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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

Markets in Asia are trading higher this morning. Meanwhile, official reports

indicated that the Chinese manufacturing PMI stabilized in September. In Japan,

Hoya Corp. jumped 7.6%. Export-oriented firms, Nikon and Suzuki Motor gained

4.1% and 2.8%, respectively. Toshiba advanced 2.4%, after its shareholders

approved a new board and the company added $3.30bn to its credit line with its

lenders. However, Shimizu Corp. declined 2.9%, after it announced the sales of

convertible bonds worth about JPY30.00bn. In South Korea, carmakers, Hyundai

Motor and Kia Motors added 1.8% and 1.3%, respectively. The Nikkei 225 index

is trading 2.2% higher at 17,763.90, while Kospi index is trading 1.1% higher at

1,983.40. The Hang Seng index is closed today. Yesterday, the index advanced

1.4% to close at 20,846.30.

Nikkei 225 - Last Month

Asia Market Review

US markets ended higher yesterday, as markets rallied led by gains in consumer

discretionary, materials and health-care sectors. Ralph Lauren jumped 13.6%,

after news late Tuesday revealed that the company founder has handed over the

role of CEO to Stefan Larsson, who resigned as the President of Gap Inc.

Meanwhile, Gap lost 5.7%. Advance Auto Parts climbed 11.1%, following news

that activist investor Starboard Value LP has acquired a 3.7% stake in the auto-

parts retailer. Twitter gained 5.3%. Biogen and Amgen advanced 4.9% and

3.4%, respectively. The S&P 500 Index advanced 1.9% to settle at 1,920.03,

while the DJIA Index gained 1.5% to close at 16,284.70. The NASDAQ Index

climbed 2.3% to finish at 4,620.16.

UK markets closed higher yesterday. Separately, the nation’s 2Q15 GDP

confirmed growth of 0.7%, in line with expectations. J Sainsbury climbed 13.8%,

after it indicated that its profits were likely to fall less sharply than expected this

year due to improved sales. Peers, Tesco and Wm Morrison Supermarkets

advanced 7.0% and 6.4%, respectively. Glencore jumped 14.1%, as it regained

investor confidence after the company reassured that its operational and

financial condition remains strong. SSE gained 4.1%, after it informed that is on

track to achieve its financial goals for FY16. However, Entertainment One

dropped 8.8%, as it acquired a 70.0% stake in Astley Baker Davies for

GBP140.00mn. The FTSE 100 Index advanced 2.6%, to close at 6,061.61.

South African markets closed higher yesterday to end 3Q15 on a positive note,

buoyed by strong performances in industrial and financial sector stocks.

Glencore climbed 15.6%, extending its previous session gains. Lonmin firmed

12.2%, recovering from a terrible quarter of losses. Discovery and Liberty

Holdings climbed 3.8% and 3.7%, respectively. Naspers and SABMiller gained

3.1% and 2.6%, respectively. Capitec, Standard Bank and FirstRand rose 2.4%,

0.9% and 0.8%, respectively. Resilient Property Income Fund added 0.8%. On

the flipside, DataTec dropped 15.8%, after the IT company stated that it expects

its headline EPS for 1H16 to be 25.0% lower from the same period a year ago.

The JSE All Share Index advanced 1.4% to close at 50,088.86.

1 October 2015

48,273

49,459

50,645

51,831

31-Aug 9-Sep 18-Sep 29-Sep

5,850

6,004

6,157

6,310


1,863

1,914

1,964

2,015


16,762

17,534

18,307

19,079


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

JSE All Share 50,088.86 704.93 1.4 0.6 0.2 1.5 24.36

JSE Africa Resource 10 31,641.03 228.30 0.7 -24.5 -11.7 -39.8 45.27

JSE Africa Financial 15 15,853.90 201.41 1.3 1.4 -3.0 11.1 11.09

JSE Africa Industrial 25 67,168.54 1,204.34 1.8 7.7 4.6 15.1 22.79

FTSE 100 6,061.61 152.37 2.6 -7.7 -3.0 -8.5 21.94

German DAX 30 9,660.44 210.04 2.2 -1.5 -5.8 2.0 15.27

France CAC 40 4,455.29 111.56 2.6 4.3 -4.2 0.9 19.51

S&P 500 1,920.03 35.94 1.9 -6.7 -2.6 -2.6 16.97

Dow Jones Industrials 16,284.70 235.57 1.5 -8.6 -1.5 -4.4 14.20

Nasdaq Composite 4,620.17 102.84 2.3 -2.4 -3.3 2.8 26.23

Nikkei 225* 17,763.90 375.75 2.2 -0.4 -8.0 7.5 18.36

Shanghai Composite** 3,052.78 14.64 0.5 -6.1 -5.2 28.5 15.26

Hang Seng Index** 20,846.30 289.70 1.4 -12.9 -5.1 -10.4 8.88

*Time - SAST 6:00:00 AM, **As on 30 September 2015

2



Commodities

At 06:00 SAST today, Brent crude oil rose 3.4% to trade at $48.73/bl.

