Bulls n Bears Daily Market Commentary : 12 December 2018

Wed Dec 12 23:33:50 CAT 2018

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Bulls n Bears Daily Market Commentary : 12 December 2018

 <mailto:annen at seczim.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $5,050,041.45 with foreign buys at $4,615,662.04 and foreign
sales were $1,436,063.78. Total trades were 80.

The All Share index shed 1.76 points  to close at 155.32 points. LAFARGE
lost a significant $0.2300 to settle at $0.9300, DELTA  came off $0.1475 to
$3.1500 while ZIMPLOW  was $0.0550 lower at $0.2400. INNSCOR   went down by
$0.0022 to trade at $1.8978 and AXIA   closed at $0.4500 following a $0.0018
loss.

Gains were seen in three counters; ECONET   put on $0.0288 to close at
$1.5788, SEEDCO   added $0.01700 to end at $1.9999 whilst OLD MUTUAL LIMITED
increased by $0.0002 to close at $8.2000.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South   Africa

South Africa's rand firms as dollar slides, stocks jump

(Reuters) - South Africa’s rand firmed on Wednesday after the dollar fell as
investors digested U.S. consumer price data that showed unchanged headline
inflation, reinforcing speculation of fewer U.S. interest rate rises than
previously expected.

Stocks also rose for a second consecutive session, tracking Asian markets
which jumped on the back of further indications of easing Sino-U.S. trade
tensions.

At 1501 GMT, the rand traded at 14.1575 per dollar, 1.12 percent firmer than
its New York close of 14.3175 on Tuesday. The currency hit an intraday low
of 14.3600.

Investor mood was also lifted after U.S. President Donald Trump said he
would intervene in the Justice Department’s case against a top executive at
China’s Huawei Technologies if it served national security interests or
helped to close a trade deal.

The rand did not react significantly to data showing South Africa’s consumer
price inflation rose to 5.2 percent year-on-year in November, while retail
sales increased more than expected in October as the economy showed further
signs of recovering from recession.

In fixed income, the yield on the benchmark government bond due in 2026 fell
0.5 basis points to 9.16 percent.

In equities, the blue chip Top 40 index climbed 0.82 percent to 45,603
points, while the All Share index rose 0.8 percent to 51,598 points.

Global markets rallied on Wednesday as Trump sounded upbeat about a trade
deal with China following news that China was considering reducing tariffs
on U.S. cars.

Shares in Steinhoff rose more than 20 percent, on track for their biggest
daily gain in nearly a month, after the company’s Pepkor Europe business
reported a jump in annual revenue growth.

Steinhoff closed 16.34 percent higher at 1.78 rand.

Uganda

Ugandan shilling firms on tight liquidity

(Reuters) - The Ugandan shilling firmed against the dollar on Wednesday,
lifted by tight local currency liquidity as some players reserved some of
their shilling holdings for mid-month tax payments.

At 0803 GMT, commercial banks quoted the shilling at 3,720/3,730, compared
to Tuesday’s close of 3,730/3,740.

       <mailto:info at bulls.co.zw> 

Asia

Asia leads emerging stocks higher as trade tensions ease

(Reuters) - Asian stock markets led gains in emerging markets on Wednesday
as signs of an easing of U.S.-China trade tensions boosted investors’
appetite for risk, while the dollar held near a one-month high, capping
gains in many developing world currencies.

In an interview with Reuters, President Donald Trump sounded upbeat on the
chances of a trade deal with China and said he would intervene with the U.S.
Justice Department in the case against a Chinese telecommunications
executive if it would help.

Huawei Technologies Co’s Chief Financial Officer Meng Wanzhou, who was
arrested earlier this month in Vancouver on charges of violating U.S.
sanctions against Iran, was released on bail on Tuesday, easing concern
among financial investors that the case could lead to more tit-for-tat moves
by Beijing and Washington.

MSCI’s index for developing world stocks climbed 1 percent, with Chinese and
Hong Kong shares both closing higher.

South Korea’s main index rose 1.4 percent, buoyed by gains in shares of the
country’s biggest carmaker, Hyundai Motor Co.

Indian stocks rallied after the government moved quickly to calm markets and
appoint a new central bank governor, picking a former finance ministry
official and backer of some of Prime Minister Narendra Modi’s key policies.

The prospect of a swing towards the more dovish policy demanded by Modi’s
administration ahead of next year’s elections helped stock markets, but
concerns remain among investors about the independence of the bank.

Stocks on Johannesburg’s main index were at a one-week high after data
showed consumer inflation quickened slightly in November in Africa’s most
industrialised nation. That also boosted the rand.

Other emerging market currencies were mixed as the dollar recovered from
sharp falls last week, with the Russian rouble and Turkey’s lira weakening.
Most Asian currencies including the Chinese yuan and the Indian rupee
firmed.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper dips on frustration over U.S.-China trade dispute

(Reuters) - Copper slipped on Wednesday as investors shrugged off upbeat
comments from U.S. President Donald Trump about a potential trade deal with
China, while the dollar hovered near a one-month peak against its peers.

Trump said he would intervene in the Justice Department’s case against a top
executive at China’s Huawei Technologies if doing so would help close a
trade deal.

The dollar steadied near a month high, with the Federal Reserve widely
expected to raise interest rates at its upcoming meeting. U.S. rates may be
nearing a peak, but relative rate differentials still offer some support for
the dollar.

A stronger dollar makes dollar-priced metals more expensive to import for
countries using other currencies.

* COPPER: Three-month copper on the London Metal Exchange (LME) ended down
0.5 percent at $6,140 a tonne, heading for falls of around 15 percent this
year despite decade-low stocks at LME warehouses. MCU-STOCKS

* COPPER SHORT POSITIONS: Copper is showing a marginal net speculative short
or sell position of 1.2 percent of open interest, according to estimates
from broker Marex Spectron.

* STEEL: Chinese steel prices ended three days of losses to edge higher,
with top steelmaking city Tangshan planning further production cuts this
month as it races to meet its air quality target this year.

* ALUMINIUM: For a column on U.S. tariffs failing to dent Chinese aluminium
export surge, click:

* ALUMINIUM OUTPUT: “U.S. production is expected to climb 67 percent this
year, as new aluminium expansion projects come online ... adding to a
globally oversupplied market,” said SP Angel in a note, quoting the Economic
Policy Institute think tank.

* LEAD: Fitch revised down its LME lead forecast for 2019 to $2,350 a tonne
from $2,450 as prices have underperformed in the second half, with long-term
prices to fall on weaker global demand and surpluses.

* METALS PRICES: Aluminium ended flat at $1,939 a tonne, steelmaking raw
material zinc closed down 0.8 percent at $2,570, lead ended up 0.1 percent
at $1,976, tin closed up 1.1 percent at $19,325. Stainless steelmaking
ingredient nickel ended 0.2 percent higher at $10,795 a tonne.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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