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Market Commentary
The Day Ahead for Friday 27 February 2015

U.S stocks struggled to find direction for a second day in a row as lacklustre economic data and oil concerns weighed on investor sentiment. The S&P500 and the Dow Jones Industrial Average declined by 0.15% and 0.06% whilst the Nasdaq managed to trade positively adding 0.42% for the session. Asian markets are trading mostly higher this morning with the exception of the Nikkei which is lower by 0.17% thus far. The Hang Seng is higher by 0.45% with the Australian ASX adding gains just over half a percent thus far. Tencent is trading stronger by 0.52% whilst BHP Billiton has advanced by 0.27% thus far. Traders can expect a fairly flat start to trading on our local bourse this morning

Market Commentary
Market Commentary for Thursday 26 February 2015

Our local bourse started its trading session in marginally positive territory after U.S stocks struggled for direction on Wednesday night. The JSE all share fell back into negative territory not long after market open before rebounding by midday to end the day higher by 0.21%. Our gold mining index rose 1.84%, following the spot price of gold which advanced 1% after Chinese buyers snapped up the metal on their return from the lunar new year break. Goldfields and Harmony Gold added 4.85% and 2.32% respectively for the day. Our General retailer index slipped 1.08% as market participants continued to take profits from their recent rally. Shoprite and Spar retreated just under 3% for the day while Woolworths was weaker by 1.89%. On the data front, South Africa’s Producer Price inflation slowed to 3.5% year-on-year in January 2015 from 5.8% in December. Out of the US, the consumer price index declined by 0.7% in January on a seasonally adjusted basis while the number of people that filed for unemployment claims in the week ending February 21st, increased to 313k compared to a number of 282k claims previously. Durable goods orders rose 2.8% on a seasonally adjusted basis in January which was higher than the forecast for a gain of 0.5%. On the company front, Massmart released their reviewed consolidated results for the 52 weeks ended 28 December 2014. Total sales of R78.2 billion were achieved increasing by 10.4% over the prior comparable year while comparable stores’ sales growth came in at 7.5% with a product inflation of 4.7%. Liberty Holdings released their financial results for the year ended 31 December 2014 showing a 3% decline in full-year profit, reflecting a contraction in earnings from its shareholder investment portfolio. Impala Platinum issued their interim results for the six months ended 31 December 2014 showing a net profit of ZAR1.07 billion compared with ZAR1.30 billion a year earlier, on revenue of ZAR 15.90 billion. They also announced that they plan to invest ZAR30 billion across its operations over the next five years. Spur also released their interim results for the six months ended 31 December 2014 indicating that restaurant sales were up 14.1%, comparable profit up by 15.3% whilst declaring an interim dividend of 62 cents per share. Rand Merchant Insurance issued a trading statement for the six months ended 31 December 2014 indicating that Headline Earnings per share (HEPS) are to increase between 26% and 32% which relates to HEPS between 119 cents and 125 cents. Value traded for the day came in at R15.8bn.

News Articles
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Fin24.com | PetroSA could cut workforce by 40%
2015/02/27 10:30:00 PM

PetroSA is set to cut its workforce by close to 40%, according to a letter from the CEO to a union released to the media.

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Fin24.com | Petrol price hike puts a pinch on pockets
2015/02/27 08:49:03 PM

The price of all grades of petrol will increase following months of relief at the pumps for motorists.

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Fin24.com | Upmarket bug snacks to creep into Thai stores
2015/02/27 08:24:32 PM

Street vendors selling deep-fried insects as snacks are a familiar sight in Bangkok, but a Thai entrepreneur is trying to give edible bugs a more upmarket appeal.

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Fin24.com | France to hand Austria HSBC tax data soon
2015/02/27 06:58:51 PM

France will soon hand over to Austria tax data linked to leaked client data of lender HSBC Holdings after admitting failings in compliance at its Swiss private bank.

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Fin24.com | SA records a R24bn trade deficit for Jan
2015/02/27 06:34:14 PM

SA's trade balance has swung into a wide deficit in January, after exports fell sharply, data from Sars shows.

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Fin24.com | Greenpeace takes Tina to court on nuclear plans
2015/02/27 06:20:43 PM

Greenpeace has filed papers in the North Gauteng High Court to try and compel Energy Minister Tina Joemat-Pettersson to update the country's nuclear liability regulations, it says.

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Fin24.com | BoE's next move likely to be rate hike
2015/02/27 05:15:02 PM

The Bank of England is expected to increase the interest rates because the factors that have pushed down inflation sharply are largely transitory.

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Fin24.com | UK consumers more confident as pay grows
2015/02/27 03:55:09 PM

British consumers have turned more upbeat as faster pay growth and low inflation make them more confident about their finances, ahead of the national elections.

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Fin24.com | Russia to tap $50bn from emergency fund
2015/02/27 03:15:09 PM

Russia plans to spend more than $50bn from its emergency Reserve Fund in 2015 as falling oil prices cause the government's deficit to rise.

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Fin24.com | Sanral welcomes Nene's e-toll stance
2015/02/27 02:20:39 PM

The SA National Roads Agency has welcomed Finance Minister Nhlanhla Nene's endorsement of the e-tolling system in Gauteng.

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Fin24.com | Walmart joins growing US march on wage hikes
2015/02/27 01:45:01 PM

Walmart, the largest retailer in the United States, is increasing wages, and economists are hoping to see a chain reaction.

