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DESK FROM THE

I N V E S T O R C A M P U S

3 February 2015

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January was a volatile month on international markets and the JSE

with shares in energy companies sliding as the oil price hit fresh new

lows. However, following the European Central Bank's (ECB’s)

quantitative easing (QE) programme announcement, which is hoped

to revive the euro area's lacklustre economic growth and boost

corporate earnings, European stocks posted their best MoM

performance in over three years. In the US, GDP data disappointed

(coming in at 2.6% - a sharp drop from the robust 5.0% level seen in

the previous quarter), while the impact of a strong dollar on company

earnings, plummeting oil prices and the Greek election, weighed on

investor sentiment. Adding to concerns over Greece was the election

of the leftist Syriza party, which has vowed to fight the austerity

measures international lenders have imposed on the country. In mid-

January the World Bank revised its global growth forecasts downward

(from 3.4% to 3.0% in 2015 and 3.5% to 3.3% in 2016) blaming low

oil prices, weak global trade, financial market volatility and the risk of

prolonged stagnation and deflation in the eurozone and Japan. This

put further pressure on global markets. Adding to growth concerns,

China’s factory sector shrank in January – the first time in over 2

years.

The US Fed’s Federal Open Market Committee (FOMC) statement in

late January indicated US economic activity was expanding at a

"solid" pace and, although rates weren’t raised, it kept open the

possibility of an 2015 interest rate increase. During the month the

dollar moved higher against most currencies, while the South African

rand lost further ground against the greenback, closing the month

down 0.8% MoM. On the local economic front, the South African

Reserve Bank (SARB) left interest rates on hold, saying that any

possible cuts would depend on further declines in consumer inflation

which slowed to 5.3% YoY in December. On the JSE, the All Share

Index ended the month 3.0% higher, while the Indi-25 gained 3.1%,

the Fini-15 was up 4.6% and the Resi-20 ended the month 0.4% in

the green. The gold price rose sharply MoM, closing January 8.1%

higher, despite a brief retreat last week.

Gold counters drive the JSE in January

Top-20 performers: January 2015 and YTD performance

Source: Bloomberg, Anchor Capital

Share Market Cap

(Rmn) Closing Price

31/12/2014 Closing Price

30/01/2015 Move

% Change

HARMONY GOLD MINING CO LTD 15442 2161 3414 1253 58.0%

DRDGOLD LTD 1102 193 266 73 37.8%

SIBANYE GOLD LTD 28224 2255 3077 822 36.5%

ANGLOGOLD ASHANTI LTD 57285 10170 13679 3509 34.5%

SPUR CORP LTD 4122 3129 3971 842 26.9%

THE FOSCHINI GROUP LTD 34942 13324 16765 3441 25.8%

GOLD FIELDS LTD 51992 5231 6526 1295 24.8%

LEWIS GROUP LTD 8584 7401 9090 1689 22.8%

HUDACO INDUSTRIES LTD 4003 9690 11777 2087 21.5%

HOSPITALITY PROPERTY FUND-A 2789 1390 1679 289 20.8%

OCTODEC INVESTMENTS LTD 6537 2350 2763 413 17.6%

COMBINED MOTOR HOLDINGS LTD 1424 1280 1500 220 17.2%

MASSMART HOLDINGS LTD 36688 14280 16656 2376 16.6%

MEDICLINIC INTERNATIONAL LTD 100162 10065 11578 1513 15.0%

SPAR GROUP LIMITED/THE 31816 16136 18449 2313 14.3%

SAPPI LIMITED 25921 4220 4800 580 13.7%

CASHBUILD LTD 4761 16420 18600 2180 13.3%

MR PRICE GROUP LTD 69102 23500 26500 3000 12.8%

WOOLWORTHS HOLDINGS LTD 79423 7710 8690 980 12.7%

CAPITEC BANK HOLDINGS LTD 44620 34000 38300 4300 12.6%

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2


www.investorcampus.com I N V E S T O R C A M P U S

On the back of the robust gold price, gold counters ruled in January

with half of the top-10 best performing shares this past month coming

from the gold sector. Gold counters posted double-digit gains,

reaffirming the yellow metal’s status as a safe-haven asset as

uncertainty over European stability, the continued drop in the oil price,

the Swiss National Bank (SNB) scrapping the franc's peg to the single

currency and the ECB saying it would pump billions into the European

economy as it initiated new steps of QE, saw investors scrambling for

gold shares. For January/ YTD, Harmony Gold’s share price soared

48.6% to become the best-performing counter on the JSE. Harmony

was followed by DRDGold (+37.8%), Sibanye Gold (+36.5%),

AngloGold Ashanti (+34.5%) and in 7th spot, Gold Fields (+24.8%).

Gold Fields had said in early January that it expected its attributable

gold equivalent production to be better than it had originally guided.

Spur Corp (+26.9% MoM) was the month’s fifth-best performer. The

company released interim results in January, which saw total

restaurant sales increase 14.1% YoY to R3.2bn in 2H14. Of this

domestic sales grew 12.6% YoY and international sales increased

25.8% YoY. During the month, The Foschini Group (+25.8% MoM

and the sixth-best performer) announced its acquisition of an 85%

stake in UK-based international retailer, Phase Eight. The company

also released its Christmas trading update which revealed that Group

sales grew 12.5% YoY and LfL growth came in at 7.3% YoY. Another

retail counter, Lewis Group saw its share price end the month 22.8%

higher MoM – eighth spot among the top-20 stocks. Investors reacted

positively to Lewis’ trading update, which said that revenue for the

nine months to December grew by 4% and merchandise sales were

up 3% YoY. Despite local trading conditions remaining under

pressure due to continued weak consumer demand, the company

showed an 8% improvement in revenue with merchandise sales

climbing 12% higher in the quarter to December.

Hudaco’s share price (+21.5% MoM) rebounded following reports that

an agreement was reached between the South African Revenue

Services (SARS) and the company, which will see Hudaco paying

SARS a final settlement of R312mn (vs an expected R1.9bn). Hudaco

has already made a payment of R120mn under SARS’ “pay now,

argue later” principle and the company said that the balance of

R192mn was due in March.

In tenth position, Real Estate Investment Trust (REIT), the Hospitality

Property Fund (HPF) gained 20.8% MoM. Reports emerged during

the month that HPF would dispose of five of its hotel properties with

CEO Andrew Rogers saying that the company was confident that “…

we will realise optimal market value on the properties, …”. Another

REIT, Octodec Investments, which recently completed a reverse

merger with Premium Properties, rose 17.6% MoM coming in at 11th

spot. Combined Motor Holdings increased 17.2% MoM, with the

National Association of Automobile Manufacturers of South Africa

(NAAMSA) reporting in January that new car sales improved 10.7%

YoY in December.

Retail shares also performed well this past month as trading updates

surprised on the upside. Massmart Holdings saw its share price

buoyed (+16.6% MoM) after revealing a rise in its total FY14 sales,

which rose 10.4% YoY to R78.2bn in the 52 weeks to 28 December.

