A commodities meltdown weighs heavily on the local bourse. Share

Transcription

1 2 October 2015 I N V E S T O R C A M P U S FROM THE DESK A commodities meltdown weighs heavily on the local bourse September was yet another volatile month on global markets. Fear around China, a sustained drop in commodity prices (as global growth concerns remained) and uncertainty around when the Fed would raise rates were just some of the numerous factors weighing on markets last month. The price of platinum reached all-time lows following Volkswagen s (VW s) admission of rigging its emissions tests, while emerging market (EM) currencies were crushed vs a surging dollar and Asian shares fell to their lowest levels since China s factory sector activity (the Caixin Media/ Markit Economics PMI) shrank to a six-and-a-half year low in September, increasing fears of a sharper slowdown in the world s second-largest economy. However, US economic indicators released during the month showed that the country was well on the path to recovery with US consumer confidence at its highest level since January and GDP growth revised upward to 3.9%, driven by stronger than previously thought consumer spending. The US Federal Reserve (Fed) held off on raising interest at its policy meeting citing volatility in the global economy. However, chairperson Janet L Yellen indicated in a speech last week that there was a still a good chance that the first rake hike in almost a decade could come before the end of this year. Locally, economic data showed that mining production increased 5.6% YoY in July, while manufacturing production rose by a strongerthan-expected 5.6% YoY. However, the August trade deficit widened as exports of minerals such as coal and iron-ore dropped and oil imports rose. The 3Q15 RMB/BER business confidence index fell for a third straight quarter and consumer confidence dropped to a 14- year low in 2Q15 as high unemployment (c. 25%), a weakening currency and accelerating food inflation put pressure on consumers. The rand s freefall continued (down 4.5% MoM and 20.0% YTD) with the currency hitting an all-time low of R14.09/$1 last Thursday. The South African Reserve Bank (SARB) monetary policy committee (MPC) kept the benchmark repo rate unchanged at 6%. On the JSE, resource counters were again hit hard this past month and among the main indices, the RESI-20 was the worst performer, dropping by 11.7% MoM (YTD it is down by 25.0%). The FINI-15 lost 3.0% (up 1.4% YTD), while the INDI-25 closed the month 4.6% higher (+7.7% YTD). The FTSE JSE All Share Index recorded a slight increase of 0.2% MoM and the index is up 0.6% YTD. Subscribe to this newsletter at September top-20 performers: Share Source: Bloomberg, Anchor Capital Market Cap (Rmn) Closing price 31/08/2015 Closing price 30/09/2015 % Change SABMILLER PLC 2,62, % HULAMIN LTD 1, % PALLINGHURST RESOURCES LTD 3, % TRUSTCO GROUP HOLDINGS LTD 3, % AFRICAN OXYGEN LTD 5, % WILSON BAYLY HOLMES-OVCON 7, % ASCENDIS HEALTH LTD 4, % PSG GROUP LTD 49, % RHODES FOOD GROUP PTY LTD 4, % ILLOVO SUGAR LTD 7, % FINANCIERE RICHEMONT-DEP REC 6,17, % BRITISH AMERICAN TOBACCO PLC 14,17, % AVI LTD 30, % CAPEVIN HOLDINGS LTD 8, % STEINHOFF INTL HOLDINGS LTD 3,14, % HOLDSPORT LTD 2, % SANTAM LTD 26, % REINET INVESTMENTS SA-DR 57, % PICK N PAY STORES LTD 32, % CLOVER INDUSTRIES LTD 3, % Contacts Anchor Capital Reception Trading Desk Investment / Sales mnyoung@anchorcapital.co.za General Enquiries info@anchorcapital.co.za Brokerage / Trading fswart@anchorcapital.co.za Newsletter Enquiries newsletters@anchorcapital.co.za Anchor Capital (Pty) Ltd, FSP number ; 1