Yesterday, Brent crude oil rose 1.4% to settle at $47.13/bl, on escalating

concerns about growing war in the Middle East as warplanes from Russia

carried out air strikes against Islamic State targets in Syria However, the

gains were limited after a report by the US Energy Information

Administration (EIA), indicated that US crude inventories rose significantly

above estimates in the last week, adding to the glut of oversupply in

domestic energy markets.

Yesterday, the Illinois North Central No.2 Yellow corn spot prices fell 0.3%

to $3.64/bushel.

At 06:00 SAST today, gold prices marginally advanced to trade at

$1,115.12/oz. Yesterday, gold declined 1.1% to close at $1,115.09/oz, as

upbeat employment data in the US reinforced expectations of a sooner

than anticipated interest rate hike by the US Federal Reserve.

Yesterday, copper rose 3.8% to close at $5,176.50/mt. Aluminium closed

1.0% higher at $1,566.75/mt.

Currencies

Yesterday, the South African rand strengthened against the US dollar,

even after data in South Africa showed that its trade deficit widened well

above expectations for August as exports declined. Also, traders shrugged

off better than expected ADP payrolls data for September. Later today,

investors will eye South African economic data including Barclays

manufacturing PMI data, a quarterly consumer confidence report and

SAACI business confidence data for further direction. Also, focus will be on

US economic reports due today to gauge the health of the US economy.

The yield on benchmark government bonds fell yesterday. The yield on

2016 bond declined to 6.80% while that for the longer-dated 2026 issue fell

to 8.44%.

At 06:00 SAST, the US dollar is trading 0.4% lower against the South

African rand at R13.8028, while the euro is trading 0.7% lower at

R15.3843.

Yesterday, the euro declined against the majors, after eurozone tumbled

back into deflation in September. Separately, the latest estimate of UK

GDP held 2Q15 growth at 0.7%, in line with the earlier forecasts. Today, a

slew of manufacturing PMI releases from the UK, eurozone and its various

economies will attract notable market attention.

At 06:00 SAST, the euro slipped 0.3% against the US dollar to trade at

$1.1146, while it has weakened 0.3% against the British pound to trade at

GBP0.7368.

Crude Oil and Corn Prices Spot

Gold & Platinum Prices Spot

Copper, Aluminium & Iron Ore Prices Spot (Rebased to100)

USD/ZAR Movement

EUR/ZAR Movement

GBP/ZAR Movement

3.3

3.4

3.6

3.7


45.1

47.3

49.6

51.8

$/b

us

he

l

$/b

bl

Crude - LHS Corn - RHS

889

938

986

1035


1083

1115

1146

1177

$/o

z

$/o

z

Gold - LHS Platinum - RHS

13.1330

13.4895

13.8459

14.2024


14.7397

15.1514

15.5631

15.9748


20.1684

20.6312

21.0941

21.5569



90

97

103

110

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

3



Yield Corner

% Closing

Yield

% Change

on Day

Yield % -

1M Ago

South Africa CPI* 4.60 0.00 5.00

South Africa Repo Rate 6.00 0.00 6.00

JSE SA Listed Property Index 5.45 0.00 5.67

R159 (2016) (SA Bond) 6.80 -1.43 6.84

R207 (2020) (SA Bond) 7.92 -1.52 7.84

R186 (2026) (SA Bond) 8.44 -1.53 8.34

US 10 Year Treasury 2.04 -0.68 2.22

US 30 Year Treasury 2.85 0.03 2.96

Italian 10 Year Treasury 1.73 0.64 1.96

German 10 Year Treasury 0.59 0.69 0.80

* As on August 2015

South African Government Bond Yields

JSE All Share Index - Major Gainers & Losers

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

5.9%

6.5%

7.1%

7.7%

8.3%

8.9%

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

R159 (2016) R186 (2026)

-17.4% -13.9% -10.4% -7.0% -3.5% 0.0%

DataTec Ltd (6200.00, -1160.00, -15.8%)

Harmony Gold Mining Co Ltd (863.00, -48.00, -5.3%)

Royal Bafokeng Platinum Ltd (2398.00, -112.00, -4.5%)

