Johannesburg 31B Impala Road Chislehurston Sandton +27(0) 11 290 7800 Durban Unit 8, 8 Richefond Circle, Ridgeview, Umhlanga Ridge, 4319 +27(0) 31 584 6491 Cape Town Unit 11, Lonsdale Building, 7 Lonsdale Way, Pinelands, 7405 +27(0) 21 528 9900 Weekly Market Report 31 December 2018 28 Dec 1W% YTD % Key Global Indices 2018 Close JSE All Share 52444.89 2.0% -11.9% FTSE 100 6733.97 0.2% -12.4% DAX 30 10558.96-0.7% -18.3% CAC 40 4678.74-0.3% -11.9% DJIA 23062.40 2.7% -6.7% S&P 500 2485.74 2.9% -7.0% NASDAQ Comp. 6584.52 4.0% -4.6% Nikkei 225 20014.77-0.8% -12.1% Shanghai Comp 2493.90-0.9% -24.6% S&P/ASX 200 5654.32 3.4% -6.8% South African Equity Markets South Africa markets ended higher last week. Tradehold, Capital & Regional and Murray & Roberts Holdings soared 11.0%, 10.6% and 10.3% respectively. Investment companies, AfroCentric Investment Corp and Reinet Investments SCA jumped 7.8% and 6.7%, respectively. On the other hand, investment holding companies, Trencor and Libstar Holdings dropped 7.4% and 5.3%, respectively. Real estate companies, Investec Australia Property Fund, Delta Property Fund and Octodec Investments declined 6.9%, 6.4% and 4.9% respectively. The JSE All Share Index advanced 2.0% to close at 52,444.89. JSE All Share - Weekly Gainers & Losers -9.0% Zeder Investments Ltd Tradehold Ltd 11.0% JSE All Share - Daily Chart 63,314 59,368-7.4% Trencor Ltd Capital & Regional PLC 10.6% 55,422 51,477-7.3% -6.9% Lewis Group Ltd Investec Australia Property Fund Murray & Roberts Holdings Ltd Blue Label Telecoms Ltd 10.3% 9.5% 47,531 100 50 RSI (21) -6.4% Delta Property Fund Ltd -12.1% -6.1% 0.0% 6.1% 12.1% Top 10 New 52 Week Highs Impala Platinum Holdings Ltd 7.8% 0 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Top 10 New 52 Week Lows Share 52Week High (ZAR) 1W% AngloGold Ashanti Ltd 187.11 2.6% Share 52Week Low (ZAR) 1W% Investec Property Fund Ltd 13.42-0.4% RCL Foods Ltd 13.49 0.3% Hammerson Plc 60.00 0.3% Raubex Group Ltd 16.75-2.0% Peregrine Holdings Ltd 17.53-1.5% Mediclinic International Plc 55.50 4.3% Astral Foods Ltd 157.01-3.0% Capital & Counties Properties Plc 40.88 0.8% Coronation Fund Managers Ltd 40.63 1.0% SA Corporate Real Estate Ltd 3.27-0.3% ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 5 1
Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Weekly Market Report Key Currencies 28 Dec 2018 Close 1W% YTD % USDZAR 14.4331-1.4% 16.6% EURZAR 16.5155-0.8% 11.2% GBPZAR 18.3237-0.9% 9.6% EURUSD 1.1444 0.6% -4.7% EURCHF 1.1259-0.4% -3.8% GBPUSD 1.2699 0.4% -6.0% USDJPY 110.27-0.9% -2.1% USDCHF 0.9846-0.9% 1.1% AUDUSD 0.7047 0.1% -9.8% USDCAD 1.3638 0.3% 8.5% Daily USD/ZAR 16 Currencies The ZAR strengthened against its major peers last week, after South Africa recorded a trade surplus in November. For the week, the USD weakened 1.4% against the South African Rand to close at R14.4331. The EUR was 0.8% lower at R16.5155 and the GBP was 0.9% weaker at R18.3237 for the week. The US Dollar weakened against its key counterparts last week, amid a decline in the US treasury bond yields and on worries over partial government shutdown. The nation s Richmond Fed manufacturing index registered an unexpected decline in December, following weakened shipments and new orders. Moreover, consumer confidence index declined for a consecutive second month to a five-month low level in December, weighed down by weaker expectations for economic growth. Additionally, pending home sales data unexpectedly dropped in November, pointing towards lingering weakness in the domestic housing market. Meanwhile, data indicated that the US Chicago Fed national activity index recorded a rise in November. Additionally, initial jobless claims marginally fell in line with market forecast in the week ended 22 December 2018, hinting at strength in labour market. Further, the house price index advanced at par with market expectations on a monthly basis in October. 