Weekly Market Report. South African Equity Markets. JSE All Share - Daily Chart. JSE All Share - Weekly Gainers & Losers. 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 01 October 28 Sep 1W% YTD % Key Global Indices Close JSE All Share % -6.4% FTSE % -2.3% DAX % -5.2% CAC % 3.4% DJIA % 7.0% S&P % 9.0% NASDAQ Comp % 16.6% Nikkei % 6.0% Shanghai Comp % -14.7% S&P/ASX % 2.3% South African Equity Markets South Africa markets ended lower last week. The food retailer, Choppies sank 58.2%, after the firm stated that it would miss a deadline to publish its financial results for the year to June. Netcare slumped 12.2%, after the company revealed that its earnings for the year to September 30 would fall slightly compared with the year before, due to difficult trading conditions. Retailer, Steinhoff International Holdings plunged 6.9%, despite reports that its Asia-Pacific division had successfully refinanced some of its debt. On the flipside, Kumba Iron Ore, EOH Holdings and Afrimat rallied 12.8%, 10.7% and 9.8% respectively. MTN Group soared 9.4%, following reports that the company might be a takeover target for China Mobile. Peer, Telkom Sa Soc jumped 7.4%. The JSE All Share Index declined 2.5% to close at 55, JSE All Share - Weekly Gainers & Losers -58.2% Choppies Enterprises Ltd Kumba Iron Ore Ltd 63, % 60,079 JSE All Share - Daily Chart -13.5% Harmony Gold Mining Co Ltd EOH Holdings Ltd 56, % 53, % -10.9% Netcare Ltd Group Five Ltd Afrimat Ltd Caxton And CTP Publishers and Printers Ltd 9.8% 9.4% 50, RSI (21) 9.4% -10.6% Liberty Two Degrees MTN Group Ltd -64.0% -32.0% 0.0% 32.0% 64.0% Top 10 New 52 Week Highs 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% Anglo American Plc % Old Mutual Ltd % Share 52Week Low (ZAR) 1W% Accelerate Property Fund Ltd % Arrowhead Properties Ltd % Blue Label Telecoms Ltd % Choppies Enterprises Ltd % Coronation Fund Managers Ltd % Cashbuild Ltd % Growthpoint Properties Ltd % Hyprop Investments Ltd % Indluplace Properties Ltd % Imperial Holdings Ltd % ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 7 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 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jun-18 Jul-18 Aug-18 Sep-18 Weekly Market Report Key Currencies 28 Sep Close 1W% YTD % USDZAR % 14.2% EURZAR % 10.5% GBPZAR % 10.2% EURUSD % -3.3% EURCHF % -2.6% GBPUSD % -3.6% USDJPY % 0.9% USDCHF % 0.8% AUDUSD % -7.5% USDCAD % 2.7% Daily USD/ZAR Currencies The ZAR strengthened against its major peers last week. S&P Global indicated that President, Cyril Ramaphosa s stimulus plan did not affect the stable outlook on South Africa s sovereign rating. On the data front, South Africa posted a trade surplus in August. Additionally, annual private sector credit growth climbed in August. Moreover, M3 money supply advanced more than market forecast on a yearly basis in August. Further, the nation s producer price index (PPI) rose more than market expectations on an annual basis in August, recording its fastest growth since December On the flipside, the nation s leading indicator registered a decline in July. Additionally, non-farm payrolls eased on a quarterly basis in the second quarter of. For the week, the USD weakened 1.3% against the South African Rand to close at R The EUR was 2.4% lower at R and the GBP was 1.5% weaker at R for the week. The US Dollar strengthened against its key counterparts last week, after the Federal Reserve hiked the key interest rate by 25 basis points and pointed to a potential rise at its December meeting, with the likelihood of three increases in On the data front, the US economy grew at its quickest pace in nearly four years on a quarterly basis in 2Q18. Further, consumer confidence index registered an unexpected advance in September, recording its highest level since September Moreover, new home sales rose on a monthly basis in August, recording its fastest growth since February. In contrast, the US advance goods trade deficit unexpectedly widened in August. The EUR dropped against the USD last week, after the Italian government set a higher than expected budget deficit target. On the macroeconomic front, Eurozone s consumer confidence index further declined in September. Meanwhile, the region s consumer price index advanced in line with market expectations on an annual basis in September. Separately, German GfK consumer confidence index surprisingly climbed in October. The GBP fell against the USD last week. Data revealed that UK s current account deficit widened more-than-expected in the second quarter of. Further, gross domestic product grew in line with investor expectations during the second quarter, but first quarter growth was revised down by the Office for National Statistics. Key Commodities 28 Sep Close 1W% YTD % Gold ($/oz) % -8.6% Silver ($/oz) % -14.2% Copper (USd/lb.) % -15.0% Brent Crude ($/bls) % 23.7% Sugar No.11 (USd/lb.) % -26.1% Iron Ore 62% Fe ($/dry MT) % -7.7% Daily Platinum 1, Commodities Gold prices declined last week, following a broad based strength in the US Dollar. Going ahead, market participants will closely watch the US construction spending, ISM employment data, ADP employment change, initial jobless claims, Markit manufacturing and services PMI along with factory orders, trade balance, change in non-farm payrolls and unemployment rate data for further direction. Crude oil prices advanced last week, after Baker Hughes reported that US oil rig count fell by 3 to 863 in the week ended 21 September. The upcoming implementation of US sanctions on Iran, starting November 4, also helped keep oil prices elevated. Meanwhile, the American Petroleum Institute reported that crude oil inventories advanced by 2.9 million bls last week. Additionally, the US Energy Information Administration reported that crude oil inventories rose by 1.9 million bls last week, recording its first rise in six weeks. Copper prices traded in negative territory last week, as escalating US-China trade tensions raised concerns over demand for industrial metals in top consumer country, China

