Bulls n Bears Daily Market Commentary : 06 February 2018

Tue Feb 6 17:51:12 CAT 2018

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Bulls n Bears Daily Market Commentary : 06 February 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,810,973.10 with foreign buys at $1,547,013.01 and foreign
sales were $163,167.20. Total trades were 78.

The All Share Index shed 0.10 points to end at 90.84 points. SEEDCO went
down by $0.0107 to close at $1.9693, AXIA dropped $0.0046 to $0.1804 while
SIMBISA decreased by $0.0033 to end at $0.4000. OLD MUTUAL slipped $0.0024
to trade at $5.3000 while BARCLAYS closed at $0.0430 after losing $0.0020. 

Trading in the positive was only INNSCOR  which gained $0.0070 to settle at
$0.8200 while ECONET ,  PADENGA , RIOZIM and ZB FINANCIAL HOLDINGS traded
unchanged at $0.7000, $0.4500, $1.2000 and $0.3600 in that sequence.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South  Africa

South African rand firms as pressure mounts on Zuma to quit, stocks fall

(Reuters) - South Africa's rand strengthened on Monday amid ongoing talks
within the governing party regarding President Jacob Zuma's future, while
stocks fell to 4-month lows tracking global markets lower on fears that
central banks will tighten policy.

At 1522 GMT, the rand ZAR=D3 was up 0.44 percent from its New York close on
Friday to 12.0332 per dollar. 

The rand lifted as the ruling African National Congress (ANC) met on Monday
to discuss Zuma's future amid growing pressure on the 75-year-old leader to
step down as head of state

over corruption allegations and a weakened economy.             

The rand has tended to strengthen on signs that Zuma could step down before
his second term as president ends next year. 

Zuma has been in a weakened position since he was replaced as leader of the
ANC in December by Cyril Ramaphosa, the deputy president.

Government bonds were slightly weaker, with the yield on the benchmark 2026
instrument           up 1 basis points to 8.510 percent.

On the bourse, the All-Share index          closed down 2.63 percent to
4-month lows of 57,114 points, while the benchmark Top-40 index
fell 2.72 percent to 50,496 points, a

level it last reached in October 2017. 

South African-listed shares tracked global markets with European indexes
opening lower as resurgent U.S. inflation raised the possibility central
banks would tighten policy more

aggressively than had been expected.             

Bourse heavy-weight Naspers           fell 3.88 percent to 3120.00, MTN
lowered 4.71 percent to 124.93 rand and Capitec          weakened 6.45
percent to 864.66 rand. 

Kenya

Kenyan shilling strong against the dollar

(Reuters) - The Kenyan shilling was  trong against the dollar on Monday
reaching its strongest level since Nov. 2016, helped by inflows from
offshore investors buying government debt amid low importer demand, traders
said. 

  At 0700 GMT, commercial banks quoted the shilling at 101.65/85 per dollar,
compared with 101.70/90 at   Friday's close.

NZD/USD Forex Signal

Last Thursday’s signals were not triggered, as there was no bearish price
action when the price reached 0.7381.

Today’s NZD/USD Signals

Risk 0.50%

Trades may only be taken between 8am New York time and 5pm Tokyo time, over
the next 24-hour period.

Short Trades

Short entry following a bearish price action reversal on the H1 time frame
immediately upon the next touch of 0.7364 or 0.7381.

Place the stop loss 1 pip above the local swing high.

Adjust the stop loss to break even once the trade is 20 pips in profit.

Remove 50% of the position as profit when the trade is 20 pips in profit and
leave the remainder of the position to run.

Long Trade

Long entry following some bullish price action on the H1 time frame
immediately upon the next touch of 0.7214.

Place the stop loss 1 pip below the local swing low.

Adjust the stop loss to break even once the trade is 20 pips in profit.

Remove 50% of the position as profit when the trade is 20 pips in profit and
leave the remainder of the position to run.

The best method to identify a classic “price action reversal” is for an
hourly candle to close, such as a pin bar, a doji, an outside or even just
an engulfing candle with a higher close. You can exploit these levels or
zones by watching the price action that occurs at the given levels.

