Bulls n Bears Daily Market Commentary : 02 August 2018

Thu Aug 2 19:38:57 CAT 2018

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Bulls n Bears Daily Market Commentary : 02 August 2018

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Zimbabwe Stock Exchange Update

Market Turnover $449,627.88 with foreign buys at $179,962.82 and foreign
sales were $141,308.75. Total trades were 26.

The All Shareindex traded lower at 114.08 points after dropping 0.24 points
as trading activity was subdued. MASIMBA  lost $0.0120 to settle at $0.0500,
DELTA  eased $0.0119 to close at $2.1500, CBZ  went down by $0.0087 to trade
at $0.1013  and STARAFRICACORPORATION  shed  a marginal $0.0001 to settle at
$0.0128.

ZIMPLOW  was up $0.0045 to close at $0.1200 whilst DAWN , ECONET and OLD
MUTUAL  gained $0.0001 each to close at $0.0160, $1.2376 and $5.0201
respectively.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South  Africa

South Africa's rand falls hit by growing trade tension, stocks falter

(Reuters) - The South African rand lost ground against the greenback on
Thursday as a bellicose United States Federal Reserve and escalating trade
tensions weighed on emerging market currencies.

Stocks weakened knocked back by risk aversion.

At 1538 GMT the rand was 1.28 percent weaker at 13.4000 per dollar, compared
to an overnight close of 13.2300.

A deepening trade dispute between the United States and China weighed on
global stocks and bond yields, prompting investors to shed risky assets in
favour of safer ones amid uncertainty over future tariffs.

Bonds ended the day flat, with the yield on the benchmark paper due in 2026
at 8.68 percent.

On the bourse, shares closed sharply lower amid rising trade tension between
the United States and China spreading from Asian markets to Europe.

The blue-chip Top-40 index closed 1.83 percent lower at 50,340 points, while
the broader All-Share index ended 1.62 percent weaker to 56,470 points.

The country’s ruling party, the African National Congress plan to amend the
constitution to allow the state to expropriate land without compensation for
redistribution to the poor has dampened investor risk sentiment, with
concerns it could undermine property rights.

Market heavyweight Naspers which owns about 30 percent of the Chinese
technology firm Tencent, shed 2.87 percent to 3175.32 rand after Tencent
lost 2.82 percent at close in Hong Kong. 

Kenya

Kenyan shilling unchanged amid flows from remittances, coffee exports

(Reuters) - The Kenyan shilling was firm against the dollar on Thursday
supported by inflows from remittances and tight liquidity in the money
markets, traders said. 

At 0825 GMT, commercial banks quoted the shilling at 100.35/55 per dollar,
the same as Wednesday's close. 

Global

Intensifying U.S.-China trade fight drags down stocks, bond yields

(Reuters) - A deepening trade dispute between the United States and China
weighed on global stocks and bond yields on Thursday, prompting investors to
shed risky assets in favor of safer ones amid uncertainty over future
tariffs.

The trade spat between the world’s top two economies intensified on
Wednesday after U.S. President Donald Trump raised pressure on China by
proposing a higher 25 percent tariff on $200 billion worth of Chinese
imports.

China on Thursday urged the United States to “calm down,” but market
participants remained unnerved.

On Wall Street, the Dow Jones Industrial Average fell 171.11 points, or 0.68
percent, to 25,162.71, the S&P 500 lost 7.29 points, or 0.26 percent, to
2,806.07, and the Nasdaq Composite added 14.66 points, or 0.19 percent, to
7,721.94.

MSCI’s gauge of stocks across the globe shed 0.75 percent, while the
pan-European FTSEurofirst 300 index lost 1.01 percent.

Germany’s blue-chip index DAX, which is seen as a trade war proxy, fell 1.67
percent while the broader pan-European STOXX 600 was down about 0.9 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.6
percent down, dragged down by a 1.8 percent fall in Chinese H-shares.

Benchmark U.S. government bond yields edged lower as the market sought
safe-haven debt in Treasuries amid the trade dispute.

Euro zone government bond yields dipped, and borrowing costs in Germany and
France pulled back from seven-week highs.

Analysts blamed the retreat in world stock markets on uncertainty around the
trade policy of the Trump administration, even as recent corporate results
and economic data have been seen as encouraging.

He said investors badly needed a “framework of interpretation” to read
through the trade statements of the Trump administration and the poor
visibility on that front was holding markets back.

On Wednesday, the Federal Reserve kept interest rates unchanged as expected,
characterizing the U.S. economy as strong and staying on track to increase
borrowing costs in September and likely again in December.

Gold prices held steady on the news after falling 11 percent since April to
its lowest in a year.

Spot gold dropped 0.1 percent to $1,214.39 an ounce. U.S. gold futures fell
0.39 percent to $1,222.80 an ounce.

Oil prices climbed on Thursday, reversing course after a report suggested
crude stockpiles at the U.S. storage hub at Cushing, Oklahoma fell in the
latest week.

U.S. crude rose 0.99 percent to $68.33 per barrel and Brent was last at
$72.72, up 0.46 percent on the day. 

Commodities Markets

South African gold producers make new wage offer to unions

(Reuters) - South African gold producers said on Thursday they had offered
annual wage increases of up to 7.2 percent to underground employees and up
to 4.5 percent for miners and artisans, after unions rejected a previous
offer last week.

Gold producers have argued that above-inflation wage hikes have been adding
to the cost burden in the bullion industry which has been hit by depressed
prices and labour unrest.

The four companies involved, Sibanye-Stillwater, Harmony Gold and AngloGold
Ashanti and a smaller producer Village Main Reef, have each tabled different
offers which are above inflation, they said in a statement.

The companies are negotiating under the auspices of the Minerals Council
South Africa industry grouping.

Last week bullion producers urged unions to narrow their demands after
unions rejected offers of annual wage increases of up to 6.5 percent for
miners and up to 4.5 percent for skilled workers.

The National Union of Mineworkers said it would take this latest offer to
its members for consideration.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Delta

AGM

Head Office, Northridge Close, Borrowdale

27/07/2018 12:30pm

NicozDiamond

shares delist from the ZSE

06/08/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

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