Bulls n Bears Daily Market Commentary : 08 February 2018

Fri Feb 9 19:50:52 CAT 2018

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Bulls n Bears Daily Market Commentary : 08 February 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $4,549,712.73 with foreign buys at $3,046,626.61 and foreign
sales were $1,078,938.20. Total trades were 99.

The All Share index eased 0.49 points  to settle at 90.06 points. BRITISH
AMERICAN TOBACCO lost a significant $2.9500 to settle at $25.0000,
PROPLASTICS was down by $0.0010 to end at $0.0750 while ECONET and SEEDCO
each inched down $0.0001 to settle at $0.6999 and $1.9499 respectively. 

However, SIMBISA added $0.0200 to close at $0.4200, INNSCOR  rose by $0.0038
to $0.8263 while AXIA moved up by $0.0018 to trade at $0.1818. OK ZIMBABWE
closed at $0.1655 following a $0.0005 gain.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Uganda shilling firm as liquidity tightness offers support

(Reuters) - The Ugandan shilling        traded unchanged against the dollar
on Thursday, helped by tight local currency liquidity.  

At 0819 GMT commercial banks quoted the shilling at 3,635/3,645, the same
level as Wednesday's close. 

South Africa

South African rand edges firmer as Zuma exit looms, stocks lower

(Reuters) - South Africa’s rand edged firmer on Thursday but remained above
the crucial 12.00 mark against the dollar as the continuing stalemate over
President Jacob Zuma’s future capped demand.

Stocks fell on Thursday led by mining firm Gold Fields after the firm
flagged lower earnings.

At 1440 GMT the rand was 0.04 percent firmer at 12.0600 per dollar compared
to an overnight close at 12.0650.

Early trading locally saw low volumes and the unit drifting around 12.10
before buying interest, as traders in London and later New York came online,
spurred the currency towards resistance level around 12.02.

The unit this week has struggled to push beyond last week’s rally to
11.8500, a touch off its 2-1/2 year best, with optimism over the speedy
removal of Zuma from office waning, leaving the currency open to
profit-taking.

On Thursday leaked comments from ruling African National Congress’s Paul
Mashatile revealed the party had been preparing to fire Zuma at the weekend,
but a negotiated exit was now more likely as the incumbent dug in.

Bonds weakened, with the yield for the benchmark government bond due in 2026
was up 3 basis points to 8.43 percent.

The country’s dollar bonds fell across the curve on with the 2041 issue down
1.7 cents to a near two-month low as the political deadlock over Zuma’s
future continued.

On the bourse, the benchmark Top-40 index fell 0.49 percent to 49,935 points
while the All-Share index lowered 0.44 percent to 56,636 points.

Gold Fields closed down 4.06 percent to 47.76 rand after falling more than 5
percent in intra-day trade after the firm warned that profits could be down
as much as 12 percent.

Further losses came from the resource sector which cam under pressure amid a
stronger dollar, with Lonmin 3.95 percent lower to 11.20 rand and AngloGold
Ashanti dropping 2.73 percent to 121.15 rand. 

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 prices slip as options expiry looms

(Reuters) - Copper eased on Wednesday as a looming options expiry sparked
some losses, although a recovery in stock markets after their recent steep
slide supported the broader base metals complex.

Traders of LME calls and puts, the right to buy or sell a contract at a
fixed price later, have to decide whether to exercise their options on the
first Wednesday of each month.

Their ability to make a profit on those positions depends on the price of
the underlying asset, meaning trading tends to be volatile around options
expiry.

The recovery in stock markets on Wednesday should be broadly supportive of
metals, he added, though lead is falling as some holders cashed in gains
after the metal rallied to a 6-1/2 year high late last week.

* LME COPPER: Three-month copper on the London Metal Exchange was down 0.4
percent at $7,050.50 a tonne at 1025 GMT. It fell 1.3 percent on Tuesday.

* FINANCIAL MARKETS: World stocks clawed their way back from two-month lows
on Wednesday, though momentum was weak and U.S. futures suggested Wall
Street could lapse back into losses after rebounding from the biggest
selloff in six years.

* ALUMINIUM: LME aluminium was up 0.5 percent at $2,180.50 a tonne. It
earlier matched the previous session’s three-week low of $2,170 a tonne.

* ALUMINIUM SPREAD: The premium for cash aluminium over three-month
aluminium CMAL0-3 rose to $2.75 a tonne, its highest since August, from a
discount of $12.50 a tonne at the start of the year. Tightness was seen in
the spread between the February and March contracts, traders said.

* SHANGHAI ALUMINIUM: Shanghai’s most traded aluminium contract ended down
0.5 percent at 14,205 yuan a tonne for its lowest close since January 2017.
The metal is now down 6.9 percent year-to-date, putting smelter margins
under pressure, as Chinese inventories continue to hit record highs.

* LEAD PRICES: LME lead bucked the broader trend across the base metals to
fall for a third day, and was down 1.2 percent at $2,590 a tonne. It hit its
highest since July 2011 last week at $2,885 a tonne.

* LEAD STOCKS: Stocks of lead held in LME-registered warehouses fell another
1,375 tonnes to their lowest since late 2015, exchange data showed.

* OTHER METALS: LME zinc was up 0.2 percent at $3,464 a tonne, while nickel
was 0.6 percent higher at $13,470 a tonne and tin was up 0.5 percent at
$21,835.

Gold up off 3-week lows as investors hold cautious dollar view

(Reuters) - Gold rose on Wednesday as investors overlooked the precious
metal's failure to capitalise on this week's global stock market rout and
held onto the view that the dollar's bear run remains in place despite rate
hike expectations.

The dollar rose slightly against a currency basket        but fell half a
percent to the yen        as investors remained cautious after a heavy
selloff in stock markets, with many

viewing safe havens like the yen as undervalued.       

A weaker dollar makes dollar-priced gold cheaper for non-U.S. investors. 

Spot gold        was up 0.2 percent at $1,328.13 per ounce, as of 1105 GMT.
Prices fell over 1 percent to hit their lowest since Jan. 11 at $1,319.96 on
Tuesday.

U.S. gold futures         for April delivery rose 0.1 percent to $1,330.70
per ounce. 

World stocks clawed their way back from two-month lows on Wednesday, though
momentum was weak and U.S. futures suggested Wall Street could lapse back
into losses after rebounding from the biggest selloff in six years.

Traders dialled back bets the U.S. central bank would ratchet up the pace of
rate increases on Monday to between two and three hikes from three to four
hikes last week, according to

interest rates futures. 

SPDR Gold Trust      , the world's largest gold-backed exchange-traded fund,
said its holdings fell 1.4 percent to 829.27 tonnes on Tuesday from Monday.

Holdings saw their worst one-day fall since December 2016.     Spot gold may
test a support at $1,316 per ounce, as suggested by a retracement analysis
and a head-and-shoulders,

according to Reuters technical analyst Wang Tao.             

Spot silver        climbed 0.3 percent to $16.68 per ounce. 

Platinum        fell 0.6 percent to $983.50 per ounce after touching its
lowest since Dec. 12 earlier.  

Palladium        edged down 1.1 percent to $997.75 per ounce, having touched
its lowest since Dec. 8.    

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
contents or otherwise arising in connection therewith. Recipients of this
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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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