Overnight Report 21 October 2014

Overnight Report
21 October 2014
Compiled by Azwidovhi Tshishonga (Trainee Analyst), moderated by Henry Flint (Head of Research)
The Overnight Report is compiled from various sources, including I-Net BFA, Bloomberg, Reuters, Business Day, Moneyweb, Cordros Capital and JSE SENS.
SOUTH AFRICA
JSE share price moves
South African stocks treaded water on Monday ahead of a budget speech later
in the week, even as investors continued to hammer Johannesburg-listed
bullion producers such as AngloGold Ashanti.
•
The Top-40 index was down 0.6% to 42 479 while the All-Share Index lost 0.5%
to 47 599.
•
South African markets should open easier (-0.3%) following weaker Asian and
US futures markets after better than expected growth numbers from China
dimmed prospects for further stimulus and retail sales growth slowed.
•
A stronger rand against firmer metal prices should leave the miners flat for the
opening.
•
The yield on the 2026 benchmark South African government bond nudged up
half a basis point to 8.08%, trading within last week's levels.
•
This morning as at 06h38 in Johannesburg, the rand was trading at R11.01/$,
R14.12/€ and R17.82/£ respectively.
WEST AFRICA – NIGERIA
•
All prices are correct as of 23:49:03 20 Oct 2014
WINNERS
12.00%
METAIR
10.30%
8.67%
NET1UEPS
-12.59%
GOODERSON
-8.33%
ASSORE
-6.30%
-6.25%
KAP
7.79%
EHSV
POYNTING
5.81%
RANGOLD
-5.91
JSE trading volumes
All prices are correct as of 23:49:03 20 Oct 2014
The NSE ASI increased by 1.22% to close at 38,662.65 points, while the market
capitalization also increased by N153.52 billion to close at N12.77 trillion.
•
The naira appreciated against the three currency pairs tracked. It appreciated
against the dollar and euro to trade at N165.25/$ and N210.91/€ respectively.
The naira also strengthened significantly against the pound to trade at
N266.70/£.
EUROPE
The Stoxx Europe 600 Index slid 0.5% to 317.01 at the close of trading, after
earlier falling as much as 1.1%.
FIRSTRAND
8,975,649
-0.90%
STEINHOFF
8,523,986
0.08%
OLDMUTUAL
6,680,802
-0.96%
MERAFE
5,886,536
-3.88%
RICHEMONT
4,999,896
-1.03%
JSE trading statistics
US
The Standard & Poor’s 500 Index rose 0.9% to 1,904.02 at 4 p.m. New York
time. The Dow Jones Industrial Average (INDU) added 19.26 points, or 0.1%, to
16,399.67.
•
INTEWASTE
WESCOAL
•
•
LOSERS
Value of shares traded (R'M)
20577.337
Volume of shares traded (M)
343.715
Number of Deals
328434
ASIA
Up deals
345
•
The MSCI Asia Pacific Index dropped 0.3% by 12:41 p.m. in Tokyo.
COMMODITIES
Down deals
158
Flat deals
374
•
Gold held near a five-week high as investors assessed the global economy and
the outlook for monetary policies amid the biggest sale in a year from the
largest exchange-traded product.
Source: I-Net BFA
Dow Jones
JSE All-Share
54000
17500
52000
17000
50000
16500
48000
16000
46000
15500
44000
15000
42000
14500
40000
02/01/14
16/02/14
02/04/14
17/05/14
01/07/14
15/08/14
29/09/14
14000
02/01/14
21/02/14
12/04/14
01/06/14
21/07/14
09/09/14
Today’s economic data releases
Local time
09h00
16h00
Source: Bloomberg
Country
SA
US
Indicator
Leading Indicator
Existing Home Sales
Period
Aug
Sep
Relevance
High
Low
Previous
100.2
5.05M
Consensus Forecast
5.10M
SOUTH AFRICA
South African stocks treaded water on Monday ahead of a budget speech later in the week, even as investors continued to hammer Johannesburg-listed bullion
producers such as AngloGold Ashanti. South African Finance Minister Nhlanhla Nene will deliver his maiden budget speech on Wednesday in which he is
expected to try to assuage concerns about South Africa's economy. September's inflation statistics are also scheduled for release on Wednesday. Consumer
inflation rose to 6.4% in August, faster than the 6.2% analysts had expected. The central bank anticipates 2014 inflation at 6.2%. The Top-40 index was down
0.6% to 42 479 while the All-share index lost 0.5% to 47 599. Johannesburg's gold mining index dropped more than 3% with AngloGold losing nearly 4%t to
R109.35. The stock has lost more than 10% so far this year. Gold Fields, South Africa's second-biggest gold producer, lost 3% to R41.20 even after saying it was
on track to meet its full-year output forecast. Auto parts maker Metair Investments rose more than 10% after giving a positive trading update. Metair said it has
embarked on catch-up plans to recover volumes lost during a strike earlier in the year, and that it has also secured several contracts related to its batteries.