Zeder Investments Ltd (695.00, -27.00, -3.7%)

Group Five Ltd/South Africa (1880.00, -70.00, -3.6%)

Curro Holdings Ltd (3620.00, -133.00, -3.5%)

Anglo American Platinum Ltd (22908.00, -684.00, -2.9%)

Accelerate Property Fund Ltd (645.00, -17.00, -2.6%)

Clientele Ltd (1750.00, -45.00, -2.5%)

Consolidated Infrastructure Group Ltd (3305.00, -80.00, -2.4%)

0.0% 3.5% 7.0% 10.4% 13.9% 17.4%

Lonmin PLC (350.00, 38.00, 12.2%)

Transaction Capital Ltd (1000.00, 70.00, 7.5%)

Novus Holdings Ltd (1445.00, 95.00, 7.0%)

Choppies Enterprises Ltd (580.00, 35.00, 6.4%)

Sappi Ltd (4250.00, 223.00, 5.5%)

MiX Telematics Ltd (300.00, 15.00, 5.3%)

Merafe Resources Ltd (70.00, 3.00, 4.5%)

Pallinghurst Resources Ltd (458.00, 18.00, 4.1%)

Caxton and CTP Publishers and Printers Ltd

(1899.00, 74.00, 4.1%)

Famous Brands Ltd (13500.00, 500.00, 3.9%)

4



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 115.60 London Stock Exchange 5.51 GBP 115.08 0.52

BHP Billiton Plc 210.00 London Stock Exchange 10.05 GBP 209.94 0.06

British American Tobacco Plc 760.29 London Stock Exchange 36.43 GBP 761.00 -0.71

Capital & Counties Properties Plc 90.80 London Stock Exchange 4.34 GBP 90.72 0.08

Cie Financiere Richemont SA* 107.60 SIX Swiss Exchange 75.70 CHF 107.10 0.50

Intu Properties Plc 69.00 London Stock Exchange 3.30 GBP 68.85 0.15

Investec Plc 106.40 London Stock Exchange 5.06 GBP 105.60 0.80

Lonmin Plc 3.50 London Stock Exchange 0.16 GBP 3.34 0.16

Mondi Plc 289.11 London Stock Exchange 13.83 GBP 288.90 0.21

New Europe Property Investments Plc/Fund 140.00 London Stock Exchange 9.13 EUR 140.38 -0.38

Old Mutual Plc 39.63 London Stock Exchange 1.89 GBP 39.50 0.13

Pan African Resources Plc 1.56 London Stock Exchange 0.08 GBP 1.57 -0.01

Reinet Investments SCA* 29.41 Luxembourg Stock Exchange 17.51 EUR 26.94 2.47

SABMiller Plc 780.00 London Stock Exchange 37.37 GBP 780.64 -0.64

AngloGold Ashanti Ltd 109.49 New York Stock Exchange 8.19 USD 113.04 -3.56

DRDGOLD Ltd* 2.10 New York Stock Exchange 1.49 USD 2.06 0.04

Gold Fields Ltd 36.05 New York Stock Exchange 2.66 USD 36.72 -0.67

Harmony Gold Mining Co Ltd 8.63 New York Stock Exchange 0.60 USD 8.32 0.31

Redefine International Plc/Isle of Man 11.24 London Stock Exchange 0.53 GBP 11.00 0.24

Glencore Xstrata Plc 19.16 London Stock Exchange 0.92 GBP 19.12 0.04

* Depositary Receipts (DR) trade in the ratio of ten DRs to each Company share; Exchange Rate - USDZAR:13.8028, EURZAR:15.3843, GBPZAR:20.8895, CHFZAR:14.1475, Conversion rate as of 6:00 SAST

