Morning Note
Wednesday, 18 November 2015 07:08
www.randswiss.com
(+27) 765 800 600
Global Overview
55000
Local Headlines
All Share
Yesterday saw financial and banking stocks boost local markets, with the JSE All Share gaining 0.84% to close at
51,981.70 points. The financial index gained 2.04% during the session, with Sanlam featuring among the top
performers, up 3.9%, while Old Mutual added 3.3%. In addition, the banking index gained 1.76%, as it was helped
along by a 2.46% increase in Barclays Africa. Naspers gained 3.75% to a new 12-month high, whilst simultaneously
helping the industrial index to add 1.08%. On the downside, the platinum index lost 4.93%, while the gold index and
resource index fell 4.42% and 3.6% respectively.
52500
50000
47500
45000
29 Jul
7500
18 Aug
07 Sep
27 Sep
17 Oct
06 Nov
European Headlines
FTSE 100
European markets rose on Tuesday, as markets benefitted from encouraging corporate updates and expectations of
more stimulus measures by the European Central Bank. Dutch-based Randstad, the world’s 2nd largest staffing
company, featured as the top gainer on the FTSEurofirst 300 after gaining 6.9% on better-than-expected results. At
the close, the FTSEurofirst 300 had surged 2.6%, while the French CAC outperformed the overall index with a gain
of 2.8%. Lastly, stocks dealing with defence and military also performed well during the session, with Rolls Royce,
Airbus, Zodiac Aerospace and Thales all increasing by more than 3.5%.
7000
6500
6000
5500
29 Jul
20000
19000
18 Aug
07 Sep
27 Sep
17 Oct
06 Nov
American Headlines
Dow Jones
U.S. markets erased gains on Tuesday, after a football match between Germany and the Netherlands was called off
over fears of a bombing. The overall market was initially buoyed by upbeat earnings reports from Wal-Mart and
Home Depot, but ended in a mixed fashion. At the close, the Dow Jones and NASDAQ gained 0.04% and 0.03%
respectively, while the S&P 500 shed 0.13%. For the session, 7 out of the 10 major S&P 500 sectors ended lower,
led by a 1.85% decline in the utilities sector. However, the S&P retail index gained 1%, boosted by a 3.54% increase
in Wal-Mart and a 4.42% surge in Home Depot.
18000
17000
16000
15000
29 Jul
4500
18 Aug
07 Sep
27 Sep
17 Oct
06 Nov
Asian Headlines
Shanghai
Asian markets traded marginally higher this morning, despite a lackluster handover from Wall Street. The Nikkei
featured among the top performers, up 0.67%, as the market awaited the start of the Bank of Japan’s two day
meeting. In Australia, the ASX had gained 0.22%, despite falling about 0.3% shortly after the open. Resource-based
stocks took the biggest hit, with large-cap shares such as Rio Tinto and BHP Billiton declining by more than 2%. On
the mainland, the Shanghai Composite had gained 0.17% to trade just above the 3,600 mark, while the Hang Seng
was marginally higher, up 0.03%.
4000
3500
3000
2500
29 Jul
18 Aug
07 Sep
27 Sep
17 Oct
06 Nov
South Africa
Last
1D%
5D%
YTD%
Alsi
All Share
Top 40
Mid Cap
Small Cap
Resource 10
Industrial 25
Financial 15
46973.00
51981.70
46751.10
66085.20
55417.30
27945.50
72179.10
16124.40
1.00
0.84
0.91
0.63
-0.19
-3.60
1.14
2.22
-0.95
-1.11
-0.96
-1.66
-3.39
-7.87
-0.05
-1.00
6.13
4.44
6.32
-5.26
-4.12
-33.35
15.76
3.08
Europe
Last
1D%
5D%
YTD%
FTSE
DAX 30
CAC 40
6268.76
10971.04
4937.31
1.99
2.41
2.77
-0.10
1.28
0.51
-4.53
11.89
15.55
America
Dow Jones
S&P 500
Nasdaq
Dollar Index
Asia
Nikkei 225
Hang Seng
Shanghai
ASX200
Recommended Stocks
Aspen
Bidvest
Discovery
Firstrand
Mediclinic
Mondi Ltd
Naspers
PSG
Steinhoff
Woolworths
Last
1D%
5D%
YTD%
17489.50
2050.44
4986.02
99.63
0.04
-0.13
0.03
0.25
-1.51
-1.50
-1.91
0.48
-1.87
-0.41
5.28
10.35
Chart of the Day
85
80
75
70
65
60
Last
1D%
5D%
YTD%
19630.63
22264.25
3604.80
5118.24
1.22
1.15
-0.06
2.29
-0.21
-0.61
-0.98
0.37
12.49
-5.68
11.44
-5.41
Last
1D%
5D%
YTD%
Wal-Mart Stores Inc. - WMT:US New York – Beating Expectations.
