Bulls n Bears Daily Market Commentary : 09 February 2018

Fri Feb 9 19:50:50 CAT 2018

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Bulls n Bears Daily Market Commentary : 09 February 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $4,436,710.24 with foreign buys at $1,015,879.61 and foreign
sales were $834,207.59. Total trades were 106.

The All Share index closed the week marginally lower at 90.05 points
following a 0.01 points loss. BRITISH AMERICAN TOBACCO led the losers with a
$0.5463 decrease to close at $24.4537, MEIKLES eased $0.0050 to $0.3000
while AXIA was $0.0018 weaker at $0.1800.

OLD MUTUAL put on $0.0564 to end at $5.3564, INNSCOR rose by $0.0156 to
$0.8419 while ECONET and SEEDCO both inched up by $0.0001 to settle at
$0.7000 and $1.9500 respectively.

WEEK ON WEEK CHANGES

•        All Share Index shed 0.92 points .

•        Industrial Index eased 2.96 points .

•        Top 10 Index shed 1.04 points .

•        Mining Index eased up 2.23 points  .

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South Africa's rand firmer as bulls hang in despite Zuma impasse

(Reuters) - South Africa’s rand firmed on Friday, recouping losses from the
previous session as investors continued to bet on the ruling African
National Congress (ANC) unseating scandal-plagued President Jacob Zuma in
the next few days.

At 1532 GMT, the rand was 0.74 percent firmer at 12.0700 per dollar, having
slipped to a three-week trough of 12.2000 overnight. That was just shy of
the 12.22 support mark that analysts say may have triggered some technical
selling.

ANC leader Cyril Ramaphosa pulled out of public events to focus on “pressing
matters” on Friday, fuelling speculation that he was making a final push to
force Zuma to step down.

Ramaphosa has been lobbying for Zuma to resign and has said he hopes to
conclude talks with him over a transition of power “in coming days ... in
the interests of the country”.

The rand has been among the best-performing currencies globally, gaining
around 20 percent since mid-November, with most of those gains achieved
after businessman Cyril Ramaphosa was elected ANC chief in December.

Stocks ended a turbulent week, punctuated by uncertainty around Zuma’s
future, with sharp losses.

The benchmark JSE Top-40 index fell 1.3 percent to 49,287 and the broader
All-share index fell by the same margin to 55,902.

Decliners included Investec, down 3.6 percent, Old Mutual, off 3.5 percent
and Mondi, which fell 3.2 percent.

In fixed income, yield for the benchmark government bond due in 2026 rose 2
basis points to 8.455 percent.

Kenya

Kenyan shilling firm on foreign investor inflows

(Reuters) - The Kenyan shilling was stable against the dollar on Friday
supported by inflows from portfolio investors participating in the stock
market and secondary market for government bonds, traders said. 

At 0726 GMT commercial banks quoted the shilling at 100.75/95, compared with
100.80/101.00 at Thursday's close. 

America

Dollar slips against yen as investors remain cautious

(Reuters) - The dollar lost half a percent against the yen on Wednesday,
handing back earlier gains, as investors remained cautious after a heavy
selloff in stock markets, and with many viewing the Japanese currency as
undervalued.

A sharp decline in global share markets in recent days has had only a muted
effect on the currency market, with traditional safe havens such as the yen
and Swiss franc seeing only modest gains this week.

While most analysts believe this week’s heavy selloff across stock markets
has run its course for the moment, allowing volatility to abate a little,
the prospect of monetary tightening across the globe remains a challenge for
the long term, and pushed up the yen against the U.S. currency.

The dollar traded as low as 108.92 yen, erasing all of the previous day’s
gains.

The greenback had reached a high of 109.720 yen earlier in the day as
regional equities such as Japan’s Nikkei soared, taking their cue from a
late rebound on Wall Street.

But it drifted lower as the Nikkei, which rose as much as 3.4 percent, gave
back most of its gains on anxiety over more weakness in U.S. share markets.
U.S. stock futures fell during Asian trade, stoking such fears.

The focus remains on U.S. stocks, which looked set to open a little lower
again, and which have been the source of the latest turbulence in global
markets and currencies.

The surge in long-term U.S. bond yields to four-year highs helped trigger
the slide in the equity market, and while yields have pulled back from those
peaks, they still remain elevated.

The dollar was flat against a basket of six major currencies at 89.61, after
reaching a two-week peak of 90.034 overnight.

