Bulls n Bears Daily Market Commentary : 07 December 2018

Sat Dec 8 08:58:48 CAT 2018

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Bulls n Bears Daily Market Commentary : 07 December 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $4,134,655.12 with foreign buys at $1,543,789.11 and foreign
sales were $1,002,691.20. Total trades were 124.

The All Share index closed the week in green after gaining 1.16 points  to
close the week at 158.46 points. NATFOODS   led the movers with a $0.1900
gain to close at $7.2000, DELTA   added $0.0498 to $3.2988 and PADENGA  was
$0.0407 higher at $0.9857. ECONET  also increased by $0.0284 to $1.5993 and
AFRICAN SUN  traded $0.0060 firmer at $0.1000.

The gains were offset by losses in PPC   which dropped $0.0871 to close at
$1.6129, ZB FINANCIAL HOLDINGS   shed $0.0450 to end at $0.3500 and MEIKLES
traded $0.0420 lower at $0.5101. FIRST CAPITAL BANK   also decreased by
$0.0071 to settle at $0.0600 and BINDURA  ended the week at $0.0702 dropping
$0.0002.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Kenya

Kenyan shilling firms on liquidity tightness

(Reuters) - The Kenyan shilling firmed against the dollar on Friday due to
tightening liquidity in the money market as banks sold dollars to meet
shilling reserve requirements, traders said. 

At 1224 GMT, commercial banks quoted the shilling at  102.35/55 per dollar,
compared with 102.55/75 at Thursday's close.  

South  Africa

South African rand gains on renewed risk appetite; stocks rebound

(Reuters) - South Africa’s rand gained against a softer dollar on Friday as
bond yields fell and stocks rebounded.

However, the currency remained on track for its worst weekly performance
since early October, after official data showed the current account deficit
widened in the third quarter.

The rand was trading at 13.9675 per dollar by 1500 GMT, up 0.55 percent from
its New York close of 14.0450. The currency touched an intraday low of
13.9225.

In equities, the broader All Share index rose 0.48 percent to 51,052 points.
The Top 40 index was 0.54 percent higher at 45,022 points.

Stocks sold off around the world on Thursday after he arrest of Meng
Wanzhou, the CFO of Huawei, which threatened to re-ignite the trade war
between the United States and China just after they agreed on a 90-day
truce.

Shares of petrochemicals company Sasol gained 1.40 percent to 43.14 rand as
oil prices rose after OPEC agreed to reduce output.

Banks were modestly higher at 0.16 percent. Absa Group closed 0.51 percent
higher at 154.83 rand after it set out new targets to raise its return on
equity by around 4 percent by 2021.

Bonds also rallied, with the yield on the benchmark bond due in 2026 down
2.5 basis points to 9.040 percent.

       <mailto:info at bulls.co.zw> 

America

Shares spiral on arrest of China executive; oil sinks as output decision
delayed

(Reuters) - Stock markets around world tumbled on Thursday as the arrest of
a top Chinese technology executive cast further shadows on U.S.-China trade
relations, while oil prices sank on fears of smaller-than-expected output
cuts.

The arrest of smartphone maker Huawei Technologies Co.’s Chief Financial
Officer Meng Wanzhouof in Canada for extradition to the United States came
as Washington and Beijing prepared for key talks aimed at resolving a bitter
trade spat.

The Dow Jones Industrial Average fell 679.46 points, or 2.71 percent, to
24,347.61, the S&P 500 lost 67.8 points, or 2.51 percent, to 2,632.26 and
the Nasdaq Composite dropped 139.83 points, or 1.95 percent, to 7,018.60.

MSCI’s gauge of stocks across the globe shed 2.53 percent, while the
pan-European STOXX 600 index lost 3.31 percent.

Emerging market stocks lost 2.76 percent. MSCI’s broadest index of
Asia-Pacific shares outside Japan closed 2.28 percent lower, while Japan’s
Nikkei lost 1.91 percent.

Canadian authorities late on Wednesday said they had arrested Meng, also the
daughter of Huawei’s founder, on Dec. 1, the same day that U.S. President
Donald Trump and Chinese leader Xi Jinping met at the G20 summit in
Argentina.

The world’s two economic superpowers had agreed on a 90-day trade truce
period to hammer out a more permanent agreement, which sent global stock
markets soaring on Monday. Equities reversed course the next day as
uncertainty grew that the U.S. and China could, in fact, find common ground.