2 Not surprisingly, SABMiller was September s best performer following the announcement that it had received formal notification from Anheuser-Busch InBev (AB Inbev) of the latter s intention to make a bid for the whole of SABMiller plc. This news saw SABMiller s share price soaring 20% on the day, thus pricing in at least a healthy portion of a potential bid premium should any offer prove successful. MoM the company s share price is up 26.7%. Hulamin (+22.3% MoM) was the second-best performer. Last month the company turned to government for industry protection, asking the state for protection against cheaper imports through higher import duties on all of its products to the maximum level of 15.0%. In third-spot, Pallinghurst Resources (+21.2%), which has investments in platinum, steel-feed materials and coloured gemstones, last month reported 1H15 results and managed to eke out a net half-year profit of $3mn in an extremely difficult operating environment. This as a strong performance from its investment in coloured gemstones offset weak prices in platinum and steel-making ingredients. For 1H15 Pallinghurst increased its net asset value (NAV) to $474.6mn from $471.5mn at the end of December, but still below its NAV of $519.7m in the same period of last year. Trustco turned around its poor share-price performance in August (when it was down 16.3%) by gaining 20.6% MoM, and coming in fourth spot. It was followed by African Oxygen Limited (+18.2%) which had several good-news stories to share in September. The company last month said it had retained the R130mn Massbuild LP Gas supply agreement to September 2020 and announced that it had signed a seven-year contract extension, worth more thanr200mn, with a major supplier to the local retail industry in the Western Cape for the exclusive supply of LPG until Added to that, the Group was also awarded a R80mn contract commencing in 2016 to supply bulk oxygen and nitrogen to Sappi s Ngodwana Mill in Mpumalanga. Wilson Bayly Holmes-Ovcon Limited (WBHO) gained 16.8% MoM. The company reported FY15 results at the end of August and, although revenue climbed 14.8% YoY to R29.52bn, its headline EPS from continuing operations declined to R11.06 from R12.78 in FY14. However, WBHO indicated that its order book increased 65.3% YoY to R36.1bn, underpinned by a more than doubling in value of projects it won in Australia and the c. one-third rise in its domestic building and civil engineering book. Ascendis Health Ltd (14.4% MoM) posted FY15 results in September which showed that its revenue from continuing operations rocketed 74.1% YoY to R2.82bn, while diluted headline EPS from continuing operations stood at R80.24, vs the R64.34 reported in FY14. Ascendis also announced that its acquisitive growth strategy had continued to gain momentum and, in South Africa, it was in negotiations for bolt-on acquisitions across all of its divisions. PSG Group, Rhodes Food Group and Illovo Sugar rose by 12.4%, 10.4% and 10.0%, respectively, in the month. Rhodes Food Group last month said that the Competition Commission had approved its acquisition of the business assets of Deemster and that the remaining conditions precedent, have also been fulfilled. Illovo Sugar, which has been under a lot of pressure this year, managed to reverse its oversold position despite releasing a disappointing 1H16 trading statement, wherein the Group revealed that its headline EPS was likely to decrease in the range of 50.0% to 60.0% YoY. This was mainly due to the challenging market conditions and the seasonal phasing of production and sales at the half-year. Richemont, British American Tobacco and AVI Ltd recorded MoM gains of 8.8%, 8.4% and 8.1%, respectively. Last month, Richemont reported a 4.0% YoY rise in sales for the five months to August in constant currency terms, while British American Tobacco Plc said it had agreed to acquire a 100% of the CHIC Group. The Group has 800 points of sale in Poland, a dedicated e-liquids production facility, a modern research and development centre and also owns leading Polish e-cigarette brands. Capevin Holdings (+7.0% MoM) released its FY15 results in September. The company stated that its total comprehensive income increased to R455.33mn from R405.88mn posted in the previous year while its diluted headline EPS dropped to ZAc43.50 from ZAc46.10c recorded in FY14. Rand-hedge Steinhoff International released FY15 results, which showed that its revenue from continuing operations increased to R134.87bn from R117.36bn recorded in the preceding year, while headline diluted EPS from continuing operations rose 0.8% YoY to R4.20. Steinhoff said that it continued to benefit from the growth experienced within the value and discount market segments, despite the challenging and volatile global consumer environment. In a trading statement for the six months ended 31August, Holdsport (+6.4% MoM) revealed that its basic EPS was likely to advance in the range of 25.0%-29.0% YoY to between ZAc and ZAc205.70, while the Group s headline EPS was likely to be between ZAc199 and ZAc205.40, compared with ZAc reported in the same period of the previous year. Santam Limited (+6.1% MoM) announced this week that it has agreed to sell its controlling stake in independent brokerage firm, Indwe Broker Holdings to Ubuntu-Botho Investments and Sanlam, subject to regulatory approval. The transaction is based on a valuation for Indwe of R265mn and it will see Santam retain a 24.0% stake of Indwe. Finally, investment firm Reinet Investments (+6.0% MoM), Pick n Pay Stores (+5.9% MoM) and Clover Industries (+5.7% MoM) accounted for the remainder of the top-20 MoM performers. During September, Clover released FY15 results, which showed that its revenue had increased 8.6% YoY to R9.27bn, while its headline EPS climbed 69.0% YoY to ZAc173.60c. September bottom-20 performers: Share Source: Bloomberg, Anchor Capital Market Cap (Rmn) Closing price 31/08/2015 Closing price 30/09/2015 % Change LONMIN PLC 2, % NORTHAM PLATINUM LTD 13, % ANGLO AMERICAN PLATINUM LTD 61, % ROYAL BAFOKENG PLATINUM LTD 4, % AFRICAN RAINBOW MINERALS LTD 11, % AQUARIUS PLATINUM LTD 2, % AVENG LTD 1, % HARMONY GOLD MINING CO LTD 3, % EXXARO RESOURCES LTD 18, % IMPALA PLATINUM HOLDINGS LTD 24, % ANGLO AMERICAN PLC 1,62, % PPC LTD 10, % NET 1 UEPS TECHNOLOGIES INC 10, % MR PRICE GROUP LTD 51, % DATATEC LTD 12, % NAMPAK LTD 18, % SUN INTERNATIONAL LTD 9, % GROUP FIVE LTD 2, % MMI HOLDINGS LTD 37, % GOLD FIELDS LTD 28, % 2

