Weekly Market Report. South African Equity Markets. JSE All Share - Weekly. JSE All Share - Daily Chart. Top 10 New 52 Week Lows

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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) Weekly Market Report 10 September 07 September 1W% YTD % Key Global Indices Close Change Change JSE All Share % -4.1% FTSE % -5.3% DAX % -7.4% CAC % -1.1% DJIA % 4.8% S&P % 7.4% NASDAQ Comp % 14.5% Nikkei % -2.0% Shanghai Comp % -18.3% S&P/ASX % 1.3% South African Equity Markets South Africa markets ended lower last week. Telecommunication company, MTN Group sank 16.0%, after the firm received a $2.00 billion tax bill from Nigeria. Steinhoff International Holdings dropped 11.1%. Trading and distribution company, Bidvest dropped 7.8%, despite recording a rise in its FY revenues. Technology company, EOH plunged 8.6%, after the company indicated that it expects a decline in its earnings per share in FY. Aspen Pharmacare holdings declined 8.4%, after it stated that a stronger domestic currency reduced revenue by R1.00 billion in the second half of its financial year. On the flipside, gold miners, Harmony Gold mining and Sibanye Gold surged 11.6% and 10.9%, respectively. Entertainment company, Sun International jumped 7.5%, as the company reported that its profits rose in 1H. The JSE All Share Index declined 2.7% to close at 57, JSE All Share - Weekly JSE All Share - Daily Chart -25.9% Net 1 UEPS Technologies Inc Group Five Ltd 49.4% 63,314 60, % MTN Group Ltd Pan African Resources Plc 16.4% 56,845 53, % -12.3% Consolidated Infrastructure Group Ltd Blue Label Telecoms Ltd Pallinghurst Resources Ltd Harmony Gold Mining Co Ltd 13.9% 11.6% 50, RSI (21) -11.1% Steinhoff International Holdings NV -54.4% -27.2% 0.0% 27.2% 54.4% Top 10 New 52 Week Highs Sibanye Gold Ltd 10.9% 0 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Top 10 New 52 Week Lows Share 52Week High (ZAR) 1W% Change Anglo American Platinum Ltd % Bid Corp Ltd % BHP Billiton Plc % Cie Financiere Richemont SA % Mondi Ltd % Mondi Plc % Sappi Ltd % Schroder European REIT Plc % Sasol Ltd % Stenprop Ltd % Share 52Week Low (ZAR) 1W% Change AfroCentric Investment Corp Ltd % Attacq Ltd % Blue Label Telecoms Ltd % Balwin Properties Ltd % Choppies Enterprises Ltd % Grindrod Ltd % Hyprop Investments Ltd % Investec Property Fund Ltd % Imperial Holdings Ltd % MTN Group Ltd % ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 8 1

2 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Weekly Market Report Key Currencies 07 September Close 1W% Change YTD % Change USDZAR % 23.0% EURZAR % 18.5% GBPZAR % 17.7% EURUSD % -3.8% EURCHF % -4.3% GBPUSD % -4.4% USDJPY % -1.5% USDCHF % -0.5% AUDUSD % -9.0% USDCAD % 4.7% Daily USD/ZAR Currencies The ZAR weakened against its major peers last week. Moody s downgraded its growth forecast for South Africa from 1.5% to between 0.7% and 1.0% in. On the data front, South African economy entered a technical recession in the second quarter of. Moreover, the manufacturing PMI declined to its lowest level since July 2017 in August. Additionally, new vehicle sales recorded a drop on a yearly basis in August. On the flipside, the nation s annual electricity production advanced in July. Additionally, electricity consumption recorded a rise on a yearly basis in the same month. For the week, the USD strengthened 3.7% against the South African Rand to close at R The EUR was 3.3% higher at R and the GBP was 3.4% stronger at R for the week. The US Dollar strengthened against its key counterparts last week, after the August non-farm payrolls report came in stronger-than-expected. Further, data indicated that the US ISM manufacturing PMI unexpectedly advanced in August, notching its highest reading since May In contrast, monthly construction spending rose at a slower-than-expected pace in July. Additionally, trade deficit widened to a five-month high level in July. Moreover, Markit services PMI recorded a more-than-expected drop in August. Further, factory orders fell more than market expectations in July The EUR dropped against the USD last week. On the macroeconomic front, Eurozone s retail sales dropped on a monthly basis in July, recording its first decline in three months. Meanwhile, the region s producer price index advanced more than market expectations on an annual basis in July. Moreover, Markit services PMI rose in line with market forecast in August. Separately, Germany s Markit manufacturing PMI recorded a drop in August. Further, Markit services PMI recorded a less-than-expected rise in August. The GBP fell against the USD in the