Bulls n Bears Daily Market Commentary : 17 December 2018

Tue Dec 18 12:49:24 CAT 2018

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Bulls n Bears Daily Market Commentary : 17 December 2018

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $2,307,249.24 with foreign buys at $2,022,338.78 and foreign
sales were $3,284.00. Total trades were 94.

The All Share index opened the week lower at 149.27 points after losing 3.13
points . DELTA shed $0.1869 to close at $2.8519, NATFOODS came off $0.0767
to $7.1233 whilst AXIA slipped $0.0400 to close at $0.4100. ECONET lost
$0.0320 to end at $1.4839 and FIDELITY LIFE eased $0.0215 to settle at
$0.0875.

Losses were countered by gains in AFRISUN and SEEDCO INTERNATIONAL which
both added $0.0100 to trade at $0.1000 and $1.7200 respectively. UNIFREIGHT
put on $0.0050 to $0.0478,  MASH HOLDINGS   went up by $0.0048 to close at
$0.0288 and NATIONAL TYRE SERVICES  was $0.0025 stronger at $0.0150.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Zimbabwe

Zimbabwe inflation soars to new 10-year high of 31 percent

Reuters) - Zimbabwe’s inflation soared to a fresh 10-year high of 31.01
percent year-on-year in November from 20.85 percent in October after prices
of basic goods spiked, amid an acute shortage of dollars that has made
imports expensive.

On a monthly basis, prices increased by 9.2 percent in November compared to
16.44 percent in October.

Zimbabwe adopted the U.S. dollar in 2009 after its own currency was made
worthless by hyperinflation.

But Zimbabweans have watched as the dollars in their bank accounts, known as
‘Zollars’, have lost value against cash U.S. dollars. That is because there
are more Zollars in banks than actual U.S. cash dollars available, analysts
say.

Central bank data shows that some $10 billion were being held as electronic
dollars in bank accounts but less than $250 million in cash dollars.

On the black market, one needs $3.50 to purchase $1 in cash, a situation
which has seen some businesses charging multiple prices for their goods.

Zimstats said prices of food, including bread, of beverages and clothes, had
pushed the consumer price index higher.

The finance minister said in a budget statement last month that inflation
would end the year at 25 percent before falling to single digits in 2019.

Uganda

Ugandan shilling weakens on interbank demand

(Reuters) - The Ugandan shilling was a touch weaker on Monday, amid some
appetite from players in the interbank market trying to cover short
positions.

At 0911 GMT commercial banks quoted the shilling at 3,700/3,710, weaker than
Friday’s close of 3,687/3,797.

       <mailto:info at bulls.co.zw> 

America

Stocks steady as investors pin hopes on policy makers

(Reuters) - Markets started cautiously as the concern over global growth
that sent world stocks to 17-month lows was only partly tempered by
expectations of encouraging messages from the United States and China.

The MSCI world equity index, which tracks shares in 47 countries, was flat
by 0947 GMT. Losses in European equities offset modest gains in Asia
overnight.

Markets in London, Frankfurt and Paris fell 0.1 to 0.5 percent. U.S. stock
futures edged up 0.05 percent.

The Federal Reserve is widely expected to raise U.S. interest rates again at
the end of its two-day meeting on Wednesday, but what matters more for
investors will be whether it cuts its guidance on rate increases in 2019.

The Fed now projects three more increases before 2020, but recent
disappointing data and worries over Washington’s protectionist policies have
fuelled expectations the central bank will cut its guidance.

On Friday, the S&P 500 lost 1.9 percent to 2,599.95, its lowest close since
April 2.

In China, where the economy has been losing momentum, investors will be
looking to a speech by President Xi Jinping on Tuesday marking the 40th
anniversary of China’s reforms and opening up.

China is also expected to hold its annual Central Economic Work Conference
later this week, where key growth targets and policy goals for 2019 will be
discussed.

The top decision-making body of the Communist Party, the Politburo, said
last week China will keep its economic growth within a reasonable range next
year, striving to support jobs, trade and investment while pushing reforms
and curbing risks.

The optimism before Xi’s speech helped base metals rise, although weak
economic indicators capped gains.

In foreign exchange markets, most currencies were little changed. The dollar
paused near 18-month highs before the Fed meeting, after it gained from a
rush into safe-haven assets caused by the economic outlook.