China’s foreign ministry said neither Canada nor the United States had
clarified the reason for the arrest, but a source earlier told Reuters it
was related to violations of U.S. sanctions.

Earlier this week, shorter-dated yields rose above medium yields for the
first time since early 2008, which fanned fears about a U.S. recession in
the coming months and also sent Wall Street shares sliding.

U.S. Treasury yields tumbled on Thursday with 10-year yields hitting
three-month lows as worries about U.S.-China trade and Brexit spurred
safe-haven bids.

Additionally, traders scaled back expectations on the number of rate hikes
the Federal Reserve would implement amid weakening economic data and market
volatility.

U.S. jobs data is due on Friday. If the figures show any serious weakness,
markets are likely to react, said Shuji Shirota, HSBC’s head of macro
economic strategy.

The U.S. dollar weakened against major peers as Treasury yields slipped and
traders scaled back rate hike expectations.

The euro was 0.39 percent higher against the dollar at $1.1388.

Also pulling down equity markets were oil prices.

Oil fell more than 4 percent in choppy trading after OPEC ended a key
meeting having made no decision on crude output, as it prepared to debate
the matter with other exporters the next day.

An OPEC delegate said the organisation had agreed a tentative deal to cut
oil output but had not yet come up with a final figure.

U.S. crude sank 4.65 percent to $50.43 per barrel and Brent was last at
$58.86, down 4.39 percent on the day.

The two have lost 30 percent in value this quarter alone, but this week’s
OPEC meeting could bring more surprises.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits 5-month peak as U.S. jobs data tempers rate hike views

(Reuters) - Gold hit a five-month peak on Friday as the dollar slid
following weaker-than-expected U.S. jobs data, which added to expectations
the U.S. Federal Reserve may go slow on interest rate hikes next year.

Spot gold gained 0.7 percent to $1,245.74 per ounce at 11:45 am EST (1645
GMT), having hit $1,246.72 per ounce earlier, its highest since July 13.

With a rise of nearly 2 percent this week, gold looked set to post its best
gain since the week of March 23.

U.S. gold futures were also 0.6 percent higher at $1,251.30 per ounce.

The dollar eased against a basket of currencies on Friday after data showed
U.S. job growth slowed in November and monthly wages increased less than
expected, suggesting some moderation in economic activity.

Interest rate futures suggested traders see not more than one rate increase
from the Fed next year, compared with previous expectations for possibly two
rate hikes.

Gold, which is considered a safe investment during times of financial,
economic and geopolitical uncertainty, has recovered about 7 percent from
19-month lows hit in mid-August.

Meanwhile, spot palladium rose 1.2 percent to $1,223.50 per ounce and was
set to post its second straight weekly gain.

The autocatalyst metal, however, drifted further away from an all-time high
of $1,263.56 hit this week.

Silver gained 0.7 percent to $14.57 per ounce and was headed for a weekly
rise of more than 2 percent.

Platinum rose 0.2 percent to $788.50. The metal earlier hit a three-month
low of $779 and extended losses for a fifth successive week. 

Asia Gold-India's gold demand loses steam due to high prices

(Reuters) - Gold was sold at a discount this week in India for the first
time in a month as a rebound in local prices prompted jewellers to postpone
purchases, while demand improved in top consumer China due to seasonal
buying.

Local gold prices have risen nearly 3 percent so far this week following
gains in the overseas market and on a depreciation in the rupee.

Dealers in India were offering a discount of up to $1.5 an ounce over
official domestic prices this week, compared to a premium of $2 in the
previous week. The domestic price includes a 10 percent import tax.

Retail jewellery demand was moderate as buyers were making purchases for
weddings, Ajmera said.

Gold is considered an essential part of weddings in India, the world’s
second-biggest consumer after China, and it is a popular gift for special
occasions.

Premiums of $5-$7.4 an ounce were charged in China against $6-$7 charged
last week, while in Hong Kong premiums were quoted at $0.60-$1.50 against
the previous week’s $0.90-$1.50 range.

While higher prices softened demand in Singapore, traders said. Premiums in
Singapore were slightly lower at $0.60-$0.70 compared to $0.70-$0.90 charged
last week.

Spot gold touched a near five-month peak at $1,244.32 an ounce on Thursday
and was set to rise about 1.5 percent for the week.

In Japan, prices remained on par with the international benchmark for the
12th straight week.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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

Unity Day

22/12/2018

Christmas Day

25/12/2018

Boxing Day

26/12/2018

New Years’ Day

01/01/2019

 <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
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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