previous week, amid ongoing concerns over Brexit. Data revealed that UK s Markit manufacturing PMI dropped in August, recording its lowest reading in 25 months. Additionally, construction PMI rose at its weakest pace in three months in August. On the flipside, the nation s Markit services PMI advanced more than market expectations in August. Key Commodities 07 September Close 1W% Change YTD % Change Gold ($/oz) % -8.1% Silver ($/oz) % -17.4% Copper (USd/lb.) % -21.1% Brent Crude ($/bls) % 14.9% Sugar No.11 (USd/lb.) % -27.4% Iron Ore 62% Fe ($/dry MT) Daily Platinum 1, % -10.0% Commodities Gold prices declined last week, amid expectations of further interest rate hikes by the Federal Reserve (Fed) this year, following stronger-than-expected US jobs data. Going ahead, market participants will closely watch the Fed s Beige Book report along with the US consumer price index, consumer credit, JOLTS job openings, monthly budget statement, advance retail sales, industrial and manufacturing production data for further direction. Crude oil prices declined last week. Meanwhile, the American Petroleum Institute reported that crude oil inventories declined by 1.2 million bls in the week ended 31 August. Additionally, the US Energy Information Administration reported that crude oil inventories fell by 4.3 million bls last week. Moreover, Baker Hughes reported that US oil rig count fell by 2 to 860 last week. Copper prices traded in negative territory last week, as escalating trade tensions between the US and top metals consumer, China, increased concerns over demand for the commodity

3 Key Economic News Last Week Country News The manufacturing PMI recorded a drop to in August. The manufacturing PMI had recorded a reading of in the previous month. New vehicle sales dropped 2.5% on an annual basis in August. In the previous month, new vehicle sales had registered a revised similar rise. Annualised GDP unexpectedly dropped 0.7% on a quarterly basis in 2Q. In the prior quarter, the annualized GDP had fallen 2.2%. South Africa Current account deficit to GDP in South Africa narrowed to 3.3% in 2Q, in line with market expectations. Current account deficit to GDP had recorded a revised level of 4.6% in the prior quarter. Electricity production registered a rise of 2.2% on an annual basis in July. Electricity production had risen 0.3% in the prior month. Electricity consumption recorded a rise of 2.7% on a yearly basis in July. In the prior month, electricity consumption had advanced 0.6%. Net gold & forex reserves dropped more-than-expected to $42.40 billion in August, compared to a reading of $42.44 billion in the prior month. Gross gold & forex reserve unexpectedly eased to a level of $49.80 billion in August, compared to a reading of $50.51 billion in the prior month. Economic Calendar - Week Ahead Monday, September 10, Tuesday, September 11, Wednesday, September 12, Thursday, September 13, Friday, September 14, - Manufacturing Production s.a. (Jul) SACCI Business Confidence Index (Aug) Platinum Production (Jul) - South Africa - - Retail Sales (Jul) Gold Production (Jul) Mining Production (Jul) - 3

4 South African Corporate News Company Name Adcorp Holdings African & Overseas Enterprises African Equity Empowerment Investments African Rainbow Minerals Alviva Holdings Aspen Pharmacare Holdings Assore Aveng BHP Billiton Bidvest Group Capitec Bank Holdings Coronation Fund Managers DataTec Discovery News The company announced that Mr Herman Singh and Dr Phumla Mnganga have been appointed as independent Non-Executive Directors. Mr Singh is appointed as a member of Audit and Risk Committee as well as the Investment Committee. Dr Mnganga is appointed as a member of Transformation, Social and Ethics Committee as well as the Investment Committee. All the appointments are effective from 6 September. The company, in its FY results, indicated that its revenue rose to R million from R million posted in the corresponding period of the previous year. Its diluted EPS stood at 50.10c compared with EPS of 1.30c recorded in the same period of the prior year. Separately, the company announced that Mrs Catherine Radowsky has resigned as the Chief Executive Officer (CEO) with effect from 31 August, with Mr Marcel Golding having been appointed as the CEO of the company. Further, Mr Marcel Golding has resigned as the Chairman of the Board of Directors of the company with effect from 31 August, with Mr Masedi Molosiwa having been appointed as the independent Non-Executive Chairman of the Board of Directors of the company. The company announced that Miss Nobulungisa Mbaliseli has