Overnight Report - Thebe Stockbroking
Transcription
Overnight Report - Thebe Stockbroking
Overnight Report 02 February 2015 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 The JSE closed higher on Friday as Thursday’s decision by the Reserve Bank to keep rates on hold continues to favour interest-rate sensitive banking and retail shares. The All Share Index ended the day up 0.63% at 51,266.81 points, bringing gains for the whole of January to about 3%. The blue-chip Top 40 gained 0.76%. • We expect the South African market to open marginally lower (-0.3%) after the release of disappointing Chinese manufacturing numbers and in line with weaker Asian markets. The surge in commodity prices and a weaker rand will keep the fall in check as large-cap energy and mining stocks are expected to lead the gainers. • South African government bonds edged lower on Friday, with the yield on the 2026 benchmark inversely ticked up half a basis point to 7.135%. • This morning as at 06h56 in Johannesburg, the rand was trading at R11.62/$, R13.15/€ and R17.52/£ respectively. WEST AFRICA – NIGERIA • Consecutive declines that saw the financial services stocks witness prevalent selloffs led the NSE ASI to lose 1.16% between Thursday and Friday, and 0.84% for the entire week to close at 29,562.07 points. • This morning as at 07h03 in Johannesburg, the naira was trading at N187.51/$, N212.11/€ and N282.78/£ respectively. EUROPE • • US The Stoxx Europe 600 Index dropped 0.5% to 367.05 at the close of trading. • The S&P 500 slid 1.3% to 1,994.99 at 4 p.m. in New York, extending its monthly loss to 3.1%. The Dow Jones Industrial Average dropped 251.90 points, or 1.5%, to 17,164.95. ASIA All prices are correct as of 23:00:11 30 Jan 2015 WINNERS LOSERS POYNTING 22.29% LIBHOLD11 SYCOM 11.38% THARISA Gold fell as investors weighed prospects for higher U.S. interest rates after the biggest monthly gain in three years. -12.00% -9.64% VILLAGE 9.57% STEFSTOCK -9.25% ATLATSA 8.41% MARSHALL -6.92% DELTA INT 8.11% AFOVR-N -6.20% JSE trading volumes All prices are correct as of 23:00:11 30 Jan 2015 KAP 14,367,856 1.20% FIRSTRAND 7,459,181 1.36% STEINHOFF 5,875,303 0.08% OLDMUTUAL 4,481,480 0.69% REDEFINE 4,180,352 0.18% JSE trading statistics Value of shares traded (R'M) • The MSCI Asia Pacific Index retreated 0.3% to 139.98 as of 9:01 a.m. in Tokyo. COMMODITIES • JSE share price moves 17343.275 Volume of shares traded (M) 294.48 Number of Deals 215417 Up deals 336 Down deals 183 Flat deals 370 Source: I-Net BFA Dow Jones JSE All-Share 54000 18900 52000 18200 50000 17500 48000 16800 46000 16100 44000 15400 42000 14700 40000 02/01/14 03/03/14 02/05/14 01/07/14 30/08/14 29/10/14 28/12/14 14000 02/01/14 13/03/14 22/05/14 31/07/14 09/10/14 18/12/14 Today’s economic data releases Local time 10h50 10h55 11h00 11h00 11h30 16h45 Source: Bloomberg Country FR GE SA EC UK US Indicator Markit France Manufacturing PMI Markit/BME Germany Manufacturing PMI Kagiso Manufacturing PMI Markit Eurozone Manufacturing PMI Markit UK Manufacturing PMI Markit US Manufacturing PMI Period Jan Jan Jan Jan Jan Jan Relevance Low Low High Low Low Low Previous 49.5 51.0 50.2 51.0 52.5 53.7 Consensus Forecast 49.5 51.0 50.1 51.0 52.7 53.7 SOUTH AFRICA The JSE closed higher on Friday as Thursday’s decision by the Reserve Bank to keep rates on hold continues to favour interest-rate sensitive banking and retail shares. The gold index was also higher on weaker global markets, as uncertainty about the effects of possible US rate hikes and the recent stimulus announcement by the European Central Bank (ECB) clouded future expectations, even though some US company results released during the week exceeded expectations. The All Share Index ended the day up 0.63% at 51,266.81 points, bringing gains for the whole of January to about 3%. The blue-chip Top 40 gained 0.76%. Gold shares gained 2.38% and resources added 2.23%. Platinums firmed 1.74% and banks ended the day 1.21% up. Financials gained 0.49% and industrials were up 0.21%. Among