Activity was relatively sluggish with 163 million shares traded, according to preliminary bourse data, compared to last year's daily average of 176 million shares.
Decliners outnumbered advancers 165 to 125.
WEST AFRICA – NIGERIA
The equities market reverted at the close of Monday's trading session, following ten consecutive bouts of bearish spree, as renewed interests and fresh bargain
hunting supported the index higher. The NSE ASI increased by 1.22% to close at 38,662.65 points, while the market capitalization also increased by N153.52
billion to close at N12.77 trillion. Four out of the five sectoral index appreciated. The Banking index toped the gainers chart with a 2.13% return, while the
Industrial Goods index, Oil/Gas index and Insurance index followed with a 2.13%, 1.72% and 0.41% increase respectively. However, the Consumer Goods index
depreciated marginally by 0.17%. The market breadth returned positive, as 34 gainers outweighed 19 laggards. Volume traded declined by 2.42%
to N353.80million shares, worth N4.15 billion and traded in 5,221 deals.
The naira appreciated against the three currency pairs tracked. It appreciated against the dollar and euro to trade at N165.25/$ and N210.91/€ respectively. The
naira also strengthened significantly against the pound to trade at N266.70/£.
EUROPE
European stocks fell, following their longest streak of weekly losses in more than a year, as worse-than-estimated financial results added to concerns over the
region’s economic recovery. SAP SE lost 5.8% after the world’s largest supplier of business-management software cut its full-year earnings forecast. Royal Philips
NV declined 3.7% after third-quarter sales and profit missed analysts’ estimates. Nutreco NV rallied the most since at least 1997 after SHV agreed to buy the fishfeed maker. The Stoxx Europe 600 Index slid 0.5% to 317.01 at the close of trading, after earlier falling as much as 1.1%. European equities have led a rout that
erased as much as $5.5 trillion from the value of shares worldwide amid speculation that the European Central Bank’s stimulus measures will not be enough to
spur growth.
“This correction might be the symptom for something larger,” Benedict Goette, founder of asset-management firm Compass Capital AG in Zurich, said in an
interview. “I do not expect a big positive impulse from the current earnings season in Europe. Unless a multi-day up-move develops, people will remain nervous.
We’re now in the highly volatile phase of attempting to bottom, but I would expect a final bottom only by the end of October or mid-November.”
US
U.S. stocks rallied for a third day as optimism over corporate earnings spurred a rebound from last week’s selloff. The Standard & Poor’s 500 Index rose 0.9% to
1,904.02 at 4 p.m. New York time. The index has fallen for the past four weeks and is down 5.3% since Sept. 18. The Dow Jones Industrial Average (INDU) added
19.26 points, or 0.1%, to 16,399.67. The Nasdaq Composite Index added 1.4%. Profit for S&P 500 companies probably rose 5.9% in the third quarter, a forecast
that’s been revised upward from an increase of 4.8% as of Oct. 10, and sales increased 4%, according to analysts’ projections compiled by Bloomberg.
“It’s all about earnings,” said Karyn Cavanaugh, the New York-based senior market strategist at Voya Investment Management LLC. Voya oversees $215 billion.
“Yes, IBM earnings were a big miss, but other company earnings are coming in better than expected and that’s good news. The growth rate for the third quarter
has been ratcheted up and that’s some good news for the market.”