JSE All Share Stocks Hitting 52 Week High / Low

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

AVI Ltd 87.56 -0.8% Hits 52 Week High

Intu Properties PLC 69.00 0.8% Hits 52 Week High

PSG Group Ltd 222.50 2.5% Hits 52 Week High

Resilient Property Income Fund Ltd 116.01 0.8% Hits 52 Week High

AECI Ltd 91.91 -1.1% Hits 52 Week Low

African Rainbow Minerals Ltd 51.87 0.5% Hits 52 Week Low

Anglo American Platinum Ltd 229.08 -2.9% Hits 52 Week Low

Anglo American PLC 115.60 -0.0% Hits 52 Week Low

Discovery Ltd 97.50 0.1% Hits 52 Week Low

Exxaro Resources Ltd 52.50 -0.5% Hits 52 Week Low

Group Five Ltd/South Africa 18.80 -3.6% Hits 52 Week Low

Howden Africa Holdings Ltd 25.60 0.0% Hits 52 Week Low

Nampak Ltd 25.80 -0.1% Hits 52 Week Low

Omnia Holdings Ltd 149.10 0.9% Hits 52 Week Low

Royal Bafokeng Platinum Ltd 23.98 -4.5% Hits 52 Week Low

5



Economic Updates

Key Economic Releases Today

Country SAST Economic Indicator Relevance Consensus/

*Actuals Previous/

**Previous Est. Frequency

Japan 1:50 Tankan Large All Industry Capex (Q3) 10.9%* 9.3% Quarterly

Japan 1:50 Tankan Large Manufacturing Index (Q3) 12.00* 15.00 Quarterly

China 3:00 NBS Manufacturing PMI (Sep) 49.8* 49.70 Monthly

Japan 3:35 Nomura/ JMMA Manufacturing PMI Final (Sep) 51.00* 50.90** Monthly

China 3:45 Caixin/Markit Services PMI (Sep) 50.50* 51.50 Monthly

China 3:45 Caixin/Markit Manufacturing PMI Final (Sep) 47.20* 47.00** Monthly

Switzerland 9:15 Real Retail Sales (YoY) (Aug) - -0.1% Monthly

Germany 9:55 Markit Manufacturing PMI Final (Sep) 52.50 52.50** Monthly

Eurozone 10:00 Markit Manufacturing PMI Final (Sep) 52.00 52.00** Monthly

UK 10:30 Markit Manufacturing PMI (Sep) 51.30 51.50 Monthly

South Africa 11:00 PMI Manufacturing (Sep) 49.00 48.90 Monthly

South Africa 12:00 BER Consumer Confidence (Q3) -12.00 -15.00 Quarterly

South Africa 13:00 Electricity Consumption (YoY) (Aug) - -2.2% Monthly

South Africa 13:00 Electricity Production (YoY) (Aug) - -3.3% Monthly

Eurozone 13:30 ECB Monetary Policy Meeting Accounts - - -

US 14:30 Initial Jobless Claims (26-Sep) 271.00k 267.00k Weekly

US 15:45 Markit Manufacturing PMI Final (Sep) 53.00 53.00** Monthly

US 16:00 Construction Spending (MoM) (Aug) 0.5% 0.7% Monthly

US 16:00 ISM Manufacturing PMI (Sep) 50.60 51.10 Monthly

US 20:30 FOMC Member Williams Speech - - -

South Africa - Naamsa Vehicle Sales (YoY) (Sep) - -8.20% Monthly

South Africa - SACCI Business Confidence Index (Sep) - 84.30 Monthly

Note: High Medium Low

Trade deficit in South Africa widened to R9.90bn in August, following a revised trade deficit of R1.10bn in the prior month. Market

expectation was for the country's trade deficit to expand to R3.40bn.

M3 money supply registered a rise of 10.0% on an annual basis in South Africa, in August, higher than market expectations for an advance

of 10.0%. In the prior month, M3 money supply had climbed 10.3%.

The South African Reserve Bank has indicated that, in August, on an annual basis, the private sector credit in South Africa rose 8.6%,

higher than market expectations for an advance of 8.5%. The private sector credit had advanced 8.4% in the previous month.

The final gross domestic product (GDP) advanced 0.7% in the UK on a quarterly basis in 2Q15, compared with a rise of 0.4% in the prior

quarter. Market expectation was for GDP to advance 0.7%. The preliminary figures had also recorded an advance of 0.7%.

The current account deficit in the UK dropped to GBP16.80bn in 2Q15, compared with market expectations of a current account deficit of

GBP22.00bn. The UK had reported a revised current account deficit of GBP24.00bn in the previous quarter.

On a monthly basis, retail sales unexpectedly fell 0.4% in August, in Germany, compared with a revised advance of 1.6% in the prior

month.

The seasonally adjusted unemployment rate remained steady at 6.4% in September, in Germany. Markets were anticipating

unemployment rate to record a flat reading.

In August, the unemployment rate in the eurozone remained flat at 11.0%, compared with market expectations of a fall to a level of 10.9%.

In September, the Chicago Fed purchasing managers index (PMI) in the US recorded a drop to 48.70, compared with a reading of 54.40 in

the prior month. Market anticipation was for the Chicago Fed PMI to fall to 53.00.

The Bank of Japan has reported that, in Japan, the Tankan large manufacturing index eased to 12.00 in 3Q15, compared to market

expectations of a fall to 13.00. In the prior quarter, the Tankan large manufacturing index had recorded a reading of 15.00.