31628
34585
14344
4787
12050
31720
218100
26959
8426
10014
2.03
2.02
2.57
1.38
0.38
1.58
3.75
2.12
3.13
2.18
2.03
2.43
1.23
-4.85
0.45
0.07
4.02
-1.42
0.19
-2.78
-22.10
13.81
28.76
-5.34
19.72
68.06
43.95
111.03
41.85
29.88
After what has been a challenging year for Wal-Mart, with the stock having declined more than 30%, investors were
given something to cheer after the group gained 3.54% after releasing better-than-expected results. For the 3rd
quarter, the group saw net profits fall to $3.304bn, or $1.03, down from $3.711bn, or $1.15, a year earlier. However,
this was higher than analyst expectations of a decline to $0.98. For the period, Wal-Mart saw revenue fall by 1.3% to
$117,4bn, weighed down by international operations and a stronger dollar. Lastly, the group narrowed its forecast for
earnings per share for the full fiscal year to $4.50 to $4.65, from $4.40 to $4.70 previously, higher than estimates of
$4.50.
The Fear Greed Index : What emotion is driving the markets?
55
22 Apr
12 May
01 Jun
21 Jun
11 Jul
31 Jul
20 Aug
Wal-Mart Stores Inc.
09 Sep
20d SMA
Yesterday's Top 40 Stock Movement
Up
29 Sep
19 Oct
Create an Account
31
Neutral
Down
48%
Extreme Fear
Fear
0%
25%
Neutral
50%
75% Extreme Greed
100%
Greed
Free Demo
9
0
5
10
15
20
25
30
08 Nov
200d SMA
35
Economic Calendar
Time
Region
10:00
10:00
12:00
15:00
13:00
15:30
15:30
17:30
21:00
SA
SA
CHF
USD
SA
USD
USD
USD
USD
SENS Announcements
Inflation Rate YoY
Core Inflation Rate YoY
ZEW Economic Expectations
FOMC Member Lockhart Speaks
Retail Sales YoY
Building Permits
Housing Starts
Crude Oil Inventories
FOMC Meeting Minutes
Period
Exp.
Prev.
Oct
Oct
Oct
-Sep
Oct
Oct
---
4.56%
5.25%
--3.6%
1.15M
1.16M
---
4.6%
5.3%
18.3
-3.9%
1.11M
1.21M
4.2M
--
Expected Company Reporting Schedule
Company
Investec
Gold Fields
MMI Holdings
Netcare
MMI Holdings
Expected Event
Date
Interim earnings
Q3 results
AGM
FY results
Q1 trading update
19-Nov
19-Nov
20-Nov
23-Nov
25-Nov
Dividend Data
Last date to trade
Company
Code
Datatec Ltd.
Homechoice PLC
Mix Telematics Ltd.
Purple Ltd.
Redefine Ltd.
SABMiller PLC
Trustco Ltd.
DTC
HIL
MIX
PPE
RDF
SAB
TTO
20-Nov
Dividend
Div @ 105.00 cps
Div @ 64.00 cps
Div @ 2.00 cps
Div @ 1.25 cps
Div @ 41.00 cps
Div @ 28.25 USDc
Selected
0
Brait
SE: In its results for the 6 months ended 30 September 2015, BAT saw its net asset
value per share increase by 255.4% to R123.50, compared to a year ago. In addition, the
group saw its net asset value over the last 6 months increase by 60.1%, up from R77.12
previously. During the period, Brait received an amount of R17.5bn in investment portfolio
flows, compromising mainly of R15.8bn in proceeds from the sale of Steinhoff shares. On the
flipside, the group invested R27.9bn over the period, with the main investments being the
acquisition of 89% of New Look and 78% of Virgin Active.
Accelerate Property Fund: In its results for the 6 months ended 30 September 2015, APF saw
its property portfolio grow to R7.6bn, up from R5.5bn at the time of listing in December 2013.
Over the last 6 months, this has increased from R6.77bn to the current amount, mainly due to
the acquisition of a portfolio of 6 office properties leased to KPMG. The board declared an
interim distribution of 26.61692 cents per share, a 10.93% increase over the previous
corresponding period. Lastly, vacancies have been reduced to 6.69%, from 8.81% previously,
while the weighted average lease period improved from 2.87 years to 4.56 years.