3 Key Economic News Last Week Country News South Africa has reported trade surplus of R8.80 billion in August, compared to a deficit of R4.70 billion in the previous month. Leading indicator registered a drop to in July, compared to a revised level of in the previous month. Non-farm payrolls fell 0.7% on a yearly basis in 2Q. Non-farm payrolls had registered a revised rise of 0.4% in the prior quarter. South Africa The PPI registered a rise of 6.3% on a yearly basis in August, more than market expectations. In the previous month, the PPI had advanced 6.1%. Private sector credit recorded a rise of 6.74% on an annual basis in August, more than market expectations. In the previous month, private sector credit had registered a rise of 5.41%. M3 money supply recorded a rise of 6.95% on an annual basis in August, more than market expectations. In the previous month, M3 money supply had risen 6.0%. Economic Calendar - Week Ahead South Africa Monday, October 01, Tuesday, October 02, Naamsa Vehicle Sales (Sept) - - Wednesday, October 03, Thursday, October 04, Electricity Consumption (Aug) Electricity Production (Aug) Friday, October 05, Net Gold & Forex Reserve (Sept) Gross Gold & Forex Reserve (Sept) 3

4 South African Corporate News Company Name Adcorp Holdings Alexander Forbes Group Holdings Allied Electronics Corporation Anglo American Ascendis Health Brait British American Tobacco Capitec Bank Holdings EPE Capital Partners Grand Parade Investments Grit Real Estate Income Group News The company, in its 1H trading statement, indicated that the company expects HEPS to be between 85.00c and 93.00c. Further, the company expects EPS to be in the range of 82.00c and c. In its operational update, the company indicated that it expects 1H18 total EBITDA to be between R million and R million. The company announced that as a result of a loss of confidence and trust, the company has terminated the services of Mr AA Darfoor as the company s Chief Executive Officer (CEO) and Director with immediate effect. Ms M Ramplin has been appointed as the Interim CEO. The company, in its 1H trading update, stated that the company expects HEPS to be in the range of 81.00c to 84.00c, an 102.0% to 110.0% increase from the same period of the previous year. Further, the company expects EPS to be between 76.00c and 79.00c, i.e % to 243.0% higher compared with the corresponding period of the preceding year. The company announced changes to the roles of its Non-Executive Directors following the decisions of Sir Philip Hampton and Jack Thompson to step down from the Board. Dr Byron Grote, Non-Executive Director and Chair of the Audit Committee since 2014 will succeed Sir Philip Hampton as Senior Independent Director on 1 January Dr Grote will continue in his role as Chair of the Audit Committee. Anne Stevens, Non-Executive Director, will succeed Sir Philip Hampton as Chair of the Remuneration Committee on 1 January Ian Ashby, Non-Executive Director, will succeed Jack Thompson as Chair of the Sustainability Committee on 30 April The company, in its FY results, revealed that its revenue advanced 21.0% from the same period of the preceding year to R7.74 billion. Its diluted EPS stood at c, compared with 82.40c recorded in the corresponding period of the previous year. The company has not declared a final dividend for the period. The company announced that the Board has, in accordance with Article 152(1) of the Maltese Companies Act, approved the Audit Committee s recommendation to appoint PricewaterhouseCoopers as its external auditor for the financial year ending 31 March The appointment is effective immediately. The company announced that Jack Bowles, Chief Operating Officer of the company will succeed Nicandro Durante as CEO, following the latter s retirement on 1 April Separately, the company announced that the Board had declared an interim dividend of 195.2p per ordinary share of 25p, payable in four equal quarterly instalments of 48.8p per ordinary share in May, August, November and February The company, in its 1H results, stated that its lending, investment and insurance income decreased to R8.43 billion from R8.63 billion posted in the corresponding period of the previous year. Its diluted EPS rose 20.0% from the same period of the prior year to 2,118.00c. The company has declared an interim dividend of c per share compared with c per share recorded in the corresponding period of the preceding year. The company, in its FY