Bulls n Bears Daily Market Commentary : 28 August 2018

Wed Aug 29 08:07:30 CAT 2018

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Bulls n Bears Daily Market Commentary : 28 August 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $4,060,311.51 with foreign buys at $180,530.97 and foreign
sales were $495,728.12. Total trades were 77.

The All Share index rallied  0.56 points  to close at 115.19 points on the
back of gains in heavyweight counters. BRITISH AMERICAN TOBACCO  traded
$0.2500 higher at $26.7500 points, OK ZIMBABWE  increased by $0.0190 to
trade at $0.2343 and ECONET  added $0.0168 to close at $1.2200. OLD MUTUAL
went up by $0.0157 to $5.3157 and DELTA marginally gained by $0.0015 to
close at $2.1500.

MEIKLES dropped $0.0063 to trade at $0.3537, BINDURA eased $0.0019 to close
at $0.0561 and AMALGAMATED REGIONAL TRADING lost $0.0002 to settle at
$0.0618. BARCLAYS  traded $0.0001 lower at $0.0699.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling steady, end month dollar demand subdued

(Reuters) - The Kenyan shilling held steady against the dollar on Tuesday
with inflows from non governmental organisations subduing end month demand
from importers, traders said. 

At 0900 GMT, commercial banks quoted the shilling at 100.55/65 per dollar,
the same as Monday's close.

Uganda

Ugandan shilling little changed amid subdued commercial bank dollar demand

(Reuters) - The Uganda shilling was little-changed on Tuesday amid limited
appetite for dollars from commercial banks, traders said. 

At 0756 GMT, commercial banks quoted the local currency at 3,755/3,765
compared to Monday's close of 3,750/3,760.

       <mailto:info at bulls.co.zw> 

Asia

Asia shares eke out gains, dollar befuddled by trade doubts

(Reuters) - Asian shares crept marginally higher on Wednesday as optimism
over the U.S.-Mexico trade deal was quickly clouded by caution ahead of a
looming deadline on tariffs with China.

A flat finish on Wall Street and a dearth of major economic data across the
region made for thin trade and MSCI’s broadest index of Asia-Pacific shares
outside Japan eked out a rise of 0.26 percent.

EMini futures for the S&P 500 edged up 0.16 percent, while Chinese blue
chips dipped 0.24 percent.

Japan’s Nikkei fared better than many with a rise of 0.6 percent but faced
stubborn resistance around 23,000, a level where it has failed repeatedly in
recent months.

Analysts at JPMorgan noted the deadline for public comment on U.S. President
Donald Trump’s increased tariffs on $200 billion of Chinese goods was less
than a week away on Sept. 5.

In Washington, Canada’s main trade negotiator was in talks to preserve a
three-nation North American Free Trade Agreement following Monday’s deal
between the United States and Mexico.

President Trump warned that he could proceed with Mexico alone and levy
tariffs on Canada if it does not come on board with the revised trade terms.

IT’S NOT A DONE DEAL

Yet even if Trump were to go with Mexico alone, Congress would have to
approve the deal in a process that would take months and put it beyond the
mid-term elections.

The White House has also said it wants to settle NAFTA before dealing with
China, suggesting that trade dispute could run well into 2019.

Major currencies were quiet, with the dollar index all but flat at 94.718
after touching a four-week low overnight. It was going nowhere on the yen at
111.24, having spent the past three sessions in a 110.93/111.49 range.

The euro held at $1.1693 after topping out at $1.1733 overnight. It faces
stiff resistance in the $1.1750/90 zone and lingering concerns over Italy
where political uncertainty drove bond yields toward three-month highs.

In commodity markets, spot gold was hovering around $1,203.81 after running
into profit-taking at $1,214.28, its highest level since Aug. 10.

Oil prices dithered either side of flat as falling supplies from Iran ahead
of U.S. sanctions balanced rising production outside the Organization of the
Petroleum Exporting Countries.

Brent added 2 cents to $75.97 a barrel, while U.S. crude rose 6 cents to
$68.59.

 <mailto:info at bulls.co.zw> 

Commodities Markets

China exporting alumina again as soaring prices upend market

(Reuters) - China is shipping unusually high volumes of alumina for a second
time this year to an international market desperate for the ingredient used
to make aluminium, traders and analysts said, even as domestic prices rise
and put pressure on smelters.

Contracts to export over 140,000 tonnes of alumina from China were signed in
July amid a favourable price arbitrage, according to consultancy CRU. That’s
almost three times as much as was exported all of last year, Chinese customs
data shows.

China, the world’s top aluminium producer, has rarely exported significant
volumes of alumina. That changed in April when U.S. sanctions on Rusal
compounded an outage at Norsk Hydro’s Alunorte plant in Brazil, deepening a
global shortage of the white powder.

International alumina prices are up 37 percent year-to-date to just under
$560 a tonne, making Chinese exports profitable even though spot alumina
prices in the smelting heartland of eastern China SMM-ALM-ECHN have surged
by 20 percent from end-June to 3,300 yuan ($480.07) a tonne.

The arbitrage shut after an initial wave of Chinese exports in May and June,
but it is wide open again, with alumina cargoes heading to Europe, Africa
and other parts of Asia, he said.

High alumina prices have been a boon for China Hongqiao Group, whose
revenues for the material increased almost fivefold year-on-year in the
first half of 2018. Australian duo South32 Ltd and Alumina Ltd are also
cashing in.

Smelters without their own alumina refineries, however, are suffering from
high input costs, and the situation could worsen, industry sources warned,
especially if a strike at Alcoa Corp’s operations in Western Australia
starts to affect output.

China is also set to repeat 30 percent output curbs on alumina in 28
northern cities this winter, further tightening supply, while more stringent
50 percent cuts on carbon anode production are another concern.

U.S. customers of Rusal have until Oct. 23 to wind down business with the
Russian aluminium giant, which produces around 6 percent of global alumina
supply.

($1 = 6.8740 yuan)

London copper prices slip on firmer dollar, China demand woes

(Reuters) - London copper prices drifted down on Wednesday, pressured by a
recovery in the dollar from a four-week low and worries over softer demand
from top consumer China.

Three-month copper on the London Metal Exchange was down 0.3 percent at
$6,130 a tonne by 0237 GMT, retreating from a two-week peak of $6,167
reached on Tuesday.

On the Shanghai Futures Echange, the most-traded October copper rose 0.7
percent to 48,990 yuan ($7,127) a tonne, tracking overnight gains in London.

Data released earlier this month showed signs of further cooling in China’s
economy, with investment growth slowing to a record low.

* DOLLAR: The U.S. dollar inched higher after touching a four-week low
overnight as optimism over the U.S.-Mexico trade deal gave way to caution
ahead of an upcoming deadline in the China-U.S. trade dispute. A firmer
greenback makes dollar-denominated assets costlier for holders of other
currencies.

* U.S.-CHINA: The deadline for public comment on U.S. President Donald
Trump’s plan to impose 25 percent tariffs on another $200 billion of Chinese
goods will be on Sept. 5.

* CHINA ALUMINA: China is shipping unusually high volumes of alumina for a
second time this year to an international market desperate for the
ingredient used to make aluminium, traders and analysts said, even as
domestic prices rise and put pressure on smelters.

* ALUMINIUM PRICES: Shanghai aluminium climbed as much as 2.1 percent to
15,100 yuan a tonne, the highest since June 12. LME aluminium eased 0.2
percent to $2,129.50 a tonne after hitting a two-week high of $2,142
overnight. ANZ analysts said a strike at an Alcoa Corp alumina plant in the
west of Australia has impacted exports.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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