3 It should come as no surprise that with slumping commodity prices leading to intense selling pressure on mining stocks during September, most of the companies featured among the top-20 worst performers were resource and related counters. As the price of platinum hit a six-and-a-half year low and with VW s emissions scandal in the US further impacting sentiment (there will likely be a significant drop in platinum usage if consumers buy fewer diesel cars), platinum companies were the hardest hit and counted among the six worst monthly performers in September. Lonmin was the month s worst performer as the share price plummeted a further 51.3% MoM. YTD the share has now lost 88.9% of its value as the pressure on commodities and concerns around the world s thirdlargest platinum miner struggling to refinance its debt next year added to its woes. Lonmin was followed by Northam Platinum (-28.6% MoM), Anglo American Platinum (-28.5% MoM), Royal Bafokeng Platinum (-27.3% MoM), African Rainbow Minerals (-27.0% MoM) and Aquarius Platinum (-26.7% MoM). There was some good news for some of these platinum stocks with, Northam Platinum saying that credit rating agency, Global Credit Rating Co., had upgraded its short-term credit rating to A1-(ZA) from A2 (ZA) and reaffirmed its long-term rating of BBB+(ZA) with the outlook accorded as Stable, while Anglo American Platinum indicated that it would start buying power from a venture that uses the heat generated by its smelters to produce electricity. African Rainbow Minerals (ARM), in its reviewed FY15 results, indicated that its revenue declined 5.9% YoY, while its diluted headline EPS dropped to R7.99 from R18.86 posted in the previous year. The company also lowered its attributable capital expenditure (including ARM Ferrous) FY16 guidance from R2.9bn to R2.4bn c. R1.0bn less than its FY15 expenditure. In early September, Aveng (-25.2% MoM) announced it had sold the majority of its property portfolio to the Collins Property Group for R1.13bn. With the gold price in the doldrums (the gold price dropped 1.7% MoM and has YTD recorded a 6.2% decline), higher costs cutting into mining profits and workers pushing for wage increases, Harmony Gold saw its share price drop a further 23.5% MoM. Pressure on commodity prices and the possibility of a National Union of Mineworkers (NUM) strike at Exxaro Resources (as well as at Anglo American and Glencore) saw the company s share price fall 22.6% MoM. According to Business Report, the price of coal delivered to northwest Europe has dropped 26% YTD and is at its lowest level since c Impala Platinum (-22.4% MoM) posted results last month which showed that its FY15 revenue had climbed to R32.48bn from R29.03bn but headline diluted EPS dropped 58.1% YoY to R0.36. Implats also said that it planned to cut as many as 1,600 jobs at its Rustenburg operations on the back of pressure due to the sharply lower platinum price. Lower commodity prices and a downgrade by Credit Suisse saw negative investor sentiment push Anglo American (-21.3% MoM) lower, while PPC (-21.2% MoM) said in an operational update that it was impacted by intense competition despite a decline in cheap imports from Pakistan. PPC added that its expansion strategy remained on track. Net1 UEPS Technologies (-19.8% MoM), which has come under the spotlight locally in recent years amid allegations of bribery to win a SA Social Security Agency (SASSA) contract, last month saw a US court dismissing a class action lawsuit against it. This also follows the SEC having said in June this year that it had concluded its investigation against Net1 and that it " did not intend to recommend an enforcement action" against the company. Mr Price Group (-19.1% MoM) said last month that low levels of consumer confidence, what it referred to as some poor fashion calls and a relatively late winter curbed local sales, which rose 9% YoY in the 21 weeks through 22 August, while same-store sales advanced 4.6% YoY. Datatec (-17.3% MoM) dropped after saying that it expected its headline EPS for 1H16 to be 25.0% lower YoY. Nampak (-16.4% MoM) indicated last month that it was struggling to get money out of Angola and Nigeria to pay for management fees, dividends and loans as central bank efforts to shore up these country s currencies resulted in foreign-exchange supplies drying up. The packaging Group added that it continues to navigate volatile macroeconomic conditions that prevail in a number of its key markets in FY15. Locally, the company indicated that it has experienced operational difficulties at its Glass and Bevcan Springs factories which it said it was addressing through what it termed targeted operational excellence initiatives. Sun International (-16.1% MoM) last month saw the last remaining objection relating to the proposed relocation of its Morula casino licence being withdrawn. The Group is relocating its Morula casino licence from the current site in Mabopane to Menlyn, Tshwane. Finally, Group Five lost 15.7% MoM, while financial services company, MMI Holdings and Gold Fields both ended September 15.4% MoM in the red. In its FY15 results, MMI Holdings indicated that its net income declined to R66.56bn from R87.65bn recorded in the preceding year, while its diluted core headline EPS increased 6.0% YoY to R2.39. Top-20 performers: YTD: Share Source: Bloomberg, Anchor Capital Market Cap (Rmn) Closing price 31/12/2014 Closing price 30/09/2015 % Change MONTAUK ENERGY HOLDINGS LTD 1, % CASHBUILD LTD 7, % FORTRESS INCOME FUND LTD 22, % BRAIT SE 73, % PSG GROUP LTD 49, % NET 1 UEPS TECHNOLOGIES INC 10, % TRUSTCO GROUP HOLDINGS LTD 3, % MONDI LTD 1,40, % MONDI PLC 1,40, % RHODES FOOD GROUP PTY LTD 4, % CAPITEC BANK HOLDINGS LTD 57, % STEINHOFF INTL HOLDINGS LTD 3,14, % ADVTECH LTD 5, % RESILIENT PROPERTY INCOME 43, % CAPITAL & COUNTIES PROPERTIE 76, % PIONEER FOODS GROUP LTD 45, % EOH HOLDINGS LTD 19, % MPACT LTD 7, % KAP INDUSTRIAL HOLDINGS LTD 15, % SABMILLER PLC 12,62, % Montauk Energy Holdings continued its phenomenal YTD performance, with the share price having now gained 268.4% YTD. It was followed by Cashbuild (+85.8% YTD) and Fortress Income Fund (+82.2% YTD). Cashbuild has been performing exceptionally well in a very difficult consumer environment by focusing on the broad building materials sector and aggressive store expansion. Real estate investment trust (REIT), Fortress Income Fund has also fared well in 3

4 a challenging environment with its offshore exposure helping the Group achieve set targets. Brait SE (+80.0% YTD) last month announced it would raise $541mn through the launch of agbp350mn convertible bond offering to fund acquisitions. It was followed by PSG Group which has gained 74.2% YTD, while Net 1 UEPS Technologies is up 71.6% YTD and Trustco s strong YTD performance continued the counter is now up 56.3%. Rand hedges, Mondi Ltd and Mondi Plc were up 53.8% and 52.6% YTD. Mondi last month acquired 100% of the outstanding share capital of Germany-based Ascania for a total consideration of EUR54mn on a debt-and-cash-free basis. Rhodes Food Group (+48.6% YTD), which has been on a spending spree this year, had its Deemster canning and bottling deal approved by the Competition Commission in September. The acquisition will help it enter new categories which is part of the company s strategy is to complement organic growth by expanding into new product categories complementary to its current products. Capitec Bank (+47.4% YTD) released 1H16 results this week which showed that the Group s diluted headline EPS jumped 24.7% YoY. The company revealed that growth in its earnings came from higher loan and transaction fee income and improved loan-book performance as a result of better granting criteria and lower arrears. Steinhoff (+42.9% YTD), said last week that it continues to benefit from the growth experienced within the value and discount market segments, and its focus is on growing the household and general merchandise business, both through expanding existing chains and adding stores in new territories. In September, Advtech (+41.3% YTD) announced that it had concluded an R82mn agreement to acquire Summit College from the Summit College Trust. The transaction, which is subject to due diligence and regulatory approvals, is expected to be completed in January next year. Helped by geographic diversification (to hedge its performance against the weak rand and tough local economic conditions) Resilient Property Income Fund (+39.1% YTD), delivered 21.8% income growth in its last reporting season. Rand hedge property play, Capital & Counties Properties is up 37.6% YTD, while EOH Holdings has risen by 36.8% so far this year and Mpact Ltd has gained 30.9% YTD. EOH, the outsourcing and IT company, released its FY15 results last month which revealed headline EPS of R up 28.6% YoY. The company said that its strategy to consolidate and complement its existing services with strategic acquisitions had allowed it to achieve strong full-year results. Finally, among the top-20 YTD performing shares diversified industrial Group, KAP industrial Holdings and SABMiller Plc are up 30.8% and 28.8% YTD, respectively. KAP reported FY15 results in late August which showed that its fully diluted headline EPS from continuing operations was ZAc40.1 vs ZAc33.8 reported in FY14. The company said then that it believed economic activity in South Africa would remain subdued for the foreseeable future and it would optimise its existing operations, to focus on market share growth and growth in the rest of Africa. SABMiller s YTD gains are on the back of the AB Inbev bid for the Group. Bottom-20 performers: YTD: Share Source: Bloomberg, Anchor Capital Market Cap (Rmn) Closing price 31/12/2014 Closing price 30/09/2015 % Change LONMIN PLC 2, % AVENG LTD 1, % ARCELORMITTAL SOUTH AFRICA 3, % KUMBA IRON ORE LTD 25, % HARMONY GOLD MINING CO LTD 3, % ALLIED ELECTRONICS CO-N SHRS 2, % AFRICAN RAINBOW MINERALS LTD 11, % ALLIED ELECTRONICS COR-A SHR 2, % ROYAL BAFOKENG PLATINUM LTD 4, % ASSORE LTD 10, % IMPALA PLATINUM HOLDINGS LTD 24, % EXXARO RESOURCES LTD 18, % AQUARIUS PLATINUM LTD 2, % ANGLO AMERICAN PLC 1,62, % MURRAY & ROBERTS HOLDINGS 5, % CORONATION FUND MANAGERS LTD 22, % NAMPAK LTD 18, % HOWDEN AFRICA HOLDINGS LTD 1, % PPC LTD 10, % TONGAAT HULETT LTD 14, % The bottom-20 performers YTD were, for the most part, made up of resource (especially platinum) stocks for the reasons outlined earlier. However, with a depressed local operating environment, continued delays in government spending of its c. R1trn infrastructure investment programme and the spectre of collusion claims still hanging over some of SA s top construction companies it is not unexpected that these counters also featured prominently among the JSE s worst YTD performers. With Lonmin s share price seemingly in freefall the company was for the third month running the worst performer YTD, with its share price down a staggering 88.9%. It was followed by infrastructure development Group, Aveng which seems to have become a perennial underperformer its share price is down 79.3% YTD. In third spot, Arcelor Mittal has recorded a 67.6% drop in its value YTD. Last month the Group asked for additional protection from cheap Chinese steel entering the country, requesting that government add import duties on more products. Plunging steel prices and slowing demand, worsened further by China s weakened economic prospects, has resulted in ArcelorMittal saying it would mothball two operations and review the viability of its largest steel mill. Close on the heels of Arcelor, Kumba Iron Ore has lost 67.3% so far this year. The company was last month ousted from the blue chip Top -40 Index on the back of the slump in the price of ore, which has wiped billions off its market cap. Harmony, Allied Electronics N-, ARM, Allied Electronics A-, Royal Bafokeng and Assore were down 60.1%, 57.5%, 56.4%, 56.4%, 54.5% and 50.3% YTD, respectively. Allied Electronics indicated last week that Altech Autopage Cellular, a division Of Altron, which is a wholly owned subsidiary of Allied Electronics, has disposed of its GSM subscriber bases to Vodacom, MTN And Cell C on the back of Altron s TMT Division having experienced a decline in profit levels. Iron and manganese product producer, Assore has battled in the face of a stronger dollar, the slowdown in the Chinese economy and the sharp drop in iron ore prices. 4