The shares of hospital group Mediclinic, which derives c. 50% of its

profits from Switzerland, reacted positively to the move by the SNB to

no longer hold the Swiss franc at a fixed exchange rate with the euro,

gaining 15.0% MoM. Retailer, Spar Group (up 14.3% MoM) advised

shareholders in January that BWG Group, the Company’s subsidiary

in Ireland, has entered into negotiations to acquire the trading

business of ADM Londis for EUR23mn.

Rand hedge, Sappi was up 13.7% MoM. The Business Day reported

last month that Sappi should be able to reduce its interest bill when it

refinances various bonds, thereby improving the pulp and paper

producer’s investment case along with lower oil prices and weaker

currencies vs the dollar. Cashbuild, which gained 13.3% MoM,

released its 2Q15 operational update in January which showed that

revenue increased 13% YoY. Stores opened since 1 July 2013 (19

new stores) contributed 6% of this increase, whilst existing

stores’ (198 stores) contribution rose 7% YoY. This, together with the

growth reported in 1Q15, equated to an increase in revenue for 1H15

of 12%, 6% of which was contributed by existing stores. Transactions

through the tills during the period increased 7% YoY.

Mr Price Group (+12.8% MoM) also released a positive 3Q15 update

last month which showed that the Group recorded retail sales growth

of 14.2% YoY - in line with that achieved for 1H15. The company said

it was a pleasing performance given the high sales base in the prior

year (especially in Mr Price Apparel), the subdued retail environment

for homewares (a more discretionary purchase), and the power

outages in November and early December, which impacted trading.

In January, Woolworths Holdings (+12.7%) reported a 55% rise in 1H

results after receiving a boost from its acquisition of Australian

department store David Jones. The company said that without

including the impact of David Jones, group sales grew 12.5 % YoY.

Finally, rounding out the top-20 performers on the JSE, Capitec Bank

gained 12.6%.

Bottom-20 performers: January 2015 and YTD performance

Source: Bloomberg, Anchor Capital

Share Market Cap

(Rmn) Closing Price

31/12/2014 Closing Price

30/01/2015 Move

% Change

PPC LTD 13100 2750 2140 -610 -22.2%

STEFANUTTI STOCKS HOLDINGS 1070 650 510 -140 -21.5%

GRINDROD LTD 13831 2240 1820 -420 -18.8%

INVICTA HOLDINGS LTD 8166 9037 7604 -1433 -15.9%

AFRICAN OXYGEN LTD 4779 1604 1397 -207 -12.9%

PINNACLE HOLDINGS LTD 1772 1235 1080 -155 -12.6%

ADCOCK INGRAM HOLDINGS LTD 7594 4900 4310 -590 -12.0%

COAL OF AFRICA LTD 512 38 34 -4 -10.5%

CORONATION FUND MANAGERS 35928 11516 10350 -1166 -10.1%

GROUP FIVE LTD 2899 2923 2636 -287 -9.8%

GRAND PARADE INVESTMENTS LTD 3006 695 630 -65 -9.4%

CONSOLIDATED INFRASTRUCTURE 3988 2899 2635 -264 -9.1%

ANGLO AMERICAN PLC 269921 21533 19600 -1933 -9.0%

MTN GROUP LTD 381601 22141 20207 -1934 -8.7%

PETMIN LTD 762 149 136 -13 -8.7%

RCL FOODS LTD/SOUTH AFRICA 16363 1940 1775 -165 -8.5%

FINANCIERE RICHEMONT-DEP REC 548361 10500 9647 -853 -8.1%

BARLOWORLD LTD 20594 9574 8824 -750 -7.8%

MURRAY & ROBERTS HOLDINGS 8703 2126 1967 -159 -7.5%

TONGAAT HULETT LTD 21702 17292 16000 -1292 -7.5%

3



On the flipside, among the 20-worst performing stocks, construction

counters featured prominently. Cement maker, PPC (-22.2%) was the

worst performing share among the top-20. PPC released a trading

update for the quarter, saying it expects 1H15 EPS to reflect a YoY

decline mainly due to last year’s once off tax credit combined with

increased finance costs in this year. In addition, PPC announced

changes to their board and respective committees. Finally, PPC

released a further cautionary announcement stating that the board

was still considering the indicative proposal from AfriSam and that it

would make a further announcement once it has concluded its

consideration of the proposal.

Construction company, Stefanutti Stocks (-21.5% MoM) emerging as

the second-worst performer, followed by Grindrod (-18.8%), Invicta

(-15.9%) and African Oxygen (Afrox, -12.9%). In early January, Afrox

announced the surprise resignation of Brett Kimber as MD, effective

12 January 2015. Company Chairman, Mike Huggon, would assume

transitional responsibility for the executive management of the

company until a successor was identified. The company has also

seen a sharp drop in EPS for the year to December because of soft

demand for its products.

The abovementioned shares were followed by Pinnacle (-12.6%),

Adcock Ingram (-12.0%), Coal of Africa Ltd (-10.5%) and Coronation

Fund Managers (-10.1%). Adcock Ingram was the clear loser among

the domestic drug manufacturers after it won only R700mn of the

government’s R14bn HIV/AIDS drug tender. It also emerged last

week that Bidvest had significantly overpaid for its shareholding in

Adcock, prompting Bidvest to write down its investment in the Group

to a level in line with a realistic market valuation. Bidvest CEO Brian

Joffe said in the group's annual report that the write-down involves c.

R1bn. While Coal of Africa’s (CoAL) quarterly update recorded a

series of financial settlements, environmental go-aheads and project

advances, CoAL also announced the issuing of 20mn unlisted share

options to Investec at R1.32/share as well as a spread of listed and

unlisted share options for CEO David Brown. Brown is also in the

process of implementing plans that target the production of c. 7mn

tonnes of saleable coal p.a., 5mn tonnes of which is expected to be

import-substituting price-premium hard coking coal used in

steelmaking. In January, Coronation Fund Managers again won the

Raging Bull Award for the South African Management Company of

the Year for the sixth time.

Group Five (-9.8% ), this week released a 1H15 trading statement

saying that it expects fully diluted HEPS to be between 40%- 50%

lower; HEPS to be between 40%-50% lower and EPS to be between

35% - 45% lower (1H14: R2.00). Grand Parade Investments (-9.4%)

said last month that it would be purchasing a further 35% of Mac

Brothers Catering Equipment from Nadesons Investments, taking

their holding to 100%.

Consolidated Infrastructure Projects lost 9.1% MoM, while Anglo

American closed the month 9.0% lower. Last month, Anglo reported

4Q production numbers (including data for Kumba and Amplats)

which were in line with guidance; however the company remained

under pressure on the back of the sharply lower commodity price

environment, particularly in the case of bulk commodities. MTN Group

and Petmin were both down 8.7%, while RCL Foods Ltd lost 8.5%

MoM. Petmin saw its share price impacted by lower commodity prices

while RCL Foods reversed its December MoM gains.

