Johannesburg. 31B Impala Road, Chislehurston Sandton +27(0) South African Equity Markets. JSE All Share - Daily Chart

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1 Johannesburg 31B Impala Road, Chislehurston Sandton +27(0) Durban Unit 8, 8 Richefond Circle, Ridgeview, Umhlanga Ridge, (0) Cape Town Unit 11, Lonsdale Building, 7 Lonsdale Way, Pinelands, (0) August August 1W% YTD % Key Global Indices 2018 Close Change Change JSE All Share % -4.0% FTSE % -0.4% DAX % -2.3% CAC % 3.1% DJIA % 3.0% S&P % 6.2% NASDAQ Comp % 13.2% Nikkei % -1.1% Shanghai Comp % -17.1% S&P/ASX % 2.8% South African Equity Markets South African markets ended lower last week. Imperial Holdings declined 4.5%, following the announcement that its Chief Executive Officer Osman Arbee has opted for medical leave after suffering a minor stroke. Asset management companies, Coronation Fund Managers and Investec dropped 4.4% and 3.5%, respectively. Further, Naspers eased 3.6%. On the flipside, steel manufacturer, ArcelorMittal South Africa rallied 41.7%, after the firm reported a significant increase in its 1H 2018 revenues. Niveus Investments, Afrocentric Investment Corp and Brimstone Investment Corp surged 28.1%, 8.6% and 7.0%, respectively. Paper and packaging company, Mondi jumped 6.6%, after it reported better than expected 1H 2018 results. Gold miner, Sibanye Gold surged 17.5%. The JSE All Share Index declined 0.1% to close at 57, JSE All Share - Weekly Gainers & Losers -10.2% Choppies Enterprises Ltd ArcelorMittal South Africa Ltd 41.7% JSE All Share - Daily Chart 63,040 59, % Group Five Ltd Niveus Investments Ltd 28.1% 56,708 53, % -4.5% Tradehold Ltd Imperial Holdings Ltd Sibanye Gold Ltd Clover Industries Ltd 17.5% 11.3% 50, RSI (21) % Invicta Holdings Ltd African Oxygen Ltd 9.6% -45.9% -23.0% 0.0% 23.0% 45.9% Top 10 New 52 Week Highs 0 Feb-18 Mar-18 Apr-18 Apr-18 May-18 Jun-18 Jul-18 Top 10 New 52 Week Lows Share 52Week High (ZAR) 1W% Change Mondi Ltd % Mondi Plc % Reunert Ltd % Sasol Ltd % Share 52Week Low (ZAR) 1W% Change Investec Property Fund Ltd % Mediclinic International Plc % MMI Holdings Ltd % MAS Real Estate Inc % Peregrine Holdings Ltd % Trencor Ltd % Woolworths Holdings Ltd % ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 8 1

2 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Key Currencies 03 August 2018 Close 1W% Change YTD % Change USDZAR % 7.6% EURZAR % 3.7% GBPZAR % 3.6% EURUSD % -3.6% EURCHF % -1.7% GBPUSD % -3.8% USDJPY % -1.3% USDCHF % 2.0% AUDUSD % -5.2% USDCAD % 3.3% Daily USD/ZAR Currencies The ZAR weakened against its major peers last week. The International Monetary Fund kept South Africa s 2018 economic growth forecast steady at 1.5%, but warned over the rapid rise in public debt and potential bailouts to state firms. On the data front, South Africa s unemployment rate rose in the second quarter of On the flipside, the nation s manufacturing PMI advanced more than market expectations in July, supported by an uptick in new sales orders and business activity. Additionally, trade surplus widened in June. For the week, the USD strengthened 1.1% against the South African Rand to close at R The EUR was 0.3% higher at R and the GBP was 0.4% stronger at R for the week. The US Dollar strengthened against its key counterparts last week. Data indicated that the US consumer confidence index surprisingly climbed in July. Moreover, the US initial jobless claims advanced less than market forecast in the week ended 28 July Further, private sector employment climbed more-than-expected in July. In contrast, nonfarm payrolls came in below expectations in July and recorded its lowest gain since March this year. Further, the ISM non-manufacturing PMI eased more than market forecast in July. The EUR dropped against the USD last week, after the Eurozone s gross domestic product grew at a slower-than-expected pace in 2Q18, marking its weakest expansion in two years. Separately, German annual consumer price index (CPI) rose less than expected on a monthly basis in July. Meanwhile, the Eurozone s CPI rose more than market expectations on an annual basis in July, recording its highest level since late The GBP fell against the USD in the previous week, after the Bank of England Governor, Mark Carney, signaled that there is an uncomfortably high probability of the UK crashing out of the European Union without a transition agreement and this could rattle the economy. On the macro front, UK s Markit manufacturing PMI fell more than market expectations to a threemonth low level in July. Moreover, the services PMI dropped more than market forecast to a three-month low in July. Key Commodities Daily Platinum 1, August 2018 Close 1W% Change YTD % Change Gold ($/oz) % -6.7% Silver ($/oz) % -9.8% Copper (USd/lb.) % -16.3% Brent Crude ($/bls) % 9.5% Sugar No.11 (USd/lb.) % -28.4% Iron Ore 62% Fe ($/dry MT) % -15.5% Commodities Gold prices declined last week, as strength in the US Dollar dampened demand for the safe haven asset. Going ahead, market participants will closely watch the US CPI, JOLTS job openings, consumer credit, weekly mortgage applications and monthly budget statement for further direction. Crude oil prices declined last week, amid rising crude oil inventories. The American Petroleum Institute reported that crude oil inventories rose by 5.6 million bls in the week ended 27 July Moreover, the US Energy Information Administration reported that crude oil inventories unexpectedly rose by 3.8 million bls last week. Meanwhile, Baker Hughes reported that US oil rig count dropped by 2 to 859 last week. Iron ore traded in negative territory last week, amid renewed trade tensions between the US and China, after the US President, Donald Trump announced that he is considering raising proposed tariffs on $200.0 billion worth of Chinese imports to 25.0% from the 10.0% rate

