Weekly Market Report. South African Equity Markets. JSE All Share - Weekly Gainers & Losers. 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 28 January Jan 1W% YTD % Key Global Indices 2019 Close JSE All Share % 2.5% FTSE % 1.2% DAX % 6.8% CAC % 4.1% DJIA % 6.0% S&P % 6.3% NASDAQ Comp % 8.0% Nikkei % 3.8% Shanghai Comp % 4.3% S&P/ASX % 4.6% South African Equity Markets South African markets ended higher last week, amid positive developments in the US-China trade talks. Pan African Resources rallied 13.0%, following a substantial increase in gold production during 2H Investment holding companies, AfroCentric Investment Corp and Brait SE advanced 12.2% and 7.6%, respectively. On the other hand, Massmart Holdings plunged 15.9%, after the company announced that it expected a substantial decrease in its FY 2018 HEPS. AVI slumped 11.0%, after the company warned of a significant drop in its 2H 2018 HEPS. Telecom company, Vodacom Group plummeted 10.0%, after the company reported a fall in its SA service revenue, as the firm lost a large number of prepaid customers in the final quarter of Investment holding companies, Trencor and Brimstone Investment declined 5.8% and 5.5%, respectively. The JSE All Share Index advanced 0.6% to close at 54, JSE All Share - Weekly Gainers & Losers -15.9% Massmart Holdings Ltd Pan African Resources Plc 63, % 59,368 JSE All Share - Daily Chart -11.0% AVI Ltd AfroCentric Investment Corp Ltd 55, % 51, % -8.2% Vodacom Group Ltd Blue Label Telecoms Ltd Aspen Pharmacare Holdings Ltd Curro Holdings Ltd 8.6% 7.7% 47, RSI (21) % Capital & Regional Plc Brait SE 7.6% -17.5% -8.8% 0.0% 8.8% 17.5% Top 10 New 52 Week Highs 0 Jul-18 Sep-18 Oct-18 Dec-18 Jan-19 Top 10 New 52 Week Lows Share 52Week High (ZAR) 1W% Fortress Income Fund Ltd - Class A % Capitec Bank Holdings Ltd % Anglo American Platinum Ltd % Royal Bafokeng Platinum Ltd % Share 52Week Low (ZAR) 1W% Rebosis Property Fund Ltd - Class B % Astral Foods Ltd % Reinet Investments SCA % Dis-Chem Pharmacies Ltd % Blue Label Telecoms Ltd % Intu Properties Plc % British American Tobacco Plc % ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 6 1

2 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Weekly Market Report Key Currencies 25 Jan 2019 Close 1W% YTD % USDZAR % -5.1% EURZAR % -5.6% GBPZAR % -1.9% EURUSD % -0.5% EURCHF % 0.7% GBPUSD % 3.5% USDJPY % -0.1% USDCHF % 1.1% AUDUSD % 1.8% USDCAD % -3.1% Daily USD/ZAR 16 Currencies The ZAR traded mostly higher against its major peers last week. On the data front, South Africa s (SA) consumer confidence index registered a steady reading in 4Q The nation s leading indicator marginally slowed in November. Meanwhile, consumer price index declined on a yearly basis in December, aided by a large drop in petrol prices. Separately, the World Bank has projected that SA s economic growth will accelerate to 1.3% in 2019 and 1.7% in 2020, citing the implementation of structural reforms announced last year. For the week, the USD weakened 1.7% against the South African Rand to close at R The EUR was 1.3% lower at R and the GBP was 0.8% stronger at R for the week. The US Dollar weakened against its key counterparts last week, amid mounting trade tensions and prospects of weaker global growth. Data indicated that the US existing home sales dropped to a three-year low level in December. In contrast, the nation s Markit manufacturing PMI unexpectedly advanced in January. Separately, the US President, Donald Trump and congressional Democrats reached an agreement to temporarily re-open the government until February The EUR advanced against the USD last week. The Eurozone s consumer confidence index registered a slight improvement in January. Meanwhile in Germany, manufacturing PMI unexpectedly eased to a 50-month low level in January. Also, German business morale deteriorated for the fifth consecutive month in January. Separately, the European Central Bank (ECB), in its latest monetary policy meeting, held the benchmark interest rate steady and the central bank President, Mario Draghi hinted that the ECB would leave interest rates at record lows through the summer. The GBP rose against the USD last week, on rising hopes that Britain will avoid a no-deal Brexit, following reports that Northern Ireland s Democratic Unionist Party has pledged to support British Prime Minister, Theresa May s Brexit deal, if it includes a time limit to the Irish backstop. Data revealed that UK s average weekly earnings rose to its highest level since July 2008 and the unemployment rate unexpectedly dropped to a 44-year low in the September-November 2018 period. Key Commodities 25 Jan 2019 Close 1W% YTD % Gold ($/oz) % 1.8% Silver ($/oz) % 1.0% Copper (USd/lb.) % 3.7% Brent Crude ($/bls) % 14.6% Sugar No.11 (USd/lb.) % 3.4% Iron Ore 62% Fe ($/dry MT) % 2.2% Daily Platinum 1, Commodities Gold prices rose last week, as weakness in the US Dollar boosted demand for the safe-haven yellow metal. Going ahead, market participants will closely watch the FOMC interest rate decision, advance goods trade balance, consumer confidence index, ADP employment change and weekly jobless claims, along with change in non-farm payrolls, unemployment rate, average hourly earnings, Markit manufacturing PMI, ISM manufacturing PMI and the Michigan consumer sentiment index for further directions. Crude oil prices declined last week, after the American Petroleum Institute (API) reported that crude oil inventories advanced by 6.6 million bls in the week ended 18 January Additionally, the US Energy Information Administration (EIA) reported that crude oil inventories rose by 8.0 million bls last week. Moreover, Baker Hughes reported that US oil rig count increased by 10 to 862 last week. Meanwhile, the EIA reported that crude oil production from seven major US shale formations is expected to reach a record high 8.20 million bls per day in February. Separately, the ongoing political turmoil in Venezuela has led to fears of tightening crude oil supply, after the US signalled that it may impose sanctions on the country s oil exports after recognising opposition leader, Juan Guaido as interim President Copper prices traded in positive territory last week, as optimism over US-China trade talks raised expectations of a rise in demand for base metals from the world s top base metal consumer, China. Moreover, supply disruptions in the world s leading copper producer, Chile, has supported prices. 2

3 Key Economic News Last Week Country News The leading indicator registered a drop to in November, compared to a level of in the prior month. South Africa The consumer price inflation slowed to 4.5% on a yearly basis in December, in line with market expectations and compared to a rate of 5.2% in the previous month. The consumer confidence index remained steady at 7.00 in 4Q Economic Calendar - Week Ahead Monday, Jan 28, 2019 Tuesday, Jan 29, 2019 Wednesday, Jan 30, 2019 Thursday, Jan 31, 2019 Friday, Feb 01, M3 Money Supply (Dec) Producer Price Index (Dec) PMI Manufacturing (Jan) South Africa - - Private Sector Credit (Dec) Trade Balance (Dec) Naamsa Vehicle Sales (Jan) - - Budget Balance (Dec) - - 3

4 South African Corporate News Company Name Anglo American Platinum AVI News In its 4Q 2018 production report, the company indicated that total platinum group metals (PGM) production increased 3.0% to 1,256,900.00oz, due to improved operational performances particularly at Unki and the JV portfolio. Platinum and palladium production increased by 3.0% to 602,300.00oz and 386,600.00oz, respectively. PGM sales volumes were steady at 1,507,200.00oz. Purchase of PGM concentrate from third parties increased by 32.0% to 439,700.00oz due to production purchased from Union mine and inclusion of all material from BRPM following its sale. The company, in its 2H 2018 trading statement, revealed that its revenue advanced by 0.2% from the same period of the preceding year. The trading environment remained difficult with continued pressure on consumer spending, resulting in weakness in sales volume and it was aggravated by competitor discounting in some categories. Further, the company expects HEPS to be between c and c, which is 6.0% to 7.0% lower compared with the same period of the previous year. The company expects EPS to be in the range of c to c, which is 6.5% to 7.5% lower compared with the corresponding period of the previous year. BHP Group The company, in its 2H 2018 operational review, indicated that FY 2019 production guidance remains unchanged for petroleum, iron ore, metallurgical coal and energy coal. Total copper production guidance increased to between 1,645.00kt and 1,740.00kt and reflects the retention of Cerro Colorado. Meanwhile, the company reported that productivity in 2H 2018 had been impacted by unplanned production outages at Olympic Dam, Spence and Western Australia Iron Ore, with a total negative impact of approximately $ million. In the petroleum sector, the first appraisal well at Trion in Mexico (Trion-2DEL) encountered oil, in line with expectations. A downdip side-track is currently being drilled to further appraise the field. Separately, the company announced that Group Company Secretary, Margaret Taylor, has given notice of her resignation and will cease to be a company secretary of BHP Group Limited and BHP Group Plc, effective 1 March Additionally, Caroline Cox, currently General Counsel of BHP, will also assume the role of Group Company Secretary, and has been appointed a company secretary of BHP Group Limited and BHP Group Plc, effective 1 March Geof Stapledon remains a company secretary of BHP Group Plc and has been appointed company secretary of BHP Group Limited, also effective 1 March Further, Rachel Agnew remains a company secretary of BHP Group Limited and BHP Group Plc. Cashbuild The company, in its 2Q 2019 operational update, indicated that revenue rose 3.0% from the same period of the prior financial year, with the 33 new stores opened or acquired since 1 July 2017, contributing 3.0% of the increase, whilst the 287 existing stores remained at similar levels. This, together with the growth reported in the first quarter, equates to an increase in revenue for the half year of 3.0%, with all growth coming from new stores. Selling inflation was 3.0% at the end of December 2018 when compared to December Gross profit margin percentage for the group is at similar levels to those reported for the first half of the prior financial year. Clicks Group Grit Real Estate Income Group The company, in its trading update for the 20 weeks to 13 January 2019, indicated that retail health and beauty sales, including Clicks and the franchise brands of The Body Shop, GNC and Claire, increased by 8.6%, driven by competitive pricing and value promotions in the deteriorating consumer spending environment. Total retail sales increased by 7.8% and by 4.5% in comparable stores, with selling price inflation of 1.1%. Moreover, United Pharmaceutical Distributors total managed turnover, including wholesale turnover and the turnover managed on behalf of bulk distribution clients, increased by 16.2%. The company announced that its half year results for the six months ended 31 December 2018 will be announced on 14 February A company presentation for investors and analysts will be held on the day at Labourdonnais Hotel, Port Louis, Mauritius at 14:00 local time (10.00am UK / 12:00pm South Africa). The presentation will be accessible through a live conference call and on-demand playback via the company s website. Hammerson The company announced that its full year results for the period ending 31 December 2018 will be announced on 25 February Separately, the company announced that Andrew Formica, a Non-Executive Director, will be appointed as Chief Executive Officer (CEO) and a Director of Jupiter Fund Management Plc with effect from 1 March 2019, subject to customary regulatory approvals. Separately, the company announced that following the recent appointment of Terry Duddy as the Interim Chairman of Debenhams Plc, the Board of the company and Terry have mutually agreed that with immediate effect Terry will step down as a Non-Executive Director and the Senior Independent Director of the company. Further, Gwyn Burr has been appointed to act as the company s new Senior Independent Director with immediate effect. Imperial Logistics Kumba Iron Ore The company announced that Marius Swanepoel will now retire as CEO with effect from 1 February 2019 and Mohammed Akoojee will succeed him as CEO of the company from that date. Marius will continue to serve as an Executive Director on the Imperial Logistics Board until 30 June 2019 and will remain employed by Imperial Logistics until 31 December 2019, responsible for special projects and available for strategic counsel. In its 4Q 2018 production report, the company announced that total sales volumes of 43.30Mt and total production of 43.10Mt for the year were both well within the guidance of 42.00Mt to 44.00Mt and 43.00Mt to 44.00Mt, respectively. Export sales volumes decreased by 4.0% to 40.00Mt, owing to rail constraints and the single loading of vessels, following the scheduled refurbishment of the ship loader by Transnet at Saldanha Port. Further, total finished stock held at the mine and port came in at 5.30Mt, below the 6.60Mt reported at 30 September

5 South African Corporate News Company Name Massmart Holdings News The company, in its FY 2018 trading statement, indicated that the company expects HEPS to decrease between 26.5% and 36.5% to be in the range of c to c, compared with the corresponding period of the preceding year. Further, the company expects EPS to be between c and c, which is 28.4% to 38.4% lower from the same period of the previous year. Metrofile Holdings The company announced the appointment of Mr Leon Rood as a Non-Executive alternate Director to Mr Chris Seabrooke, effective 1 February Pan African Resources Reinet Investments SCA Shoprite Holdings Sibanye Gold Steinhoff Investment Holdings The company, in its 2H 2018 operational update, stated that gold production from its continuing mining operations increased by 54.2% to 81,014.00oz, with robust operational performances from Barberton Mines underground operations and from the company s tailings retreatment plants. The improved production performance, curtailment of large-scale underground mining operations at Evander Mines and the contribution of incremental low-cost ounces from Elikhulu has resulted in a marked reduction in the company s all-in sustaining cost of production. The company, in its 3Q 2018 management statement, indicated that the company s net asset value (NAV) of 3.90 billion reflects a compound return of 8.0% per annum in euro terms, since March 2009, including dividends paid. The NAV at 31 December 2018 reflects a decrease of million or 19.5% from 4, million at 30 September The company repurchased 2,087, ordinary shares as of 31 December 2018 for a consideration of million. The company, in its operational update, stated that total turnover increased by 0.03% to approximately R72.90 billion in the 6 months to December The company managed to increase the number of customer visits by 1.7% and product volumes by 0.2%. Further, the company's core business, Supermarkets RSA, achieved a sales growth of 2.6% for the period. The company s core middle income consumer base continued to remain under pressure. The company announced that Investec Limited has, in aggregate, acquired an interest in the ordinary shares of the company, such that the total interest held by Investec Limited amounts to 5.0% of the total issued shares of the company. The company, in its monthly update on progress in connection with the corporate and capital restructuring of the Group s European business, announced that the SEAG CVA and the SFHG CVA were both approved by significant majorities of their respective creditors and by their members at meetings held on 14 December Vodacom Group In its trading update for the quarter ended 31 December 2018, the company announced that total revenue advanced 1.5% to R23.00 billion and service revenue rose 2.4% to R18.90 billion. Total number of customers increased 7.1% to million, up 5.4% in SA and 9.3% in the company s international operations. Further, the company stated that data revenue increased 2.2% to R6.80 billion, while international data revenue grew 25.4%. SA service revenue declined 0.9% to R13.90 billion, impacted by pricing transformation and customers optimising promotional data bundle allocations. 5

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