Richemont (-8.1% MoM), the world’s largest jewellery maker, reacted

strongly to the surprise news that the SNB had decided to stop

intervening to peg the franc against the euro, resulting in the franc

soaring against all major global currencies. Richemont could see a

strong franc impacting its profit as the appreciation of the franc vs

euro, dollar etc. impacts its euro-and dollar-denominated earnings

base. Richemont has Swiss franc-denominated costs but sells its

product in different global currencies. Barloworld (-7.8%) further

extended its losses in January, following December’s 8.4% MoM

drop.

Murray & Roberts and Tongaat-Hulett accounted for the rest of the

bottom-20 stocks with both shares down 7.5% MoM. Murray &

Roberts has been under pressure on the back of lack of infrastructure

spending in its key markets. Tongaat last month concluded a BEE

deal for the sale of prime land at its Cornubia Business Hub in

KwaZulu-Natal.

4



Key Global Indices

JSE All Share - Last Month

South Africa Market Review

FTSE 100 - Last Month

UK Market Review

S&P 500 - Last Month

US Market Review

Asian markets are trading lower this morning. In Japan, Honda Motor slipped

2.5%, amid reports that the company is planning to slash production by 20.0% at

its Suzuka plant. However, Panasonic added 1.0%, after it announced that it has

shutdown TV manufacturing plant in China and will liquidate the division. In Hong

Kong, China Southern Airlines, Air China and Cathay Pacific Airways slumped

5.9% 5.0% and 3.1%, respectively, following a rise in crude oil prices. In South

Korea, Kia Motors dipped 2.0%, after it reported a 1.8% decline in sales for

January. The Nikkei 225 Index is trading 1.0% lower at 17,376.26, while the

Kospi Index is trading 0.2% in the red at 1,948.30. The Hang Seng Index is

trading 0.3% in negative territory at 24,413.33.

Nikkei 225 - Last Month

Asia Market Review

US markets ended in the green yesterday, amid a rise in energy sector stocks.

Denbury Resources and Chesapeake Energy advanced 12.3% and 7.0%,

respectively, following a rise in crude oil prices. Apple gained 1.3%, amid reports

revealing that it plans to sell bonds worth $5.00bn in its fourth multibillion dollar

debt offering in the past two years. Intel climbed 1.9%, after it agreed to acquire

a German firm, Lantiq, from Golden Gate Capital. However, Sysco fell 1.9%,

after announcing that it would sell 11 distribution centres run by US Foods to

Performance Food Group. The S&P 500 Index rose 1.3% to settle at 2,020.85,

while the DJIA Index advanced 1.1% to close at 17,361.04. The NASDAQ Index

surged 0.9% to finish at 4,676.69.

UK markets finished higher yesterday, following strength in energy sector stocks

and after data showed that UK’S manufacturing activity expanded at faster-than-

expected pace in January. Tullow Oil and Royal Dutch Shell surged 9.3% and

2.5%, respectively. CRH jumped 7.2%, after agreeing to acquire cement assets

from Holcim and Lafarge. BP advanced 3.1%, after a report indicated that it

would slash its capital expenditure by around 10.0%. On the flip side, aviation

sector stocks, easyJet and International Consolidated Airlines Group tumbled

6.4% and 2.8% respectively, amid a rise in oil prices and after Ireland-based

peer firm, Ryanair, warned that the slump in crude oil prices would impact air

fares. The FTSE 100 Index advanced 0.5% to close at 6,782.55.

South African markets closed higher yesterday, supported by oil and mining

sector stocks. Sasol surged 6.8%, following a sharp rise in oil prices. Platinum

miners, Northam Platinum, Anglo American Platinum and Royal Bafokeng

Platinum advanced 3.6%, 1.8% and 0.9%, respectively. Gold miners, Sibanye

Gold, Harmony Gold and Gold Fields rose 3.2%, 2.8% and 2.6%, respectively.

On the downside, Group Five lost 1.6%, after its latest trading update indicated

that its diluted headline EPS is expected to be significantly lower in 1H15.

Standard Bank Group fell 1.0%, after revealing that it has completed the sale of

its 60.0% controlling interest in Standard Bank to the Industrial and Commercial

Bank of China. The JSE All Share Index climbed 0.2% to close at 51,394.55.

47,592

48,945

50,298

51,652

2-Jan 13-Jan 22-Jan 2-Feb

6,303

6,509

6,715

6,921


1,973

2,010

2,047

2,084


16,628

17,077

17,525

17,974


Last Close 1D Chg 1D % Chg YTD% Chg 1M % Chg 1Y % Chg P/E Multiple (x)

JSE All Share 51,394.55 127.74 0.2 3.3 3.8 13.9 15.75

JSE Africa Resource 10 43,145.39 1,067.24 2.5 2.9 3.3 -20.0 13.18

JSE Africa Financial 15 16,194.66 -162.09 -1.0 3.5 4.5 36.8 13.78

JSE Africa Industrial 25 64,146.60 -151.38 -0.2 2.9 3.5 23.9 17.38

FTSE 100 6,782.55 33.15 0.5 3.3 3.6 4.2 19.64

German DAX 30 10,828.01 133.69 1.3 10.4 10.9 16.3 18.22

France CAC 40 4,627.67 23.42 0.5 8.3 8.8 11.1 27.22

S&P 500 2,020.85 25.86 1.3 -1.8 -1.8 13.4 17.80

Dow Jones Industrials 17,361.04 196.09 1.1 -2.6 -2.6 10.6 15.63

Nasdaq Composite 4,676.69 41.45 0.9 -1.3 -1.1 14.0 33.62

Nikkei 225* 17,376.26 -181.78 -1.0 0.6 0.6 17.7 19.78

Shanghai Composite* 3,141.40 13.10 0.4 -3.3 -3.3 53.9 15.05

Hang Seng Index* 24,413.33 -71.41 -0.3 3.7 2.6 11.1 10.34

*Time - SAST 6:00:00 AM

5



Commodities

At 06:00 SAST today, Brent crude oil rose 0.5% to trade at $53.94/bl.

Meanwhile, a Bloomberg News survey revealed that crude stockpiles in the

US probably rose by 3.75mn bls in the prior week. Yesterday, Brent crude

oil rose 5.8% to settle at $53.69/bl., as labour strike at several oil refineries

in the US extended for a second day, impacting approximately 10.0% of the

nation’s refining capacity and heightening concerns of a slowdown in

gasoline production.

Yesterday, the Illinois North Central No.2 Yellow corn spot prices remained

unchanged at $3.46/bushel.

At 06:00 SAST today, gold prices remained almost flat to trade at

$1,274.11/oz. Yesterday, gold declined 0.7% to close at $1,274.41/oz.

Yesterday, copper declined 0.3% to close at $5,525.00/mt. Aluminium

closed 0.1% higher at $1,855.75/mt.

Currencies

Yesterday, the South African rand strengthened against the majors, after

the Kagiso report revealed that manufacturing Purchasing Managers’ Index

(PMI) in South Africa rose surprisingly for January. The South African rand

gained further ground against the US dollar following the release of

downbeat ISM manufacturing PMI reading for January. Going forward,

market participants will keep a tab on today’s factory orders data in the US

for further direction.

The yield on benchmark government bonds remained mixed yesterday.