5 Impala Platinum and Exxaro are both down 49.3% YTD, while Aquarius has lost 47.6% and Anglo American has retreated 46.3% YTD. Murray & Roberts, Coronation Fund Managers and Nampak-are down 45.0%, 43.3% and 40.9% so far this year. Nampak has been impacted by the economies of Africa s largest oil producers (Angola and Nigeria where the company has a presence) struggling to cope as the price of crude drops to below $50/barrel. Industrial equipment supplier, Howden Africa (39.8% YTD) indicated in its 1H15 results, that its revenue fell to R677.47mn from R752.10mn recorded in the same period a year ago, while headline EPS dropped 19.9% YoY to R1.39. PPC (-37.8% YTD) has seen strife in the company and a difficult local operating environment with intense competition in the sector, weighing on its share price. Finally, Tongaat-Hulett, which has been battling rising sugar imports and dry weather impacting production, is down 37.6% YTD. 5

6 South Africa Market Review South African markets closed in positive territory yesterday, amid broad based optimism in global markets triggered by better than expected Chinese manufacturing PMI data. Lonmin jumped 8.6%, extending its previous session gains. Capitec Bank Holdings climbed 6.0%, as the market continued to react favourably to strong 1H15 results released in the week. IT company, Datatec recovered 4.2%, after a disappointing trading update published earlier in the week. Sanlam and Old Mutual rose 1.7% and 1.3%, respectively. PSG Konsult added 0.8%. The financial advisory group stated that it expects its 1H16 headline EPS to rise by between 27.0% and 30.0%. However, Glencore resumed its slide, falling 2.7%. The JSE All Share Index advanced 0.9% to close at 50, JSE All Share - Last Month 51,831 50,645 49,459 48,273 UK Market Review UK markets closed in the green yesterday, as investors digested nation s better than expected manufacturing PMI data for September. Tullow Oil climbed 9.6%, after it informed that its lenders would continue to provide financial assistance and kept its credit line unchanged at $3.70bn. London Stock Exchange Group rose 3.6%. BP and Royal Dutch Shell advanced 2.5% and 2.1%, respectively. Pearson gained 2.2%. Johnson Matthey added 0.8%, following the completion of the sale of its Alfa Aesar Research Chemicals division to US-based Thermo Fisher Scientific for GBP256.00mn. However, Tesco dropped 2.7%, after news surfaced that the retailer is in discussions to sell its 10 development sites for GBP250.00mn. The FTSE 100 Index rose 0.2%, to close at 6, FTSE Last Month 6,292 6,144 5,997 5,850 US Market Review US markets ended mostly higher yesterday, as investors remained cautious ahead of key nonfarm payrolls report for September which could influence the timing of a Fed rate increase. General Motors and Fiat Chrysler Automobiles gained 2.4% and 2.2% respectively. Paint maker Sherwin-Williams Co. climbed 4.1%. Bucking the trend, McCormick declined 4.3%, after it reported a drop in its 3Q15 earnings and lowered its revenue forecast for FY15. Qorvo and Nvidia Corp. lost 3.2% and 2.0%, respectively. Northrop Grumman slipped 0.1%, despite receiving a defence contract worth $3.20bn for maintenance of drones. The S&P 500 Index rose 0.2%, to settle at 1, The DJIA slipped 0.1%, to settle at 16,272.01, while the NASDAQ added 0.1%, to close at 4, S&P Last Month 2,015 1,964 1,914 1,863 Asia Market Review Markets in Asia are trading mostly higher this morning. In Japan, Sony advanced 3.8%. Aeon Co. added 1.7%, after it posted a considerable increase in its halfyearly earnings compared with the previous year. Toshiba gained 0.1%, even after reports emerged that it could lay off some of its employees at its underperforming divisions. In Hong Kong, Galaxy Entertainment Group, SJM Holdings and Sands China climbed 9.6%, 7.5% and 7.1%, respectively, amid reports that monthly revenue from casinos dropped in line with expectations, thereby indicating that the market is recovering from its slump. In South Korea, Ssangyong Motor and Hyundai Motor fell 0.3% each. The Nikkei 225 index is trading 0.2% higher at 17, The Hang Seng index is trading 2.7% up at 21,415.63, while the Kospi index is trading marginally lower at 1, Key Global Indices Nikkei Last Month 18,958 18,226 17,494 16,762 Last Close 1D Chg 1D % Chg YTD% Chg 1M % Chg 1Y % Chg P/E Multiple (x) JSE All Share 50, JSE Africa Resource 10 32, JSE Africa Financial 15 16, JSE Africa Industrial 25 67, FTSE 100 6, German DAX 30 9, France CAC 40 4, S&P 500 1, Dow Jones Industrials 16, Nasdaq Composite 4, Nikkei 225* 17, Shanghai Composite** 3, Hang Seng Index* 21, *Time - SAST 6:00:00 AM ** As on 30 September