NZD/USD Analysis

I had a slightly bearish bias last Thursday, which turned out to be a good
approach as the price fell. The technical picture is more bearish now, as we
have finally decisively broken and invalidated a long-term supportive trend
line. There are no true obstacles remaining which look likely to prevent an
eventual fall all the way down to 0.7214. However, it is worth noting that
although it makes sense to take at least a slightly bearish bias, the New
Zealand Dollar has held up relatively well against the U.S. Dollar compared
to other major currencies, such as most importantly the Australian
Dollar.NZDUSD

There is nothing important due today regarding the NZD. Concerning the USD,
there will be a release of ISM Non-Manufacturing PMI data at 3pm London
time.--dailyforex

Commodities Markets

Gold claws back lost ground after Friday's slide

(Reuters) - Gold rose on Monday, clawing back  some lost ground after
recording its biggest one-day loss in two months in the previous session, as
a slide in stock markets helped the metal rebound.

Prices fell 1.2 percent on Friday after stronger-than-expected U.S. payrolls
data shored up expectations that a pick-up in inflation will spur further
U.S. interest rate hikes this year, boosting the dollar, in which gold is
priced. 

The U.S. currency steadied on Monday, while stock markets were routed around
the globe as resurgent U.S. inflation raised the possibility central banks
would tighten policy more

aggressively than had been expected.            

Spot gold        was at $1,335.72 an ounce at 1445 GMT, up 0.2 percent but
well below late January's 17-month high of $1,366.07. U.S. gold futures
for April delivery were $1

an ounce higher at $1,338.30.

U.S. stocks opened sharply lower, extending the rout equity markets
experienced on Friday on the back of rising bond yields and prospects for
increasing inflation.     

While gold is often considered an inflation hedge, Julius Baer said in a
note, the fact that price pressures were being driven by confidence about
growth rather than dollar weakness

and rising oil prices meant it was failing to react positively.

Futures markets         reacted after the jobs data by pricing in the risk
of three, or even more, rate rises from the Federal Reserve this year. 

Meanwhile, hedge funds and money managers raised their net long position in
COMEX gold contracts in the week to Jan. 30 to their highest level since
late September, U.S. Commodity Futures Trading Commission data showed on
Friday.        

Spot silver        was up 1.6 percent at $16.85 an ounce, having matched the
previous session's five-week low of $16.54. 

The metal fell 3.7 percent on Friday in its biggest one-day decline since
December 2016. 

Platinum        was up 0.6 percent at $992.40 an ounce, while palladium
, which alone among the major precious metals posted gains on Friday, was
down 1.2 percent at $1,035.60.

Copper gains as dollar rally pauses; nickel steady above 1-week low

(Reuters) - Copper rose on Monday as the dollar paused after rebounding last
week on strong U.S. jobs data, while nickel climbed after posting its
largest daily loss in two months in the previous session.

The dollar remained mired near three-year lows as resurgent U.S. wage
inflation data failed to quell scepticism among investors about the
currency’s outlook.

U.S. payrolls on Friday showed wages growing at their fastest pace in more
than eight years.

Burgering also noted: “(Relative to) other metals, copper is lagging, it’s
up only 1 percent for the year. It’s undervalued because the fundamentals
are really good for this year.”

COPPER, NICKEL PRICES: London Metal Exchange copper was last bid up 0.7
percent in official midday rings at $7,094.50 a tonne, while nickel traded
up 1.1 percent at $13,575 a tonne, having fallen 4 percent on Friday.

Some of China’s stainless steel mills, major consumers of nickel, are losing
money at current prices and have already wound down their operations ahead
of the week-long Chinese Lunar New Year, broker Argonaut Securities said in
a report.

* MARKETS: Stock markets were routed around the globe while bond yields rose
as resurgent U.S. inflation raised the possibility central banks would
tighten policy more aggressively than had been expected.

* CHINA ECONOMY: China is expected to report solid growth in January trade
this week, moderating inflation and renewed bank lending, but the timing of
the long Lunar New Year holidays will make it difficult to determine clear
trends for at least another month.

* LEAD: Lead prices took a breather from Friday’s 6-1/2 year top, trading
down 1.1 percent in rings at $2,650. Indicating nearby tightness, cash lead
traded at a $17.25 a tonne premium to the three month price CMPB0-3.

* ZINC: Indicating nearby tightness in zinc, LME data showed one entity
holds more than 90 percent of warrants, cash and “tom” positions.
<0#LME-WHT> Zinc traded up 0.5 percent in rings at $3,518.

* INVESTORS: Hedge funds and money managers cut their net “long” or buy
position in COMEX copper in the week to Jan. 30, data showed.

* ALUMINIUM: Russian aluminium maker Rusal estimates that China’s winter
capacity cuts will curb output by 1 million tonnes annually. Aluminium
traded down 0.4 percent in rings at $2,202.

* TIN: Tin traded up 0.4 percent in rings at $21,625.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Robert Mugabe National Youth Day

21 Feb 2018

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
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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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