The yield on 2015 bond fell to 5.95% while that for the longer-dated 2026

issue advanced to 7.15%.

At 06:00 SAST, the US dollar is trading 0.3% higher against the South

African rand at R11.5399, while the euro is trading 0.3% higher at

R13.0734. At 06:00 SAST, the British pound has gained 0.4% against the

South African rand to trade at R17.3419.

Yesterday, the euro advanced against the US dollar and the British pound,

after the revised Markit survey showed that manufacturing PMI in the

eurozone remained in line with the preliminary estimate for January. Later

today, traders will eye producer price inflation report in the euro bloc for

further direction to the euro against the majors.

At 06:00 SAST, the euro slipped 0.1% against the US dollar to trade at

$1.1329, while it has weakened 0.1% against the British pound to trade at

GBP0.7540.

Crude Oil and Corn Prices Spot

Gold & Platinum Prices Spot

Copper, Aluminium & Iron Ore Prices Spot (Rebased)

USD/ZAR Movement

EUR/ZAR Movement

GBP/ZAR Movement

3.4

3.6

3.7

3.8


44.8

48.6

52.4

56.2

$/b

us

he

l

$/b

bl

Crude - LHS Corn - RHS

1178

1222

1267

1311


1165

1219

1274

1328

$/o

z

$/o

z

Gold - LHS Platinum - RHS

11.2872

11.4726

11.6579

11.8433


12.6515

13.1415

13.6314

14.1214


16.9205

17.3470

17.7735

18.2000



80

90

100

110

Copper Aluminium Iron Ore 62% Fe Content - CFR Qingdao China

6



Yield Corner

% Closing

Yield

% Change

on Day

Yield % -

1M Ago

South Africa CPI* 5.30 0.00 5.80

South Africa Repo Rate 5.75 0.00 5.75

JSE SA Listed Property Index 5.09 -5.04 5.76

R157 (2015) (SA Bond) 5.95 -0.02 6.45

R207 (2020) (SA Bond) 6.61 0.81 7.45

R186 (2026) (SA Bond) 7.15 0.46 7.99

US 10 Year Treasury 1.66 1.43 2.11

US 30 Year Treasury 2.25 1.26 2.69

Italian 10 Year Treasury 1.63 2.07 1.74

German 10 Year Treasury 0.31 3.64 0.50

* As on December 2014

South African Government Bond Yields

JSE All Share Index - Major Gainers & Losers

Figures in bracket indicate (Last Close, Absolute Change, % Change)

5.8%

6.5%

7.1%

7.8%

8.5%

9.2%

Jan-14 May-14 Aug-14 Oct-14 Jan-15

R157 (2015) R186 (2026)

-9.0% -7.2% -5.4% -3.6% -1.8% 0.0%

ArcelorMittal South Africa Ltd (2371.00, -114.00, -4.6%)

Barclays Africa Group Ltd (18995.00, -895.00, -4.5%)

Assore Ltd (15622.00, -523.00, -3.2%)

Mr Price Group Ltd (25751.00, -750.00, -2.8%)

Investec PLC (9620.00, -244.00, -2.5%)

Imperial Holdings Ltd (20120.00, -499.00, -2.4%)

Investec Ltd (9583.00, -232.00, -2.4%)

Investec Australia Property Fund (1150.00, -25.00, -2.1%)

Lewis Group Ltd (8900.00, -190.00, -2.1%)

Kumba Iron Ore Ltd (22006.00, -463.00, -2.1%)

0.0% 1.8% 3.6% 5.4% 7.2% 9.0%

Fortress Income Fund Ltd (2200.00, 165.00, 8.1%)

Sasol Ltd (45000.00, 2881.00, 6.8%)

Trustco Group Holdings Ltd (275.00, 17.00, 6.6%)

Hudaco Industries Ltd (12440.00, 663.00, 5.6%)

Pan African Resources PLC (210.00, 8.00, 4.0%)

Northam Platinum Ltd (4013.00, 138.00, 3.6%)

Hulamin Ltd (916.00, 31.00, 3.5%)

AngloGold Ashanti Ltd (14130.00, 451.00, 3.3%)

Sibanye Gold Ltd (3174.00, 97.00, 3.2%)

Business Connexion Group Ltd (633.00, 19.00, 3.1%)

7



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 196.08 London Stock Exchange 11.24 GBP 194.92 1.16

BHP Billiton Plc 258.60 London Stock Exchange 14.84 GBP 257.35 1.25

British American Tobacco Plc 650.00 London Stock Exchange 37.67 GBP 653.27 -3.27

Capital & Counties Properties Plc 67.21 London Stock Exchange 3.89 GBP 67.43 -0.22

Cie Financiere Richemont SA* 96.12 SIX Swiss Exchange 76.90 CHF 95.54 0.58

Intu Properties Plc 63.60 London Stock Exchange 3.69 GBP 64.06 -0.46

Investec Plc 96.20 London Stock Exchange 5.57 GBP 96.59 -0.39

Lonmin Plc 28.90 London Stock Exchange 1.65 GBP 28.53 0.37

Mondi Plc 206.01 London Stock Exchange 11.89 GBP 206.20 -0.19

New Europe Property Investments Plc/Fund 119.35 London Stock Exchange 8.75 EUR 114.39 4.96

Old Mutual Plc 36.54 London Stock Exchange 2.10 GBP 36.38 0.16

Pan African Resources Plc 2.10 London Stock Exchange 0.13 GBP 2.17 -0.07

Reinet Investments SCA* 26.23 Luxembourg Stock Exchange 20.59 EUR 26.92 -0.69

SABMiller Plc 626.00 London Stock Exchange 36.26 GBP 628.73 -2.73

AngloGold Ashanti Ltd 141.30 New York Stock Exchange 12.77 USD 147.36 -6.06

DRDGOLD Ltd* 2.80 New York Stock Exchange 2.31 USD 2.67 0.13

Gold Fields Ltd 66.94 New York Stock Exchange 5.97 USD 68.89 -1.95

Harmony Gold Mining Co Ltd 35.10 New York Stock Exchange 3.10 USD 35.77 -0.67

Redefine International Plc/Isle of Man 9.93 London Stock Exchange 0.57 GBP 9.95 -0.02

Glencore Xstrata Plc 43.95 London Stock Exchange 2.53 GBP 43.89 0.06

* Depositary Reciepts (DR) trade in the ratio of ten DRs to each Company share; Exchange Rate - USDZAR:11.5399, EURZAR:13.0734, GBPZAR:17.3419, CHFZAR:12.4233, Conversion rate as of 6:00 SAST

