Bulls n Bears Daily Market Commentary : 06 August 2018

Tue Aug 7 08:57:07 CAT 2018

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Bulls n Bears Daily Market Commentary : 06 August 2018

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Zimbabwe Stock Exchange Update

Market Turnover $3,492,054.93 with foreign buys at $230,297.80 and foreign
sales were $1,935,000.00. Total trades were 60.

The All Share index retreated 0.63 points  to settle at 113.56 points. DELTA
shed $0.0485 to close at $2.1015, DAIRIBORD  lost $0.0100 to $0.1300 and
BARCLAYS  slipped by $0.0054 to close at $0.0600. OLD MUTUAL  inched down
$0.0001 to end at $5.0200.

CBZ HOLDINGS  added $0.0087 to close at $0.1100, SIMBISA  put on $0.0077 to
trade at $0.4877 while  ECONET  went up by $0.0034 to $1.2343.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South  Africa 

South Africa's rand retreats in global risk-off, stocks fall

(Reuters) - South Africa’s rand weakened on Monday as emerging markets were
knocked by a retreat in risk demand, with investors opting for safe bets as
trade tensions rose between Washington and Beijing.

At 1500 GMT the rand was 0.49 percent weaker at 13.4000 per dollar compared
to Friday close of 13.3350.

The greenback was up 0.24 percent against a basket of currencies as trade
commenced in New York, in a widely expected resumption of a rally driven
mainly by rising lending rates and faster economic growth.

The rand has seen volatile trade over the past week, breaking through the
13.10 level to a seven-week best before sliding back to near 13.50, an
inflection point traders have targeted to gauge the currency’s longer term
trend.

On Monday Chinese state media lambasted U.S. President Donald Trump’s trade
policies, further stoking concerns the tariff spat may spill over into a
full blown trade war, knocking over the recovery in global growth that has
supported emerging currencies.

South African bonds were softer, with the yield on the benchmark paper due
in 2026 up 5 basis points to 8.735 percent.

On the bourse, the blue-chip Top-40 index closed 0.4 percent lower at 50,784
points, while the broader All-Share index fell 0.45 percent to 56,861
points.

The rand-sensitive bank sector traded lower, with the index ending the
session 2.09 percent down.

ABSA Group dropped 2.98 percent to 166.43 rand after it reported a 4 percent
fall in half-year profit, weighed down by costs related to its separation
from former parent Barclays.

ArcelorMittal South Africa gained over 17 percent, extending a surge as
rebar steel prices approached a more than five-year high.

Egypt

Egypt's foreign debt rises to $88.2 bln in Q3 of F/Y 2017-2018

(Reuters) - Egypt’s foreign debt rose to $88.2 billion in the third quarter
of the 2017-2018 fiscal year, up from $73.9 billion in the same period the
previous year, central bank data showed on Monday.

Egypt’s fiscal year begins in July and ends in June.

In December 2017, Egypt’s foreign debt stood at $82.9 billion.

Egypt’s foreign reserves were $44.315 billion at the end of July, having
climbed steadily since it secured a $12 billion, three-year, International
Monetary Fund loan in 2016 as part of efforts to lure back foreign investors
and revive the economy. 

America

Dollar stays firm after U.S. jobs data, focus on yuan

(Reuters) - The dollar remained steady against a basket of its peers on
Monday after the U.S. job data reinforced investors’ expectations the
Federal Reserve will gradually raise interest rates this year.

The dollar, which measures the greenback against a basket of six other major
currencies, was about 0.1 percent higher at 95.261, well off a four-week low
of 94.084 hit on July 26. Investor focus has shifted to the yuan after the
People’s Bank of China on Friday made it more expensive to bet against the
currency, which helped it rebound from a 15-month low against the greenback.

U.S. job growth slowed more than expected in July, but a drop in the
unemployment rate suggested that the labour market conditions were
tightening.

The Fed kept rates unchanged as widely expected last Wednesday, and gave an
upbeat assessment of the world’s biggest economy.

The euro hit a 4-1/2-week low against the dollar on Monday.

The single currency traded at $1.15625 after touching as low as $1.1557, its
lowest level since changing hands at $1.15275 on June 28.

The offshore yuan was nearly flat, trading at 6.846 yuan per dollar.

The yuan pulled from a 15-month low against the greenback on Friday after
China’s central bank said it would require banks to keep reserves equivalent
to 20 percent of their clients’ foreign exchange forwards positions from
Monday.

The yen was barely changed against the dollar at 111.25 yen on Monday.

The yen had moved about 0.4 percent higher on Friday on worries about
Sino-U.S. trade tensions after China proposed retaliatory tariffs on $60
billion worth of U.S. goods such as liquefied natural gas and aircraft.

But State Street Bank’s Wakabayashi said the negative impact on markets from
the trade tariff exchanges between the Washington and Beijing is not as
acute it had been previously.

Commodities Markets

Growth worries see copper retreat further

(Reuters) - Copper prices slid on Monday due to worries about the damage to
global economic growth from the trade dispute between the United States and
its trading partners and a stronger dollar.

Benchmark copper on the London Metal Exchange ended down 1.2 percent at
$6,133 a tonne. It has tumbled more than 15 percent since hitting a 4-1/2
year high of $7,348 in June.

TRADE: The latest salvo came from China, which on Friday unveiled tariffs on
5,207 goods imported from the United States, with the extra levies ranging
from 5 percent to 25 percent, which analysts say could eventually undermine
growth.

However, even though items earmarked for the 25 percent tariff include
copper ore and concentrates, the quantities involved are not significant for
China.

CHINA: China is the world’s largest consumer of industrial metals,
accounting for about half of global demand. That includes copper, where
demand is healthy, analysts say.

COPPER STOCKS: Also indicative of robust demand are falling inventories in
China, which at 192,817 tonnes in warehouses monitored by the Shanghai
Futures Exchange are down nearly 40 percent since early April. CU-STX-SGH

Copper stocks in LME warehouses are at 250,625 tonnes and have fallen more
than 35 percent since late March. MCUSTX-TOTAL

ESCONDIDA: Copper gleaned some support from the union at the Escondida mine
in Chile, the world’s biggest copper mine, telling BHP it should prove its
willingness to negotiate by Monday morning if it wants to agree a deal with
workers ahead of a pending strike.

DOLLAR: A rising U.S. currency makes dollar-denominated commodities more
expensive for non-U.S. firms, which potentially would subdue demand.

RUSAL: Russian aluminium giant Rusal posted a second-quarter profit of $440
million, remaining well in the black despite sanctions imposed on the
company earlier this year by Washington.

PRICES: Aluminium ended up 0.7 percent at $2,043 a tonne, zinc fell 2.4
percent to $2,569, lead was unchanged at $2,115, tin slid 0.4 percent to
$19,525 and nickel gained 1.0 percent to $13,685.

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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