.53 -0.1%
Platinum  1,123.31   -0.57 -0.1%
Silver  16.68   -0.07 -0.4%
Gold  1,186.05   -1.34 -0.1%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
AH-Vest Limited  25.7
CENMAG HOLDINGS LTD  22.0
Sekunjalo Inv Ltd  13.0
ANOORAQ RESOURCES CORP  11.6
Top 5 Losers -- Delayed
Forbes & Manhatt Coal  -16.7
Mine Restoration Inv L  -12.5
Labat Africa Ltd  -11.8
Buildmax Ltd  -11.5
PSV Holdings Ltd  -8.3

PRICES (15 minute delay)

Allied Elec Corp N : AEN 1349  19 | Real Estate DevServ : J863 1602  5 | Software : J953 1340  -15 | Eqstra Holdings Ltd : EQS 365  4 | Tradehold Ltd : TDH 1829  29 |

SENS (15 minute delay)

| OML : Public Opening Position Disclosure/Dealing Disclosure by a Person with Interests| HDC : Change to the board of directors - appointment of non-executive director| MMG : Further Trading Statement| MSM : Results of Annual General Meeting| DIB : Distribution: tax treatment and salient dates| DIB : Unaudited condensed consolidated interim results For the six months ended 28 Febr| ARL : Director?s Dealing In Securities| IPL : Cautionary Announcement: Proposed Disposal of Regent| OAO : Results of the Rights Issue of 2 956 353 579 ordinary shares| VIS : Further trading statement| DST : Dealing in securities by a director| DST : Dealings in securities by a director of a major subsidiary| BFS : Operational update and renewal of cautionary announcement| NVE : Audited consolidated results for the year ended 28 February 2015 and dividend dec| DLI : Announcement regarding the transfer of properties| EXX : Results of 14th Annual General Meeting of Shareholders of Exxaro| MMI : Trading update for the nine months ended 31 March 2015| ARL : Director?s Dealings in Securities| TOR : Notification in terms of section 122 of the Companies Act No.71 of 2008| TWCM17 : Redemption of TWCM17 notes| TWCJ17 : Redemption of TWCJ17 notes| TWC087 : Redemption of TWC087 Notes| OCE : Summarised pro forma financial effects in respect of the proposed acquisition of| MSM : CEO's AGM Statement| TOPDWA : Termination of Listing - TOPDWA| GDN : Condensed consolidated reviewed annual results for the year ended 28 February 201| ALP : Approval for the issue of up to 100 000 000 additional Atlantic Leaf shares| ISB : Abridged Audited Results for the year Ended 28 February 2015, Notice of Annual Ge| EQU : No change statement and notice of annual general meeting| SBK22 : New Financial Instrument Listing Announcement - SBK22, SBK23| FBR : Appointment of a non-executive director| MMG : Acquisition of Aspirata| LEW : Final audited results for the year ended 31 March 2015| JSE : [06:31:00]: Start of Day. Group <1> - Please wait, downloading details