resigned as the Company Secretary with immediate effect and Mr Damien Terblanche has been appointed as the new Company Secretary with immediate effect. The company, in its FY results, revealed that its revenue advanced to R9.60 billion from R9.02 billion posted in the same period of the preceding year. Its diluted EPS stood at 2,419.00c, compared with c recorded in the corresponding period of the previous year. The company has declared a final dividend of c per share for the period. The company, in its FY results, indicated that its revenue rose to R13.62 billion from R12.81 billion posted in the same period of the preceding year. Its diluted EPS stood at 273.5c, compared with 244.2c recorded in the corresponding period of the previous year. the company declared a final dividend of 27.00c for the period. The company, in its FY trading update, stated that the company expects HEPS to increase between 11.0% and 15.0% to be in the range of 1,442.40c to 1,494.40c, compared with the corresponding period of the preceding year. Further, the company expects EPS to be between 1,291.90c and 1,336.80c, 15.0% to 19.0% higher from the same period of the previous year. The company, in its FY results, indicated that its revenue rose to R7.80 billion from R7.22 billion posted in the corresponding period of the previous year. Its diluted EPS increased to 4,963.00c from 4,867.00c recorded in the same period of the prior year. The company has declared a final dividend of 1,200.00c per share compared with c per share posted in the same period of the preceding year. The company, in its FY trading statement, indicated that the company expects headline loss per share to be between c per share and c per share. Further, the company expects loss per share to be in the range of c per share to c per share for the period. The company announced that it has entered into an agreement with Guyana Goldfields Inc to acquire its 6.1% interest in SolGold Plc, the majority owner and operator of the Cascabel porphyry copper-gold project in Ecuador. Through this acquisition, the company will be exposed to high quality copper exploration projects in Ecuador. As per the agreement, the company will acquire million shares in SolGold for 26.59p per share. The company, in its FY results, stated that its revenue increased to R76.96 billion from R71.00 billion posted in the corresponding period of the previous year. Its diluted EPS fell 20.4% from the same period of the prior year to 1,132.40c. The company has declared a final dividend of c per share, compared with c per share recorded in the corresponding period of the preceding year. The company, in its 1H trading statement, indicated that the company expects HEPS to be between 2,087.00c and 2,140.00c, an increase of between 18.0% and 21.0% compared with the same period of the prior year. Further, the company expects EPS to be in the range of 2,089.00c to 2,142.00c, an 18.0% to 21.0% rise from the corresponding period of the previous year. The company announced that Mr Jock McKenzie has stepped down as Chairman of matters that relate to remuneration and Dr Hugo Nelson has been appointed as the new Chairman on matters of remuneration with effect from 6 September. Further, Mr McKenzie remains a member of the remuneration and nominations committee. On matters that relate to the nominations and appointment of individuals, the committee continues to be chaired by independent Non-Executive Director and Chairman of the board, Mr Shams Pather. The company announced that its subsidiary Logicalis SA (Pty) Limited has acquired Clarotech, an IP telephony (IPT) cloud and managed services business based in Cape Town. With this acquisition, Logicalis will be able to extend its managed services capability with a mature SMB customer base, strong services delivery and sales capabilities to drive scale and relevancy in the region. Separately, the company announced that its subsidiary Logicalis Group Limited has completed the acquisition of 100.0% of the issued share capital of Coasin Chile S.A. The acquisition will bring significant capabilities and scale to Logicalis existing operations in Chile and Peru. The company, in its FY results, indicated that its insurance premium revenue increased to R36.69 billion from R33.53 billion posted in the same period of the prior year. Its diluted EPS advanced 28.0% from the corresponding period of the preceding year to c. The company has declared a final gross dividend of c per share. 4