ASIA
Asian stocks retreated after the regional benchmark gauge surged the most in two years yesterday, while U.S. Treasuries advanced with the yen. The Australian
(GACGB10) dollar and copper climbed as China reported growth and industrial production figures that beat estimates. The MSCI Asia Pacific Index dropped 0.3%
by 12:41 p.m. in Tokyo, as Japan’s Topix index slid 1.2% after a 4% jump yesterday. Standard & Poor’s 500 Index futures dropped 0.3% after three days of gains
in the U.S. and 10-year Treasury yields dropped three basis points. The so-called Aussie strengthened 0.3% and copper added 0.5%, while Hong Kong shares
erased gains from immediately after the data release. While China’s economy expanded 7.3% in the third quarter from a year before, beating estimates for
growth of 7.2%, it was still the slowest pace since 2009. China’s Communist Party leadership convenes its policy-setting plenum this week. The European Central
Bank started buying covered bonds yesterday, people familiar with the move said. The Asia-Pacific gauge surged 2.2% yesterday, the most since Sept. 7, 2012.
All 33 groups on the Topix slid today after its biggest advance since June last year. The yen strengthened to 106.57 per dollar, its first gain in four days.
“China’s data shows growth remains lacklustre in the second half even though the government undertook stimulus and injected liquidity in the market,” said
Benjamin Tam, a Hong Kong-based portfolio manager at IG Investment Ltd. “There won’t be big stimulus but there could be mini stimulus in the coming months.
The focus is on the fourth plenum to see whether there could be significant changes in the reform policy.”
GOVERNMENT BONDS
The yield on the 2026 benchmark South African government bond nudged up half a basis point to 8.08%, trading within last week's levels.
Treasury two-year notes gained for the first time in three days amid speculation U.S. economic growth may be restrained by global headwinds, prompting the
Federal Reserve to delay interest-rate increases. Demand for U.S. debt was bolstered as bond yields rose in Portugal, Spain and Italy, even as the European
Central Bank began its purchases of covered bonds, adding to signs of economic stagnation in the region. U.S. debt rallied last week amid the most turbulent
period for U.S. bonds in more than three years. Two-year note yields fell two basis points, or 0.02percentage point, to 0.35% at 5 p.m. in New York, according to
Bloomberg Bond Trader prices. The 0.5% securities maturing in September 2016 added 1/32, or 31 cents per $1,000 face amount, to 100 9/32. Benchmark 10year yields were little changed at 2.19%. The yield dropped as much as 34 basis points on Oct. 15 to 1.86%, the lowest level since May 2013.
“The market is expecting a more dovish Fed, which pushes out the timeline for rate hikes and will continue to support the front end,” said Thomas Simons, a
government-debt economist in New York at Jefferies Group LLC, one of 22 primary dealers that trade with the central bank. “The front end is showing fair value
at these levels. The Fed won’t raise rates until the fourth quarter of next year.”
FOREIGN EXCHANGE
The rand gained against the dollar on Monday, starting a risk-heavy week in firm territory after heavy losses last week, with investors waiting for the finance
ministry's update on the budget and economic outlook to provide direction. The rand gained its way close to the psychologically key 11 area on Monday, but
worries about South Africa's budget deficit capped rand bulls at 11.0180 per dollar. Finance Minister Nhlanhla Nene is due to deliver his medium term budget
statement on Wednesday and economists expect a wider budget deficit target for this year. Concerns about a widening shortfall on the budget add to worries
about a yawning gap on the current account. Investors are also keenly awaiting an announcement about how the government plans to plug a funding gap in
state-owned power utility Eskom. The anticipated larger funding requirement is keeping bonds trading within recent ranges. South Africa's gross loan debt
target increased by 0.9 percentage points in the last budget in February. The Treasury is likely to borrow abroad to help fund part of any gap. This week investors
will also be looking out for the central bank's business cycle indicator on Tuesday, a key gauge of the economic outlook, and will position for inflation data on
Wednesday.
The dollar held declines from yesterday against a majority of its major peers as traders speculated a slowdown in global growth will delay the timing of a Federal
Reserve interest-rate increase. The Bloomberg Dollar Spot Index, which measures the currency against a basket of 10 counterparts, has weakened 0.8% so far
this month amid shifting Fed expectations before policy makers next meet Oct. 28-29. Australia’s dollar halted an advance from yesterday ahead of a report
forecast to show an expansion of Chinese gross domestic product slowed, while industrial production growth accelerated. The Bloomberg dollar index was little
changed at 1,062.37 at 9:15 a.m. in Tokyo after yesterday falling 0.2%. The greenback traded at $1.2795 per euro from $1.28 yesterday, when it declined 0.3%. It
fetched 106.87 yen from 106.95. Australia’s currency bought 87.78 U.S. cents after climbing 0.5% to 87.84 yesterday. New Zealand’s kiwi was little changed at
79.64 U.S. cents.
“The dollar will probably struggle a little bit at least until after the Fed meeting next week,” said Ray Attrill, global co-head of currency strategy at National
Australia Bank Ltd. in Sydney. “It will aggravate existing concerns about global growth if we do have a combination of a relatively soft GDP and industrial
production doesn’t bounce,” in China, he said.
