Bulls n Bears Daily Market Commentary : 04 December 2018

Wed Dec 5 07:57:31 CAT 2018

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Bulls n Bears Daily Market Commentary : 04 December 2018

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Zimbabwe Stock Exchange Update

Market Turnover $6,239,322.90 with foreign buys at $2,911,903.39 and foreign
sales were $1,932,467.00. Total trades were 190.

The All Share index lost 2.32 points  to close at 158.11 points. ECONET led
the shakers with a $0.1199 loss to close at $1.5999, INNSCOR  dropped
$0.0363 to end at $1.9000 and DELTA   traded $0.0262 lower at $3.2731. FIRST
MUTUAL HOLDINGS   also decreased by $0.0149 to $0.1380 and BRITISH AMERICAN
TOBACCO   was $0.0100 down at $35.0000.

Trading in the positive was PPC   which added $0.0900 to close at $1.7000,
NAMPAK   gained $0.0263 to $0.2413 and SIMBISA   traded $0.0247 firmer at
$0.7458. OK ZIMBABWE   and  FIRST MUTUAL PROPERTIES  both put on a marginal
$0.0006 to close at $0.2966 and $0.0708 respectively.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Nigeria

Nigeria central bank sells $210 mln on FX market after naira eases

(Reuters) - Nigeria’s central bank said on Tuesday it had injected $210
million into the currency market to increase liquidity after the naira
weakened by 1 percent on the black market last week.

The local unit eased to 370 from 366 per dollar on the black market last
Thursday, its weakest since August 2017, prompting the central bank to
announce measures to step up dollar sales to retail currency bureaus.

Central Bank Governor Godwin Emefiele said the bank had enough reserve to
defend the naira, advising firms and individuals against hoarding hard
currency or buying in anticipation of a currency weakness.

The statement from the bank said it had released $100 million earmarked for
the wholesale market, $55 million for small businesses and individuals, and
$55 million for certain dollar expenses such as school fees and medical
bills.

South Africa

South Africa's rand gives up earlier gains, stocks firm

(Reuters) - South Africa’s rand weakened on Tuesday as waning hopes of a
swift resolution to the U.S.-China trade war overshadowed news of the
economy snapping out of recession in the third quarter and surpassing
economists’ expectations.

Stocks were firm but pared some of Monday’s gains following the trade war
truce between the U.S. and China as investors awaited detail.

The rand was trading at 13.7500 per dollar by 1522 GMT, 0.44 percent weaker
than its close in New York of 13.6900. The currency had firmed more than 1
percent, hovering near four-month highs, and touched an intraday low of
13.5425.

Government bonds also weakened, with the yield on the benchmark bond due in
2026 rising 1 basis point to 8.930 percent.

Africa’s most industrialised economy expanded 2.2 percent in the third
quarter, snapping out of recession after a revised 0.4 percent contraction
in the second quarter in a boost for President Cyril Ramaphosa, who has
pledged to re-start growth after a decade of stagnation under his
predecessor, Jacob Zuma.

Economists polled by Reuters had predicted a 1.6 percent expansion.

Optimism over a rapprochement between U.S. President Donald Trump and
China’s Xi Jinping at the G20 meeting was replaced by scepticism, as none of
the commitments that U.S. officials said had been given by China were agreed
to in writing and specifics were yet to be hammered out.

In equities, the All Share index rose by 0.29 percent to 52,228 points while
the Top 40 index was 0.28 percent firmer at 45,180 points.

Gold stocks rose 2.27 percent led by AngloGold Ashanti which closed 3.39
percent firmer at 144.40 rand.

       <mailto:info at bulls.co.zw> 

Emerging market currencies gain against weak dollar; shares steady

(Reuters) - Emerging market currencies gained against a soft dollar on
Tuesday as U.S. Treasury yields slipped, while developing world shares
steadied as a rally after the U.S.-China trade truce petered out.

The fall in U.S. treasury yields from a possible pause in the U.S. Federal
Reserve’s rate-hike cycle and an inversion in the U.S. yield curve for the
first time in more than a decade spurred concerns about a possible
recession.

Rising U.S. borrowing costs had reduced the attractiveness of riskier
emerging market assets earlier this year, leading to capital flows out of
many developing countries, but a dovish stance from the Fed last month sent
emerging market currencies and shares to 2018-highs in November.

Most developing world currencies gained, with the Chinese yuan leading the
rally, up 0.7 percent and South Korea’s won hitting its highest since June.

South Africa’s rand firmed more than 1 percent, hovering near four-month
highs.

Africa’s most industrialised economy expanded 2.2 percent in the third
quarter, snapping out of recession after a revised 0.4 percent contraction
in the second quarter, data showed.

The Russian rouble and stocks on Moscow’s main index firmed on higher oil
prices before this week’s Organization of Petroleum Exporting Countries
(OPEC) meeting, while investors kept an eye on naval tensions between Moscow
and Kiev.