gold stocks AngloGold Ashanti firmed 4.73%. It has risen 34% in January. Harmony recovered 1.46%, with a 57.9% gain in January. Sasol was up 2.66% to R421.21. It lost a further 2.2% in January after retreating 50% between July and December 2014. BHP Billiton added 2.33% to R253.34. Platinum producer Lonmin recovered 2.26% to R29.40 after being sold down on Thursday on announced capital expenditure cuts. Kumba Iron Ore rose 4.34% to R224.70. The net loss amounts to 6.34% in January. Banks performed well on the day, with Standard Bank closing 0.93% up to R154.62, a record high. Standard rose 7.7% in January. FirstRand was 1.36% stronger at R52.08 — its January gains amount to 3.9%. The star banking performer for the month was Capitec, gaining 12%. It closed up 0.79% to R383 on Friday. Rand hedge stock SABMiller was up 1.78% at R633.91. The Foschini Group rose 1.05% to R167.65. Among the big market caps MTN retreated 3.07% to R202.07. Educational group Curro rose 6.88% to a new record of R35.10, despite being embroiled in racist allegations at one of its schools in Pretoria. Spur Corporation closed at a new record of R39.71, 7.32% up on the day. Investec Asset Management’s head of dealing for emerging markets, Ryan Wibberley, said the collapse in global oil prices and the introduction of quantitative easing (QE) in the eurozone were the overriding themes in January. Novare Investments research head Francois van der Merwe said global equities were still expected to outperform global bonds this year, albeit at lower-than-average returns. WEST AFRICA – NIGERIA Despite the benchmark index gaining 0.32% in total between Monday and Wednesday, consecutive declines that saw the financial services stocks witness prevalent sell-offs led the NSE ASI to lose 1.16% between Thursday and Friday, and 0.84% for the entire week to close at 29,562.07 points. The loss left the month-to-date and year-to-date returns at 14.70%, as the market began the year with the worst January performance since 2009 (-33%). Anticipation of pre and post election violence, increasing attacks in the North and the volatile local currency continue to dent investor appetite (particularly for FPIs) as the equities market attempts to find a balance. Demand for CUTIX, WAPCO, CCNN and ASHAKACEM stirred the Industrial Goods sector to a 1.14% gain. However, all the other four NSE sectoral indices posted depreciations as the Banking index topped the losers' chart with a 2.96% loss following price declines in DIAMONBNK, ZENITHBNK, FBNH and GUARANTY. The Insurance index followed with a 2.03% drop, while the Consumer Goods and Oil/Gas indices fell by 0.48% and 0.04% respectively w/w. Market breadth was negative, as 41 losers' outweighed 28 gainers. A total volume of 1.81billion shares were traded this week (excluding off market transactions), valued at N21.76billion, higher than the 1.69billion worth 17.20billion that exchanged hands last week. The shares of FIDELITY (267.06million), ACCESS (188.75million) and GUARANTY (161.69million) collectively accounted for 34% of the broader market volume, while those of GUARANTY (N3.35billion), NB (N2.32billion) and ZENITH (N1.95billion) accounted for 35% of total value transactions. EUROPE European stocks declined, paring the best start to a year since 1989, as banks and telecommunications companies dropped. The Stoxx Europe 600 Index dropped 0.5% to 367.05 at the close of trading. The gauge rose as much as 0.4% earlier, before falling as much as 0.7% as Russia’s central bank unexpectedly cut its key rate. The benchmark measure still surged 7.2% in January as the European Central Bank unveiled a 1.1 trillion-euro ($1.2 trillion) quantitative-easing program to combat deflation. Euro-area consumer prices fell more than economists forecast in January, data showed today. Greece’s ASE Index fell 1.6%, reversing earlier gains. The gauge has tumbled 14% this week amid concern a coalition led by Syriza, which won Sunday’s election, will challenge austerity measures. The