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Market Commentary
The Day Ahead for Wednesday 31 August 2016

Yesterday, US markets closed in the red, with the Dow Jones Industrial Average and the S&P 500 closing lower by 0.26% and 0.20% respectively. Asian markets are trading mixed this morning with the Nikkei stronger and the Hang Seng lower by 0.99% and 0.01% respectively. Tencent is weaker by 1.17% whilst BHP Billiton has shed 2.98% in Australia this morning. The Australian ASX is trading lower by 0.79% thus far. Traders can expect a flat to negative start to trading on our local bourse this morning.

Market Commentary
Market Commentary for Tuesday 30 August 2016

Yesterday was a relatively lacklustre day on the JSE, with the All-Share Index closing the day 0.22% lower following a marginally stronger start. A broad decline in commodity prices saw the Resource and Gold sectors lead the losses on the market, giving back 1.18% and 2.99% respectively. The rand continued to lose ground to most major currencies as nervous investors shy away from the standoff between treasury and the Hawks and the possibility of a downgrade before the end of the year grows. This propped up the predominantly foreign-earning Industrial index but hurt the Financial sector. On the company front, Cashbuild released annual results showing that revenue rose by 13%, headline earnings climbed 41% and there was a 15% increase in net asset value. The company also upped its total annual dividend by 41%. DRD Gold released results for the year ended 30 June 2016. The key features showed that operating profit rose 13% to R434.8 million, headline earnings rose 28% to 12.7cents and the dividend was increased to 62 cents per share. Homechoice released interim results showing that the company grew revenue by 15.8% to R1,152 million Pan-African sales increased by 27,9% to 11,6% of total sales and EBITDA increased by 15,5% to R310 million. Cash generated from operations increased by 18,3% to R145 million and retail sales through digital channels increased 17,8% to 11,6% of total sales. Comair released a trading statement indicating that for the year ended 30 June 2016, it expects earnings per share to be within 20% of those reported for the year ended 30 June 2015. However the Company expects headline earnings per share to be at least 25% (at least 11.9 cents) lower than HEPS of 47.9 cents reported for the previous corresponding period. The expected decrease is primarily due to profit arising on the disposal of retired aircraft and profit on a claim against insured aircraft equipment. Interwaste released interim results showing that revenue from continuing operations grew 6%, profit from operating activities grew 28% and profit from continuing operations grew 34%. An after-tax loss from discontinued operations of R5.4 million was incurred comprising of a profit of R3.9 million on the sale of the Earth 2 Earth business, and a loss of R9,3 million on the Enbitec investment. RCL Foods released full year results for the 12 months ended 30 June 2016. The highlights showed that revenue was up 6.8% while EBITDA declined 20.6%, headline earnings from continuing operations declined 11.9% and the dividend was decreased by 31.8% to 15 cents. The total value traded for the day was R17.88bn.

News Articles
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Fin24.com | Why all hell broke loose with Treasury - Molefe
8/31/2016 8:22:13 PM

Eskom CEO Brian Molefe speaks to Fin24 about the power utility's apparent war with National Treasury over a probe into the Gupta-owned Tegeta coal contracts.

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Fin24.com | FULL STATEMENT: Why Futuregrowth won't grant loans to SOEs
8/31/2016 8:05:57 PM

Read the full statement of Futuregrowth Asset Management taking an unprecedented decision to halt negotiations on over R1.8bn of debt finance to three state-owned firms.

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Fin24.com | SA urged to keep close watch on Brexit
8/31/2016 7:18:19 PM

The government has been urged to engage with the UK’s political leadership to ensure all strategic agreements continue “seamlessly” after Brexit.

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Fin24.com | Optimum Coal discharged from business rescue
8/31/2016 7:17:39 PM

Troubled coal producer Optimum Coal Mine, owned by the Gupta family, has been released from business rescue.

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Fin24.com | Board must restore SAA's 'shot' reputation - expert
8/31/2016 7:05:43 PM

With "everybody" in the dark and rumour-mongering everywhere, it is up to SAA's board to take concrete measures to restore its reputation, says an expert.

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Fin24.com | Social media changing customer expectations - SAcsi
8/31/2016 6:39:30 PM

Social media and internet access is changing customer expectations and demands when it comes to choosing a restaurant.

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Fin24.com | Treasury backs Brown on SOE issues
8/31/2016 6:16:09 PM

Treasury says it welcomes a call by Minister of Public Enterprise Lynne Brown to resolve issues inter-departmentally, and not in the public space.

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Fin24.com | Mr Price shares dive on tough winter season
8/31/2016 5:56:27 PM

The shares of Mr Price tumbled after it reported poor growth in its trading update.

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Fin24.com | No panic at Eskom as debt manager halts loans
8/31/2016 5:32:54 PM

Eskom says it will seek money elsewhere after Futuregrowth Asset Management pulled the plug on lending to key state-run firms.

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Fin24.com | SAA gets breather on Hong Kong deregistration
8/31/2016 5:22:14 PM

SAA has been granted an extension by authorities in Hong Kong in order to prevent the airline from being deregistered there and its flights to that destination halted.

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Fin24.com | SAA warned to file financials, overhaul board
8/31/2016 4:48:39 PM

Parliament's Standing Committee on Finance is concerned about an SAA advert seeking R16bn in funding as well as the airline's possible deregistration in Hong Kong.

