Bulls n Bears Daily Market Commentary : 07 August 2018

Wed Aug 8 06:37:33 CAT 2018

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Bulls n Bears Daily Market Commentary : 07 August 2018

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Zimbabwe Stock Exchange Update

Market Turnover $6,537,219.78 with foreign buys at $3,351,476.52 and foreign
sales were $1,584,977.60. Total trades were 109.

The All Share index came off a further 0.26 points to close at 113.30
points. DELTA  lost $0.0202 to end at $2.0813, PPC LIMITED shed $0.0200 to
close at $1.2000 while SIMBISA  dropped by $0.0077 to settle at $0.4800.
MASIMBA slipped $0.0050 to close at $0.0450 and ECONET  went down by $0.0037
to trade at $1.2306. 

Gains were seen in BRITISH AMERICAN TOBBACCO  which put on $0.1000 to end at
$25.5000, OLD MUTUAL added $0.0125 to $5.0325 while OK ZIMBABWE  rose by
$0.0043 to close at $0.2400. FIRST MUTUAL PROPERTIES advanced by $0.0042 to
trade at $0.0600 and INNSCOR closed at $1.4225 following a $0.0025 gain.

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Global Currencies & Equity Markets

Angola

Angola's net reserves rise to $13.68 billion in July

(Reuters) - Angola’s net foreign exchange reserves rose to $13.68 billion in
July from a revised $13.26 billion in June, data posted on the central
bank’s website showed on Tuesday. 

South Africa

South African rand gains on stalled dollar rally, Turkish lira fall

(Reuters) - South Africa’s rand gained more than one percent on Tuesday,
reversing the previous session’s losses as the dollar rally paused and
investors sought alternatives to the Turkish lira.

The Turkish lira’s fall to a record low on Monday after Washington said it
was reviewing Turkey’s duty-free access to the U.S. market saw some
investors looking for returns in South African assets and elsewhere in
emerging markets.

At 1500 GMT the rand gained 1.13 percent to 13.2875 per dollar compared to
an overnight close of 13.4400.

Data from Statistics South Africa showed manufacturing output grew
marginally in June while contracting on a quarterly basis. The rand was
unmoved by the data.

Bonds were firmer, with the yield for the benchmark bond due in 2026 down
4.5 basis points to 8.69 percent.

In the equities market, stocks rose in line with emerging markets to a near
one-month high.

The all-share index closed 1.49 percent higher at 57,705 points while the
benchmark top 40 index was up 1.33 percent to 51,578 points.

Naspers, which owns about 30 percent of the Chinese technology firm Tencent,
rose 2.43 percent.

Steel producer Kumba Iron Ore was up nearly 3 percent, boosted by favourable
iron ore prices which rallied as much as 6.5 percent to a 5-month high on
Monday.

Asia

Asian shares rise for 4th day on earnings, China stimulus hopes

(Reuters) - Asian shares extended their recovery into a fourth day on
Wednesday, buoyed by strong U.S. earnings and expectations that Beijing will
ramp up fiscal stimulus to cushion the impact of its worsening trade dispute
with Washington.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.3
percent, led by Taiwan , while Japan’s Nikkei ticked up 0.4 percent.

Bucking the trend were Chinese shares , which slipped about 0.4 percent
after the United States said it would begin collecting 25 percent tariffs on
an additional $16 billion worth of Chinese goods this month, the second leg
of its first China-targetted tariffs on $50 billion goods.

News that the fresh duties will go into effect from Aug. 23 overshadowed
strong Chinese trade data, which showed exports rose more than expected in
July despite U.S. tariffs imposed early last month. Imports also rose more
than forecast, suggesting its domestic demand remains resilient despite
trade war fears.

But losses in China markets were tempered by signs Beijing is unveiling
further measures to support growth, such as increasing infrastructure
spending and tweaking its monetary policy stance.

On Wall Street, the S&P 500 rose 0.28 percent to 2,858, which is just 14
points, or about 0.5 percent, below its record high marked in January.

A strong second-quarter earnings season has fuelled optimism about U.S.
economic strength. S&P 500 firms saw a 23.5 percent rise in their April-June
profits, according to Thomson Reuters data.