volume of Stoxx 600 shares changing hands was 19% greater than the 30-day average, data compiled by Bloomberg show. Finance Minister Yanis Varoufakis said he’s not interested in persuading Greece’s official creditors to release the final tranche of bailout funds. “We’ll see a pickup in growth after QE, but it will be modest,” said Henrik Drusebjerg, who helps manage 14 billion euros as chief strategist at Carnegie Investment Bank AB in Copenhagen. “Most European countries still need to do more reform. We are beginning to take a look at some European companies. I’m curious how aggressive to see Greece will be on their election promises.” US U.S. stocks fell, sending the Standard & Poor’s 500 Index to its biggest monthly decline in a year, as weaker-than-forecast economic growth overshadowed a rally in energy shares sparked by a surge in the price of crude. The S&P 500 slid 1.3% to 1,994.99 at 4 p.m. in New York, extending its monthly loss to 3.1%. The index tumbled 2.8% in the week, the most since Dec. 12. The Dow Jones Industrial Average dropped 251.90 points, or 1.5%, to 17,164.95. The Russell 2000 Index of small caps tumbled 2.1%, the biggest slide since Dec. 10. More than 8.5 billion shares changed hands on U.S. exchanges today, the busiest trading since Dec. 19 and 26% above the three-month average. Energy shares in the S&P 500 gained 0.7% as U.S. oil surged 8.3%. Amazon.com Inc. and Biogen Idec Inc. soared at least 10% after reporting earnings. Broad equities gauges tumbled amid concern over economies in Europe and Russia as data showed slower growth in America. The U.S. economy expanded at a slower pace than forecast in the fourth quarter as cooling business investment, a slump in government outlays and a widening trade gap took some of the luster off the biggest gain in consumer spending in almost nine years. “All this data does is further cloud the entire investment picture,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in a phone interview. “It confirms that there’s going to be continued uncertainty and continued significant volatility.” ASIA Asian stocks fell for a fourth day after data signaled Chinese manufacturing shrank last month for the first time in more than two years and the U.S. economy grew less than forecast. The MSCI Asia Pacific Index retreated 0.3% to 139.98 as of 9:01 a.m. in Tokyo, before markets opened in China and Hong Kong. The measure gained 1.8% in January, rebounding from two months of losses. China’s official purchasing managers’ index showed an unexpected contraction, data at the weekend showed, boosting prospects Asia’s largest economy will add to stimulus amid a wave of global monetary easing. The U.S. economy expanded at a slower pace than forecast in the fourth quarter as cooling business investment, a slump in government outlays and a widening trade gap took some of the luster off the biggest gain in consumer spending in almost nine years. Japan’s Topix index slid 0.8% as the yen gained 0.2% to 117.26 per dollar, after strengthening 0.7% on Friday. South Korea’s Kospi index was little changed. Australia’s S&P/ASX 200 Index rose 0.3% as energy shares gained. New Zealand’s NZX 50 Index fell 0.1%. Futures on the Standard & Poor’s 500 Index were little changed after the underlying gauge last week posted its steepest slide since Dec. 12. Gross domestic product in the U.S. rose an annualized 2.6% in the fourth quarter, trailing the 3% growth estimate from economists and falling from 5% in the three months to the end of September. The China data “will be stoking hard landing fears that are ever present in market thinking,” said Evan Lucas, Melbourne-based market strategist at IG Ltd. “The fact new exports are also declining is a big issue on a macro-level. It illustrates that the lower growth in the global economy is impacting consumption of Chinese goods.” GOVERNMENT BONDS South African government bonds edged lower on Friday, with the yield on the 2026 benchmark inversely ticked up half a basis point to 7.135%. Treasuries