Bulls n Bears Daily Market Commentary : 10 August 2018

Sat Aug 11 12:00:33 CAT 2018

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Bulls n Bears Daily Market Commentary : 10 August 2018

 <http://www.fidelitylife.co.zw/> 

Zimbabwe Stock Exchange Update

Market Turnover $2,880,819.87 with foreign buys at $410,453.63 and foreign
sales were $21,577.57. Total trades were 95.

The All Share index recovered 0.10 points  to close at 111.78 points. OLD
MUTUAL  led the movers with a $0.0136 gain to close at $5.1027 , BARCLAYS
added $0.0089 to close at $0.0691 and NICOZDIAMOND  settled at $0.0341 after
gaining $0.0041. INNSCOR  also increased by $0.0013 to $1.4144 and AFRICAN
SUN   was $0.0010 higher at $0.0730.

On the downside RIOZIM   eased $0.0670 to close at $1.4000, PPC  lost
$0.0475 to close at $1.1500 and NATFOODS   was $0.0030 lower at $5.6064.
Other losses were in HIPPO VALLEY   which fell by $0.0025 to close at
$1.6875 and DELTA  shed $0.0005 to trade at $1.9995

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling steady on debt inflows

(Reuters) - The Kenyan shilling KES was steady against the dollar on Friday
due to inflows from offshore investors buying government debt, traders said.

At 1000 GMT, commercial banks quoted the shilling at 100.45/65 per dollar,
the same as Thursday's close. 

Uganda

Ugandan shilling weakens as commercial banks exert demand

(Reuters) - The Ugandan shilling weakened on Friday, hurt by an uptick in
demand as some commercial banks sought to beef up their thin hard currency
positions.

At 0945 GMT commercial banks quoted the shilling at 3,685/3,695, weaker than
Thursday’s close of 3,665/3,675.

       <mailto:info at bulls.co.zw> 

Turkey

Turkish lira's free-fall rocks equity markets, euro falls

(Reuters) - A plunge in the Turkish lira rocked global equities and emerging
markets on Friday and fear of more turmoil sent investors scurrying for
safety in assets like the yen and U.S. government bonds.

European shares and a gauge of global equity markets fell more than 1
percent, while stocks on Wall Street were down about half as much. German
stocks slid 2 percent.

The lira fell as much as 18 percent against the dollar in its worst day
since Turkey’s financial crisis of 2001. The plunge followed a deepening
rift with the United States, worries about its own economy and lack of
action from policymakers.

President Tayyip Erdogan told Turks to swap gold and dollars into lira as
the currency tumbled after President Donald Trump doubled U.S. tariffs on
metals imports from Turkey. The lira has fallen more than 40 percent this
year, fanning worries about a full-blown economic crisis.

Bank shares across Europe fell and the euro slipped to its lowest since July
2017 as the Financial Times quoted sources as saying the European Central
Bank was concerned about European lenders’ exposure to Turkey. The country
is not a member of the European Union but is economically linked to it.

The dollar rose as exposure to Turkey could impact European banks and spark
a domino effect as people begin to pull out of those banks and into U.S.
assets, said Gregan Anderson, macroeconomic strategist at brokerage Bulltick
LLC.

The turmoil has made it difficult for global investors to justify remaining
in Europe and is negative for emerging markets, he said.

Policy errors created the current situation, with the central bank’s
decision not to raise rates in their last meeting a key driver, said Charlie
Wilson, an emerging markets-focused portfolio manager at Thornburg
Investment Management in Santa Fe, New Mexico.

Shares in France’s BNP Paribas, Italy’s UniCredit and Spain’s BBVA, the
banks seen as most exposed to Turkey, fell 3 percent or more.

An index of regional banking shares closed down 3.2 percent while the
pan-European STOXX 600 index fell 1.2 percent.

The MSCI All-Country World index, which tracks shares in 47 countries, was
down 1.15 percent and erased all its gains for the week.

Wall Street also fell, but not as hard.

The Dow Jones Industrial Average fell 185.66 points, or 0.73 percent, to
25,323.57. The S&P 500 lost 16.26 points, or 0.57 percent, to 2,837.32 and
the Nasdaq Composite dropped 30.22 points, or 0.38 percent, to 7,861.57.

Investors piled into “safe” government debt, with German yields hitting
three-week lows and the yield on the benchmark U.S. 10-year Treasury note
falling to 2.8768 percent as investors sought its safety.

The safe-haven Japanese yen hit a one-month high of 113.38 against the
dollar.

The dollar index, which measures the greenback’s strength against a group of
six major currencies, breached 96, taking it to its highest level since July
2017. It was last up 0.91 percent at 96.372.

Emerging market stocks lost 1.65 percent, while the Mexican peso, a proxy
for emerging market currencies, shed 1.38 percent to the dollar.

Adding to emerging market currency woes was the Russian ruble, which
weakened to 66.515 to the dollar. Overnight it had retreated to its lowest
since November 2016 on threats of new U.S. sanctions, weakening beyond the
psychologically important 65-per-dollar threshold.

Oil prices rose more than 1 percent as U.S. sanctions against Iran looked
set to tighten supply, but futures remained lower for the week as investors
worried that global trade disputes could slow economic growth and hurt
demand for energy.

Benchmark Brent crude oil rose 82 cents at $72.89 a barrel. U.S. light crude
was 72 cents higher at $67.53 a barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold creeps higher as Turkish currency crisis roils markets

(Reuters) - Gold prices edged higher on Friday, with the crisis engulfing
Turkey’s lira boosting demand for bullion as a safe investment while at the
same time bolstering the dollar, making gold more expensive for buyers with
other currencies.

Investors rushed to the safety of the greenback as the lira collapsed as
much as 23 percent to a record low, Russia’s rouble crumbled to its lowest
in more than two years and the euro and pound touched their weakest levels
in a year.

With the turmoil in Turkey spreading to other markets, gold - traditionally
used as a safe investment in times of uncertainty - also saw some extra
interest, Saxo Bank analyst Ole Hansen said.

Spot gold was up 0.2 percent at $1,214.71 an ounce at 1345 GMT, with the
dollar 0.8 percent stronger against a basket of major currencies. Gold was
set to end the week largely unchanged after four consecutive weeks of price
falls.

U.S. gold futures were 0.2 percent higher at $1,222.80 an ounce.

Gold has tumbled 11 percent from an April high to a one-year low of $1,204
last week as the dollar rallied to 13-month highs and investors exited gold
positions and began to speculate on lower prices.

Holdings of gold at exchange-traded funds (ETFs) tracked by Reuters have
fallen by 3.7 million ounces, or 6.3 percent, since late May to the lowest
in almost a year.

Speculators have meanwhile expanded their net short position on the Comex
exchange to the biggest ever recorded, helping to drive prices lower.

Adding to the pressure are expectations that the U.S. Federal Reserve will
raise interest rates next month, bolstering the dollar and U.S. bond yields
and damaging the appeal of non-yielding gold.

Those expectations were bolstered on Friday by data showing an increase in
U.S. consumer price inflation.

If gold rises, investors could be forced to liquidate short positions, which
would lift prices. But this is unlikely to happen until gold reaches around
$1,230, according to Hansen.

In the meantime, he said, “the bears are still in control”.

Momentum indicators suggest prices will fall further, analysts at
ScotiaMocatta said, with support at gold’s July 2017 low of $1,204.90.

Silver was down 0.1 percent at $15.39 an ounce, platinum was 0.1 percent
lower at $829.49 an ounce and palladium gained 0.4 percent to $910.80 an
ounce.

All three metals were on track to end the week largely flat. 

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

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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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