results, revealed that its total income stood at R121.3 million from R127.1 million in the same period of the preceding year. Its diluted EPS stood at 0.53c, compared with 0.61c recorded in the corresponding period of the previous year. The company, in its FY trading statement, indicated that the company expects headline loss per share to be between 10.50c and 11.42c, compared to a headline loss per share of 4.59c in the previous year. Further, the company expects loss per share to be in the range of 10.98c and 11.86c, compared to basic EPS of 4.39c in the previous year. Separately, the company, in its 1H results, revealed that its revenue stood at R1.1 billion from R0.96 billion in the same period of the preceding year. Its diluted loss per share stood at 11.66c, compared with EPS of 4.39c recorded in the corresponding period of the previous year. The company, in its FY results, revealed that its revenue stood at $24.00 million from $33.24 million in the same period of the preceding year. Its diluted loss per share stood at 6.04c, compared with EPS of 14.20c recorded in the corresponding period of the previous year. Further, the company advised shareholders that dividend number 9 of US$ 6.12 cents per share for the six months ended 30 June has been approved and declared by the Board of the Company on 25 September. Invicta Holdings JSE Life Healthcare Group Holdings The company announced the resignation of Ms Ramani Naidoo as an independent Non-Executive Director of the company and its subsidiary Invicta South Africa Holdings (Pty) Ltd with effect from 25 September. The company announced that Ms Fatima Daniels will join the Board as an independent Non-Executive Director with effect from 1 October. The company, in its FY trading update, stated that the company expects revenue to grow between 10.0% and 14.0% compared with the corresponding period of the previous year. The company expects normalised EBITDA to increase in the range of 8.0% to 10.0% compared with the same period of the preceding year. Further, in the company s international operations, Scanmed S.A. has continued to perform in line with 1H. Alliance Medical Group Limited delivered a solid performance for FY in the Irish, Italian and northern Europe diagnostic businesses. 4

5 South African Corporate News Company Name Long4life MMI Holdings News The company, in its 1H trading statement, indicated that the company expects HEPS and EPS to be between 15.00c and 17.00c. The company announced that Ms Maliga Chetty, the current Company Secretary, has resigned with effect from 30 September. The Nominations Committee of the Board has appointed Mr Leon Basson as the acting Group Company Secretary with effect from 1 October, until such time a suitable replacement has been appointed as a permanent Company Secretary. Nedbank Group The company announced that Ian Gladman and Rob Leith will step down as Non-Executive Directors from the boards with effect from 15 October. Royal Bafokeng Platinum Sibanye Gold Sirius Real Estate The company announced that Ms Zanele Matlala has been appointed to the Board of Directors as an independent Non-Executive Director and as a member of the Audit and Risk Committee, with effect from 1 October. The company announced that Ernst & Young South Africa have been appointed as its external auditors, with Lance Ian Neame Tomlinson as the designated audit partner for the financial year ending 31 December The company announced the appointment of Daniel Kitchen to the its Board as Non- Executive Chairman with immediate effect. Schroder European REIT The company announced that it has completed the purchase, in separate transactions, of three Netherlands industrial assets, for 19.8 million, reflecting a combined net initial yield of 6.5%, as announced on 21 August. 5

6 Bearish Alerts Bullish Alerts Weekly Market Report Technical Alerts Name Ticker Currency Last Close % Chg Signal Royal Bafokeng Platinum Ltd RBP SJ ZAr % MA 20D crossover Sun International Ltd/South Africa SUI SJ ZAr % MA 20D crossover Mondi Plc MNP SJ ZAr % Lower Bollinger crossunder Pan African Resources Plc PAN SJ ZAr % Stochastic indicates oversold Name Ticker Currency Last Close % Chg Signal Adcock Ingram Holdings Ltd AIP SJ ZAr % MA 20D crossunder AVI Ltd AVI SJ ZAr % MA 20D crossunder Lewis Group Ltd LEW SJ ZAr % Upper Bollinger crossover Capitec Bank Holdings Ltd CPI SJ ZAr % Stochastic indicates overbought 6

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