7 $/oz $/oz $/bbl $/bushel I N V E S T O R C A M P U S Commodities Crude Oil and Corn Prices Spot At 06:00 SAST today, Brent crude oil rose 1.8% to trade at $48.02/bl, as market participants looked ahead to the rig count data in the US for direction. Yesterday, Brent crude oil rose 1.0% to settle at $47.61/bl. Meanwhile, energy traders continued to react to inventory data in the US released during the week, which showed that crude stockpiles nationwide rose unexpectedly. Also, prices got a boost on fears about potential damage to oil installations from a hurricane that was reported to be headed for the US East Coast. Yesterday, the Illinois North Central No.2 Yellow corn spot prices fell 3.7% to $3.50/bushel. At 06:00 SAST today, gold prices declined 0.1% to trade at $1,112.26/oz. Market focus is now on key employment data in the US, scheduled later in the day for further indications on whether the Federal Reserve could raise interest rates over the next several months. Yesterday, gold gained 1.5% to close at $1,131.51/oz. Yesterday, copper rose 4.4% to close at $5,405.50/mt. Aluminium closed 3.5% higher at $1,622.25/mt Crude - LHS Corn - RHS Gold & Platinum Prices Spot Gold - LHS Platinum - RHS Copper, Aluminium & Iron Ore Prices Spot (Rebased to100) Copper Aluminium Iron Ore 62% Fe Content - CFR Qingdao China Currencies USD/ZAR Movement EUR/ZAR Movement GBP/ZAR Movement Yesterday, the South African rand weakened against the US dollar, after data showed that continuing unemployment claims in the US fell to a 15- year low, thereby strengthening the case for a US rate hike this year. In South Africa, the Barclays PMI data for September was slightly better than the earlier month and another data showed that consumer confidence improved in 3Q15. Moving ahead, investor focus is now on US nonfarm payrolls data for September due today, to gauge the strength in the US labour market. The yield on benchmark government bonds fell yesterday. The yield on 2016 bond declined to 6.76% while that for the longer-dated 2026 issue fell to 8.41%. At 06:00 SAST, the US dollar is trading 0.3% higher against the South African rand at R , while the euro is trading 0.1% higher at R Yesterday, the euro advanced against the majors, even after data showed that manufacturing growth in the eurozone eased to a five month low for September. Meanwhile, factory activity in the UK rose above expectations. Today, UK construction PMI data and eurozone s producer prices data will draw some market attention. At 06:00 SAST, the euro slipped 0.1% against the US dollar to trade at $1.1179, while it has weakened 0.2% against the British pound to trade at GBP

8 Yield Corner % Closing Yield % Change on Day Yield % - 1M Ago South Africa CPI* South Africa Repo Rate JSE SA Listed Property Index R159 (2016) (SA Bond) R207 (2020) (SA Bond) R186 (2026) (SA Bond) US 10 Year Treasury US 30 Year Treasury Italian 10 Year Treasury German 10 Year Treasury * As on August 2015 South African Government Bond Yields 8.9% 8.3% 7.7% 7.1% 6.5% 5.9% Oct-14 Dec-14 Apr-15 Jul-15 Sep-15 R159 (2016) R186 (2026) JSE All Share Index - Major Gainers & Losers Nampak Ltd ( , , -5.5%) RCL Foods Ltd/South Africa ( , , 8.6%) Aveng Ltd (341.00, , -5.3%) Lonmin PLC (380.00, 30.00, 8.6%) AfroCentric Investment Corp Ltd (480.00, , -3.6%) Anglo American Platinum Ltd ( , , 6.8%) Investec Property Fund Ltd ( , , -3.1%) EOH Holdings Ltd ( , , 6.6%) Famous Brands Ltd ( , , -3.1%) Capitec Bank Holdings Ltd ( , , 6.0%) Choppies Enterprises Ltd (565.00, , -2.6%) Zeder Investments Ltd (735.00, 40.00, 5.8%) Aspen Pharmacare Holdings Ltd ( , , -2.6%) Aquarius Platinum Ltd (151.00, 8.00, 5.6%) Telkom SA SOC Ltd ( , , -2.2%) Invicta Holdings Ltd ( , , 5.5%) Transaction Capital Ltd (978.00, , -2.2%) MiX Telematics Ltd (315.00, 15.00, 5.0%) African Oxygen Ltd ( , , -2.0%) Curro Holdings Ltd ( , , 4.9%) -9.5% -7.6% -5.7% -3.8% -1.9% 0.0% 1.9% 3.8% 5.7% 7.6% 9.5% Figures in bracket indicate (Last Close, Absolute Change, % Change) 8

9 Dual Listed Companies - Price Differential Company Name Price (R) - Local Exchange Primary Exchange Price (Primary Exchange) Equivalent Price (R) Price Difference (R) Anglo American Plc London Stock Exchange 5.55 GBP BHP Billiton Plc London Stock Exchange GBP British American Tobacco Plc London Stock Exchange GBP Capital & Counties Properties Plc London Stock Exchange 4.32 GBP Cie Financiere Richemont SA* SIX Swiss Exchange CHF Intu Properties Plc London Stock Exchange 3.28 GBP Investec Plc London Stock Exchange 5.09 GBP Lonmin Plc 3.80 London Stock Exchange 0.18 GBP Mondi Plc London Stock Exchange GBP New Europe Property Investments Plc/Fund London Stock Exchange 9.13 EUR Old Mutual Plc London Stock Exchange 1.90 GBP Pan African Resources Plc 1.62 London Stock Exchange 0.07 GBP Reinet Investments SCA* Luxembourg Stock Exchange EUR SABMiller Plc London Stock Exchange GBP AngloGold Ashanti Ltd New York Stock Exchange 7.97 USD DRDGOLD Ltd* 2.14 New York Stock Exchange 1.41 USD Gold Fields Ltd New York Stock Exchange 2.56 USD Harmony Gold Mining Co Ltd 8.55 New York Stock Exchange 0.58 USD Redefine International Plc/Isle of Man London Stock Exchange 0.53 GBP Glencore Xstrata Plc London Stock Exchange 0.91 GBP * Depositary Reciepts (DR) trade in the ratio of ten DRs to each Company share; Exchange Rate - USDZAR: , EURZAR: , GBPZAR: , CHFZAR: , Conversion rate as of 6:00 SAST JSE All Share Stocks Hitting 52 Week High / Low Company Name Closing Price (R) 1D% Chg 52 Week High / Low Intu Properties PLC % Hits 52 Week High PSG Group Ltd % Hits 52 Week High Resilient Property Income Fund Ltd % Hits 52 Week High Steinhoff International Holdings Ltd % Hits 52 Week High Aveng Ltd % Hits 52 Week Low AECI Ltd % Hits 52 Week Low Group Five Ltd/South Africa % Hits 52 Week Low Nampak Ltd % Hits 52 Week Low Royal Bafokeng Platinum Ltd % Hits 52 Week Low Sun International Ltd/South Africa % Hits 52 Week Low Tongaat Hulett Ltd % Hits 52 Week Low 9