posted the best start to a year since 1988 as a report showed the U.S. economy expanded at a slower-than-forecast rate in the fourth quarter and global investors sought higher-yielding U.S. securities. Benchmark 10-year yields fell to a 20-month low as an inflation measure plunged in Europe by the most since 2009, amplifying the threat of worldwide deflation. The yields were higher than similar-maturity yields 18 developed nations. Federal Reserve Bank of St. Louis President James Bullard said the European Central Bank’s bond-buying plan is the most significant catalyst driving yields lower worldwide. U.S. 10-year yields fell 11 basis points, or 0.11%age point, to 1.64% as of 5 pm New York time, according to Bloomberg Bond Trader data. The price of the 2.25% security due November 2024 rose 1, or $10 per $1,000 face amount, to 105 15/32. The yield on the 10-year note dropped 53 basis points this month, the biggest decline in any January since 1988, according to Bloomberg data. The 30-year bond yield declined to an all-time low 2.22%. “It seemed to be in large part due to flows from Europe,” said John Bellows, a fund manager who helps oversee $466 billion of fixed-income assets at Western Asset Management Co. in Pasadena, California, in a telephone interview. “The inflation dynamic has been challenging.” FOREIGN EXCHANGE South Africa's rand weakened against the dollar on Friday, as a larger than expected trade surplus for December failed to offset the selling pressure on emerging currencies as investors brace for policy tightening in the United States. The local unit surrendered gains made the previous day after South Africa's own central bank kept domestic rates unchanged and moved to dampen market expectations of a rate cut this year prompted by a sharp drop in oil prices. At 1553 GMT the rand traded 0.53% softer at 11.6150 to the greenback compared with where it ended the New York session on Thursday. The rand weakened even after data from the revenue service showed South Africa recorded a trade surplus of R6.85 billion in December after a revised R5.27 billion shortfall in November. The yen held its best monthly gain in a year as weaker-than-expected data for China and the U.S. underscored concerns that the world economy is stumbling. Japan’s currency, often regarded by investors as a haven amid market turmoil, advanced Friday against the dollar as traders pared bets the Federal Reserve will raise interest rates by December. The Aussie gained for the first time in four days after an index of house prices jumped the most in six months, undermining speculation the Reserve Bank of Australia will cut interest rates tomorrow. The yen was little changed at 117.52 per dollar as of 10:55 a.m. in Tokyo from Jan. 30, when it added 0.7%. It slipped 0.2% to 132.94 against the euro. The single currency advanced 0.2% to $1.1313. China’s official manufacturing purchasing managers’ index unexpectedly contracted for the first time in more than two years, data over the weekend showed. That followed a U.S. report Friday that showed gross domestic product rose an annualized 2.6% in the fourth quarter, trailing the 3% growth estimated by economists and falling from 5% in the three months ended September. “Market sentiment is turning risk-averse after both the U.S. growth figures and the Chinese manufacturing data fell short of estimates,” said Atsushi Hirano, Tokyo-based head of FX sales in Japan at Royal Bank of Scotland Plc. “There’s a growing risk the yen could climb to the mid-115 level versus the dollar by the middle of this week.” COMMODITIES Gold fell as investors weighed prospects for higher U.S. interest rates after the biggest monthly gain in three years. Bullion for immediate delivery fell 0.3% to $1,280.58 an ounce at 12:49 p.m. in Singapore, according to Bloomberg generic pricing. The metal advanced 8.4% in January, the biggest gain since January 2012. Federal Reserve Bank of St. Louis President James Bullard said Jan. 30 that investors are wrong to expect