3 Key Economic News Last Week Country News Private sector credit recorded a rise of 5.68% on an annual basis in June, higher than market expectations. The private sector credit had recorded a rise of 4.56% in the previous month. In June, M3 money supply rose 5.77% on an annual basis, less than market expectations. In the previous month, M3 money supply had registered a rise of 5.73%. South Africa The manufacturing PMI advanced more-than-expected to in July, compared to a level of in the previous month. Vehicle sales recorded a rise by 2.6% to 47,881 units in July. Electricity production recorded an advance of 0.3% on an annual basis in June. Electricity production had dropped 0.8% in the previous month. Electricity consumption advanced 0.6% on an annual basis in June. Electricity consumption had recorded a rise of 0.2% in the previous month. Economic Calendar - Week Ahead Monday, August 06, 2018 Tuesday, August 07, 2018 Wednesday, August 08, 2018 Thursday, August 09, 2018 Friday, August 10, Net Gold & Forex Reserve (Jul) SACCI Business Confidence Index (Jul) - - South Africa - Gross Gold & Forex Reserve (Jul) Manufacturing Production Index (Jun)

4 South African Corporate News Company Name AdaptIT Holdings News The company, in its FY 2018 trading statement, revealed that the company expects HEPS to be in the range of 64.03c to 69.91c, a 9.0% to 19.0% rise from the same period of the prior year. Further, the company expects EPS to increase between 27.0% to 37.0% to be in the range of 74.57c to 80.45c. Allied Electronics Corporation Anglo American AngloGold Ashanti ArcelorMittal South Africa Aveng Curro Holdings EPP The company announced that Dr WP Venter, Chairman Emeritus and the founder of Altron, has taken the decision to retire as Non- Executive Director of the Board with effect from 31 July The company announced that in the sixth sales cycle of the year, demand for De Beers rough diamonds was in line with expectations during the seasonally quieter summer period for the industry s midstream sector. The sales value of the rough diamonds was worth $ million. Separately, the company announced that it has completed the sale of the New Largo thermal coal project and Old New Largo closed colliery in Africa to New Largo Coal Proprietary Limited, which is owned by Seriti Resources Proprietary Limited and Coalzar Proprietary Limited by its 73.0% held subsidiary, Anglo American Inyosi Coal (Proprietary) Limited. The cash consideration payable for New Largo is R million. The company, in its 1H 2018 trading statement, indicated that it expects HEPS to be in the range of 22.00c to 26.00c. Further, it expects EPS to be between 4.00c to 12.00c. Also, production from retained operations (excluding closed and sold operations) is expected to increase by 4.0% to 1.58 Moz from 1.52 Moz in 1H The company, in its 1H 2018 results, stated that its revenue increased to R22.87 million from R19.15 million posted in the corresponding period of the previous year. Its diluted loss per share fell to c from c recorded in the same period of the prior year. The company has not declared an interim dividend for the period. Separately, Mr Gerhard Van Zyl will assume the role of interim Chief Financial Officer, with effect from 1 August The infrastructure development firm announced that it has reached an agreement on the disposal of two properties, namely Jet Park and the Van der Bijl Park property. The company has disposed of Jet Park for sales proceeds worth R million. The company will enter into a triple net lease on the property for a maximum of 24 months. In case of Van der Bijl Park property, the company has agreed to accept an offer of R42.60 million from Stodasat (Proprietary) Limited following an auction process. The transaction is not subject to any conditions precedent. The transfer is expected to be complete by 30 September The company announced that Miss Zandile Nangamso Mankai has been appointed as an independent Non-Executive Director with effect from 10 August The company announced that shareholders are advised of the conclusion of a preliminary acquisition agreement in terms of which the company would acquire King Cross Marcelin Shopping Centre in Poznan, Poland. Fairvest Property Holdings The company announced that Keneilwe Moloko will resign as an independent Non-Executive Director with effect from 3 September Foschini Group Gold Fields Grindrod The company announced the appointment of Bongiwe Ntuli as the Chief Financial Officer (CFO) and Executive Director of the company, with effect from 14 January The company announced that it has completed the joint venture with Asanko Gold, with the company acquiring a 50.0% stake in Asanko s 90.0% interest in the Asanko Gold Mine in Ghana. The closing of the transaction with Asanko gives the company exposure to a great camp, with long-life, low-cost production, with significant exploration potential. The company announced that Bongiwe Ntuli has decided to step down from the role of Chief Financial Officer (CFO) of the Freight Services division. Bongiwe has accepted an appointment as the CFO and Executive Director of The Foschini Group Limited with effect from 14 January Howden Africa Holdings The company, in its 1H 2018 results, revealed that its revenue declined 22.8% from the same period of the preceding year to R million. Its diluted EPS stood at c, compared with c recorded in the corresponding period of the previous year. For FY 2018, the company expects that capital project spend within power generation, mining and general industry will remain subdued. Huge Group Hulamin The company announced that Robert Burger has been appointed as Financial Director of its subsidiary, Huge Telecom Proprietary Limited with effect from 1 August The company, in its 1H 2018 results, stated that its revenue increased to R5.26 billion from R5.10 billion posted in the corresponding period of the previous year. Its diluted EPS fell to 13.00c from 54.00c recorded in the same period of the prior year. The company has not declared an interim dividend for the period. 4