10 Economic Updates In August, on an annual basis, electricity production slid 4.9% in South Africa. In the prior month, electricity production had registered a revised drop of 2.7%. The electricity consumption dropped 5.4% in South Africa, in August. In the prior month, the electricity consumption had registered a revised drop of 1.6%. The manufacturing PMI in South Africa registered a rise to 49.00, compared with a level of in the previous month. Markets were expecting the manufacturing PMI to advance to a level of In 3Q15, the consumer confidence index climbed to in South Africa, compared with market expectations of an advance to The consumer confidence index had recorded a reading of in the prior quarter. Compared with a revised reading of in the previous month the manufacturing PMI registered a drop to in September, in the UK. Market expectation was for the manufacturing PMI to fall to The final manufacturing PMI recorded a drop to in September, in Germany, compared with a reading of in the previous month. The preliminary figures had indicated a drop to Market anticipation was for manufacturing PMI to ease to In September, the final manufacturing PMI in the eurozone registered a drop to 52.00, at par with market expectations. In the previous month, the manufacturing PMI had registered a reading of The preliminary figures had also recorded a drop to Compared with a reading of k in the prior week, the seasonally adjusted initial jobless claims in the US recorded a rise to k in the week ended 25 September Market anticipation was for initial jobless claims to rise to k. The final Markit manufacturing PMI in the US climbed unexpectedly to a level of in September. The preliminary figures had recorded a flat reading. In the prior month, the Markit manufacturing PMI had recorded a reading of The ISM manufacturing activity index fell to a level of in the US, in September, compared with a reading of in the prior month. Market anticipation was for the ISM manufacturing activity index to fall to a level of The Federal Reserve Bank of San Francisco President, John Williams, opined that a rate hike is warranted this year, stating that recent developments in the global economy have not increased risks to the nation s economy and the US economic conditions remain positive. Further, he opined that the rate hike could be as early as October, as the US economy nears full employment. Key Economic Releases Today Country SAST Economic Indicator Relevance Consensus/ *Actuals Previous Frequency Japan 1:30 Job-To-Applicant Ratio (Aug) 1.23* 1.21 Monthly Japan 1:30 Unemployment Rate (Aug) 3.4%* 3.3% Monthly Japan 1:30 Household Spending (YoY) (Aug) 2.9%* -0.2% Monthly Japan 1:50 Monetary Base (YoY) (Sep) 35.1%* 33.3% Monthly Eurozone 3:30 ECB's Draghi Speaks in New York Spain 9:00 Unemployment Change (Sep) 21.10k 21.70k Monthly UK 10:30 Markit Construction PMI (Sep) Monthly Eurozone 11:00 Producer Price Index (MoM) (Aug) -0.6% -0.1% Monthly Eurozone 11:00 Producer Price Index (YoY) (Aug) -2.4% -2.1% Monthly US 14:30 Change in Household Employment (Sep) k Monthly US 14:30 Underemployment Rate (Sep) % Monthly US 14:30 Average Hourly Earnings All Employees (MoM) (Sep) 0.2% 0.3% Monthly US 14:30 Average Hourly Earnings All Employees (YoY) (Sep) 2.4% 2.2% Monthly US 14:30 Average Weekly Hours All Employees (Sep) Monthly US 14:30 Change in Manufacturing Payrolls (Sep) 0.00k k Monthly US 14:30 Unemployment Rate (Sep) 5.1% 5.1% Monthly US 14:30 Change in Non-farm Payrolls (Sep) k k Monthly US 14:30 Change in Private Payrolls (Sep) k k Monthly US 15:45 ISM New York Index (Sep) Monthly US 16:00 Factory Orders (MoM) (Aug) -1.2% 0.4% Monthly US 19:00 Fed's Fischer Addresses Boston Fed Conference on Monetary Policy Note: High Medium Low