The dollar slipped 0.07 percent to 97.371 against an index of six major
currencies, close to the 19-month high of 97.711 touched last week. The euro
nudged up 0.17 percent to $1.1326 after last week falling as low as $1.1270.

Safe-haven gold also fell before the Fed meeting, with spot prices unchanged
at $1,238.45 per ounce and U.S. gold futures up 0.06 percent at $1,242.1 per
ounce.

The pound traded at $1.2602, above Wednesday’s 20-month low of $1.2477 it
reached on mounting worries that Britain was headed for a chaotic exit from
the European Union.

Prime Minister Theresa May is due to hold a speech in parliament later on
Monday. She is set to state her opposition to a second Brexit referendum.

The Mexican peso gained after Mexico’s new government avoided major
surprises in its closely watched first budget, sticking to fiscal promises
made earlier to investors.

The peso rose 0.5 percent to 20.132 on the dollar.

In bond markets, politics also dominated price moves.

The yield spread between Italian bonds and their German equivalents narrowed
further on expectations Rome will reach a compromise with Brussels over its
2019 budget. French bonds were hit as “yellow vest” protests rumbled on in
Paris over the weekend.

The Italian-German yield spread stood at 270 basis points, above Friday’s
low of 273.7. French government bond yields rose to 0.717 percent from
Friday’s close of 0.710 percent.

Oil prices steadied after slipping by around 2 percent last week, but
remained under pressure from oversupply and concern over the prospects for
global economic growth and fuel demand.

Brent crude oil was up 0.05 percent at $60.29 per barrel. U.S. light crude
was unchanged at $51.21.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Global stocks dip as 'Santa Claus rally' elusive, oil rises

(Reuters) - Broad stock declines in Europe and the United States dragged
world equity markets lower on Monday, adding to a sell-off that has sent
global stocks near 17-month lows.

The MSCI world equity index, which tracks shares in 47 countries, slipped
0.7 percent as declines in U.S. and European markets offset modest gains in
Asia overnight.

Wall Street’s Dow Jones Industrial Average fell 325.9 points, or 1.35
percent, to 23,774.61, the S&P 500 lost 28.84 points, or 1.11 percent, to
2,571.11 and the Nasdaq Composite dropped 75.77 points, or 1.1 percent, to
6,834.90.

The Russell 2000 index of small-cap U.S. companies, meanwhile, fell 1.2
percent, pushing the index into the 20 percent decline from its highs that
signals a bear market.

In Europe, benchmark indexes from London and Milan to Paris and Frankfurt
have lost between 10 percent and 17 percent so far this year.

Some investors had hoped for a bounce back before the holidays, but any
“Santa Claus rally” has proven elusive so far. Since 1950, Wall Street has
rallied by an average of 1.3 percent during the last five trading days of
December, according to the Stock Trader’s Almanac.

The Federal Reserve is widely expected to raise U.S. interest rates again at
the end of its two-day meeting on Wednesday, but what matters more for
investors will be whether it cuts its guidance on rate increases in 2019.

The U.S. central bank now projects three more increases before 2020, but
recent weak data and worries over Washington’s protectionist policies have
fueled expectations the central bank will cut its guidance.

In China, where the economy has been losing momentum, investors will look to
a speech by President Xi Jinping on Tuesday marking the 40th anniversary of
China’s “reform and opening” policy.

China is also expected to hold its annual Central Economic Work Conference
later this week, where key growth targets and policy goals for 2019 will be
discussed.

The top decision-making body of the Communist Party, the Politburo, said
last week that China will keep its economic growth within a reasonable range
next year, striving to support jobs, trade and investment while pushing
reforms and curbing risks.

In foreign exchange markets, moves were moderate. The dollar paused near
18-month highs before the Fed meeting, after it gained from a rush into
safe-haven assets due to the economic outlook.

The dollar index fell 0.36 percent, with the euro up 0.42 percent to
$1.1355.

U.S. benchmark 10-year Treasury notes last rose 8/32 in price to yield
2.8624 percent, from 2.889 percent late on Friday.

Oil prices fell about 1 percent on signs of oversupply in the United States,
with investor sentiment under pressure from concern over the prospects for
global economic growth and fuel demand. 

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

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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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