5 South African Corporate News Company Name Impala Platinum Holdings Imperial Holdings JSE Liberty Holdings Merafe Resources MiX Telematics Mondi NEPI Rockcastle News The company announced in its Impala Rustenburg strategic review, that optimisation measures in the prevailing low platinum price environment are not sufficient to secure the economic viability of the operation. Further, the Implats board has approved a turnaround strategy that will transition Impala Rustenburg to long-term economic viability in a low-price environment, over the period FY 2018 to FY Impala Rustenburg in its new form will remain a key asset within the company with two modern shafts and strategic processing assets. The company announced in its FY 2018 trading statement that it expects HEPS to be between 9.0% and 16.0% higher to be in the range of 1,520.00c to 1,615.00c. Further, the company expects EPS to be between 22.0% and 29.0% higher to be in the range of 1,630.00c to 1,730.00c. Separately, the company announced that Osman Arbee, Chief Executive Officer (CEO) is on medical leave and Mohammed Akoojee will be appointed as the acting CEO of the company, in addition to his role as the Chief Financial Officer, until the conclusion of the unbundling of Motus. On its conclusion, he will be appointed as the CEO Designate of Imperial Logistics. The company, in its 1H 2018 results, stated that its revenue increased to R1.15 billion from R1.08 billion posted in the corresponding period of the previous year. Its diluted EPS rose to c from c posted in the same period of the prior year. The company, in its 1H 2018 results, stated that its total income decreased to R27.43 million from R35.79 million posted in the corresponding period of the previous year. Its diluted EPS fell to c from c recorded in the same period of the prior year. The company declared an interim dividend of c per share. For FY 2018, the company aims to restore the financial performance of the retail insurance business, improve the investment performance of STANLIB, simplify the company's overall operations and expand its relationship with the Standard Bank Group. The company announced that Ms Matsotso Vuso has been appointed as an independent Non-Executive Director and as Chairperson of the company s audit and risk committee with immediate effect. The company, in its 1Q 2019 results, indicated that its revenue rose to R million from R million posted in the corresponding period of the previous year. Its diluted EPS decreased to 0.02c from 0.06c recorded in the same period of the prior year. For FY 2019, the firm expects total revenue to be in the range of R1.86 billion to R1.90 billion. Further, the company expects EPS to be between 31.20c to 33.20c. In its 1H 2018 results, the company announced that its revenue increased to 3.73 billion from 3.58 billion posted in the corresponding period of the prior year. Its EPS rose to 72.40c from 72.00c recorded in the same period of the preceding year. The company declared an interim dividend of 21.45c compared to the 19.10c in the same period of the prior year. The company announced that Mr. Nick Matulovich will retire from the role of Chief Financial Officer (CFO) of Rockcastle Global Real Estate Company Limited. He will work with the company until February 2019 to ensure a smooth handover of his tasks. Further, Mr. Spiro Noussis has confirmed that he will not be accepting the position of Chief Investment Officer. New Frontier Properties The company announced that Mr Nigel Gurkin has resigned as the Financial Director with effect from 1 August Massmart Holdings The company, in its 1H 2018 trading statement, revealed that the company expects HEPS to be in the range of 89.30c to c, a 47.0% to 37.0% decrease from the same period of the prior year. Further, the company expects EPS to fall between 50.0% to 40.0% to be in the range of 85.30c to c. Oceana Group The company announced that Mr Imraan Soomra has been appointed as Chief Executive Officer of the company, effective from 1 August Further, Trevor Giles has been appointed as interim Chief Financial Officer with effect from 1 August Peregrine Holdings The company announced that Boitumelo Tlhabanelo has been appointed as an independent Non-Executive Director with effect from 1 August Santam The company announced that Mr PE Speckmann will serve as Chairperson of the company s Audit Committee from 1 August Mr MJ Reyneke, who served as chairperson of the Audit Committee from 1 June 2016 will continue to serve as a member of the Committee. Mr Reyneke will also continue to serve as Chairperson of the Risk Committee. 5