the central bank to postpone an interest-rate increase beyond midyear. The policy makers cited a “solid” expansion of the economy in their Jan. 28 statement. Higher rates cut gold’s allure because the metal generally offers investors returns through price gains. Data this week may show employers in the U.S. continued to add workers in January, while manufacturing probably moderated. U.S. construction spending probably climbed in December after falling the previous month, economists said before the Commerce Department report today. “The volatility in gold has picked up and we expect it to continue on ebb and flow of U.S. rate hike expectations,” said Zou Lihu, an analyst at Citics Futures Co. in Shenzhen. Copper and aluminium gained on Friday following upbeat European retail sales data and as some investors covered short positions ahead of the weekend. German retail sales posted their biggest yearly rise in 2-1/2 years in December, while sales in Spain and consumer-spending in France were also stronger than expected, lifting European shares. Three-month copper on the London Metal Exchange closed 2% higher at $5,495 a tonne, recouping all of its loss from the previous session. LME copper stocks continued to pile up, edging higher on Friday by 675 tonnes to 248,125 tonnes. They have jumped 40% so far in January, indicating decent supply in the market. LME copper prices were heading for a seventh consecutive weekly loss, the longest losing streak since July 2008. For the month, LME copper is down about 13%. Copper's price weakness has been mainly wrapped up in broader macroeconomic uncertainty, exacerbated by the slide in oil, rather than because of copper's own fundamentals, said Joel Crane of Morgan Stanley in Melbourne. Prices on Thursday fell towards but did not break below 5-1/2 year lows of $5,339.50 hit earlier this week, setting up conditions for a technical rally, traders said. While the upbeat data in Europe gave metals a lift, Citi analyst David Wilson said the market was still subdued. "I still believe in six and 12 months we'll see copper prices higher," he said. Traders are now waiting for economic data from top copper consumer China for more trading cues. China is scheduled to release its manufacturing Purchasing Managers' Index on Feb. 1. ENERGY Crude oil prices fell on Monday after U.S. unions called a refinery strike and traders cashed in on strong price gains last week when the market soared on a sharp drop in U.S. drilling. Despite the decline, analysts said that record open interest - the number of outstanding futures contracts - indicated that prices may have bottomed out. Brent crude oil futures were trading at $51.60 a barrel at 0440 GMT, down $1.39, while U.S. WTI futures were at $46.96, down $1.28 a barrel. The declines followed a jump back from six-year lows on Friday, as a record weekly decline in U.S. oil drilling fuelled a frenzy of short-covering. While the potential drop in U.S. oil output could lift markets in the mid-term, analysts said Monday's declines were a result of profit-taking after last week's gains, as well as rising output by OPEC that was offsetting lower U.S. drilling. Asian oil markets also opened to news of a strike at U.S. refineries, potentially denting crude demand in coming days. The United Steelworkers union called strikes at nine U.S. refineries on Sunday to bring about a new national agreement that covers workers at 63 refineries, accounting for two-thirds of U.S. refining capacity, said a source familiar with the union's plans. The walkouts would be the first in support of a national accord since 1980. Key Indicators Indices 2014 115 Last/Close 110 Daily Move Points% 105 Week Month YTD 12 month % % % % -3.75% 9.34% Global Markets 100 Dow Jones 95 17164.95 -1.45% -2.87% -3.75% S&P 500 1994.99 -1.30% -2.77% -3.07% -3.07% 11.92% Nasdaq 4635.24 -1.03% -2.58% -1.94% -1.94% 12.95% FTSE 100 DAX 6749.40 10694.32 -0.90% -0.41% -1.22% 0.42% 3.08% 9.52% 3.08% 9.52% 3.67% 14.91% 4604.25 -0.59% -0.79% 8.28% 8.28% 