In September, the final manufacturing PMI in Japan dropped to 51.00, compared with a level of 51.70 in the prior month. The preliminary

figures had recorded a drop to 50.90.

6



South Africa

Datatec Limited: The information and communication technology (ICT) solutions and services company, in its trading update for 1H16,

announced that its total foreign exchange losses amounted to $10.60mn, which was equivalent to 4.90¢/share compared with total foreign

exchange losses of $0.60mn, equivalent to 0.30¢/share reported in the same period of the previous year. Its EPS and headline EPS is

anticipated to be approximately 12.00¢, compared with 16.00¢ reported in 1H15 and underlying EPS is estimated to be approximately

18.0% lower than the corresponding period of the prior year to be around 15.00¢.

British American Tobacco Plc: The tobacco company revealed that it has completed the acquisition of TDR d.o.o. and other tobacco and

retail assets from Adris Grupa d.d. for a total enterprise value of EUR550.00mn.

Old Mutual Plc: The banking and insurance company announced that it has completed the sale of Skandia Leben AG in Switzerland, part

of Old Mutual Wealth, to Life Invest Holding AG, a company owned by the Mutschler Group and Hannover Re.

Intu Properties Plc: The real estate development company stated that it has completed the transaction which included the formation of a

50/50 joint venture with Canada Pension Plan Investment Board for the EUR451.00mn Puerto Venecia shopping centre in Zaragoza, Spain,

following the completion of certain conditions, including regulatory approvals.

Santam Limited: The insurance company announced that it has agreed to sell its controlling stake in independent brokerage firm, Indwe

Broker Holdings Proprietary Limited to Ubuntu-Botho Investments Proprietary Limited and Sanlam Limited, subject to regulatory approval.

The transaction is based on a valuation for Indwe of R265.00mn and would see Ubuntu-Botho Investments Proprietary Limited acquiring

51.0% of the Indwe shareholding (through its wholly owned subsidiary African Rainbow Capital Proprietary Limited) and Sanlam would

acquire 25.0%. Meanwhile, Santam would retain 24.0% of Indwe Broker Holdings Proprietary Limited.

Ascension Properties Limited: The property loan stock company announced the appointment of Kameel Keshav, currently the Financial

Director of Rebosis Property Fund Limited, as the Chief Executive Officer of Ascension, effective 1 October 2015.

Woolworths taps Marks & Spencer veteran to head David Jones: Woolworths said on Wednesday it has tapped a Marks & Spencer

veteran to head David Jones, its Australian department store chain, where it aims to boost food sales.

Glencore claws back gains as management updates market: Shares in global miner Glencore surged by as much as 10.0% in early

morning trade on Wednesday after heavy selling at the beginning of the week saw it lose as much as GBP3.50bn of its market value. It is

cutting a further 340 jobs in South Africa as the company closes depleted coal mines to withstand a downturn in commodity prices.

Dow Chemicals opens manufacturing plant in Durban: Dow Chemical Company is boosting manufacturing capacity in SA to supply

polyurethane products to Africa’s energy, construction, cold chain, furniture and bedding industries.

De Beers joins other luxury brands in acclimatising to subdued Chinese growth: Diamond supplier De Beers expects the value of its

sales of the polished jewel in China may rise this year by just more than a tenth of 2011’s surge, as the economy that has long bolstered

global luxury goods heads for its weakest growth in 25 years.

Reserve Bank applies to have R1.00bn diesel ponzi liquidated: The South Gauteng High Court will on Thursday hear that Carmol – a

ponzi scheme that promised returns of between 72.0% and 96.0% a year – is insolvent and should be liquidated.

Implats CFO is best-paid official as CEO forgoes bonus: Impala Platinum’s Chief Executive Officer Terence Goodlace forewent a pay

increase and bonuses for a third year as a plunge in prices dragged the no. 2 producer of the metal’s profit to an 18-year low. Chief

Financial Officer Brenda Berlin became the company’s best-paid official.

South Africa’s NUM to call strike in coal sector: South Africa’s National Union of Mineworkers (NUM) said on Wednesday it would ask

its members in the coal sector to strike after wage talks collapsed.

Figures show R2.00bn drop in unsecured credit: There’s been a near R2.00bn reduction in unsecured credit granted between the 2Q15

and the 2Q14, highlighting the impact of African Bank’s collapse on the volume and value of personal loans floating around South Africa.

UK and US

Paychex Inc: The provider of payroll, human resource, and benefits outsourcing solutions, in its 1Q16 results, stated that its total revenue

gained 8.4%, from the same period of the previous year to $723.00mn. Its income before tax rose to $297.50mn from $268.90mn recorded

in the corresponding period of the preceding year. The company indicated that its diluted EPS stood at $0.58, compared with$0.47 reported

in the same period of the prior year. For FY16, it expects its total service revenue to rise in the range of 7.0% to 8.0% from the comparable

period.