6 South African Corporate News Company Name Sibanye Gold Sirius Real Estate News The company announced that all the conditions precedent to the DRDGOLD Limited (DRDGOLD) transaction have been fulfilled and that the transaction was implemented on 31 July Sibanye-Stillwater now owns 38.1% of the issued share capital of DRDGOLD, currently worth R million. In addition, the company has an option to subscribe for the option shares within 24 months from the date of implementation of the transaction to further attain up to a 50.1% shareholding in DRDGOLD at a 10.0% discount to the 30-day volume weighted average traded price of a DRDGOLD share on the day prior to the date of exercise of the option. Separately, the company, in its 1H 2018 trading update, stated that it expects to report a significantly increased EPS of 3.00c and HEPS of 4.00c, representing an increase of 101.0% and 103.0%, respectively, from the loss per share of c and a headline loss per share of c. The company announced that it has completed the acquisition of two business parks in Friedrichsdorf, near Frankfurt, and in Fellbach, close to Stuttgart, for a total of 29.8 million. Spur Corporation The company, in its FY 2018 sales update, stated that its total franchised restaurant sales increased by 1.3% to R7.10 billion in FY Further, franchised restaurant sales in South Africa grew by 1.5%, with sales from international restaurants declining by 0.7% in rand terms. International restaurant sales increased by 2.7% on a constant exchange rate basis. Also, in South Africa, 44 new restaurants were opened and 18 closed during the year, while 11 restaurants were opened and 9 closed internationally. Steinhoff Africa Retail The company announced the appointment of Mr Mark Harris as an independent Non-Executive Director with effect from 30 July Mark will also serve on the Board s remuneration committee. Further, Ms Heather Sonn tendered her resignation from the Board with effect from 30 July Moreover, the company announced the Appointment of Mr Philip Dieperink as a Non-Executive Director with effect from 30 July 2018 to replace Heather. Steinhoff International Holdings Tawana Resources The company announced that SEAG and Finance Holding will each relocate their principal place of business from Austria to the UK and set up a permanent establishment in the UK. The principal place of business and address for all its notices and communications, the management and principal place of administration and the head office will be the same as the head office of the Steinhoff UK Group. The company announced the appointment of Ms Joanna Kiernan as Joint Company Secretary of the company, effective immediately. Vukile Property Fund The company announced the acquisition of Morzal Properties Iberia S.L. which had secured the opportunity to acquire 4 shopping centres in Spain. The company announced that it has acquired by way of subscription of 51.0% shareholding in Morzal. 6

7 Bearish Alerts Bullish Alerts Technical Alerts Name Ticker Currency Last Close % Chg Signal Equites Property Fund Ltd EQU SJ ZAr % MA 20D crossover Invicta Holdings Ltd IVT SJ ZAr % Lower Bollinger crossunder Transaction Capital Ltd TCP SJ ZAr % Stochastic indicates oversold Group Five Ltd/South Africa GRF SJ ZAr % Stochastic indicates oversold Name Ticker Currency Last Close % Chg Signal Redefine International Plc/Isle Of Man RPL SJ ZAr % MA 20D crossunder Liberty Two Degrees L2D SJ ZAr % Upper Bollinger crossover Assore Ltd ASR SJ ZAr % Stochastic indicates overbought Anglogold Ashanti Ltd ANG SJ ZAr % Stochastic indicates overbought 7

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