15 14 12 11 The EUR advanced against the USD last week, amid fresh Italian budget news. On the macroeconomic front, Germany s consumer price inflation slowed to its lowest level in eight months on an annual basis in December. Separately, the European Central Bank s (ECB), in its monthly economic bulletin, indicated that significant monetary policy stimulus is still required, amid increased downside risks to the economic growth. Further, the central bank signalled that global economy activity is expected to decelerate in 2019 and stabilise thereafter. Additionally, the ECB expects global inflationary pressures to rise slowly. The GBP rose against the USD last week, after data revealed that UK s BBA mortgage approvals rose for the first time since September 2017 in November. Key Commodities 28 Dec 2018 Close 1W% YTD % Gold ($/oz) 1278.27 1.7% -1.9% Silver ($/oz) 15.44 5.0% -10.0% Copper (USd/lb.) 2.68 0.1% -18.8% Brent Crude ($/bls) 53.21-1.1% -20.4% Sugar No.11 (USd/lb.) 12.39 0.4% -18.3% Iron Ore 62% Fe ($/dry MT) 70.45 0.0% -0.5% Daily Platinum 1,080 Commodities Gold prices rose last week, amid weakness in the US Dollar and concerns over slowing economic growth. Going ahead, market participants will closely watch the US MBA mortgage applications, ADP employment change, initial jobless claims, ISM employment data, change in non-farm payrolls, unemployment rate and average hourly earnings for further direction. Crude oil prices declined last week, amid worries of increased crude oil supply after the American Petroleum Institute reported a rise in weekly crude oil inventories. Moreover, Baker Hughes reported that the number of active US oil rigs drilling advanced by 2 to 885 in the week ended 28 December 2018. Losses in crude were limited after the Energy Information Administration reported that domestic crude supplies dropped by 46,000bls last week. Copper prices traded in positive territory last week, supported by gains in the global equities. 990 899 808 718 2
Key Economic News Last Week Country South Africa News South Africa recorded a trade surplus of R3.49 billion in November, compared to a revised deficit of R4.28 billion in October. Economic Calendar - Week Ahead Monday, Dec 31, 2018 Tuesday, Jan 01, 2019 Wednesday, Jan 02, 2019 Thursday, Jan 03, 2019 Friday, Jan 04, 2019 South Africa M3 Money Supply (Nov) - Electricity Production (Nov) - - Private Sector Credit (Nov) - Electricity Consumption (Nov) - - 3
South African Corporate News Company Name Anglo American Huge Group Stenprop News The company announced the receipt of regulatory approval relating to the Step 3 licence area of the Minas-Rio operation in Brazil. Access to the Step 3 area provides greater operational flexibility and access to higher grade iron ore to support the increase of production of the operation towards its full design capacity of 26.50 million tonnes per year. As a result of this important regulatory approval, production guidance for FY 2019 is expected to be in the range of 18.00 million to 20.00 million tonnes. Separately, the company announced the resumption of operations at its Minas-Rio iron ore operation in Brazil. The restart of the integrated iron ore operation follows an extensive and detailed technical inspection of the 529.00km pipeline that carries the iron ore in slurry form from the mine to the port, the preemptive repair of certain sections of the pipeline, and receipt of the appropriate regulatory approvals. The company announced that Andrew (Andy) Openshaw has been appointed as Chief Operating Officer. His appointment will take effect when his restraint of trade commitments to Reunert Limited are waived or fulfilled. The company announced it has acquired a portfolio of multi-let industrial properties for a gross purchase consideration of 72.2 million, Trencor The company announced that Sanlam Investment Management (Pty) Limited, on behalf of underlying clients, has formally notified the Trustco Group Holdings The company announced that Global Credit Ratings Company after signature of the formal Standstill Agreement signed with the international debt Lenders Group, has upgraded the company s long-term credit rating to CCC(NA) and its short-term rating to C(NA) with the outlook as evolving. 4
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