11 Corporate Updates South Africa Astral Foods Limited: The poultry producer, in its general trading update for FY15, stated that it expects its headline EPS to increase by at least 120.0% from R8.64 recorded in the previous year. Its EPS is estimated to advance by at least R10.17 compared with EPS of R8.84 posted in the preceding year. Favourable trading conditions in 1H15 resulted in the improvement in the reported profits, even though trading environment in 4Q15 were impacted by factors such as depressed consumer demand, excessive imports of bone-in chicken portions from the European Union and on-set of increases in maize prices as a result of adverse weather conditions in the maize producing areas. Rhodes Food Group Proprietary Limited: The company revealed that it has signed an agreement according to which Rhodes Food would acquire the Food service business of General mills, effective 30 November Ascension Properties Limited: The property loan stock company, in its audited FY15 results, indicated that its revenue advanced 16.8% from the previous year to R412.33mn. Its basic and diluted headline EPS stood at 4.84c, compared with 1.92c recorded in the prior year. The company achieved distributable earnings of R222.80mn, compared with R202.70mn reported in the preceding year. Furthermore, it announced that it would pay a final dividend for the six months ended to 30 June 2015 of c/ A share and c/ B share on 31 August PSG Konsult Limited: The financial services company, in its trading statement for 1H16, indicated that its headline EPS is anticipated to be between 14.60c and 14.90c, compared with 11.50c recorded in the same period of the previous year. Its recurring headline EPS is expected to be 25.0% and 27.0% higher from the corresponding period of the prior year to be in the range of 14.60c to 14.90c. The company stated that its attributable EPS is projected to be between 14.80c and 15.10c, compared with 11.60c posted in the same period of the preceding year. Glencore announces more job cuts: Miner and commodities trader Glencore, which is reviewing its operations in the face of a slump in commodities prices, announced more job cuts at its mines in SA on Thursday. Necsa latest state entity to be hit by boardroom and financial disarray: The Nuclear Energy Corporation of SA (Necsa), which has ambitions to lead SA s new nuclear programme, is in financial and organisational disarray: it has failed to finalise its annual financial statements; the board has collapsed; and the CEO is holding on to his job by a tenuous thread. Resgen in funding deal with Swiss firm: Resource Generation (Resgen), the junior coal miner building the Boikarabelo mine in the Waterberg, has secured eleventh-hour funding from a Swiss-based company that has agreed to provide EUR480.00mn to build the mine. PIC says SABMiller must remain on Joburg bourse: South African shareholders of SABMiller are prepared to fight for a continued Johannesburg stock market listing if the brewer gets taken over by Anheuser-Busch InBev so they can benefit from the future growth of a new global drinks giant. Anglo American closes Mozambique office: Anglo American closed its office in Mozambique, 18 months after calling off the AUD540.00mn ($380.00mn) purchase of a majority stake in a coal asset in the country, as the company seeks to preserve cash in response to a commodities slump. Absa introduces Prosper Café: Absa has realised this and this week announced that Prosper Café a pop-up coffee shop developed as part of the bank s Prosper campaign will be present at Absa s sponsored events, such as the Absa Cape Epic and KKNK. Krispy Kreme bets on brand loyalty to gain traction in SA: Global doughnut and coffee retailer Krispy Kreme will focus on brand loyalty to gain traction in South Africa and make it difficult for competitors to gain sufficient ground. UK and US Micron Technology Inc: The technology company, in its FY15 results, stated that its net sales slipped 1.0%, from the preceding year to $16.19bn. Its diluted EPS stood at $2.47, compared with $2.54 recorded in the previous year. On a non-gaap basis, EPS attributable to Micron shareholders was $2.72. The company indicated that although 4Q15 results were impacted by continued weakness in the PC sector, memory industry fundamentals remained favourable over the long term. McCormick & Company Inc: The spice and flavorings maker company, in its 3Q15 results, indicated that its net sales advanced 1.6% from the same period in the preceding year to $1.06bn. However, the company faced with a higher tax rate problem resulting in its diluted EPS declining to $0.76 from $0.94 recorded in the corresponding period of the prior year. Its adjusted EPS was $0.85, compared with $0.95 posted in the same period of last year. Because of lower profit and foreign currency impacts, it expects its FY15 adjusted EPS to be at the lower end of its guidance range of $3.47 to $3.54. But sales are anticipated to be at the higher end of projections, given strong sales growth throughout this year and completion of three acquisitions that would help in expanding its global presence. Progress Software Corporation: The software company, in its 3Q15 results, revealed that its total revenue climbed 19.4% from the corresponding period of the preceding year to $94.64mn. It recorded a diluted loss of $0.08/share, compared with diluted EPS of $0.22 in the same period of the previous year. For FY15, in its revised guidance, the company expects its non-gaap revenue to be between $410.00mn and $415.00mn and its non-gaap EPS to be in the range of $1.51 and $

12 Corporate Updates CalAmp Corporation: The wireless communications solutions provider, in its 2Q16 results, stated that its revenue advanced 17.9% from the same period of the prior year to $69.81mn. Its non-gaap diluted EPS stood at $0.27, compared with $0.21 reported in the corresponding period of the previous year. For FY16, the company expects its revenue to be between $281.00mn and $289.00mn, on the back of continued growth in its Wireless Datacom segment and a stronger 2H16 in its Satellite segment. Cranswick Plc: The food company, in its trading statement for 1H16, stated that its total revenues were 10.0% higher from the same period of the previous year, driven by strong volume growth across most product categories and a positive contribution from Benson Park. Its underlying sales were 7.0% up from the same period a year ago. Moreover, the company expressed confidence in its continued long term success and development of business given the experienced management at all levels of the group, a strong range of products, a wellinvested asset base and a robust financial position. Johnson Matthey Plc: The global leader in sustainable technologies company announced that on 30 September 2015, it concluded the sale of its Alfa Aesar Research Chemicals business to Thermo Fisher Scientific Inc. for a consideration of GBP256.00mn in cash. Britvic Plc: The soft drinks producer company revealed that it has successfully completed the acquisition of Empresa Brasileira de Bebidas e Alimentos SA, a market leader in the liquid dilutes category located in Brazil. Galliford Try Plc: The construction company confirmed that Peter Truscott has joined the group as Chief Executive with effect from 1 October Rathbone Brothers Plc: The investment and wealth management services company announced the purchase of the remaining 80.1% interest of Vision Independent Financial Planning Limited and Castle Investment Solutions Limited, which is in line with its strategy of broadening its distribution and accessing a greater share of new business intermediated by financial advisers. Consideration for the acquisition of the remaining 80.1% would comprise a payment of GBP5.00mn. HICL Infrastructure Company Limited: The infrastructure investment company announced the completion of the acquisition of the entire interest in the Royal Canadian Mounted Police 'E' Division Headquarters P3 Project in Surrey, British Columbia, Canada for approximately CAD54.00mn. Financial Times Hopes dim for possible rescue of Teesside steel plant: Efforts were under way on Thursday to see whether Teesside s last iron and steelmaking plant could be rescued, amid growing fears over the future of SSI UK, the Thai-controlled owner of the Redcar site. Two Sigma hires ex-google engineer as chief technology officer: Two Sigma, a rapidly expanding $28.00bn quantitative hedge fund group, has hired a former senior Google engineer to be its chief technology officer. Shares in Paul Taubman s boutique PJT Partners sink on debut: One of Wall Street s top dealmakers suffered a setback on Thursday as shares in his newly-created advisory boutique fell as much as 16.0% on its public debut. Bayer cuts price range for Covestro IPO: German drugmaker Bayer has slashed the price range for its initial public offering of shares in plastics division Covestro blaming market concerns over China s slowing economy and the Volkswagen emissions scandal. VW left behind as US car sales speed up: Volkswagen failed to partake in a booming US car market in September as the German company began to feel the repercussions of the emissions rigging scandal. Apple appoints former Boeing finance chief to board: Apple has appointed former Boeing finance chief James Bell to its board, bolstering the manufacturing and operational experience among its advisers. EU raises competition concerns over Rexam takeover: Brussels has formally raised competition concerns with Ball Corporation over its proposed GBP4.40bn takeover of Rexam, increasing the likelihood of asset sales in Europe to smooth the way for a deal to combine the world s largest drinks can makers. Amazon bars sales of Apple and Google streaming devices: Apple and Google may have come up with new internet TV devices in the fight for the upper hand in the living room, but in at least one place their rivalry will not play out Amazon. Bloomberg Businessweek editor Josh Tyrangiel replaced by deputy: Josh Tyrangiel, the editor credited with reviving Bloomberg Businessweek, one of America s best known financial magazines, is leaving the company. Google s Nest opens door to smart home growth: Nest is broadening its developer platform and opening an online store in its latest effort to become a one-stop destination for buying and controlling smart-home devices. Snapchat to launch sponsored selfies: Snapchat is preparing to launch a new advertising format that will allow brands to slip in to teenagers selfies, as it hunts for ways to make money from its young audience. Uber rallies customers against London plans to tighten rules: Uber has swiftly enlisted more than 118,000 supporters in its campaign against proposed tougher regulations for the minicab-hailing app in London. Japan cries foul after Indonesia awards rail contract to China: Corporate Japan longs to build infrastructure for Asia but the country s officials are despondent this week after China gatecrashed Tokyo s long-nurtured plan to export the Shinkansen high-speed railway to Indonesia. 12