10.53% Hang-Seng 24507.05 -0.36% -1.38% 2.72% 2.72% 11.22% 1380 Nikkei225 17674.39 0.39% 0.93% 1.28% 11.10% 18.50% 1340 Australia 5551.60 0.35% 1.53% 2.52% 2.52% 6.66% 1300 South African Market 90 85 02/01/14 23/03/14 11/06/14 30/08/14 JSE All Share FTSE 100 18/11/14 Dow Jones HangSeng Gold $ 1420 1260 CAC 40 All Share 51266.81 0.63% 2.91% 3.53% 3.53% 13.59% Top-40 45111.03 0.76% 3.35% 3.24% 3.24% 11.15% 1220 1180 1140 Gold 1100 02/01/14 Platinum 23/03/14 11/06/14 30/08/14 1513.34 2.38% 4.07% 34.55% 34.55% 16.35% 34.50 1.73% -3.89% 0.55% 0.55% -30.36% 18/11/14 Banks 77198.12 1.21% 6.01% 6.92% 6.92% 48.14% Industrial 72625.61 0.21% 2.66% 3.55% 3.55% 23.29% Financial 16356.75 0.58% 4.25% 5.51% 5.51% 38.18% 1450 Resources 42078.15 2.23% 3.39% 0.73% 0.73% -21.94% 1380 Commodities 1310 Brent Futures $ 1240 Gold $ Platinum $ 1590 1520 1170 1100 02/01/14 23/03/14 11/06/14 7.6 30/08/14 18/11/14 R159 52.99 7.86% 8.61% -6.08% -6.08% -50.20% 1263.50 -0.94% -2.32% 6.69% 6.69% 1.36% Copper $ 5505.00 2.12% -1.36% -12.74% -12.74% -22.37% Platinum $ 1242.00 1.68% -2.05% 3.28% 3.28% -9.88% Iron Ore $ 62.21 -1.68% -12.57% -9.92% -9.92% -53.49% 7.4 Currencies 7.2 USDZAR 11.63 0.74% 2.04% 0.25% 0.25% 4.69% 7.0 EURZAR 13.14 0.46% 2.74% -6.42% -6.42% -12.38% 6.8 GBPZAR 17.47 0.40% 2.32% -2.21% -2.21% -4.29% EURUSD 1.13 -0.41% 0.74% -5.96% -5.96% -16.31% 6.6 6.4 6.2 6.0 02/01/14 23/03/14 11/06/14 30/08/14 18/11/14 USDGBP 0.66 0.06% -0.52% 1.73% 1.73% 9.11% GBPEUR 1.33 0.32% -0.19% 4.52% 4.52% 9.52% 6.25 0.00% 1.63% -1.57% -1.57% 8.70% Bonds/Rates NCD 3-month US 10yr 3.2 3 2.8 R157 6.06 0.08% -0.74% -8.60% -8.60% -18.12% ALBI 512.09 -0.40% 0.85% 6.57% 6.57% 21.20% GOVI 507.13 -0.38% 0.62% 5.89% 5.89% 20.28% 1.66 -5.14% -11.70% -23.50% -23.50% -37.59% 2.6 US 10yr 2.4 2.2 2 1.8 1.6 02/01/14 23/03/14 11/06/14 30/08/14 18/11/14 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). Companies – Dividends (Bloomberg) Company Code Last Day to Trade Ex-div Dividend Type Dividend Amount (cps) Results Due Company Range 15%-17% 21%-27% 250cps-335cps 26%-31% 27%-29% (740cps-905cps) ≥70cps 60%-80% 8%-11% ≥30% ≥45% ≥20% 25%-45% - 04-February-15 06-February-15 09-February-15 10-February-15 10-February-15 10-February-15 11-February-15 12-February-15 12-February-15 12-February-15 16-February-15 16-February-15 17-February-15 17-February-15 20-February-15 20-February-15 23-February-15 23-February-15 25-February-15 26-February-15 27-February-15 04-March-14 09-March-15 09-March-15 16-March-15 March-15 23-April-15 19-May-15 22-May-15 No companies expected to go ex-div this week. 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). Companies - Trading Statements (JSE SENS) Company Resilient Property Income Fund Limited Tower Property Fund Limited Anglo American Platinum Limited Rockcastle Global Real Estate Company Fotress Income Fund Limited Kumba Iron Ore Limited Group Five Limited OneLogix Limited Glencore PLC Woolworths Holdings Limited Italtile Distribution and Warehousing Network Silverbridge Holdings Limited Aveng Limited Zurich Insurance Company SA Limited Delta EMD Limited Nedbank Limited Hulamin Limited Murray & Roberts Limited Impala Platinum Limited Pan African Resources PLC Growthpoint Properties Ltd AVI Limited Sasol Limited Clover Industries Limited African Rainbow Minerals Limited Interwaste Holdings Limited Clicks Group Limited PPC Limited Compagnie Financière Richemont SA Date Reporting Announced 26-January-15 12-January-15 23-January-14 23-January-15 23-January-15 20-November-14 23-January-15 23-January-15 19-November-15 20-October-14 12-January-15 23-January-15 23-December-14 03-December-14 27-January-15 28-January-15 26-January-15 15-January-15 Period Interim Interim Final Interim Final Interim Interim Final Final Final Interim Interim Interim Interim Final Interim Interim Final Headline EPS Guidance Direction increase increase decrease decrease increase decrease increase decrease increase increase decrease increase decrease - 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.