Bulls n Bears Daily Market Commentary : 12 January 2018

Fri Jan 12 15:13:35 CAT 2018

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 12 January 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $1,045,469.21 with foreign buys at $729,469.04 and foreign
sales were $118,492.29 . Total trades were 49 .

The All Share Index closed the week lower at 94.69 points after losing 1.88
points  . BRITISH AMERICAN TOBACCO   came off a significant $5.0000 to close
at $30.0000, INNSCOR   dropped $0.0998 to settle at $0.8502 while PADENGA
retreated $0.0496 to $0.5004. PPC   shifted down $0.0150 to end at $0.8500,
MASHONALAND HOLDINGS   slipped $0.0046 to $0.0300 as ARISTON   was $0.0010
weaker at $0.0160. 

Gains were seen in HIPPO   which rose 0.0300 to $1.7300, OLD MUTUAL  gained
$0.0265 to trade at $4.8441 and SIMBISA   put on $0.0158 to end at $0.4500.
Other movers were in DELTA  which added $0.0019 to close at $1.5570 and
ZIMPAPERS   inched up $0.0002 to settle at $0.0112.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Ugandan shilling firms on inflows from charities

(Reuters) - The Ugandan shilling        was a touch stronger on Friday,
underpinned by inflows from non-governmental organisations and scant demand
by companies preparing to make tax payments. 

At 1050 GMT commercial banks quoted the shilling at 3,647/3,657, stronger
than Thursday's close of 3,650/3,660.

Kenya

Kenyan shilling strengthens, helped by remittances, horticulture exports

(Reuters) - The Kenyan shilling strengthened against the dollar on Friday
due to improved inflows from remittances and horticulture exports, traders
said.

At 0854 GMT, commercial banks quoted the shilling at  102.95/103.15 per
dollar, compared with 103.20/30 at Thursday'sclose. 

Europe

Stocks recover from wobble as ECB sends euro, yields higher

(Reuters) - World stocks scaled fresh peaks on Friday while the euro hit a
three-year high and Bund yields rose as progress on forming a German
government gave fresh impetus to a bond market sell-off triggered by signs
the ECB may accelerate an end to its stimulus.

MSCI’s broadest gauge of the world’s stock markets hit yet another record
high and was on track to rise for its eighth of the nine business days so
far this year -- for a total increase of 3.5 percent.

U.S. stocks were set to open higher as well, likely hitting new records once
again having made a rapid recovery from Wednesday’s losses. Dow Jones, S&P
500 and Nasdaq futures were up 0.1 to 0.4 percent.

Germany’s 10-year Bund yield hit a fresh five-month high of 0.54 percent
after Chancellor Angela Merkel’s conservatives and the Social Democrats
agreed a blueprint for formal coalition negotiations, news that also buoyed
the euro.

Germany’s DAX gained 0.3 percent on the news and European stocks took their
cue from a recovery in Asian trading, but gains were more muted than the
stellar start to the week as a surging euro weighed on European exporters.

MSCI’s index of European stocks rose 0.2 percent as the euro hit its highest
in three years at $1.2128 and last traded up 0.8 percent at $1.2126.

The euro’s overnight index swap rates have risen sharply this week as
traders priced in a higher chance of a rate hike early next year.

While the currency’s rise has reflected growing optimism over the bloc’s
economic recovery, investors have flagged it as a potential brake on stocks.
Monica Defend, head of strategy at Amundi Asset Management, said the
currency, for which she has a target of $1.22, was the biggest risk to
European equities.

“COMPLACENT” BOND MARKETS HIT BY ECB

A sell-off in European bonds gathered pace, with yields driven higher by
minutes on Thursday of the ECB’s December meeting that showed it thinks it
should revisit its communication stance in early 2018.

Lyxor’s Bitton said Bund yields were already near to hitting her target for
the first quarter.

The minutes showed that with the euro zone seeing its best growth in a
decade, ECB policymkaers were considering a gradual shift in its stance to
reduce the focus on bond purchases and raise the emphasis on interest rates.

The ECB has pledged to continue its bond purchase programme at least until
September, and investors expect any rate hike to take place only next year.

Amundi’s Defend said the gradual removal of liquidity from central banks
would drive volatility higher across asset classes this year.

The end of a turbulent week for bond markets also saw U.S. Treasury yields
extending Thursday’s pullback after China disputed a media report that
government officials had recommended it slow or halt its purchases of U.S.
bonds.

The 10-year Treasury yield stood at 2.5425 percent , settling down further
from Wednesday’s 10-month high of 2.597 percent when fears of a bond bear
market gripped investors.

The dollar stayed in the doldrums after U.S. wholesale prices dipped in
December from November, reinforcing investors’ expectations that inflation
will remain low.

The dollar index slipped to a six-week low, down 0.5 percent.

Bitcoin flirted with this year’s low, having fallen 11.1 percent on Thursday
after the government in South Korea, a major source of digital currency
demand, unveiled plans to ban cryptocurrency trading.