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Fin24.com | Zimplats slips on low prices and mine closure
2015/02/27 01:35:20 PM

Impala Platinum's Zimbabwe-based unit Zimplats reported a significant half-year profit drop due to lower metal prices and the write-off of its Bimha mine.

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Fin24.com | Airbus increases A320 rate, adjusts A330
2015/02/27 01:17:22 PM

Airbus has decided to further increase the production rate for its A320 family, matching market demand.

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Fin24.com | Japan minister denies illegal funding
2015/02/27 01:15:02 PM

Japan's environment minister has denied wrongdoing after a newspaper said his office appeared to have received improper funds.

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Fin24.com | Old Mutual profit drops on currency fluctuations
2015/02/27 01:12:40 PM

Old Mutual said 2014 profit for its globally-expanding insurance company fell after the average rate of the rand weakened 18% against the pound.

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Fin24.com | Greek aid extension tipped to win German approval
2015/02/27 01:06:04 PM

A majority of German lawmakers are expected to back an extension of Greece's rescue package, despite plans by conservatives to rebel against Merkel's government.

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Fin24.com | No load shedding on Friday
2015/02/27 11:23:49 AM

11:20 Update: Power utility Eskom says that with the return of some power station units, no load shedding would take place on Friday.

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Fin24.com | BAT to fight UK plain packaging law
2015/02/27 10:45:03 AM

British American Tobacco , the world's second-largest cigarette maker, says it will take action if the plan to put cigarettes in "plain packaging" is enacted.

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Fin24.com | Budget carrier AirAsia net profit slides
2015/02/27 10:45:01 AM

Malaysia-based AirAsia's net profit has slid by nearly a quarter in 2014, dragged down by high operating costs and foreign exchange losses.

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Fin24.com | Russia sanctions cost ExxonMobil $1bn
2015/02/27 10:43:43 AM

US energy giant ExxonMobil says that US and European Union sanctions against Russia cost it $1bn last year.

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BIL
Heads up: BHP Billiton - progressive dividend intact for now
2015/02/27

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SHP
Heads up: Shoprite 1H15 results - A good result in the current environment
2015/02/27

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SUR
Heads up: Spur Corporation 1H15 results - operationally, in good shape
2015/02/27

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NED
Heads up: Nedbank FY14 results
2015/02/27

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AFE
Heads up: AECI FY14 results - resilient as focused diversification pays off
2015/02/26

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SPG
Heads up: Super Group 1H15 results - what do Super Group and Telkom have in common?
2015/02/26

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AIP
Heads up: Adcock Ingram- Review of 1H15 results
2015/02/25

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WBO
Heads up: WBHO 1H15 results - dropping the ball in Australia
2015/02/25

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HYP
Heads up: Hyprop 1H15 results- a steady performer
2015/02/25

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CLH
Heads up: City Lodge 1H15 results - A welcome recovery in SA occupancies
2015/02/23

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Charts Indices Currencies Metals & Brent Oil Gainers & Losers
CHARTS
International Indices
Name Value Move
DJ Ind.  18,214.42   -10.15  -0.1%
DJ Trans  9,082.17   -49.63  -0.5%
NASDAQ  4,987.89   20.75  0.4%
NYSE S and P500 INDEX  2,110.74   -3.12  -0.1%
FTSE 100  6,933.38   -16.35  -0.2%
XETRA DAX INDEX  6,271.85   -81.89  -1.3%
DAX INDEX  11,337.38   10.19  0.1%
HONG KONG HANG SENG INDEX  24,823.29   -78.77  -0.3%
NIKKEI 225 INDEX  18,797.94   12.15  0.1%
No Data at Present
Currencies
Name Value Move
ZAR/ / AUD  9.09   0.00 0.0%
ZAR/ / CHF  12.00   0.00 0.0%
USD/ / EUR  1.12   -0.01 -1.2%
ZAR/ / EUR  13.04   0.04 0.3%
USD/ / GB  1.54   -0.01 -0.7%
ZAR/ / GBP  17.91   0.16 0.9%
YEN/ / ZAR  10.32   10.22 10,627.6%
JPY/ / USD  119.37   -0.03 0.0%
ZAR/ / USD  11.63   0.19 1.6%
Precious Metals & Brent Oil
Name Value Move
Brent Oil  61.47   0.83 1.4%
Palladium  808.15   -2.53 -0.3%
Platinum  1,176.53   2.03 0.2%
Silver  16.45   -0.11 -0.7%
Gold  1,209.74   7.43 0.6%
Top 5 Gainers -- Delayed
SABLE PLATINUM LTD  31.9
PSV Holdings Ltd  30.0
AH-Vest Limited  22.2
CENMAG HOLDINGS LTD  22.0
Firestone Energy Limit  20.0
Top 5 Losers -- Delayed
Sable Metals and Min L  -40.9
Tawana Resources NL  -30.8
ZCI Limited  -28.9
Labat Africa Ltd  -18.2
Imbalie Beauty Limited  -16.7

PRICES (15 minute delay)

BIPS TOP 40 PORTFOLIO : BIPS40 3047  -4 | Murray & Roberts Hldgs : MUR 1739  -11 | Arrowhead Properties A : AWA 980  -10 | Adaptit Holdings Limit : ADI 1054  -6 | WOOLTRU LTD ORD : WLO  0 |

SENS (15 minute delay)