The Australian dollar, which tends to suffer during risk aversion, was 0.3
percent lower at $0.7879.

The Swiss franc, a perceived safe haven along with the yen, was flat at
0.9357 francs per dollar, and up only a third of a percent for the week.

Commodities Markets

Copper hits 8-week low on way to biggest weekly drop in two months

(Reuters) - Copper fell on Friday and other metals broadly retreated as
stock markets extended this week’s sharp slide, with the prospect of rising
U.S. interest rates denting hopes that surging economic growth would drive
up demand.

Consequent selling of cyclical assets sent copper to an eight-week low at
$6,777 and put it on track to fall 3.5 percent this week, its biggest weekly
drop in two months.

A jump in inventories of the red metal, chiefly used in construction, also
weighed on prices.

Overall optimism over the economic outlook is likely to stop industrial
metals from falling too far, however, he said.

Lead, the biggest loser among the major industrial metals, has fallen 7
percent this week.

* LME COPPER: Three-month copper on the LME was untraded in official rings,
but bid down 0.7 percent at $6,800 a tonne.

* COPPER STOCKS: Copper stocks in LME-registered warehouses rose 20,125
tonnes or 6 percent, data showed on Friday, and are up by two-thirds in the
last three weeks. On-warrant stocks - those not earmarked for delivery -
have almost doubled in the same period to their highest since September
2016.

* SHANGHAI INVENTORIES: Copper inventories in warehouses monitored by the
Shanghai Futures Exchange rose 7.8 percent to 186,132 tonnes from last
Friday, the exchange said.

* FINANCIAL MARKETS: A four percent drop in Chinese shares dealt reeling
world markets a fresh blow as worries over rising borrowing costs and
soaring volatility put them on course for their worst week since the height
of euro zone crisis.

* ALUMINIUM: Aluminium was down 1.2 percent at $2,143 a tonne, off an
earlier seven-week low of $2,136.

* LEAD: Lead traded down 0.4 percent at $2,515 a tonne, with traders cashing
in gains in the metal after its recent rally to 6-1/2 year highs.

* NICKEL CONTRACT: The Shanghai Futures Exchange said it will quintuple the
intraday transaction fee on its nickel futures contract for May delivery
with effect from Monday.

* OTHER METALS: LME nickel fell one percent to $12,995 a tonne, while zinc
slipped 0.8 percent to $3,395 and tin lost 0.4 percent to $21,150.

Gold dips, heads for second weekly loss

(Reuters) - Gold slipped on Friday, under pressure from tumbling equity
markets, a firmer dollar and worries about rising global interest rates, but
still found some support as a safe haven asset in times of market turmoil.

The dollar rose against a currency basket, heading for its best week since
late October, while a 4 percent drop in Chinese shares dealt a fresh blow to
world markets that have been

reeling on worries about rising borrowing costs and soaring volatility.

Although the dollar had strengthened, he said investors were watching to see
if the U.S. administration's planned tax cuts boosted the economy. "If it
doesn't, it could have a negative

growth impact, that's not going to be dollar-positive," he said.

A strong dollar makes dollar-priced gold costlier for non-U.S. investors.

Spot gold        fell 0.2 percent to $1,316.61 an ounce at 1300 GMT. Prices
touched their lowest since Jan. 4 at $1,306.81 on Thursday, and the precious
metal is down 1 percent for the

week so far, heading for a second straight weekly drop.

U.S. gold futures were flat at $1,318.90 per ounce.

The yield on benchmark 10-year U.S. Treasuries  , which tends to be the
driver of global borrowing costs, was hovering at 2.86 percent, just short
of both its Thursday peak

and Monday's four-year high of 2.885 percent.

Rising yields increase the opportunity cost of holding non-yielding bullion.

Holdings of SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, have fallen over the last three sessions, and declined
1.7 percent so far this week, the

worst since the week ended July 30, 2017.          

Silver fell 0.4 percent to $16.36 an ounce, after touching its lowest since
Dec. 22, 2017 at $16.22 on Thursday. 

Platinum rose 0.1 percent to $970.20 an ounce. It hit its lowest since Jan.
10 at $965 in the previous session.

Palladium rose 0.9 percent to $971.47. It marked its lowest since Oct. 25,
2017 at $958.95 on Thursday.

Baer in a note.

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
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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
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opinions expressed and recommendations made are subject to change without
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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
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whatsoever for any loss howsoever arising from any use of this report or its
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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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