COMMODITIES
Gold held near a five-week high as investors assessed the global economy and the outlook for monetary policies amid the biggest sale in a year from the largest
exchange-traded product. Bullion for immediate delivery traded at $1,247.34 an ounce at 12:24 p.m. in Singapore from $1,246.91 yesterday, when prices rose
0.7%, according to Bloomberg generic pricing. The metal climbed to $1,249.75 on Oct. 15, the highest level since Sept. 11, amid a rout in global equities. Gold
last week posted the first consecutive weekly gain since July as the dollar fell from a four-year high on speculation slowing global growth may prompt the
Federal Reserve to delay raising borrowing costs. Policy makers at the bank are expected to halt bond purchases next week, winding back their quantitativeeasing program. While assets in SPDR Gold Trust expanded last week for the first week in five, the holdings slumped 1.2% yesterday to the lowest since
November 2008. Futures traders put the odds of a U.S. rate increase at 46% by October 2015, down from 51% last week. Fed policy makers are scheduled to
meet on Oct. 28-29, when they are expected to end monthly bond-buying, just as the European Central Bank begins an asset-purchase program. Data today may
show U.S. existing home sales rebounded in September.
“While the market isn’t sure when the Fed will raise rates, we still expect QE to end at the October meeting as economic data continues to show improvement,”
said Zhu Runyu, an analyst at CITICS Futures Co., a unit of China’s biggest listed brokerage. “At the same time, Europe has embarked on loosening monetary
policy. This will weaken the euro against the dollar, extending gold’s longer-term downtrend.”
Copper rebounded as economic growth and factory output data from China, the biggest user of industrial metals, beat analysts’ estimates. Copper rallied as
much as 0.8% in London after losing 1.2% yesterday. China’s gross domestic product in the third quarter rose 7.3% from a year earlier, compared with the 7.2%
median estimate in a Bloomberg survey of economists. Industrial output in September expanded 8%, compared with the 7.5% forecast in a separate survey and
6.9% in August. A private manufacturing PMI gauge from HSBC Holdings Plc and Markit Economics for October will be 50.2, unchanged from the previous month,
according to a Bloomberg survey before the data is released Oct. 23. A reading above 50 indicates expansion. Copper for delivery in three months on the London
Metal Exchange climbed 0.5% to $6,594 a ton at 11:20 a.m. in Tokyo. The metal touched $6,530 on Oct. 17, the lowest since April 15. In New York, futures for
December delivery was little changed at $2.99 a pound, while copper for the same month rose 0.3% to 47,200 yuan ($7,710) a ton in Shanghai. On the LME,
nickel fell for a second day. Zinc, lead and aluminum were little changed. Tin hadn’t traded.
“Today’s data showed China’s economy is not that much worse than people expected,” said Kazuhiko Saito, an analyst at Fujitomi Co., a commodities broker
in Tokyo. “Investors will watch another report on China’s purchasing managers index later this week.”
ENERGY
West Texas Intermediate traded near the highest level in four days amid speculation motor-fuel inventories shrank in the U.S., the world’s biggest oil consumer.
Brent was steady in London. Futures were little changed in New York from the close of Oct. 17. Gasoline stockpiles fell by 1.45 million barrels to a two-year low,
a Bloomberg News survey shows before government data tomorrow. WTI rebounded on Oct. 16 from the lowest intraday price since June 2012 after the Energy
Information Administration reported a 4 million drop that more than doubled the median analyst estimate. Goldman Sachs Group Inc. said last week that there’s
no oversupply to justify the sell-off. Oil is paring its collapse into a bear market as banks including BNP Paribas SA and Bank of America Corp. predict the rout
may be over. They’re in part counting on the Organization of Petroleum Exporting Countries to reduce supply as the U.S. pumps the most oil in almost three
decades and Russia’s output rises to a near a post-Soviet record. WTI for December delivery, the most-actively traded, was at $82.15 a barrel in electronic
trading on the New York Mercantile Exchange, up 24 cents, at 3:30 p.m. Sydney time. The November contract, which expires today, gained 29 cents to $83. The
volume of all futures traded was 36% below the 100-day average. Front-month prices have decreased 16% this year.