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Fin24.com | Household credit cycle one of the weakest in history
8/31/2016 4:37:08 PM

Household credit is likely to remain under pressure, as banks remain stringent on lending criteria and high debt levels restrain demand for increased borrowing.

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Fin24.com | Storm could be over for Zimplats
8/31/2016 4:33:38 PM

The storm could be over for Impala Platinum’s unit in Zimbabwe as Zimplats reports a massive swing back to profit following a $74.3m loss in 2015.

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Fin24.com | SA's biggest debt manager halts loans to state firms
8/31/2016 4:26:46 PM

Futuregrowth Asset Management will stop lending money to six of SA’s state companies, owing to government infighting and threats to the independence of the finance ministry.

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Fin24.com | Standard Bank Zim unit profitable but can't grow assets
8/31/2016 3:00:52 PM

Stanbic Bank, which is owned by Standard Bank, says it has not been able to match growth in deposits with asset creation because of Zimbabwe's fragile economy.

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Fin24.com | SA's trade surplus shrinks to R5.22bn in July
8/31/2016 2:59:25 PM

South Africa's trade surplus shrank to R5.22bn in July versus a revised surplus of R12.47bn in June, according to data.

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Fin24.com | Molefe: Zuma a nice old man, Gordhan right for job
8/31/2016 1:52:59 PM

Eskom CEO Brian Molefe has praised Finance Minister Pravin Gordhan as "the right man for the job" and says President Jacob Zuma is "a very nice old man”.

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Fin24.com | Molefe: I am captured by the constitution, not Guptas
8/31/2016 1:10:40 PM

Eskom CEO Brian Molefe says the only thing he has been captured by is the constitution, and that it sounds as if the Guptas have been found guilty by a kangaroo court.

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Fin24.com | Gordhan probe will undo efforts to avoid downgrade - CEOs
8/31/2016 1:08:06 PM

The CEOs Initiative says it is disappointed in the way Gordhan and the Treasury are being “attacked” by people who are “not concerned” about damage done to the economy.

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Fin24.com | Eurozone inflation undershoots forecast
8/31/2016 12:54:06 PM

Eurozone inflation has failed to accelerate in August, adding to signs that the eurozone’s economic outlook deteriorated ahead of a European Central Bank meeting.

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ADH
Heads up: Advtech 1H16 results
8/30/2016

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SHP
Heads up: Shoprite FY16 results - Rest of Africa buoys performance
8/29/2016

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BID
Heads up: Bidcorp FY16 results - a trophy asset at a trophy price
8/29/2016

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GLN
Heads up: Glencore 1H16 results - Delivering on deleveraging
8/26/2016

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FFA
Heads up: Fortress FY16 results- boosted by M&A activity
8/25/2016

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FFB
Heads up: Fortress FY16 results- boosted by M&A activity
8/25/2016

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MTA
Heads up: Metair 1H16 results - Still challenged by new model launch
8/25/2016

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ROC
Heads up: Rockcastle 1H16 results- Executing its strategy
8/24/2016

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AGL
Heads up: Anglo American 1H16 results
8/22/2016

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NPN
Heads up: Tencent exceptional 1H16 results - the strong becoming stronger
8/22/2016

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,387.22   -67.08  -0.4%
DJ Trans  7,851.86   -58.26  -0.7%
NASDAQ  5,208.34   -14.65  -0.3%
NYSE S and P500 INDEX  2,168.33   -7.79  -0.4%
FTSE 100  6,786.65   -34.14  -0.5%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  10,613.77   -43.87  -0.4%
HONG KONG HANG SENG INDEX  22,976.88   -39.23  -0.2%
NIKKEI 225 INDEX  16,887.40   162.04  1.0%
Major JSE Indices*
Name Value Move
OVERALL  52733   -715.57  -1.3%
TOP 40  46261   -558.13  -1.2%
ALL GOLD  2330   -72.93  -3.0%
INDUSTRIAL  71375   -607.68  -0.8%
FINANCIAL  14669   -125.86  -0.9%
RESOURCES  31099   -1,022.29  -3.2%
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  1.11   0.00 -0.4%
ZAR/ / EUR  16.39   0.28 1.7%
USD/ / GB  1.31   0.00 0.1%
ZAR/ / GBP  19.27   0.42 2.2%
YEN/ / ZAR  7.06   6.92 4,930.0%
JPY/ / USD  103.41   0.43 0.4%
ZAR/ / USD  14.71   0.31 2.2%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  47.17   -1.21 -2.5%
Palladium  669.00   -7.00 -1.0%
Platinum  1,048.00   -7.00 -0.7%
Silver  18.64   0.08 0.4%
Gold  1,307.10   -3.40 -0.3%
Top 5 Gainers -- Delayed
African Dawn Capital L  100.0
SABLE PLATINUM LTD  31.9
Ferrum Crescent Limite  20.0
New Frontier Prop Ltd  18.2
Mazor Group Ltd  17.0
Top 5 Losers -- Delayed
PPC Limited  -32.3
Chrometco Ltd  -18.8
Forbes & Manhatt Coal  -16.7
Mr Price Group Ltd  -16.0
Insimbi Ref & Alloy Su  -11.8

PRICES (15 minute delay)

Synergy Inc Fund Ltd B : SGB 695  0 | Convergenet Holdings L : CVN 195  0 | Harmony GM Co Ltd : HAR 5244  -6 | Clover Industries Ltd : CLR 1905  -25 | Capped Proper Index : J254 544  -3 |

SENS (15 minute delay)