Currencies of net crude importers such as the Turkish lira, , India’s rupee
and the Indonesian rupiah slipped, as oil prices rose by more than 1
percent.

In equities, the MSCI’s index for emerging market shares rose marginally
with China and Hong Kong stocks losing steam as the U.S.-China rally faded
and as the Chinese economy continues to slow down.

Analysts say the 90-day U.S.-China trade truce has only bought a bit more
time for wrangling over deeply divisive trade and policy differences.

In Eastern Europe, the Czech crown gained marginally against the euro. Data
showed the average real monthly wage in the country rose in the third
quarter. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper, aluminium ease as Sino-U.S. trade war woes resurface

(Reuters) - Industrial metals on the London Metal Exchange lost ground on
Wednesday as Washington-Beijing trade tensions resurfaced, raising concerns
over demand in the world’s top metals consumer China.

China expressed confidence on Wednesday that it can reach a trade deal with
the United States, despite fresh warnings from President Donald Trump that
he would revert to more tariffs if the two sides cannot resolve their
differences.

The remarks follow a period of relative quiet from Beijing after Trump and
Chinese leader Xi Jinping reached a temporary truce in their trade war at a
meeting over dinner in Argentina on Saturday.

* COPPER: Three-month copper on the London Metal Exchange fell 0.3 percent
to $6,191.5 a tonne by 0331 GMT, while the most-active contract on the
Shanghai Futures Exchange lost 1.2 percent to 49,360 yuan ($7,192.92) a
tonne.

* London aluminium fell 0.2 percent to $1,969.5 a tonne, while nickel
decreased 0.5 percent and zinc was 0.2 percent lower. Shanghai lead and tin
bucked the trend to rise 0.5 percent and 0.1 percent, respectively.

* REAL DEAL: U.S. President Donald Trump threatened on Tuesday to place
“major tariffs” on Chinese goods imported into the United States if his
administration is unable to reach a “real deal” on trade with Beijing.

* U.S. DOLLAR: The greenback edged up on Wednesday, putting further pressure
on London metals which are traded in dollars, as the commodities became more
expensive for countries using other currencies.

* CHINA SERVICES: China’s services sector grew at its quickest pace in five
months in November thanks to an uptick in new orders, a private survey
showed, although the outlook for businesses over the next year worsened for
the third month.

* Nickel: Top nickel producer Vale SA plans to invest $500 million in its
struggling New Caledonia nickel mine on its own after previously vowing to
find a partner for the venture, reflecting the Brazilian miner’s new
understanding of the importance of an expected surge in electric vehicle
sales.

Gold prices steady as dollar edges higher

(Reuters) - Gold prices were steady early Wednesday as the dollar edged up,
while palladium dipped from record highs touched in the previous session but
was in close proximity to the bullion.

    FUNDAMENTALS

* Spot gold        was at $1,236.85 per ounce at 0121 GMT. In the previous
session, prices touched a peak of $1,241.86, their highest since Oct. 26.  

* U.S. gold futures         were down 0.4 percent at $1,241.4 per ounce. 

* Palladium        dropped 0.1 percent to $1,231.99 per ounce. Prices soared
to a record high of $1,239.50 per ounce on Tuesday, fuelled by speculative
interest and tight supplies of

the autocatalyst metal, briefly surpassing the bullion.

* The dollar index       , which measures the greenback against a basket of
six major currencies, was marginally up by about 0.1 percent.       

* Asian stocks fell on Wednesday, dragged by Wall Street's tumble as sharp
declines in long-term U.S. Treasury yields and resurgent trade concerns
stoked investor worries about global

economic growth.            

* One of the most influential Federal Reserve policymakers said on Tuesday
he expects further interest rate hikes continuing next year since the U.S.
economy is "in really good shape," reinforcing the Fed's upbeat tone in the
face of growing doubts in financial markets.             

* U.S. President Donald Trump on Tuesday held out the possibility of an
extension of the 90-day trade truce with China, but warned he would revert
to tariffs if the two sides could not resolve their differences.

* British Prime Minister Theresa May suffered embarrassing defeats on
Tuesday at the start of five days of debate over herplans to leave the
European Union that could determine the

future of Brexit and the fate of her government.             

* U.S. delivered Russia a 60-day ultimatum on Tuesday to come clean about
what Washington says is a violation of an arms control treaty that keeps
missiles out of Europe, saying only

Moscow could save the pact.             

* Senior U.S. senators said on Tuesday they were more certain than ever that
Saudi Arabia's crown prince, Mohammed bin Salman, was responsible for the
killing of journalist Jamal

Khashoggi after receiving a CIA briefing on the matter.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Innscor

AGM

Royal Harare Golf Club

05/12/2018 (8:15am)

Truworths

AGM

Boardroom, Prospect Park, 808 Seke Road

06/12/2018 (9am)

TSL

EGM

Head Office, 28 Simon Mazorodze Road, Southerton

07/11/2018 (10am )

Cassava shares list on the ZSE

11/12/2018

 <mailto:info at bulls.co.zw> 

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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
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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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