Woolworths: In a trading update for the 20 weeks ended 15 November 2015, WHL saw group
sales increase by 17.7%. However, excluding the effect of David Jones, group sales increased
by only 11.7%. Woolworths Clothing sales increased by 12.1%, with a price movement of
6.1%, while retail space grew by 6.7%. Meanwhile, Woolworths Food increased its sales by
11.7%, including a price movement of 6.5%, as retail space increased by 9.2%. On a proforma comparable basis, David Jones sales increased by 12.2%, in Australian dollar terms,
with sales in comparable stores growing by 10.4%. In addition, the Woolworths Financial
Services debtors’ book reflected year-on-year growth of 9.2% at the end of October 2015, with
an annualised impairment rate for the four months to 31 October 2015 at 5.0%, down from
5.2% previously. Lastly, the group expects to release its results for the period on or about the
11th of February 2015.
Div @ 3.40 NAD
All Share Winners & Losers
Worst Performers
Last
YTD%
1D%
1D%
YTD%
African Rainbow Minerals
Anglo American Platinum
Anglo American
Gold Fields
Kumba Iron Ore
Pallinghurst Resources
Novus Holdings
Impala Platinum
Northam Platinum
Anglogold Ashanti
Sibanye Gold
4220
18276
9418
3160
4243
465
1200
3156
2453
9438
1843
-64.54
-46.42
-56.26
-39.59
-82.31
10.71
-- / --58.35
-33.16
-7.20
-18.27
-8.24
-8.10
-6.47
-5.67
-5.67
-5.10
-4.76
-4.65
-4.37
-4.28
-4.01
6.73
5.09
4.90
4.76
4.44
4.26
4.23
3.93
3.92
3.90
3.75
139.10
-83.39
4.33
-93.04
-15.57
3.07
-18.08
-5.43
100.30
-14.80
43.95
Last
Top Performers
4189 Fortress Income Fund Ltd. (B)
289
Aveng
4263 Rand Merchant Insurance
220
Lonmin PLC
14204
Shoprite
3525
Super Group
7843
Barloworld
714
Zeder Investments
15764
Brait SE
5964
Sanlam
218100
Naspers
Commodities & Currencies
Commodities Headlines
Currency Pairs
Oil prices ended sharply lower yesterday, as bets increased that U.S. crude inventories
would increase for an 8th straight week. As a result, Brent crude fell 2.2%, or $0.99, to
settle at $43.57 a barrel. However, after data showed that stockpiles had actually
decreased, Brent crude gained 0.87% this morning as it moved to trade at $43.95 per
barrel. In contrast, spot gold continued to decline this morning, down 0.32%, or $3.44, as it
traded at $1,066.86/oz. This comes after the precious metal fell to an overnight low of
$1,065.18/oz, its lowest level since February 2010.
The rand was mostly stronger against the U.S. dollar on Tuesday, boosted by the release of
U.S. inflation data. In October, the U.S. CPI rate remained unchanged at 0.2%, in line with
expectations. In terms of the rand, the local currency reached a session low of R14.383/$ at
9:10, from a previous close of R14.315/$, before staging somewhat of a fight-back. By
16:00, the rand had strengthened to a session high of R14.21/$, before resuming its
weakening trend once again. This morning, saw the rand trade at just above the R14.31/$
level. Today, investors will keep an eye out for the U.S. FOMC’s meeting minutes for further
clues on when the Fed is likely to raise rates.
1200
1.17
Gold Spot
1175
1.15
1150
1.13
1125
1.11
1100
1.09
1075
1.07
1050
29 Jul
Commodities
Gold
Platinum
Silver
Brent Crude
Copper
Palladium
18 Aug
07 Sep
27 Sep
Last % Change
1068.42
847.42
14.17
43.89
4684.00
671.70
-0.13
-0.57
-0.05
-0.20
---22.95
17 Oct
EURUSD
1.05
29 Jul
06 Nov
Close
1D %
5D %
YTD %
Currencies
1069.80
852.30
14.18
43.98
4684.00
546.30
-1.19
-0.78
-0.42
-1.98
-0.13
-0.92
-1.83
-4.98
-1.70
-6.60
-4.90
-8.58
-9.65
-29.12
-9.57
-23.57
-25.65
-31.58
USDZAR
GBPZAR
EURZAR
AUDZAR
EURUSD
USDJPY
18 Aug
07 Sep
27 Sep
Last % Change
14.3105
21.7566
15.2338
10.1572
1.0646
123.31
0.25
0.19
0.26
0.03
0.02
-0.09
17 Oct
06 Nov
Close
1D %
5D %
YTD %
14.2751
21.7153
15.1937
10.1537
1.0644
123.43
-0.28
-0.23
-0.67
-0.10
-0.39
0.20
0.03
0.65
-0.73
1.18
-0.76
0.20
23.49
20.51
8.54
7.56
-12.01
3.13
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