Bulls n Bears Daily Market Commentary : 27 December 2018

Fri Dec 28 05:40:57 CAT 2018

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Bulls n Bears Daily Market Commentary : 27 December 2018

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $4,921,528.04 with foreign buys at $288,745.68 and foreign
sales were $579,439.96. Total trades were 150.

The All Share index lost 0.39 points  to close at 144.00 points in mixed
trading. INNSCOR  dropped by $0.0975 to close at $1.7500, FBC  retreated by
$0.0500 to settle at $0.3000 and DELTA  slipped $0.0246 to trade at $2.6214.
Other losses were in insurance giant OLD MUTUAL  which went down by $0.0169
to $7.9892 and FIRST MUTUAL PROPERTIES  traded $0.0050 lower at $0.0620.

Cement maker PPC  led the movers with a $0.2900 gain to close at $1.9000,
LAFARGE  added $0.2150 to settle at $1.3300 and CASSAVA SMARTECH  traded
$0.0141 higher at $1.4463. BINDURA was up $0.0100 at $0.0800 and AMALGAMATED
REGIONAL TRADING  increased by $0.0074 to settle at $0.0880.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Egypt

Egypt's central bank holds interest rates

(Reuters) - Egypt’s central bank left its key overnight interest rates
steady on Thursday, keeping the deposit rate at 16.75 percent and the
lending rate at 17.75 percent.

All 13 economists polled by Reuters had expected rates to remain unchanged.

Headline inflation slowed to 15.7 percent in November from 17.7 percent in
October as fruit and vegetable prices declined, after rising for three
consecutive months.

Core inflation, which strips out volatile items such as food, slowed to 7.94
percent in November, its lowest since April 2016, from 8.86 percent in
October.

GDP grew by 5.3 percent in the fiscal year that ended in June 2018, the
highest rate in 10 years.

South Africa

South Africa's rand edges up in light year-end trade

(Reuters) - South Africa’s rand gained on Thursday against a dollar weakened
by lingering concerns about the trade wrangle between United States and
China, while stocks were lower as positive sentiment after an overnight
rally faded.

At 1500 GMT the rand was 0.15 percent firmer at 14.5325 per dollar compared
with a close of 14.5550 overnight.

The currency reached a session best 14.4500 in early trade but lacked
momentum in low-volume trade to push through to technical resistance at
14.40 that traders are eyeing as a catalyst for further gains.

With politics in Washington and the sino-U.S. trade row curbing any large
bets on emerging currencies going into year-end, the dollar was down 0.2
percent on the day.

Reuters reported on Thursday that the Trump administration is considering an
executive order in the new year to declare a national emergency that would
bar U.S. companies from using Huawei and ZTE 000063.SZ products.

South African bonds were firmer, with the yield on benchmark government
paper due in 2026 down 7 basis points to 8.93 percent.

In stocks, the Top-40 index fell 1.32 percent to 45,595 points, while the
broader all-share was down 1.14 percent at 51,489 points.

Financial firm Old Mutual, Bidvest and tech-giant Naspers were the biggest
fallers on the blue-chip index, each down more than 3 percent.

Shares of telecoms giant MTN led the gainers, jumping as much as 8 percent
in its first trading session since it agreed to pay $53 million to settle a
row with Nigeria’s central bank that had threatened to cost it billions.

At the close, MTN shares were 3.32 percent higher at 884.30 rand. 

       <mailto:info at bulls.co.zw> 

Asia

Asia stocks lifted as Wall Street extends comeback

(Reuters) - Asia stocks gained on Friday after Wall Street ended volatile
trade in the green, adding to the big advances of the previous session,
although lingering investor jitters helped support safe-haven currencies
such as the yen.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent.
It has fallen almost 4 percent so far in December.

The Shanghai Composite Index edged up 0.3 percent.

Australian stocks added 0.6 percent and South Korea’s KOSPI climbed 0.5
percent. Japan’s Nikkei bucked the trend and slipped 0.5 percent, losing
some steam after surging nearly 4 percent the previous session.

U.S. stocks roared back to end in positive territory on Thursday, with the
Dow adding 1.14 percent, after suffering steep losses for much of the
session.

The gains come a day after Wall Street indexes posted their biggest daily
percentage increases in nearly a decade following a sharp plunge at the
week’s start.

However, all three U.S. major indexes remain down more than 9 percent for
December following losses earlier in the month, when factors including
concerns over the U.S.-China trade war, slowing global growth and wariness
towards the Federal Reserve’s tightening cycle took a heavy toll.

The CBOE Volatility Index rose midweek to 36, its highest level since early
February. It has since pulled back below 30 but remains well above a recent
low of 15 marked at the beginning of December.