5 South African Corporate News Company Name Drdgold News The company, in its FY results, indicated that its revenue advanced to R2.49 billion from R2.33 billion posted in the same period of the preceding year. Its diluted EPS stood at 1.50c, compared with 3.20c recorded in the corresponding period of the previous year. Enx Group The company announced that Mr A Joffe has been appointed as a Non-Executive Director of the group with effect from 5 September. EOH Holdings Fairvest Property Holdings Famous Brands FirstRand Hospitality Property Fund The company, in its FY trading statement, revealed that the company expects HEPS to be in the range of c to c, a decrease of between 55.0% and 70.0% from the same period of the previous year. The company expects EPS to be between a loss per share of c and an EPS of 41.00c, reflecting a decrease of between 95.0% and 115.0% compared with the corresponding period of the prior year. Further, the company expects revenue to advance 8.0% from the same period of the preceding year to R16.30bn. The company, in its FY results, indicated that it revenue advanced to R million from R million in the same period of the previous year. Its diluted EPS stood at 31.69c compared with 40.53c recorded in the corresponding period of the preceding year. The company has declared a dividend of c per share, same as the prior year. Separately the company announced that Mr N Mkhize has been appointed as the new Chairman of the audit and risk committee with effect from 3 September, replacing Mrs KR Moloko who resigned from the Board effective from 3 September. Further, Mr TJ Cohen has been appointed as a new member of the audit and risk committee with effect from 3 September. The company announced that a request to the Board by Ms Kelebogile Ntlha to withdraw her resignation as the Financial Director has been accepted. The company, in its FY results, reported that its net interest income advanced 9.0% from the same period of the preceding year to R49.10 billion. Its diluted EPS stood at c, compared with c recorded in the corresponding period of the previous year. The company has declared a final dividend of c per share, an increase of 8.0% from the same period of the prior year. Separately, the company announced the change in designation of Mr JJ Durand as a Non-Executive Director to an alternate Non-Executive Director for Mr JP Burger, with effect from 3 September. The company announced that the appointment of Mr Robert Nicolella as an Executive Director and the Chief Executive Officer, following the resignation of Mr Keith Randall as an Executive Director and CEO, effective 1 November. Intu Properties The company announced that Andrew Strang will be stepping down as a Non-Executive Director from the board on 30 September. Libstar Holdings MAS Real Estate Master Drilling Group Mediclinic International MMI Holdings MTN Group Northam Platinum The company, in its 1H results, indicated that it revenue advanced to R4.53 billion from R3.97 billion in the same period of the previous year. Its diluted EPS stood at 13.00c compared with 25.00c recorded in the corresponding period of the preceding year. The company, in its FY results, stated that its revenue increased to R43.40 million from R31.58 million posted in the corresponding period of the previous year. Its diluted EPS fell to 2.92c from 8.43c recorded in the same period of the prior year. The company announced that the company and its subsidiaries have entered into various sale of business agreements with Atlantis Group in respect of the proposed acquisition of the businesses of the Atlantis Group in the various countries. The company announced that its Swiss operating division, Hirslanden, has reached an agreement to combine Hirslanden Clinique La Colline with Clinique des Grangettes in Geneva, Switzerland, with Hirslanden retaining a 60.0% controlling interest in the combined entity. This combination will allow the company to establish itself as the number one private healthcare service provider in Geneva. The transaction is subject to competition approval in Switzerland with an effective date of the combination expected to be from October. The company, in its FY results, indicated that its net income advanced to R75.30 billion from R54.74 billion posted in the same period of the preceding year. Its diluted EPS stood at 88.10c, compared with 98.10c recorded in the corresponding period of the previous year. The company has not declared a final dividend for the period. The company announced that its wholly owned subsidiary, MTN Dubai Limited, had entered into an agreement in terms of which it had sold 100.0% of MTN Cyprus to Monaco Telecom S.A. The company has stated that this transaction has been completed for proceeds of R4.50bn. The company, in its FY results, stated that its revenue increased to R7.55 billion from R6.87 billion posted in the corresponding period of the previous year. Its diluted loss per share rose to c from c recorded in the same period of the prior year. The company has not declared a final dividend for the period. Separately, the company announced that Mr MH Jonas and Mr JJ Nel have been appointed as independent Non-Executive Directors with effect from 6 November. Pick N Pay Stores The company announced that Ms Lorato Phalatse has resigned as an independent Non-Executive Director with effect from 31 August. 5