8Point3 Energy Partners LP: The company, in its 3Q15 results, indicated that its total revenue climbed 32.0% from the same period of the

preceding year to $3.08mn. It recorded a net income of $1.29mn, compared with net loss of $2.84mn in the corresponding period of the

prior year. Its diluted net EPS remained unchanged at $0.05 from the same period of the previous year. For 4Q15, the company expects net

income to be in the range of $2.90mn to $3.10mn and revenue to be between $4.90mn and $5.10mn.

National American University Holdings Inc: The educational institution, in its 1Q16 results, stated that its total revenue declined 15.9%

from the same period of the preceding year to $24.65mn, primarily due to a decrease in enrolment in its academic segment. Its diluted net

loss stood at $0.05/share, compared with diluted EPS of $0.09 posted in the corresponding period of the previous year.

Corporate Updates

7



Saga Plc: The company, in its 1H16 results, indicated that its revenue climbed 8.7% from the same period of the previous year to

GBP478.30mn. Its profit before tax from continuing operations increased substantially from the same period a year ago to GBP101.30mn.

Its diluted EPS from continuing operations stood at 7.20p, compared with 3.30p recorded in the corresponding period of the pr ior year. The

company stated that it is well positioned to continue its positive momentum into 2H15 and is on course to meet its expectations for the year

as a whole.

J Sainsbury Plc: The supermarket chain company in its trading statement for the 16 weeks ended 26 September 2015, stated that its total

retail sales excluding fuel rose 0.3% from the prior comparable period. Its like-for-like retail sales excluding fuel declined 1.1%, while like-for

-like retail sales including fuel was down 3.3% from the previous comparable period. For FY16, underlying profit before tax is expected to be

moderately ahead of consensus should current market trends continue.

Shaftesbury Plc: The property business company in its trading and financial update for the period from 1 April 2015 to 30 September 2015

stated that footfall in its villages and trading across its 583 shops, restaurants, cafés, pubs and bars, which together produce 72.0% of the

rental income, have been buoyant over the summer months. The company continues to experience good rental growth due to strong

occupier demand and low vacancy and stated that it would look for more acquisition opportunities in 2H15.

RPC Group Plc: The packaging business company, in its pre-close trading update for 1H16, revealed that revenues are estimated to be

significantly ahead of the same period last year, led by the contribution from acquisitions and continued organic growth. Its overall trading is

expected to be in line with management's expectations considering the adverse impact of the time lag in passing through higher polymer

prices and the foreign exchange translation headwind. The company stated that its performance during the 1H16 was encouraging and it

anticipates further trading improvements in 2H16 as polymer prices ease and additional Promens synergies are realised.

Rio Tinto: The metals and mining company announced that it has agreed to sell its 40.0% interest in the Bengalla coal Joint Venture in

Australia to New Hope Corporation Limited for $606.00mn. It has completed $4.50bn of divestments since January 2013, with the agreed

sale of its interest in the Bengalla Joint Venture.

Glencore Plc: The commodity trading and mining company notified that it has taken proactive steps to position itself to withstand current

commodity market conditions. The business remains operationally and financially robust, with positive cash flow, good liquidi ty and

absolutely no solvency issues. The company is on the task to getting on and delivering a suite of measures to reduce its debt levels by up to

$10.20bn.

InterContinental Hotels Group Plc: The hotels company announced that it has completed the sale of InterContinental Hong Kong to

Supreme Key Limited, a consortium of investors advised and managed by Gaw Capital Partners. It would continue to manage the hotel

under a long-term management contract. The company has received gross disposal proceeds of $929.00mn in cash, after initial working

capital adjustments.

Entertainment One Limited: The entertainment company announced that it has entered into a share purchase agreement to buy 70.0% of

the entire issued share capital of Astley Baker Davies Limited, which jointly owns the rights to Peppa Pig with the company, for

GBP140.00mn funded through the net proceeds of a fully underwritten 4 for 9 rights issue to raise GBP193.60mn. Furthermore, the

company it its 1H16 trading update, stated that it expects its earnings performance to be in consensus with management expectations with

strong performance in Television, partially offset by weaker than expected Film performance, driving improved margins at a group level. It

maintained its outlook for FY16 to be in line with management expectations.

Financial Times

EY’s audit wins push UK revenue to GBP2.00bn: EY, the professional services firm, has achieved GBP2.00bn of annual revenues from

its UK operations for the first time, as changes in the audit market enabled it to pick up business from large UK groups.

