Bulls n Bears Daily Market Commentary : 16 January 2018

Tue Jan 16 16:00:21 CAT 2018

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Bulls n Bears Daily Market Commentary : 16 January 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $1,306,703.69 with foreign buys at $180,726.49 and foreign
sales were $245,824.34 . Total trades were 79 .

The All Share Index continued in the downward trend losing 0.82 points   to
end at 93.84 points. INNSCOR  led the shakers with a $0.0500 loss to close
at $0.8000, PPC   eased $0.0479 to $0.7521 while ECONET   was $0.0277 lower
at $0.8623. SIMBISA  was down $0.0100 to $0.4400, FIRST MUTUAL HOLDINGS
declined by $0.0082 to trade at $0.1866 and OK ZIMBABWE   slipped by $0.0045
to settle at $0.1655. 

Four counters gained ground including OLD MUTUAL  which put on $0.0722 to
close at $4.9262 while DELTA   added $0.0047 to $1.5659. CBZ  and PADENGA
each rose $0.0025 to settle at $0.0835 and $0.5000 respectively. 

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling unchanged as manufacturers exert demand

(Reuters) - The Kenyan shilling was steady against the dollar on Tuesday
amid an uptick in appetite for hard currency from manufacturers and other
importers.  

At 0900 GMT, commercial banks quoted the shilling at 103.00/20 per dollar,
unchanged from Monday's close.  

Uganda

Ugandan shilling inches up as demand from importers slips

(Reuters) - The Ugandan shilling        edged up on Tuesday as importers who
are preparing to pay their taxes in the local curbed demand for dollars. 

At 0900 GMT, commercial banks quoted the shilling at 3,635/3,645, slightly
up from Monday's close of 3,640/3,650. 

Europe

Euro steady near 3-year highs; dollar edges up vs yen

(Reuters) - The euro held steady on Tuesday, taking a breather after having
rallied on the back of optimism about the euro zone’s economic outlook and
expectations for the European Central Bank to wind down its massive monetary
stimulus.

Comments by the Estonian central bank chief and ECB rate-setter Ardo Hansson
on Monday reinforced those expectations, with Hansson telling a German
newspaper that the ECB could end its 2.55 trillion euro bond-buying scheme
in one step after September if the economy and inflation develop as now
expected.

The euro last changed hands at $1.2263, staying within sight of Monday’s
peak of about $1.2296, its strongest since December 2014.

Market participants said they expect the euro to remain on solid footing in
the near term.

Although there is focus on whether the euro’s strength would soon worry the
ECB and encourage it to talk down the currency, there has been little sign
of such push-back from the ECB so far, Innes said.

The dollar’s index against a basket of six major currencies stood at 90.509
, having pulled up from Monday’s three-year low of 90.279.

The dollar has weakened recently as markets grow increasingly confident that
a global recovery will outpace U.S. growth and prompt other major central
banks, led by the ECB, to unwind their easy money strategy faster than has
been expected.

Against the yen, the dollar rose 0.4 percent to 110.93 yen , edging away
from a four-month low of 110.32 yen set on Monday.

Market participants cited short-covering in the dollar in the wake of its
fall over the past week, and there was also talk of dollar-buying by
Japanese importers.

A small cut to the Bank of Japan’s buying of long-dated Japanese government
bonds in a regular market operation last Tuesday had spurred speculation
that the BOJ could edge away from its massive stimulus programme, pushing
the yen and global bond yields higher. 

Commodities Markets

Copper hits 3-1/2-week low, nickel slides more than 5 pct

(Reuters) - Base metals slid on Tuesday with copper and nickel hitting
multi-week lows as profit-taking set in following strong gains late last
year, a steadier dollar weighed and worries lingered over fading demand in
China ahead of the Lunar New Year.

Three-month copper on the London Metal Exchange fell 2.3 percent to
$7,046.50 a tonne by 1119 GMT, having hit its weakest since Dec. 22 at
$7,035.

Stainless steel ingredient nickel dropped 3.9 percent to $12,360, having
slid more than 5 percent to its lowest since Dec. 29 at $12,190.

The dollar’s index against a basket of six major currencies stood at 90.73,
having pulled up from Monday’s three-year low of 90.279. A stronger dollar
makes dollar-priced metals costlier for non-U.S. investors.

He added, however: “The demand picture looks robust, global PMIs are running
close to seven-year highs while supply is likely to remain constrained, so
we could see price growth above 5 percent in copper this year.”

* IRON ORE: Iron ore futures in China ticked up on Tuesday after dropping 2
percent in the previous session, but record stockpiles of the steelmaking
ingredient at the country’s ports kept a lid on price gains.