It traded at $13,926.58 on the Bitstamp exchange, up 5.3 percent but not far
from Thursday’s low of $12,800, which was its lowest since Dec 31.

Oil prices retreated from 2014 highs hit the previous day, but stayed near
three-year highs on signs of tightening supply in the United States.

Brent crude futures hovered at $69.28 a barrel after hitting $70.05 a barrel
on Thursday, their highest level since November 2014, while U.S. West Texas
Intermediate (WTI) crude futures stood at $63.49, down 0.3 percent on the
day.

Investors warned that while rising oil prices were supportive, they could
weigh negatively especially on crude consuming regions.

For Reuters Live Markets blog on European and UK stock markets open a news
window on Reuters Eikon by pressing F9 and type in ‘Live Markets’ in the
search bar

Commodities Markets

Asia Gold-Price gain keeps buyers at bay; market eyes China holiday boost

(Reuters) - Demand for physical gold remained lacklustre across top Asian
centres this week as buyers were put off by a rally in prices, but an
approaching Chinese New Year could reignite appeal for the yellow metal.

Gold prices rose for a third session on Friday to hit their highest since
September, with a slump in the U.S. dollar helping drive bullion towards its
fifth straight weekly gain.

High prices are weighing on physical demand for gold, but demand is expected
to rise ahead of the Chinese New Year, according to Brian Lan, managing
director at dealer GoldSilver Central in Singapore.

In top consumer China, the range for premiums broadened to about $5-$8 an
ounce from $6-$7 last week.

The Chinese New Year holiday will kick in by the middle of next month.

There is not too much demand currently and if prices come down to the $1,300
level, demand and premiums will increase, said Ronald Leung, chief dealer at
Lee Cheong Gold Dealers in Hong Kong.

Premiums of 60-80 cents an ounce were being charged over the benchmark in
Singapore this week, while in Hong Kong, premiums ranged between 60 cents
and $1.20, against 70 cents previously.

Demand remained subdued in India, the world’s second largest consumer of the
metal, as well, since jewellers and retail buyers were postponing purchases
due to a rally in local prices to the highest level in 1-1/2 months.

Jewellers need to buy gold for the next month’s jewellery exhibition, but
they are postponing purchases due to the price rise, said Mukesh Kothari,
director at bullion dealer RiddiSiddhi Bullions in Mumbai.

Local gold prices jumped to 29,550 rupees per 10 grams, the highest level
since Nov. 20, 2017.

Dealers in India were offering a discount of up to $2 an ounce this week
over official domestic prices, unchanged from last week. The domestic price
includes a 10 percent import tax.

Jewellers were keeping a lower inventory as some people are speculating the
government will reduce import duty in the budget on Feb. 1, said a
Mumbai-based dealer with a private bank.

India’s gold imports surged 67 percent in 2017 from the previous year to 855
tonnes, provisional data from precious metals consultancy GFMS showed.

Meanwhile, in Japan, public selling volumes rose, causing sellers to keep
offering discounts of 50 cents, unchanged from the previous week. 

Zinc touches fresh decade peak on tight market

(Reuters) - Zinc prices edged up to their highest in more than a decade on
Friday, supported by potential shortages and low inventories, but some
investors were concerned about the lofty levels.

Benchmark zinc on the London Metal Exchange rose to $3,409 a tonne, the
strongest since August 2007, and was up 0.3 percent at $3,395 by 1120 GMT.

Zinc prices have rallied 11 percent since early December and were the top
gainer among LME metals last year, surging 32 percent.

LME inventories MZNSTX-TOTAL have tumbled 58 percent over the past 12 months
to 180,150 tonnes after closures and suspensions of big mines in recent
years.

* COPPER - LME three month copper dipped 0.2 percent to $7,128 a tonne,
pressured slightly by Chinese data.

* CHINA TRADE DATA - China’s unwrought copper imports fell 4.3 percent in
December from a month earlier, but imports still stood at the second-highest
level in 2017.

* CHINA COPPER PREMIUM - The Yangshan copper premium was down to $74 a tonne
from a peak of $80 in late December, Alastair Munro at broker Marex Spectron
said in a note.

* COPPER DROP FORECAST: Capital Economics said it expects copper to retreat
as the year progresses, averaging just $6,800 a tonne in the first quarter
and $6,250 in the second quarter.

* ALUMINIUM - LME aluminium was the best performer on the exchange, rising
2.2 percent to $2,222.50 a tonne, shrugging off news of higher Chinese
exports.

* CHINA ALUMINIUM EXPORTS: China’s exports of unwrought aluminium and
aluminium products rose for a second straight month in December, by 15.8
percent from November.

* DOLLAR - Base metals got support from a weaker dollar , making commodities
priced in the greenback cheaper for buyers using other currencies.

* NICKEL: LME nickel recovered from an overnight sell-off to trade 0.7
percent firmer at $12,710 a tonne.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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.

(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180112/833a9061/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180112/833a9061/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 131664 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180112/833a9061/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180112/833a9061/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180112/833a9061/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 159128 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180112/833a9061/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180112/833a9061/attachment-0011.jpg>