Ed Vaizey delivers blow to rivals’ hopes of BT broadband split: The UK minister overseeing the telecoms sector has poured cold water

on the idea of separating BT from its broadband network, dismaying rival companies who want to break up the former national monopoly.

Russian owners bid to take Polyus private: Polyus Gold’s largest shareholder has launched a widely anticipated offer to take the UK-

listed miner private, but has drawn criticism from its independent board committee for the “disappointing” level of its bid.

Volkswagen scandal: 1.20mn UK vehicles affected by software hack: Nearly 1.20mn Volkswagen vehicles in Britain are affected by the

software hack used by the German carmaker to cheat US emissions tests, the company has said.

Darty shares jump 19.0% on Fnac offer: Shares in London-listed Darty, the French white goods retailer, jumped to their highest level in

more than a year on Wednesday after an all-share takeover offer from rival Fnac.

UK watchdog tells banks to take action on rising complaints: Banks are being urged by the City watchdog to “take action” as customer

complaints over current accounts soar, in spite of a major review to improve competition in the sector.

Worldpay eyes expansion in switch from cash to digital: Few companies can boast of helping Chinese people to download music faster

from Apple’s iTunes, while allowing more Brazilians to rent a house on Airbnb and even shortening the queues for a beer at the Rugby

World Cup.

Corporate Updates

8



Vacancy at the helm of Moshi Monsters game developer Mind Candy: Mind Candy, the British start-up behind children’s game Moshi

Monsters, is looking for new leadership after its president revealed she is leaving the lossmaking group.

Mexico oil auction eases memory of previous sale flop: Despite the plunge in oil prices, Mexico banished the bitter memory of its oil

tender flop by awarding more blocks than the government expected, to a range of companies on lucrative terms.

Fed clears $3.70bn M&T-Hudson City merger: The chief banking regulator in the US has cleared a $3.70bn merger after a more than

three-year delay, potentially paving the way for further consolidation within the country’s fragmented banking landscape.

China manufacturing contracts for 2nd straight month: Chinese manufacturing activity contracted for the second consecutive month in

September, according to an official survey released on Thursday, in a reading analysts said increased the likelihood of another interest rate

cut by the People’s Bank of China.

US student loans provider SoFi raises $1.00bn: SoFi, the San-Francisco based student loans provider, has raised $1.00bn from

investors in a funding round that will help its transformation into a deposit-holding rival to traditional banks.

Jeff Immelt warns EU data curbs could limit productivity gains: Greater European restrictions on transatlantic data flows in the wake of

the Snowden revelations would hobble a main source of rising industrial productivity, the chief executive of General Electric has warned.

CBS kicks off push to include digital viewers in TV ratings: CBS will become the first US broadcast television network to count digital

viewers in its Nielsen TV ratings — the currency used to price billions of dollars in advertising.

Nestlé seeks to take a chunk of premium chocolate sector: Nestlé, the maker of KitKat bars, is seeking to challenge the likes of Godiva

and Lindt for a slab of the premium chocolate market with the launch of an upmarket Cailler brand on Thursday.

Google and Microsoft settle patent dispute: Patent wars that plagued the early years of the smartphone industry moved a big step closer

to resolution on Wednesday, as Google and Microsoft reached a settlement to end some 20 patent lawsuits.

Amazon denies breaking UK air transport rules: Amazon is being prosecuted by the UK Civil Aviation Authority over allegations it broke

rules about transporting lithium ion batteries, which can be highly flammable, on aircraft.

Payments company Adyen valued at $2.30bn after Iconiq injection: Dutch payment processing company Adyen has raised funds at a

$2.30bn valuation from an investment vehicle representing many of Silicon Valley’s wealthiest individuals including Facebook founder Mark

Zuckerberg.

J Sainsbury: Jumped 13.8% to 261.00p after it said full-year earnings would beat expectations.

Entertainment One: Lost 8.8% to 248.00p, a two-year low, after launching a GBP201.00mn rights issue.