13 Corporate Updates Lex: Rio Oil Trust: Pensioned off: Petrobras problems will soon hit Rio de Janeiro state s social security system, RioPrevidência. RioPrevidência was created in It has struggled to meet its obligations ever since. From 2005, the federal government decided to allocate some of Petrobras oil revenues to help pay for Rio s state worker pensions. In 2013 with oil at $ RioPrevidência was given control over this oil allocation. To protect bondholders, every quarter the Trust must using consultants Wood Mackenzie test the ability to pay off its debt based on both oil price and production expectations. But both have diminished, and the Trust failed a test last week. This triggers the diversion of most of the oil funds away from pensioners, for whom it was previously intended, to a special fund to protect bondholders from a default. Having downgraded the debt of the state of Rio de Janeiro last week, rating agency Fitch cut the Oil Trust bonds on Wednesday to junk. The bonds are off 35.0% in two months. Two US institutions Dodge & Cox and Pimco own 40.0%. A majority vote could force a default and demand the return of their principal. First Data: Hard sell: The KKR-owned payments processor is lossmaking and stuffed with debt. The enterprise value will be much bigger because it has, ahem, $21.00bn of net debt. Showing some nerve, KKR, which is not selling down immediately, has given itself a super voting right as if this were the Google IPO rather than a botched private equity deal. Another challenge is that investors have a sexier alternative: Square, the much-hyped payments company from Twitter co-founder Jack Dorsey, should launch an IPO before the end of the year. What matters, though, is not the volatility in equities but in bond markets. First Data s debt has fallen from 9.9 times earnings before interest, taxation, depreciation and amortisation in 2012 to 7.8 times in That is still eye-watering particularly compared with rivals such as Visa and PayPal which carry almost none. IPO proceeds will mainly go to cut debt. Then it is all a bet on stable cash flows providing a refinancing opportunity. First Data s average cost of debt is almost 7.0%, with some notes carrying a double-digit percentage rate. It should be possible to reduce interest payments and return to steady profits. Happily, collecting a cut of credit card payments is not a cyclical industry revenues fell only 7.0% peak to trough during the financial crisis. Boutique banks: Placement testing: Today the likes of KKR, Carlyle and Blackstone manage hundreds of billions in funds divided up among leveraged buyouts, real estate and hedge fund strategies. That resulting stockpile of assets has added up to a huge pool of management fees that serve as a nice, steady base on to which juicy but erratic performance fees can be added. Nor has this innovation been confined to the private equity industry. Maximising fees from a diverse basket of financial activities has been embraced by the boutique investment banks that specialise in merger advice. PJT Partners, whose shares began trading on Thursday at an enterprise value of $1.10bn, represents a blend of the deal advice unit of Blackstone and a start-up firm headed by former Morgan Stanley bigwig Paul Taubman. PJT s heritage in advising on large mergers and restructurings garners most of the attention. Yet a third of its revenue comes from Park Hill Group, a private equity fundraising business. McKinsey estimates that by 2020, alternative assets under management will double to $20.00tn by Park Hill s revenue, however, has been erratic in recent years; 2014 revenue of $127.00mn was less than that recorded in But it remains a dominant fund advisory group, and its success has inspired copycats at the other boutique banks. PJT is still adding bankers, and its deal revenue of less than $300.00mn trails nearly all its rivals. 13

14 Key Corporate Releases Today South Africa Full Year Consensus Company Name Results Currency Estimated EPS Estimated Revenue (Millions) No corporate releases today UK Full Year Consensus Company Name Results Currency Estimated EPS Estimated Revenue (Millions) No corporate releases today Europe Full Year Consensus Company Name Results Currency Estimated EPS Estimated Revenue (Millions) No corporate releases today US Full Year Consensus Company Name Results Currency Estimated EPS Estimated Revenue (Millions) No corporate releases today Note: All Estimates are for Full Year 14

15 South Africa Ex-Dividend Calendar Date Company Name Dividend Type Last Day to Trade Amount - African Oxygen Limited Interim 2-Oct-15 R Aspen Pharmacare Holdings Limited Return of Capital 2-Oct-15 R Clover Industries Limited Final 2-Oct-15 R DRDGOLD Limited Final 2-Oct-15 R Discovery Limited Final 2-Oct-15 R Fairvest Property Holdings Limited Final 2-Oct-15 R FirstRand Limited Final 2-Oct-15 R Murray & Roberts Holdings Limited Regular Cash 2-Oct-15 R Primeserv Group Limited Final 2-Oct-15 R RMB Holdings Limited Final 2-Oct-15 R Rand Merchant Insurance Holdings Limited Final 2-Oct-15 R Sasfin Holdings Limited Final 2-Oct-15 R Sasol Limited (SOL) Final 2-Oct-15 R Sasol Limited (SOLBE1) Final 2-Oct-15 R

16 The business of money: Global asset management and stockbroking The business of knowledge: Financial education, information and valuation services Disclaimer This report and its contents are confidential, privileged and only for the information of the intended recipient. Anchor Capital (Pty) Ltd and Ripple Effect 4 (Pty) Ltd make no representations or warranties in respect of this report or its content and will not be liable for any loss or damage of any nature arising from this report, the content thereof, your reliance thereon its unauthorised use or any electronic viruses associated therewith. This report is proprietary to Anchor Capital (Pty) Ltd and Ripple Effect 4 (Pty) and you may not copy or distribute the report without the prior written consent of the authors. Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: