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) February Feb 1W% YTD % Key Global Indices 2019 Close JSE All Share % 2.3% FTSE % 4.3% DAX % 5.9% CAC % 6.1% DJIA % 7.4% S&P % 8.0% NASDAQ Comp % 9.5% Nikkei % 3.9% Shanghai Comp % 5.0% S&P/ASX % 3.8% South African Equity Markets South African markets ended lower last week. Net 1 UEPS Technologies plummeted 37.0%, after the company indicated that the loss of its social grants contract would have severe financial implications, following an unfavourable ruling by the High Court of the Republic of South Africa. Shoprite Holdings slumped 11.6%, after the company announced that it expects a significant decline in its 2H 2018 HEPS and EPS. Hudaco Industries plunged 8.3%, even though the company recorded an increase in turnover during FY On the flipside, Kumba Iron Ore rallied 16.9%, as global iron ore prices rose, after a dam burst in Brazil disrupted production at a mine owned by the world's largest iron ore producer, Vale. Technology company, MiX Telematics soared 14.5%, after the company reported a rise in its 3Q 2019 revenues. The JSE All Share Index declined 0.2% to close at 53,930. JSE All Share - Weekly Gainers & Losers -37.0% Net 1 UEPS Technologies Inc Kumba Iron Ore Ltd 63, % 59,368 JSE All Share - Daily Chart -13.1% EOH Holdings Ltd Sibanye Gold Ltd 55, % 51, % -11.6% Montauk Holdings Ltd Shoprite Holdings Ltd MiX Telematics Ltd Italtile Ltd 14.5% 11.4% 47, RSI (21) % 11.2% Ascendis Health Ltd Lonmin Plc -40.8% -20.4% 0.0% 20.4% 40.8% Top 10 New 52 Week Highs 0 Aug-18 Sep-18 Nov-18 Dec-18 Feb-19 Top 10 New 52 Week Lows Share 52Week High (ZAR) 1W% Fortress Income Fund Ltd - Class A % Capitec Bank Holdings Ltd % Impala Platinum Holdings Ltd % African Rainbow Minerals Ltd % Anglo American Platinum Ltd % PSG Group Ltd % AngloGold Ashanti Ltd % Anglo American Plc % Pan African Resources Plc % Gold Fields Ltd % Share 52Week Low (ZAR) 1W% AVI Ltd % Mediclinic International Plc % Hosken Consolidated Investments Ltd % Astral Foods Ltd % Reinet Investments SCA % Tsogo Sun Holdings Ltd % Shoprite Holdings Ltd % Blue Label Telecoms Ltd % African Rainbow Capital Investments Ltd % Famous Brands Ltd % ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 6 1

