Bulls n Bears Daily Market Commentary : 27 August 2018

Mon Aug 27 20:24:57 CAT 2018

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Bulls n Bears Daily Market Commentary : 27 August 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $1,156,901.24 with foreign buys at $955,588.26 and foreign
sales were $664,042.26. Total trades were 72.

The All Share index opened the week on a high note adding 0.45 points  to
settle at 114.63 points. OLD MUTUAL  led the gainers with a $0.0429 increase
to close at $5.3000,  DELTA   rose by $0.0332 to end at $2.1485 while
POWERSPEED put on $0.0190 to trade at $0.1150. MEIKLES  put on $0.0100 to
trade at $0.3600 while  AXIA advanced by $0.0046 to $0.2700.

However, OK ZIMBABWE  went down by $0.0187 to close at $0.2153 and INNSCOR
inched down $0.0001 to settle at $1.3799.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling steady, remittance inflows meet importer dollar demand

(Reuters) - The Kenyan shilling was stable against the dollar on Monday with
inflows from diaspora remittances and offshore investors buying government
debt meeting importer demand, traders said.

At 0757 GMT, commercial banks quoted the shilling at 100.75/95 per dollar,
the same as Friday's close. 

South  Africa

South Africa's rand falls in early trade, stocks set to open higher

(Reuters) - South Africa’s rand weakened against the dollar in early trade
on Monday, as markets digested comments from the head of the U.S. Federal
Reserve signalling a gradual approach to interest rate hikes.

At 0645 GMT, the rand traded at 14.3000 per dollar, 0.25 percent weaker than
its close on Friday.

Federal Reserve Chairman Jerome Powell on Friday defended the U.S. central
bank’s push to raise interest rates as healthy for the economy and signalled
more hikes were coming despite President Donald Trump’s criticism of higher
borrowing costs.

Market focus in the week will also be on domestic data releases, with July
money supply, private sector credit extension and producer price inflation
numbers due on Thursday and trade balance figures out on Friday.

Stocks were set to open higher at 0700 GMT, with the JSE securities
exchange’s Top-40 futures index up 0.53 percent.

In fixed income, the yield on the benchmark government bond due in 2026 was
down 1 basis point to 8.89 percent.

       <mailto:info at bulls.co.zw> 

Global

World stock index at highest in over 5 months on trade deal

(Reuters) - An index of major world stock markets rose to its highest level
in more than five months on Monday after the United States and Mexico struck
an agreement that lowers trade tensions.

MSCI’s gauge of stocks in 47 countries across the globe climbed 1 percent,
helped by gains in developed markets from the United States to Europe and
Asia. The broad index was at its highest level since March 14.

The benchmark S&P 500 and the Nasdaq indexes hit records, bond prices fell
and copper prices rose as the United States and Mexico agreed to overhaul
the North American Free Trade Agreement (NAFTA), putting pressure on Canada
to agree to the new terms on auto trade and other issues to remain part of
the three-nation pact. Agreement could ease concerns about an escalation in
global trade tensions.

Major currencies gained against the U.S. dollar, which has been a safe haven
from months of trade tensions.

The Dow Jones Industrial Average rose 270.2 points, or 1.05 percent, to
26,060.55, the S&P 500 gained 22.78 points, or 0.79 percent, to 2,897.47 and
the Nasdaq Composite added 76.50 points, or 0.96 percent, to 8,022.48.

The S&P and Nasdaq indexes both hit record highs, continuing a run that
followed Fed chief Jerome Powell’s speech at the Jackson Hole symposium on
Friday. Powell affirmed that the U.S. central bank was sticking with its
strategy of gradual rate hikes. The gains on Friday cemented the S&P’s
longest-running bull market.

A stronger-than-expected German business sentiment survey added to the
upbeat mood in Europe. The pan-European FTSEurofirst 300 index rose 0.52
percent while British markets were closed for a public holiday.

Benchmark 10-year U.S. Treasury notes last fell 6/32 in price to yield
2.8477 percent, from 2.826 percent late on Friday.

In currency markets, the dollar steadied after weeks of gains in the face of
aggressive Fed rate hikes and trade disputes. The dollar index fell 0.46
percent.

China’s yuan hit a near-4-week high to the dollar after the central bank
revived a “counter-cyclical factor” in its daily fixing to support the
currency, giving hopes that Beijing might halt a record 10-week slide that
rattled global markets.

The yuan traded offshore rose to a high of 6.7818, its strongest since July
31, but later pared gains.

Commodity markets showed signs of optimism about global economic growth
prospects. Copper rose 1.38 percent to $6,069.00 a tonne.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hovers above $1,200 on weaker dollar as trade tensions ease

(Reuters) - Gold gained above $1,200 per ounce on Monday as the dollar
weakened after the United States and Mexico struck an agreement that lowers
trade tensions.

Major currencies gained against the U.S. dollar, which has been a safe haven
from months of trade tensions.

Spot gold gained 0.3 percent at $1,208.92 per ounce by 1:37 p.m. EDT (1737
GMT), earlier peaking at $1,212.38, a two-week high. U.S. gold futures for
December delivery settled up $2.70, or 0.2 percent, at $1,216 per ounce.

The dollar index slid against a basket of six major currencies.

A weaker greenback makes dollar-denominated gold cheaper for holders of
other currencies, which could boost bullion demand and prices.

The United States and Mexico agreed to overhaul the North American Free
Trade Agreement (NAFTA), putting pressure on Canada to agree to the new
terms on auto trade and other issues to remain part of the three-nation
pact. An agreement could ease concerns about an escalation in global trade
tensions.

But prices remained capped as higher rates, even if they come at a gradual
pace, raise the opportunity cost of holding gold, which can be costly to
store and insure.

Gains in the Chinese yuan on Monday made gold cheaper for buyers in the
world’s biggest gold consumer, providing some support for prices.

If prices hold at $1,200 an ounce, there is a good chance of further gains,
with a target of $1,230/$1,235, said ActivTrades chief analyst Carlo Alberto
De Casa.

Below $1,200, the bearish trend could recover strength, with a first
targeted support area at $1,180, he added.

Higher activity in gold options amid geopolitical tensions and a record-long
bull market for U.S. equities suggest that investors are betting gold prices
have found a floor, traders said.

Meanwhile, spot silver gained 0.4 percent at $14.86 per ounce. Earlier it
hit $14.92, its highest since Aug. 15.

Platinum increased 1.3 percent at $800.90 per ounce, earlier reaching close
to a two-week high at $805.30. Palladium gained 1.1 percent at $946.40 per
ounce, earlier hitting $949.75, its highest since July 14.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

 <mailto:info at bulls.co.zw> 

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
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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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