8



JSE All Share Stocks Hitting 52 Week High / Low

Company Name Closing Price (R) 1D% Chg 52 Week High / Low

Acucap Properties Ltd 57.00 1.8% Hits 52 Week High

Bidvest Group Ltd/The 323.16 0.0% Hits 52 Week High

Curro Holdings Ltd 35.30 0.6% Hits 52 Week High

Capitec Bank Holdings Ltd 391.29 2.2% Hits 52 Week High

Cashbuild Ltd 190.00 2.2% Hits 52 Week High

EOH Holdings Ltd 123.03 2.2% Hits 52 Week High

Fortress Income Fund Ltd 22.00 8.1% Hits 52 Week High

Hudaco Industries Ltd 124.40 5.6% Hits 52 Week High

Hulamin Ltd 9.16 3.5% Hits 52 Week High

Holdsport Ltd 50.96 1.9% Hits 52 Week High

Mondi Ltd 205.51 -1.9% Hits 52 Week High

Mondi PLC 206.01 -1.8% Hits 52 Week High

Nedbank Group Ltd 254.72 -0.7% Hits 52 Week High

RMB Holdings Ltd 65.35 -1.4% Hits 52 Week High

New Europe Property Investments PLC/Fund 119.35 1.2% Hits 52 Week High

Naspers Ltd 1714.37 1.0% Hits 52 Week High

Grindrod Ltd 18.56 2.0% Hits 52 Week Low

9



Economic Updates

Key Economic Releases Today

Country SAST Economic Indicator Relevance Consensus/

*Actuals Previous Frequency

Japan 1:50 Monetary Base (Jan) JPY275.39 trn* JPY267.40 trn Monthly

US 5:00 Fed's Bullard speech - - -

Switzerland 9:00 UBS Real Estate Bubble Index (4Q) - 1.29 Quarterly

Switzerland 9:00 Trade Balance (Dec) CHF2.10 bn CHF3.87 bn Monthly

Spain 10:00 Unemployment Change (Jan) 88.00 K -64.40 K Monthly

UK 11:30 Markit Construction PMI (Jan) 57.00 57.60 Monthly

Italy 12:00 Consumer Price Index, Prelim (MoM) (Jan) - 0.0% Monthly

Eurozone 12:00 Producer Price Index (MoM) (Dec) -0.7% -0.3% Monthly

Eurozone 12:00 Producer Price Index (YoY) (Dec) -2.5% -1.6% Monthly

Italy 12:00 Consumer Price Index, Prelim (EU Norm) (MoM) (Jan) -2.4% 0.0% Monthly

Italy 12:00 Consumer Price Index, Prelim (EU Norm) (YoY) (Jan) -0.4% -0.1% Monthly

Italy 12:00 Consumer Price Index, Prelim (YoY) (Jan) -0.3% 0.0% Monthly

Canada 15:30 Industrial Product Price (MoM) (Dec) -0.8% -0.4% Monthly

Canada 15:30 Raw Material Price Index (Dec) -9.0% -5.8% Monthly

US 15:55 Redbook Index (YoY) (30-Jan) - 3.2% Weekly

US 15:55 Redbook Index s.a. (MoM) (30-Jan) - -3.6% Weekly

US 16:45 ISM New York Index (Jan) - 70.80 Monthly

US 17:00 Fed's Bullard Discusses Economics in Newark, Deleware - - -

US 17:00 Factory Orders (MoM) (Dec) -2.2% -0.7% Monthly

US 17:00 IBD/TIPP Economic Optimism (MoM) (Feb) 51.40 51.50 Monthly

US 18:45 Fed's Kocherlakota Speaks on Economy in St. Pauls, Minnesota - - -

US - Domestic Vehicle Sales (Jan) 13.50 mn 13.57 mn Monthly

US - Total Vehicle Sales (Jan) 16.60 mn 16.92 mn Monthly

Note: High Medium Low

In January, the manufacturing Purchasing Managers’ Index (PMI) advanced unexpectedly to a level of 54.20 in South Africa, higher than

market expectations of a drop to 50.10. In the previous month, the manufacturing PMI had registered a reading of 50.20.

Markit Economics has reported that, in January, the manufacturing PMI in the UK advanced unexpectedly to a level of 53.00, compared

with a revised reading of 52.70 in the prior month. Markets were anticipating the manufacturing PMI to remain unchanged.

SVME/Credit Suisse has reported that compared with a revised level of 53.60 in the previous month, the SVME manufacturing PMI eased

to 48.20 in January, in Switzerland. Markets were anticipating the SVME manufacturing PMI to fall to 50.60.

Markit Economics has indicated that the final manufacturing PMI climbed to 49.20 in January, in France, compared with market

expectations of an advance to 49.50. The preliminary figures had indicated an advance to 49.50. In the prior month, manufacturing PMI had

registered a reading of 47.50.

Markit Economics has reported that, in January, the final manufacturing PMI in Germany recorded a drop to 50.90, compared with a level of

51.20 in the prior month. The preliminary figures had recorded a fall to 51.00. Market anticipations were for manufacturing PMI to drop to a

level of 51.00.

Markit Economics has reported that the final manufacturing PMI in the eurozone registered a rise to 51.00 in January, in line with market

expectations. In the prior month, the manufacturing PMI had recorded a reading of 50.60. The preliminary figures had also recorded an

advance to 51.00.

The ISM manufacturing activity index eased to 53.50 in the US, in January, more than market expectations of a drop to 55.00. The ISM

manufacturing activity index had registered a revised level of 55.10 in the previous month.

US Census Bureau has indicated that, on a monthly basis, construction spending rose 0.4% in December, in the US, less than market

expectations for a rise of 0.7%. Construction spending had registered a revised drop of 0.2% in the previous month.

The Reserve Bank of Australia unexpectedly cut its interest rate for the first time since August 2013 to a record low of 2.25%, from 2.50%,

citing a below-trend pace of growth and expectations that inflation will remain consistent with its target over the next one to two years. It also

indicated that a lower exchange rate is required to achieve balanced growth in the economy.

10



South Africa

Group Five Limited: The company, in its trading statement for the six months ended 31 December 2014, stated that its fully diluted

headline EPS and headline EPS is expected to be between 40.0% and 50.0% lower compared with R2.01 and R2.04, respectively, reported

for the corresponding period a year ago.

Standard Bank Group Limited: The lender indicated that that it has completed the disposal of a 60.0% controlling interest in Standard

Bank to the Industrial and Commercial Bank of China Limited with effect from 1 February 2015. The disposal proceeds from the transaction

are expected to total approximately $690.00mn, $75.00mn less than the company had estimated earlier. The company also indicated that

its FY14 earnings and headline EPS would differ between -5.0% and +5.0% compared with those reported for FY13.

Old Mutual: The insurance company announced the completion of the sale of its Skandia (France) and Skandia (Luxembourg) businesses

to APICIL, the fifth biggest social protection group in France.

Trustco Group Holdings Limited: The company indicated that its total group revenue for 9M15 rose 28.8% to N$612.00mn, compared

with the same period previous year. Its headline EPS stood at 17.99c, compared with 7.12c posted in the corresponding period preceding

year, while its basic EPS stood at 21.06c, compared with 12.69c in the previous year period. The company also stated that the Board, in

line with the objective stated in the 2014 integrated report to seek other opportunities in different sectors of the Namibian economy, has

resolved to pursue opportunities in the Resources sector during FY16.

Murray & Roberts Holdings Limited: The company indicated that Kagiso Asset Management (Pty) Limited has acquired a beneficial

interest in securities in the company and the total interest in securities held by Kagiso now amounts to 5.09% of the issued ordinary share

capital of the company.