2 Key Currencies 01 Feb 2019 Close 1W% YTD % USDZAR % -7.1% EURZAR % -7.2% GBPZAR % -4.9% EURUSD % -0.1% EURCHF % 1.3% GBPUSD % 2.5% USDJPY % -0.2% USDCHF % 1.3% AUDUSD % 2.9% USDCAD % -3.9% Daily USD/ZAR Feb-18 Apr-18 Jun-18 Jul-18 Sep-18 Nov-18 Jan-19 Key Commodities 01 Feb 2019 Close 1W% YTD % Gold ($/oz) % 2.8% Silver ($/oz) % 2.5% Copper (USd/lb.) % 5.4% Brent Crude ($/bls) % 16.6% Sugar No.11 (USd/lb.) % 4.7% Iron Ore 62% Fe ($/dry MT) % 14.9% Daily Platinum 1, Feb-18 Apr-18 Jun-18 Jul-18 Sep-18 Nov-18 Jan-19 Currencies The ZAR strengthened against its major peers last week, on the back of improved sentiment towards emerging markets. On the data front, South Africa s trade surplus widened more than market expectations in December. In contrast, the nation s private sector credit growth and annual growth in money supply slowed on an annual basis in December. Moreover, producer price inflation eased sharply on an annual basis in December, reaching its lowest level in seven months. Additionally, the nation s manufacturing PMI dipped in January. For the week, the USD weakened 2.2% against the South African Rand to close at R The EUR was 1.7% lower at R15.27 and the GBP was 3.0% weaker at R17.43 for the week. The US Dollar traded mostly lower against its key counterparts last week, after the Federal Reserve, in its latest monetary policy meeting, held the benchmark interest rates unchanged at a range of 2.25% to 2.50% and as the central bank indicated that it would remain patient with future interest rate hikes. Data indicated that the US consumer confidence index deteriorated for the third consecutive month in January, registering its lowest level in 18 months. On the other hand, the nation s non-farm payrolls registered its largest gain since February Additionally, the ISM manufacturing PMI rose in January. The EUR advanced against the USD last week, after the Eurozone s consumer price index climbed in line with market expectations on a yearly basis in January. Meanwhile, the region s gross domestic product registered its slowest pace of growth in four years on a quarterly basis in 4Q18. German monthly retail sales fell more than market expectations in December, recording its fastest drop in 11 years. Further, the nation s Markit manufacturing PMI declined in January. Separately, the European Central Bank President, Mario Draghi stated that the Eurozone economy has performed worse than expected in recent months. The GBP fell against the USD last week, after data revealed that UK s factory output dropped more than expected at the start of this year. On the flipside, the nation s BRC shop price index advanced on an annual basis in January, recording its highest rate since April Meanwhile, the British Parliament declared its opposition to leaving the European Union without a deal and voted to send the UK Prime Minister, Theresa May back to Brussels to reopen talks with European leaders. Commodities Gold prices rose last week, after the Federal Open Market Committee stated that it would remain patient with future interest rate hikes, as it awaits the release of more economic data. Going ahead, market participants will closely watch the US durable goods orders, trade balance, the ISM non-manufacturing PMI and weekly mortgage applications data, along with initial jobless claims, consumer credit and wholesale inventories data for further direction. Additionally, the Fed Governor, Jerome Powell is scheduled to deliver a speech later this week. Crude oil prices advanced last week, amid US sanctions against Venezuela, which is expected to sharply limit oil transactions between Venezuela and other countries. Moreover, weakness in the greenback provided additional support to oil prices. Baker Hughes reported that US oil rig count fell by 15 to 847 last week. The American Petroleum Institute reported that crude oil inventories advanced less than market forecast by 2.1 million bls in the week ended 25 January Additionally, the US Energy Information Administration reported that crude oil inventories rose less-than-expected by 900,000 bls last week. Iron ore prices surged last week, as the world's largest iron ore producer, Vale announced plans to cut 10.0% of its annual iron ore production for up to three years. The firm also plans to shut down ten other dams similar to Brumadinho's, as part of its response plan following the enormous dam collapse in the region. 2

3 Key Economic News Last Week Country News The producer price inflation slowed to 5.2% on a yearly basis in December, compared to a rate of 6.8% in the prior month. Growth in private sector credit demand slowed to 5.1% on a yearly basis in December. Private sector credit had risen 5.6% in the prior month. South Africa M3 money supply rose 5.6% on an annual basis in December. In the previous month, M3 money supply had advanced 5.7%. Trade surplus widened more than market forecast to R17.17 billion in December, from a surplus of R3.50 billion in the previous month. The manufacturing PMI dropped to in January, compared to a reading of in the prior month. New vehicle sales unexpectedly fell 7.4% on an annual basis in January. In the prior month, new vehicle sales had dropped 1.9%. Economic Calendar - Week Ahead Monday, Feb 04, 2019 Tuesday, Feb 05, 2019 Wednesday, Feb 06, 2019 Thursday, Feb 07, 2019 Friday, Feb 08, SACCI Business Confidence Index (Jan) Gross Gold & Forex Reserve (Jan) - South Africa Net Gold & Forex Reserve (Jan) Electricity Production (Dec) - 3