Lex:

Rocket Internet: Ready for take-off?: Buying something for less than its underlying worth is the foundation of value investing. On that

basis, Germany’s Rocket Internet (an investor in unlisted businesses) should be worth a look. Its market capitalisation is almost 30.0%

below the value of what it terms “proven winners” — its most mature investments — plus its cash holdings. Previously, the shares have

traded at a premium to the winners’ portfolio value and group cash. At the same time, Rocket’s “last portfolio value”, a figure derived from

the amounts raised during funding rounds, has risen by more than EUR3.00bn since IPO. But how reliable is that figure? Almost all of the

latest EUR1.20bn increase in the value of its “winners” was ascribed to grocery delivery business HelloFresh — following an investment of

just EUR75.00mn. That transaction followed one by Rocket, at a similar valuation. Peers may offer some clues. Rocket values online

takeaway unit Delivery Hero at 32 times 2014 sales; the UK stock market values JustEat at 17 times sales (though it grew at half the rate of

Delivery Hero last year). Rocket’s managers said on Wednesday that 2015 would be the peak year for losses among the winners, and that

at least one would go public within 18 months. They also said no further capital would be needed. The shares responded with a 25.0% rise.

When conventional metrics are of limited use, a little diplomacy goes a long way.

Rio Tinto: Out of a hole: Rio Tinto, the Anglo-Australian miner, felt pressure from the markets to reduce exposure to coal. On Wednesday

the company announced the sale of its Bengalla mine in Australia’s Hunter Valley for $606.00mn. It also restructured its rema ining Hunter

Valley holdings, which may open the door to a bigger sale. Good. That price works out to about $7.00 a tonne of reserves. Add in an

estimated cash cost (before any investment) of $39.00 a tonne, using Wood Mackenzie estimates, and production cost totals $46.00. As

Australian coal trades about $55.00, the mine is only marginally profitable. New Hope must be one of the rare bulls about the outlook for

coal prices. Rio’s moves to restructure its Hunter Valley joint venture, known as Coal & Allied, deserve attention. To simpli fy the

shareholding structure, Rio gave joint venture partner Mitsubishi an increased holding in an underlying mine in return for the Mitsubishi’s

stake in Coal & Allied. This leaves Rio with 100.0% ownership at the holding company level. So should another cash buyer — such as X2

Resources, run by former Xstrata chief Mick Davis — come along, selling all of Hunter Valley would be easier.

Corporate Updates

9



China cars: turbo boost: Challenging times beget frenetic policymaking. Consistency is often left behind. China has tried various odd

couples recently: clamping down on loans for share buying while propping up the stock market with forced buying, for example. The latest

contradiction came on Tuesday. Despite recent commitments on emission cuts, China’s State Council announced stimulus for the auto

sector. In the longer run, despite the positive market reaction — Hong Kong-listed Chinese auto stocks rose between a fifth and a tenth —

the benefits of the tax cut are unlikely to last beyond the December 2016 expiry. After the financial crisis, China’s government cut taxes on

car purchases from 2009 to 2010. Industry sales volumes jumped over those two years only to slow sharply afterwards. There may be more

meaningful structural beneficiaries. As well as reiterating state support for new energy vehicles such as electric and hybrid-powered,

Tuesday’s statement encouraged new car rental and sharing business models. The rental industry is still young in China, but market leader

by revenue (according to ICBC) Car Inc is listed in Hong Kong. Its prospects look strong even without the promise of temporary government

support.

Corporate Updates

10



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



Europe

Full Year Consensus



US

Full Year Consensus


Micron Technology Inc. 4Q $ 2.66 16159.00

McCormick & Company Inc. 3Q $ 3.52 4284.37

Progress Software Corp. 3Q $ 1.49 420.96

Hanmi Financial Corp. 3Q $ 1.61 189.49

CalAmp Corp. 2Q $ 0.93 249.16

Rosetta Genomics Limited 1H15 $ -0.78 10.07

Schmitt Industries Inc. 1Q $ - -

Note: All Estimates are for Full Year

11



South Africa Ex-Dividend Calendar

Date Company Name Dividend Type Last Day to Trade Amount

- African Oxygen Limited Interim 2-Oct-15 R0.18

- Aspen Pharmacare Holdings Limited Return of Capital 2-Oct-15 R2.16

- Clover Industries Limited Final 2-Oct-15 R0.33

- DRDGOLD Limited Final 2-Oct-15 R0.10

- Discovery Limited Final 2-Oct-15 R0.89

- Fairvest Property Holdings Limited Final 2-Oct-15 R0.08

- FirstRand Limited Final 2-Oct-15 R1.17

- Murray & Roberts Holdings Limited Regular Cash 2-Oct-15 R0.50

- Primeserv Group Limited Final 2-Oct-15 R0.01

- RMB Holdings Limited Final 2-Oct-15 R1.54

- Rand Merchant Insurance Holdings Limited Final 2-Oct-15 R0.64

- Sasfin Holdings Limited Final 2-Oct-15 R1.47

- Sasol Limited (SOL) Final 2-Oct-15 R11.50

- Sasol Limited (SOLBE1) Final 2-Oct-15 R11.50

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



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