Sibanye agrees to cut fewer jobs at Cooke mine: Bullion producer, Sibanye Gold, said on Monday it had reached an agreement with

unions to cut fewer jobs than had been at risk at its struggling Cooke 4 operation.

Illovo ‘not badly affected by floods’: Illovo Sugar, which is housing about 3,000 displaced people at its Malawian estate amid deadly

floods, says the torrential rains in the country will have "little or no impact on our season this year".

Eskom mum on blackout plans: Eskom on Monday stated that it would not divulge what plans it has in the event of a national blackout.

Koeberg to be fully powered by weekend: A unit at Koeberg power station is undergoing tests in preparation for being restarted, power

utility Eskom said on Monday.

UK and US

Exxon Mobil Corporation: The oil and gas corporation, in its FY14 results, indicated that total revenue and other income stood at

$411.94bn, compared with $438.26bn in the previous year. The company further revealed that earnings were $32.52bn, down 0.2%

compared with the previous year. It also stated that diluted EPS increased 3.1% to $7.60.

Anadarko Petroleum: The oil and gas exploration company, in its FY14 results, stated that total revenue increased 26.7% to $18.47bn.

Meanwhile, it reported a net diluted loss per share of $3.47, compared with net diluted EPS of $1.58 in FY13.

Sysco Corporation: The marketer and distributor of food products, in its 1H15 results, revealed that sales increased 6.9% to $24.53bn.

Furthermore, the company’s net diluted EPS was $0.73, compared with $0.84 a year ago. Meanwhile, the company stated that it has

reached a definitive agreement to sell 11 US foods facilities to Performance Food group related to its pending merger with US Foods.

Hartford Financial Services: The investment and insurance company, in its FY14 results, stated that the company reported core earnings

of $1.55bn, compared with $1.42bn in the preceding year. It also indicated that net diluted EPS available to common shareholders was

$1.73, compared with $0.36 in FY13. Furthermore, the company indicated that it expects FY15 core earnings to be in the range of $1.55bn

to $1.65bn.

XL Group: The property and casualty insurance company, in its FY14 results, indicated that total adjusted revenues decreased 8.1% to

$6.98bn, compared with the previous year. It further revealed that the net income attributable to ordinary shareholders was $0.19bn,

compared with $1.06bn in FY13.

American Capital Agency: The real estate investment trust, in its FY14 results, stated that net interest income was $1.10bn. The company

posted diluted loss per share $0.72 for the year.

Torchmark Corporation: The financial services holding company, in its FY14 results, indicated that net income was $4.09 per share,

compared with $3.79 per share for the year ago period. It further stated that the net operating income was $4.03 per share, compared with

$3.80 per share for the prior year. Meanwhile, the company expects FY15 net operating income per share to be in a range of $4.20 to

$4.40.

Apple Inc.: The company stated that it would build a $2.00bn global command center located in Mesa, Arizona and employ 150 full-time

personnel, and will also result in between 300 and 500 construction and trade jobs, and would play host to the company’s data operations

across the globe. Additionally, media reports revealed that the company plans to sell bonds worth $5.00bn in its fourth multibillion dollar

debt offering in the past two years.

Corporate Updates

11



Intel Corporation: The company announced that it has agreed to acquire Lantiq, a German maker of communications chips, from Golden

Gate Capital, for an undisclosed amount.

Visa Inc.: The company announced that it has appointed Vasant Prabhu as its CFO, effective 9 February 2015, wherein he would replace

Byron Pollitt, who is retiring.

Mylan Inc.: The drug making company revealed that it has signed a definitive agreement to acquire certain women’s health care

businesses from Famy Care Limited, a specialty women's health care company with global leadership in generic oral contraceptive

products, for $750.00mn in cash plus additional contingent payments of up to $50.00mn.

SS&C Technologies Holdings: The technology company announced that it has agreed to buy fellow financial services software provider,

Advent Software Inc., for about $2.40bn.

Shire Plc: The biopharmaceutical company announced that the US Food and Drug Administration (FDA) approved its Vyvanse capsules,

the first and only medication for the treatment of moderate to severe binge eating disorder in adults.

CRH Plc: The company announced that it has entered into a binding commitment to acquire certain assets from Lafarge SA and Holcim

Limited for an enterprise value of EUR6.50bn. It further announced an underwritten placing of 74,039,915 ordinary shares, representing

approximately 9.99% of the current issued ordinary share capital of the company.

Standard Life: The company announced the completion on 30 January 2015 of the sale of its Canadian companies, Standard Life

Financial Inc. and Standard Life Investments Inc., to The Manufacturers Life Insurance Company, a subsidiary of Manulife Financial

Corporation, for a total cash consideration of C$4.00bn (equivalent to GBP2.20bn).

Randgold Resources Limited: The company indicated that with its Loulo-Gounkoto gold mining complex continuing to grow production, it

is looking at the development of a third underground mine there while at the same time expanding its footprint elsewhere in the region. The

company’s CEO, Mark Bristow, stated that a feasibility study on an underground mine at Gounkoto had been completed and its findings

would be made known when the company publishes its 2014 results later this month.

Inmarsat Plc: The satellite telecommunications company announced that it has successfully launched its second Global Xpress satellite

(Inmarsat-5 F2) on board an International Launch Services Proton Breeze M rocket launched from Baikonur Cosmodrome in Kazakhstan on

1 February 2015.

HICL Infrastructure Company Limited: The company announced that it has sold its 56.0% equity and subordinated debt interest in the

Colchester Garrison MoD Project to subsidiaries of Allianz Group, the PPP Equity PIP limited partnership, and Dalmore Capital Fund II

limited partnership.

Balfour Beatty: The infrastructure company indicated that the Balfour Beatty joint venture with Skanska and MWH Treatment has inked a

five year contract with Thames Water, with an option to extend for a further 5 years. The initial GBP800.00mn contract covers the AMP 6

regulatory period, running from April 2015 to March 2020.

Kennedy Wilson Europe Real Estate: The property company announced the completion of its acquisition of the GBP503.00mn Aviva

portfolio of 180 mixed use properties located across the UK, along with associated vendor financing from Aviva Commercial Real Estate

Finance. The company further mentioned that the acquisition is being funded from the company's cash resources and a new GBP352.30mn

secured loan facility with Aviva. The purchase price reflects a net initial yield of 6.9% (gross yield 7.2%).

Grainger Plc: The residential property owner and manager revealed that it has exchanged contracts for the acquisition of a regional

tenanted residential property portfolio for around GBP58.00mn from Sarunas Properties Limited, a company owned by the PervaizNaviede

Family Trust. The transaction brings the company's total investment into residential assets in the UK regions to around GBP76.00mn in

recent months, and represents over 900 residential units.

RPS Group: The company indicated that its performance would be at the top end of market expectations in FY14. Despite the steep fall in

the oil price since June 2014, its Energy business, which represents about 40.0% of group fee income, grew its profits signif icantly in 2H14,

compared with 1H14. The company also mentioned that the acquisitions made in FY14 have integrated well and would make a signi ficant

contribution in FY15 and the board continues to believe that the group would have another successful year in FY15 and would deliver

further growth.