Against this backdrop, the CBOE volatility index, a measure of investors’
expectation on U.S. share price volatilities and often viewed as a gauge of
anxiety in financial markets, fell to a seven-month low of 10.93.

Tesla jumped 11 percent after Chief Executive Elon Musk said he was
considering taking the electric car maker private.

CURRENCIES

In the foreign exchange market, major currencies kept to tight ranges. The
euro was at $1.1599, off Monday’s five-week low of $1.1530.

The yen stood little changed at 111.38 per dollar while worries about a hard
Brexit kept the sterling at $1.2938 , just above its 11-month trough of
$1.2920 set on Monday.

The Chinese yuan was little changed, keeping some distance from its 15-month
lows hit last week as the central bank on Friday took steps to curb bets
against the currency by raising the cost for investors to short the yuan.

But pressure on the Chinese currency remained strong.

The Turkish lira, the biggest mover in recent days, kept some distance from
Monday’s record low, trading at 5.2600 per dollar, versus Monday’s low of
5.425,

Still, it is down almost 7 percent so far this month on deepening concerns
about a rift with the United States and on President Tayyip Erdogan’s
influence over the central bank.

Oil prices held firm after U.S. sanctions on Iranian goods went into effect,
intensifying concerns that sanctions on Iranian oil, expected in November,
could cause supply shortages.

Brent futures stood at $74.65 a barrel, flat on the day but maintaining
gains of about 2 percent so far this week. U.S. West Texas Intermediate
(WTI) crude futures traded at $69.25 per barrel, up 0.1 percent on the day
for a gain of 1.1 percent this week.

Commodities Markets

Copper gains as dollar rally wanes, nickel at 1-week high

(Reuters) - London copper ticked higher on Wednesday after the dollar
weakened against a basket of major currencies as its recent rally fuelled by
U.S.-China trade tensions appeared to fizzle.

Three-month copper on the London Metal Exchange was up 0.1 percent at $6,183
a tonne by 0234 GMT, gaining for a second session in a row. The most-traded
October copper contract on the Shanghai Futures Exchange rose 0.4 percent to
49,560 yuan ($7,262) a tonne.

The dollar inched down versus a basket of currencies, making
dollar-denominated assets like copper cheaper for holders of other
currencies, even after the U.S. Trade Representative’s office said the U.S.
would begin collecting 25 percent tariffs on another $16 billion in Chinese
goods later this month.

Despite the threats of labour strikes at big copper mines including
Escondida in Chile, copper prices have fallen nearly 15 percent this year.

* ESCONDIDA: The union at Chile’s Escondida copper mine, the world’s
largest, said that BHP must alter its negotiating strategy and improve its
contract offer during the final phase of talks if it hoped to avoid a
strike.

* CHINA DATA: China will release trade data later, with economists
predicting exports maintained solid growth in July despite new tariffs on
billions of dollars of shipments to the United States.

* NICKEL: Other base metals also rose, with nickel rising as far as $13,970
a tonne, a one-week high. Zinc gained 0.3 percent to $2,606.50 a tonne and
aluminium was up 0.2 percent at $2,042.

* SHANGHAI LEAD: Shanghai lead climbed 2 percent to 18,345 yuan a tonne. ANZ
analysts said in a note there was market speculation that processors of
recycled metal are cutting output on weak margins with smelters in Hunan,
Yunnan halting production at the end of last month. Smelters in Guizhou,
Henan and Hebei provinces halved output.

* LITHIUM: Chile’s exports of lithium carbonate reached $85 million in July,
more than double that of the same month the previous year, as demand and
prices for the key component in electric vehicle batteries continues to
rise.

* MARKETS: Asian shares rose on the back of firmer Wall Street earnings and
expectations for increased Chinese stimulus, while oil prices held steady.

China July coal imports highest since Jan 2014 - customs records

* China July coal imports at highest since Jan 2014, according to official
customs data records

* China July unwrought aluminium and product exports were the second-highest
on record

* China July copper concentrate and ore imports highest on record 

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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