Broker Marex Spectron cited disappointing steel demand and more talk of a
sell-off across ferrous metals as impacting nickel. It also noted broader
risk-off sentiment in the metals markets in China, the world’s top metals
consumer.

“The Chinese ... have not been the drivers of the metal moves higher over
the past few weeks, reflected in the declining onshore premiums,” it said in
a note.

* COPPER, ALUMINIUM SUPPLY: Rio Tinto stuck to a 2018 production target of
510,000-610,000 tonnes of mined copper and 225,000-265,000 tonnes of refined
copper. Aluminium production is targeted at 3.5-3.7 million tonnes. For
2017, aluminium production eased 1 percent and mined copper output fell 9
percent.

* COPPER, ZINC STOCKS: Headline LME copper inventories have climbed 12
percent since the start of December to 204,650 tonnes. Zinc ‘on-warrant’ or
available inventories have slid 38 percent in two weeks to 112,850 tonnes.

Shares stay on record run, metals suffer meltdown

(Reuters) - Asia and Europe’s big bourses kept world shares on their
record-breaking run on Tuesday, although a steadier dollar halted the
sizzling start to the year for the euro, yen and yuan and sent metals
markets down sharply.

MSCI’s all-country world index notched its third consecutive all-time high
as growing confidence about the global economy pushed Japan’s heavyweight
Nikkei to its best level since 1991 during a lively Asian session.

The pan-European STOXX 600 then crawled 0.4 percent higher as technology,
car and insurance stocks offset a 1 percent drop in miners caused by the
buckling metals prices.

Copper slumped 2.2 percent, while nickel plunged almost 4 percent. For both
it was their biggest drop since early December, after which they went on to
surge 10 and 20 percent respectively.

Analysts put the wobble partly down to supply issues after stockpiles of
iron ore at China’s ports leapt to the highest since at least 2004, but also
the dollar -- used to price commodities -- pulling out of a four-day dive.

“Everything this year (in commodity markets) has been largely about the
dollar,” said Crédit Agricole FX Strategist Manuel Oliveri.

“It has been selling off regardless of rate expectations, regardless of the
growth outlook,” he added, saying he expected it to start to stabilise.

The steadier dollar also brought an end to the euro’s four-day hot-streak
though there were other factors at play too.

The single currency was buffeted in early European trading by reports that
parts of Germany’s main opposition party are resistant to reforming a “Grand
Coalition” with Angela Merkel’s conservatives.

It then took another step back after sources at the European Central Bank
told Reuters that despite growing talk it will stop its mass stimulus
programme at the end of September, policymakers were unlikely to flag its
end just yet.

The euro slipped down to $1.2215 from Monday’s three-year high of almost
$1.23. The Japanese yen, which has also been on a strong run, was 0.15
percent lower at 110.6 per dollar.

Euro zone government bond yields switched direction too, with German Bunds
coming off recent highs and low-rated Italian and Portuguese debt
outperforming as investors returned to some of 2017’s most profitable
trades.

BITCOIN SLUMPS

Wall Street was set to keep the global stocks rolling with futures markets
pointing to 0.5 percent to 0.9 percent gains for the S&P 500, Dow and Nasdaq
which had been closed for a public holiday on Monday.

Overnight moves in Asia included a 1 percent jump by Japan’s Nikkei that saw
it touch its highest since November 1991 and more gains for high-flying
Chinese bourses.

Australian shares had stumbled 0.5 percent though as its heavyweight miners
were bruised by the slide in metals prices.

Japanese Finance Minister Taro Aso said on Tuesday that he did not see
problems with the dollar weakening to around 110.80 yen, but that big swings
in currencies would be problematic.

Crude oil prices were also softer after being driven to their highest levels
since December 2014 this week by the dollar’s weakness and signs that
production cuts by OPEC and Russia are tightening supplies.

Brent crude futures were down 30 cents, or 0.4 percent, at $69.94 a barrel
after touching a high of $70.37 a barrel on Monday. Gold also shuffled back
to $1,334 an ounce, after hitting a near four-month peak.

The other eye-catching move was another battering for crytocurrencies which
have had a torrid start to the year following spectacular gains in 2017.

Bitcoin tumbled 18 percent to almost $11,000, after reports that a ban on
trading of cryptocurrencies in South Korea was still an option drove fears
grew of a wider regulatory crackdown.

The slide triggered a massive selloff across the broader digital currency
market, with biggest rival Ethereum down 23 percent on the day and the
next-biggest, Ripple, plunging 33 percent.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

RTG

AGM

Jacaranda Rooms 2 & 3, Rainbow Towers

17 Jan 2018 0900

RTG

EGM

Jacaranda Rooms 2 & 3, Rainbow Towers

17 Jan 2018 1000

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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