Fenner Plc: The company announced that its wholly owned subsidiary, Fenner Drives Inc., has acquired 100.0% of the share capital of

Charter Medical from its parent company, Lydall Inc., for$9.90mn million in cash.

EnQuest: The company has cancelled operations in Tunisia after finding that it expected no material oil production from the Didon field in

which it agreed to acquire a stake in 2013.

Financial Times

IAG seeks to ease political concerns over its Aer Lingus bid: Willie Walsh, Chief Executive of International Airlines Group, has

promised to leave ownership of valuable take-off and landing slots at Heathrow with Aer Lingus if the Irish government agrees to back its

EUR1.35bn bid for the country’s flagship carrier.

Corporate Updates

12



ICAP to face EU fine over yen cartels: ICAP faces an EU fine this week for allegedly facilitating cartels on yen-denominated inter-rate

benchmarks, as Brussels tackles the holdouts in rate-rigging probes that have already resulted in about EUR1.70bn in penalties.

John Lewis kills off final salary pension: The John Lewis Partnership has taken the final step in ditching its final salary pension scheme

in favour of a hybrid arrangement, combining elements of both final salary and investment-linked pensions.

Towergate tussle continues: The battle for Towergate is set to continue even after the insurance broker’s directors reached a debt-

restructuring agreement with senior creditors, as junior bondholders negotiate to buy them out.

AG Barr splashes out on cocktail group: AG Barr, the maker of Irn-Bru and Rubicon fizzy drinks, is making moves towards the clubbing

scene by splashing out GBP21.00mn on Funkin, a privately-held company that makes natural fruit ingredients for cocktails.

CRH transformed into a heavyweight with EUR6.50bn deal: It has taken more than a decade, but with just one deal, CRH has

transformed itself from an Irish buildings group into the world’s third-biggest building materials supplier by market value.

Free banking model stifles UK competition, warns Virgin Money: Britain’s free in-credit banking model is stifling competition and needs

to change, Virgin Money said on Monday as it revealed it would launch its current account across the UK.

Santander to offer cloud storage services: Santander is to be the first global bank to offer cloud data storage services to corporate

clients as it fights back against the competitive challenge posed to its business by some of the world’s biggest technology groups.u

Cable warns UK companies over slowdown in female appointments: Leading British companies risk failing to hit a voluntary target for

increasing the number of women on boards and must redouble their efforts this year or face legislation from Brussels, Vince Cable has

warned.

Ryanair raises full-year profits forecast for fifth time: Ryanair will miss out on big gains from the plunging cost of fuel the airline warned

on Monday as it raised its full-year profit guidance a fifth time and said it would launch a EUR400.00mn share buy-back.

Three chief Dyson questions consumer appetite for ‘quad play’: Doubts have been cast on the consumer appetite for so-called “quad-

play” services in the UK by the chief executive of Three, whose parent Hutchison Whampoa is in talks to buy UK rival O2 from Telefónica to

create a market-leading mobile-only provider.

Big pharmaceuticals groups faces biosimilars challenge: Global pharmaceuticals companies have seen an improvement in their drugs

pipelines but the industry is facing a fresh challenge as the first generation of blockbuster biological drugs begins to face competition.

Genel to part with founding CFO: Genel, the energy group led by former BP chief Tony Hayward, is to part ways with one of its founders

at a time when falling oil prices are hitting companies in the sector.

Areva warns of ‘significant’ increase in provisions: Areva expects a significant increase in provisions as well as a further writedown of

assets in its FY14 accounts, in another blow for the French state-owned nuclear group.

Shell prepares to dismantle North Sea giants: Royal Dutch Shell will on Tuesday set out ambitious plans to decommission the North

Sea’s Brent oilfield — one of the UK’s biggest — in a multibillion-dollar project over the next 10 years that could be followed by other

closures after the plunge in oil prices.

Peer-to-peer lender SoFi raises $200m: SoFi, the peer-to-peer lender that specialises in student loans, has raised $200.00m in a

financing round that values the four-year-old start-up at $1.30bn ahead of its upcoming initial public offering.

Jack Ma welcomes US scrutiny of Alibaba: Jack Ma said that a US class action lawsuit against the Chinese ecommerce group he

founded would help western countries “understand Alibaba’s business better”, adding that he welcomed the opportunity for grea ter

transparency.

Albert Frère to step down from GBL: Albert Frère, Belgium’s richest man and the longstanding chief executive of conglomerate Groupe

Bruxelles Lambert, is to step down from the group he helped turn into Europe’s second largest holding company.

News Corp avoids US charges on phone hacking: The US Department of Justice has told Rupert Murdoch’s News Corp and 21st

Century Fox that they will not face US charges over phone hacking.

John Lewis kills off final salary pension: The John Lewis Partnership has taken the final step in ditching its final salary pension scheme

in favour of a hybrid arrangement, combining elements of both final salary and investment-linked pensions.

Uber funds driverless car research: Uber, the US ride-hailing company, is setting up its own vehicle research labs to study driverless cars

and other advanced technologies, opening a new front in its ambitious efforts to shape the future of transportation.

BG: rose 5.3% to 934.20p ahead of year-end results due on Wednesday.

CRH: rose 7.2% to GBP17.18 as forecast upgrades followed its EUR6.50bn bid for assets sold by Lafarge and Holcim.

Corporate Updates

13



Lex:

CRH: changing the mix: Back in FY12 it was EUR15.00mn. In FY13 it jumped to EUR26.00mn. Last year it fell to EUR9.00mn. CRH’s

average acquisition size moves around a fair bit. But there is a common theme — it is not a very large number. Until now. The building

materials producer is proposing a EUR6.50bn deal, breaking with years of tradition to snap up assets that Holcim and Lafarge need to sell.

To put that EUR6.50bn in context, it is equivalent to a third of CRH’s enterprise value and is more than the company has spent on

acquisitions over the past eight years combined. Worrying, to say the least. And the price does not look excessive. The enterprise value of

the assets is 8.6 times historic earnings before interest, tax depreciation and amortisation (or 7.7 times if EUR90.00mn of annual synergies

are included). CRH itself has traded at an average of 9 times over the past decade, and its recent disposals have fetched double-digit

multiples. But look at the change in the business mix. Pre-deal, CRH derives 56.0% of its ebitda in the (recovering) US and 31.0% in

(stagnant) western Europe. Post the deal, that will change to 38 per cent in the US and 36 per cent in western Europe. There is some

mitigation. Much of the new European exposure is in the UK, which is doing better than the continent. And CRH is talking to KKR about

bringing outside finance into the UK assets. That would shift some exposure off CRH’s books. But it would leave the deal look ing messy, as

well as big.