Focus turned to the Fed’s stance and whether the equity markets can sustain
their recovery at the start of the new year.

Fed Chairman Powell is due to speak on Jan. 4.

While stocks showed signs of recovery, lingering market volatility helped
keep safe-haven currencies such as the yen and Swiss franc in demand.

The dollar extended overnight losses and was down 0.2 percent at 110.74 yen.
It was on track to lose more than 2 percent this month.

The greenback declined 0.25 percent to 0.9852 francs per dollar after
slumping more than 0.8 percent the previous day. The U.S. currency has
fallen 1.1 percent against its Swiss peer on the month.

The euro was a shade higher at $1.1447 after gaining 0.7 percent overnight.
The common currency was headed for a 1 percent gain in December.

The 10-year U.S. Treasury note yield was up 3 basis points at 2.773 percent,
pulling back from a nine-month low of 2.720 percent brushed earlier in the
week.

The yield had climbed to a seven-year peak of 3.26 percent in October as the
debt market braced for potentially faster pace of Fed rate hikes in 2019.

Oil prices remained choppy, with U.S. crude futures up 2.5 percent at $45.73
per barrel after sliding 3.5 percent the previous day.

U.S. crude had rallied 8 percent midweek after dropping to a 1-1/2-year low
of $42.36 at the week’s start.

Crude has lost more than a third of its value since the beginning of October
and is heading for declines of more than 20 percent in 2018.

In addition to oversupply concerns, worries about slowing global economic
growth have dampened investor demand for riskier asset classes and pressured
crude.

Brent crude climbed 2 percent to $53.23 per barrel after losing more than 4
percent the previous day.

Spot gold, which has benefited this week from the global market turmoil
stood little changed at $1,277.43 an ounce following an ascent to a
six-month high of $1,279.06 on Wednesday. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Prices for Shanghai steel, steelmaking ingredients ease in listless market

(Reuters) - Prices of steel and steelmaking ingredients in China fell on
Friday in lethargic trading, pressured by worries over the outlook for
demand amid ongoing concerns about the global economy.

Business confidence among entrepreneurs in China worsened in the fourth
quarter compared with the previous one, and was at the lowest since the
second quarter of 2017, according to a survey by the People’s Bank of China
published early this week.

The most-active steel rebar contract on the Shanghai Futures Exchange was
down 0.3 percent at 3,413 yuan ($497.57) a tonne at 0221 GMT. Hot rolled
coil was down 0.2 percent at 3,345 yuan.

Mirroring the trend in the Shanghai metals market, prices of steelmaking raw
materials such as coke and coking coal also dropped.

The most traded coke futures on the Dalian Commodity Exchange fell 0.9
percent to 1,892.5 yuan a tonne. Coking coal futures edged down 0.3 percent
to 1,178.5 yuan.

Dalian iron ore futures climbed 0.4 percent to 493.5 yuan.

Spot iron ore for delivery to China SH-CCN-IRNOR62 rose 0.4 percent to
$72.30 a tonne on Thursday, according to SteelHome consultancy.

China will ratchet up support for the economy in 2019 by cutting taxes and
keeping liquidity ample, as growth is expected to slow further next year,
the country’s top leaders said in an annual economic meeting this month.

($1 = 6.8593 Chinese yuan)

Copper rises for second day, but China growth concerns drag

(Reuters) - London copper prices climbed for a second session on Friday amid
gains in stock and oil markets, but worries over slowing growth in China
were expected to drag.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange had risen 0.5 percent to
$6,016 a tonne by 0211 GMT, while the most-traded contract on the Shanghai
Futures Exchange fell 0.4 percent to 48,210 yuan ($7,028.72) a tonne.

* Copper is being supported by gains in crude oil and equity markets,
although concerns over slowing growth in top metals consumer China are
pressuring prices.

* Earnings at China’s industrial firms in November dropped for the first
time in nearly three years, data showed on Thursday, in a sign of rising
risks to the world’s second-largest economy.

* China’s top copper smelters on Thursday raised their floor treatment and
refining charges (TC/RCs) for the first quarter of 2019 by 2.2 percent,
sources with knowledge of the matter said.

* The miners pay the TC/RCs to smelters to process their ore into refined
metal, with higher minimum charges for processing indicating a well-supplied
copper concentrate market.

* Chilean miner Collahuasi, owned by Anglo American Plc and Glencore Plc,
has applied for an environmental permit to extend the life of its deposit
with an estimated $3.2 billion investment, the company said on Thursday.

* The project at Collahuasi, one of the world’s largest copper mines with an
estimated 2018 production of 545,000 tonnes, will upgrade operations to
improve efficiency and production, the statement said.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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
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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
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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