6 South African Corporate News Company Name RMB Holdings SA Corporate Real Estate Sanlam Sasfin Holdings Sibanye Gold Spur Corporation Stadio Holdings News The company, in its FY results, reported that its revenue advanced to R26.00 billion from R16.00 billion posted in the same period of the preceding year. Its diluted EPS stood at c, compared with c recorded in the corresponding period of the previous year. The company has declared a total dividend of c per share, an increase of 7.0% from the same period of the previous year. The company, in its 1H results, indicated that it revenue advanced to R1.17 billion from R1.04 billion in the same period of the previous year. Its diluted EPS stood at 30.51c compared with 34.96c recorded in the corresponding period of the preceding year. The company, in its 1H results, stated that its net income decreased to R44.03 billion from R47.29 billion posted in the corresponding period of the previous year. Its diluted EPS rose to c from c recorded in the same period of the prior year. The company has not declared an interim dividend for the period. The company, in its FY trading statement, stated that it expects HEPS to be in the range of c to c, which is a decrease of 41.7% to 36.7% compared with the corresponding period of the previous year. Further, it expects EPS to be in the range of c to c, which is a fall of 39.5% to 34.5% from the same period of the prior year. Further, the financial results for the year ended 30 June are expected to be published on or about 17 September. The company announced the conclusion of its previously announced invitation to tender Convertible Bonds for purchase up to the aggregate principal amount corresponding to $50 million in aggregate purchase price (including accrued interest) to holders of its $450 million 1.875% Guaranteed Unsecured Convertible Bonds due The company, in its FY results, stated that its revenue increased to R million from R million posted in the corresponding period of the previous year. Its diluted EPS rose to c from c recorded in the same period of the prior year. The company has declared a final dividend of c per share, a decrease of 6.8% from the same period of the preceding year. The company, in its 1H results, indicated that its income rose to R million from R33.18 million posted in the corresponding period of the previous year. Its diluted EPS stood at 3.6c compared with a diluted loss per share of 0.8c recorded in the same period of the prior year. The company has not declared an interim dividend for the period. Steinhoff International Holdings The company announced the appointment of Mr Ewoud van Gellicum its Company Secretary with effect from 1 September. Sun International The company, in its 1H results, indicated that its income rose to R7.85 billion from R7.56 billion posted in the corresponding period of the previous year. Its diluted EPS stood at c compared with a diluted loss per share of 59.00c recorded in the same period of the prior year. The company has not declared an interim dividend for the period. Separately, the company announced that Messrs Jabulane Mabuza and Vusumuzi Khanyile were appointed as the Deputy Chairman and as an independent Non-Executive Director, while Mr Khati Mokhobo resigned as an Executive Director from the Board. 6

7 Bearish Alerts Bullish Alerts Weekly Market Report Technical Alerts Name Ticker Currency Last Close % Chg Signal Northam Platinum Ltd NHM SJ ZAr % MA 20D crossover Attacq Ltd ATT SJ ZAr % Lower Bollinger crossunder Mr Price Group Ltd MRP SJ ZAr % Stochastic indicates oversold African Oxygen Ltd AFX SJ ZAr % Stochastic indicates oversold Name Ticker Currency Last Close % Chg Signal Net 1 UEPS Technologies Inc NT1 SJ ZAr % MA 20D crossunder Novus Holdings Ltd NVS SJ ZAr % Upper Bollinger crossover Sibanye Gold Ltd SGL SJ ZAr % Stochastic indicates overbought Anglogold Ashanti Ltd ANG SJ ZAr % Stochastic indicates overbought 7

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