US oil majors: the rating game: The S&P 500 was up 30.0% in FY13. Shares in the two leading US supermajors rose by just more than

half that. But as oil has slid 50.0% in the past seven months, the pair have offered some measure of protection. Since July 1, the shares of

the two are off 14.0% and 21.0% respectively. True, the S&P 500 has been flat since then, but more-leveraged oil and gas producers are

fighting for survival in a way that ExxonMobil and Chevron are not. In FY14, neither ExxonMobil nor Chevron could cover its buybacks and

dividends through free cash flow. Exxon generated $18.00bn and paid out $24bn in buybacks and dividends. Chevron’s situation is trickier

with break even in cash flow and $18.00bn in cash return. Chevron’s goal has been to reach production of 3.10mn bls day by FY17 and has

spent well over $100.00bn in recent years on far-flung on- and offshore oil and gas projects. Its management wants to maintain its AA credit

rating. Between capital spending (to be down only around a tenth to $35.00bn), credit rating target, and dividend, Chevron wi ll not buy back

shares this year. Exxon has been a regular buyer of its own shares, having bought back more than $10bn worth in FY14. However, it says it

will spend only $1.00bn in the first quarter. Share repurchases by themselves should not alone create shareholder value. But moderately

levering up to optimise the capital structure, especially when interest rates are low, should be tempting.

Ryanair: gloomy place: For months, Ryanair has been spreading a message of gloom: pressure on prices; too much competition; too

much capacity. Phooey, has been the response. As the oil price has fallen Ryanair’s shares have moved in the opposite direction, up 53.0%

in the past six months. They have beaten the MSCI European airlines index by six percentage points. Perversely, the threat to Ryanair

comes via high-cost, highly indebted rival airlines. These companies cannot afford as much fuel price protection as their low-cost rival.

According to Nomura, both Air France-KLM (55.0% hedged for FY15) and Lufthansa (65.0%) have less of their fuel costs covered than

Ryanair at 90.0%. The latter worries that these rivals will gain more from the falling fuel price, and pass these savings on. Ryanair’s

management deserves credit for trying to keep market expectations grounded. Jet fuel trades about 50 per cent below last year ’s peak, so it

is easy to get overexcited. Ryanair gave a clear signal of price “softening” on forward bookings made during January. Worse, it promised up

to 8 per cent fare discounts in the next quarter — read price war — which led to the share price fall.

Corporate Updates

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


BP Plc 4Q $ 0.41 267,521.00

BG Group Plc 4Q $ 0.61 17,157.70

ARM Holdings Plc FY14 GBP 0.29 917.92

Ocado Group Plc FY14 GBP 0.04 1,111.60

ST Modwen Properties Plc FY14 GBP 0.16 38.00

Europe

Full Year Consensus


LVMH Moet Hennessy Louis Vuitton SE FY14 EUR 7.73 33,312.60

Banco Santander SA 4Q EUR 0.54 44,391.10

US

Full Year Consensus


Gilead Sciences Inc. 4Q $ 9.77 28,635.50

Walt Disney Co. 1Q $ 4.66 51,718.30

United Parcel Service Inc. 4Q $ 5.31 60,621.10

Allergan Inc. 4Q $ 8.56 7,909.72

LyondellBasell Industries NV 4Q $ 7.85 41,097.40

Emerson Electric Co. 1Q $ 3.92 24,431.00

Aetna Inc. 4Q $ 7.16 62,579.40

Archer Daniels Midland Co. 4Q $ 3.43 87,154.80

Eaton Corporation Plc 4Q $ 4.97 22,960.30

Equity Residential 4Q $ 3.38 2,738.01

Aflac Inc. 4Q $ 6.02 21,845.30

National Oilwell Varco Inc. 4Q $ 5.34 20,350.40

Chipotle Mexican Grill Inc. 4Q $ 17.49 4,838.45

Fiserv Inc. 4Q $ 3.78 5,321.28

Wynn Resorts Limited 4Q $ 7.18 5,294.99

Edwards Lifesciences Corp. 4Q $ 4.03 2,426.79

15




Full Year Consensus


Mallinckrodt Plc 1Q $ - -

Pentair Plc 4Q $ 4.27 7,146.01

C.H. Robinson Worldwide Inc. 4Q $ 3.44 15,052.60

Airgas Inc. 3Q $ 5.05 5,337.11

Unum Group 4Q $ 3.66 10,600.90

Gannett Co. Inc. 4Q $ 2.49 6,398.10

AutoNation Inc. 4Q $ 3.86 20,107.40

IAC/InterActivecorp 4Q $ 3.45 3,290.58

Jack Henry & Associates Inc. 2Q $ 2.60 1,301.24

Ryder System Inc. 4Q $ 6.47 6,986.17

Ultimate Software Group Inc. 4Q $ 2.46 616.83

Gaming and Leisure Properties Inc. 4Q $ 1.64 644.23

BIO-TECHNE Corp. 2Q $ 3.62 465.31

Manhattan Associates Inc. 4Q $ 1.18 521.48

Silgan Holdings Inc. 4Q $ 3.34 3,894.41

Myriad Genetics Inc. 2Q $ 1.85 796.11

Take-Two Interactive Software Inc. 3Q $ 1.36 1,512.35

RBC Bearings Inc. 3Q $ 2.81 451.76

Omnicell Inc. 4Q $ 1.42 481.51

Array Biopharma Inc. 2Q $ (0.67) 37.76

Lattice Semiconductor Corp. 4Q $ 0.35 383.10

CorVel Corp. 3Q $ - -

Pacific Biosciences of California Inc. 4Q $ (0.89) 62.58

Independent Bank Group Inc. 4Q $ 2.74 170.50

PDF Solutions Inc. 4Q $ 1.22 115.60

Powell Industries Inc. 1Q $ 2.02 686.57

Vascular Solutions Inc. 4Q $ 0.89 139.53

Central Garden & Pet Co. 1Q $ 0.44 1,610.60

Carbonite Inc. 4Q $ - -

CEVA Inc. 4Q $ 0.48 56.74

Kimball International Inc. 2Q $ 0.36 -

Vitesse Semiconductor Corp. 1Q $ (0.06) 110.58

Entropic Communications Inc. 4Q $ (0.28) 161.12

Alpha and Omega Semiconductor Limited 2Q $ (0.08) 336.43

Quinstreet Inc. 2Q $ 0.08 277.66

Twin Disc Inc. 2Q $ 1.05 269.25

Planar Systems Inc. 1Q $ 0.34 207.45

16




Full Year Consensus


EMCORE Corp. 1Q $ (0.12) 73.37

Oclaro Inc. 2Q $ (0.50) 338.23

Radisys Corp. 4Q $ 0.18 199.00

Rand Logistics Inc. 3Q $ (0.01) 153.48

Stanley Furniture Company Inc. 4Q $ (0.06) 64.60

Ambassadors Group Inc. 4Q $ - -

Note: All Estimates are for Full Year

South Africa Ex-Dividend Calendar

Date Company Name Dividend Type Last Day to Trade Amount

- Capital Property Fund Final 13-Feb-15 R0.44

- Sekunjalo Investments Limited Final 13-Feb-15 R0.02

17 Anchor Capital (Pty) Ltd (Reg no: 2009/002925/07). An authorised Financial Services Provider; FSP no: 39834



Disclaimer

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The business of money: Global asset management and

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