4 South African Corporate News Company Name Absa Group News The company announced that Maria Ramos, the Chief Executive Officer (CEO) of the company will retire from Absa Group and Absa Bank at the end of February The Boards have appointed René van Wyk as the interim CEO, with effect from 1 March Anglo American The company announced that the value of rough diamond sales for De Beers' first sales cycle of 2019, amounted to $ million. ARB Holdings ArcelorMittal South Africa Comair Grand Parade Investments Limited The company, in its 2H 2018 trading statement, indicated that it expects its EPS and HEPS to be between 22.62c and 24.50c, which is between 35.0% and 40.0% lower, compared with the EPS and HEPS of 37.70c and 37.62c, respectively, recorded in the same period of the previous year. The company, in its FY 2018 trading statement, indicated that it expects HEPS to be between 84.00c and 94.00c, which is an 137.0% to 141.0% improvement compared with a headline loss per share of c posted in same period of the previous year. Further, the company expects EPS to be in the range of c to c, which is a 126.0% to 128.0% improvement compared with a loss per share of c recorded in the corresponding period of the preceding year. The company, in its 2H 2018 trading statement, indicated that it expects EPS and HEPS to be between 24.00c and 29.00c, which is about 35.0% to 45.0% lower, in comparison to the corresponding period of the previous year. Separately, the company announced that Mr. Sean Liam Doyle has resigned as an independent Non-Executive Director with immediate effect. The company announced that Mohsin Tajbhai, the current Chief Operations Officer of the company, has been appointed as acting CEO, with effect from 28 January Group Five Hudaco Industries Lewis Group Merafe Resources MiX Telematics Pepkor Holdings PPC Limited Resilient REIT The company announced the resignation of its CEO, Solomon Themba Mosai, with effect from 31 January The company has appointed Dr Thabo C Kgogo as interim CEO. The company, in its FY 2018 results, stated that its turnover increased to R6.38 billion from R5.90 billion posted in the corresponding period of the previous year. Its diluted EPS stood at 1.17c, from 1.24c in the same period of the prior year. The company, in its 3Q 2018 and 9M 2018 trading update, indicated that merchandise sales were enhanced by the acquisition of United Furniture Outlets and increased by 22.8% for the quarter, resulting in a 24.6% growth for 9M Comparable store sales advanced by 6.0% for the quarter. Further, total revenue, comprising of merchandise sales and other revenues, increased by 13.2% in 3Q 2018 and 12.0% for 9M In the third quarter, higher credit sales resulted in an increase in debtor costs by 2.7%, whereas debtor costs for 9M 2018 reduced by 10.3%. The company, in its 4Q 2018 production report and trading statement, indicated that the company s attributable ferrochrome production from the Glencore Merafe Chrome Venture increased by 2.6% compared with the same period of the previous year. The Venture Production for the year ended 31 December 2018 increased by 3.2% compared with the previous comparative period. Further, the company expects HEPS and EPS to be between 24.70c and 30.10c, which is 17.0% to 32.0% lower compared with the same period of the prior year. The company, in its 3Q 2019 results, stated that its revenue increased to R million from R million posted in the corresponding period of the previous year. Its diluted EPS stood at 0.10c. For FY 2019, the company expects EPS to be in the range of 36.40c to 38.60c and revenue to be between R1.95 billion and R1.97 billion. The company, in its 4Q 2018 trading statement, indicated that the group increased revenue by 6.1% to R19.50 billion during the period. The Pep and Ackermans brands in aggregate reported sales growth of 6.8% and like-for-like sales growth of 2.7%. Core clothing, footwear and homeware product categories achieved 8.6% sales growth and 4.6% like-for-like growth, which is very encouraging in the current operating environment. Notwithstanding a decline in sales of 4.8% in rand terms as a result of currency devaluation and poor performance in Zimbabwe, Pep Africa reported a markedly improved performance in constant currency with sales growth of 18.7% and like-for-like growth of 13.3%. This was supported by improved performance in Angola, Zambia and Nigeria. The Speciality division reported sales growth of 7.3% with like-for-like growth of 3.0% in aggregate. Separately, the company announced that Mr Pieter Erasmus will resign as Non-Executive Director from the board with immediate effect. The company announced that Mr Jacobus Hendrik De La Rey Snyman has resigned as Company Secretary (CS), with effect from 31 January Further, the Board has appointed Mr Paul Philippus Maré, the firm s internal general counsel, as Interim CS with effect from 1 February 2019, until such time as a suitable replacement has been appointed as a permanent CS. The company announced that Mr Bryan Hopkins, an independent Non-Executive Director has informed the company of his retirement from the board of Directors with effect from 15 February Further, it announced that Mr Stuart Bird has been appointed as an independent Non-Executive Director with effect from 1 February

5 South African Corporate News Company Name News Shoprite Holdings The company, in its 2H 2018 trading statement, indicated that it expects HEPS to be between c and c, which is a drop of between 16.0% and 26.0% compared with a HEPS of c posted in the same period of the previous year. Further, the company expects EPS to be in the range of c to c, which is a decline of between 19.0% to 29.0% compared with an EPS of c recorded in the corresponding period of the preceding year. Spur Corporation The company, in its 2H 2018 sales update, indicated that franchised restaurant sales increased by 6.5% to R3.90 billion. Locally, 25 outlets were opened, and 6 outlets were closed during the period, while 14 restaurants were opened internationally. In South Africa, franchised restaurant sales increased by 5.7% and sales from international restaurants rose by 12.7% in Rand terms and by 12.1% on a constant exchange rate basis. Trencor The company, in its FY 2018 trading statement, indicated that it expects headline loss per share to be between 1,850.00c and 1,880.00c compared with a HEPS of c posted in the same period of the previous year. Further, the company expects EPS to be in the range of 1,255.00c to 1,290.00c compared with a loss per share of c recorded in the corresponding period of the preceding year. 5

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