“If OPEC doesn’t cut, the market will go lower,” David Lennox, a resource analyst at Fat Prophets in Sydney, said by phone today. “The U.S. won’t stop
production. It’s the supply-demand scenario affecting the market.”
Key Indicators
Indices 2014
Last/Close
115
Daily
Move
Points%
110
105
Global Markets
100
Dow Jones
95
16399.67
0.12%
Week
Month
YTD
12 month
%
%
%
%
-0.25%
6.55%
0.48%
-4.50%
S&P 500
1904.01
0.91%
1.56%
-4.53%
3.93%
9.13%
Nasdaq
4316.07
1.35%
2.43%
-4.67%
4.18%
10.10%
FTSE 100
DAX
6267.07
8717.76
-0.68%
-1.50%
-1.56%
-1.07%
-7.48%
-10.58%
-6.71%
-7.26%
-5.82%
-1.69%
90
85
02/01/14 03/03/14 02/05/14 01/07/14 30/08/14
JSE All Share
FTSE 100
Dow Jones
HangSeng
CAC 40
3991.24
-1.04%
-2.14%
-10.16%
-5.58%
-6.68%
HangSeng
23070.26
0.20%
0.10%
-3.70%
-1.16%
-1.57%
1390
Nikkei225
15111.23
3.98%
-1.24%
-6.75%
-5.01%
2.84%
1350
Australia
5307.30
0.90%
2.99%
-1.13%
-1.16%
-0.83%
Gold $
1430
1310
South African Market
1270
1230
All Share
47599.25
-0.50%
0.49%
-5.72%
2.17%
5.95%
Top-40
42479.53
-0.60%
0.71%
-6.11%
1.66%
5.94%
1190
1150
02/01/14
Gold
03/03/14
02/05/14
01/07/14
30/08/14
Platinum
1090.07
-3.23%
-7.12%
-15.55%
1.16%
-13.80%
36.62
-0.94%
-0.89%
-6.36%
-27.48%
-26.61%
Banks
62997.63
-0.65%
0.88%
-3.28%
8.62%
7.91%
Industrial
64313.27
-0.28%
0.92%
-5.12%
3.13%
8.99%
Financial
13838.75
-0.56%
0.72%
-5.86%
8.02%
9.62%
1450
Resources
49303.22
-1.16%
-0.50%
-7.64%
-3.79%
-2.18%
1400
Commodities
1350
Brent Futures $
85.40
-0.88%
-3.93%
-11.93%
-20.76%
-22.11%
1300
Gold $
1241.00
0.24%
1.06%
2.22%
1.74%
-5.70%
Copper $
6615.00
-0.21%
-2.75%
-2.46%
-11.08%
-8.45%
Platinum $
1266.50
0.40%
0.12%
-4.49%
-9.76%
-11.65%
Platinum $
1550
1500
1250
1200
02/01/14 03/03/14 02/05/14 01/07/14 30/08/14
Currencies
R159
7.6
7.4
USDZAR
11.02
0.52%
-0.02%
1.34%
-3.21%
-11.99%
7.2
EURZAR
14.10
0.23%
-0.61%
1.70%
3.32%
-4.84%
7.0
GBPZAR
17.81
0.05%
-0.70%
2.49%
-1.45%
-12.21%
6.8
EURUSD
1.28
-0.28%
-0.46%
0.43%
6.38%
6.45%
USDGBP
0.62
0.40%
0.53%
-1.28%
-1.79%
0.10%
GBPEUR
1.26
-0.17%
-0.08%
0.83%
-4.94%
-7.01%
NCD 3-month
6.15
0.00%
2.38%
1.28%
-16.04%
-17.59%
R157
6.80
0.37%
0.44%
0.22%
-9.07%
-17.36%
6.6
6.4
6.2
6.0
02/01/14
Bonds/Rates
03/03/14
02/05/14
01/07/14
30/08/14
US 10yr
3.2
3
ALBI
469.66
-0.30%
0.01%
-0.78%
-7.95%
-6.33%
GOVI
468.21
-0.28%
-0.04%
-0.82%
-7.74%
-6.14%
2.19
-1.39%
5.19%
14.79%
26.76%
16.09%
2.8
US 10yr
2.6
Source: I-Net BFA
Note:
1) Negative (-) indicates currency depreciation; positive (+) indicates currency appreciation.
2) Negative (-) indicates increase in yields (decrease in price); positive (+) indicates decrease in yields
(increase in price).
2.4
2.2
2
1.8
02/01/14
03/03/14
02/05/14
01/07/14 30/08/14
Companies – Dividends (Bloomberg)
Company
Code
Bowler Metcalf
Datacentrix Holdings Limited
EOH Holdings Limited
PSG Konsult Limited
Phumelela Gaming & Leisure
BCF
DCT
EOH
KST
PHM
Last Day to Trade
24-October-2014
24-October-2014
24-October-2014
24-October-2014
24-October-2014
1)
Based on dividend amount including dividend withholding tax of 15% (g=gross).
2)
Based on dividend amount excluding dividend withholding tax of 15% (n=net).
Ex-div
27-October-2014
27-October-2014
27-October-2014
27-October-2014
27-October-2014
Final
Interim
Final
Interim
Final
Dividend Amount
(cps)
16.60 g²
8.0908 g
120 g
4g
60 g
Dividend Type
Companies - Trading Statements (JSE SENS)
Company
Tradehold Limited
Adcorp Holdings Limited
Gooderson Leisure Corporation Limited
AH-Vest Limited
Pioneer Food Group Limited
Micromega Holdings Limited
Consolidated Infrastructure Group
Metmar Limited
Infrasors Holdings Limited
PSV Holdings Limited
Imbalie Beauty Limited
Santova Limited
Trans Hex Group Limited
Wescoal Holdings Limited
Afrimat Limited
The Foschini Group
Tongaat Hulett Limited
Dipula Income Fund
SABMiller PLC
Cadiz Holdings Limited
Tiger Brands Limited
Argent Industrial Limited
DRDGold Limited
Invicta Holdings Limited
Transaction Capital Limited
BSI Steel Limited
Insimbi Refractory and Alloy Supplies
Limited
Stefanutti Stocks Holdings Limited
Hulamin Limited
Results Due
Company
Period
Interim
Interim
Interim
Final
Final
Interim
Final
Interim
Interim
Interim
Interim
Interim
Interim
Interim
Interim
Final
Interim
Interim
Interim
quarter
Interim
Final
Interim
Headline EPS
Guidance
Direction
decrease
increase
decrease
decrease
increase
increase
Increase
increase
Increase
decrease
decrease
Increase
increase
decrease
Increase
decrease
decrease
Range
54%
560%-578%
0.64cps-0.72cps
(4.35cps-4.45cps)
≥20%
70%
30%-35%
20.45cps-24.54cps
61%-96%
≥20%
(0.72cps-0.32cps)
15.0cps-16.25%
≥20%
≥20%
27.7cps-31.5cps
(20%-30%)
≥20%
22-October-14
22-October-14
24-October-14
29-October-14
31-October-14
31-October-14
31-October-14
October-14
03-November-14
03-November-14
04-November-14
06-November-14
06-November-14
11-November-14
13-November-14
13-November-14
17-November-14
19-November-14
20-November-14
24-November-14
November-14
25-November-14
30-November-14
Interim
Interim
Final
decrease
increase
increase
(22%-27%)
20%-40%
≥70cps
30-November-14
23-February-15
Date
Reporting
Announced
17-October-14
15-October-14
09-October-14
26-September-14
04-September-14
01-October-14
13-October-14
08-October-14
16-October-14
05-August-14
01-October-14
14-October-14
09-September-14
20-October-14
14-October-14
08-October-14
13-Otober-14
23-July-14
11-September-14
10-September-14
12-September-14
15-October-14
20-October-14
Contacts
+27 11 375 1000
[email protected]
Disclosures
This publication has been issued by Thebe Stockbroking Ltd for the information of our clients only. The information contained herein has been obtained from
sources which we believe to be reliable, but is not guaranteed for accuracy or otherwise. All opinions expressed and recommendations made are subject to
change. The information contained herein reflects our opinion and recommendations, but does not constitute a solicitation for transactions in any of the
securities mentioned. We accept no responsibility whatsoever arising from actions taken on the basis of this report or any consequence thereof. Readers are
advised that securities of companies have various degrees of risk and volatility. The reader of this research report makes his/her own independent decisions
regarding any securities or financial instruments.