Bulls n Bears Daily Market Commentary : 17 January 2018

Wed Jan 17 16:25:32 CAT 2018

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Bulls n Bears Daily Market Commentary : 17 January 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,392,715.27 with foreign buys at $1,572,763.05 and foreign
sales were $60,886.91 . Total trades were 91 .

The All Share Index lost a further 0.60 points   to end at 93.24 points.
ECONET   led the losers with a $0.0396 loss to close at $0.8227, MEIKLES
dropped $0.0170 to $0.3000 while BARCLAYS  was $0.0030 weaker at $0.0520.
ZIMRE HOLDINGS LIMITED  came off $0.0010 to trade at $0.0299 and DAIRIBOARD
HOLDINGS   inched down $0.0005 to close at $0.1100.

However, OLD MUTUAL   rose by $0.0213 to end at $4.9475, SIMBISA   added
$0.0100 to close at $0.4500 whilst DELTA   advanced by $0.0093 to settle at
$1.5752. ZIMPLOW   was up $0.0028 to trade at $0.0810, UNIFREIGHT  put on
$0.0003 to $.0145 while  BINDURA   inched up $0.0002 to close at $0.0452. 

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Zimbabwe

Zimbabwe finance minister says "bond notes" to stay for now

(Reuters) - Zimbabwe will not stop using “bond notes”, a domestic
quasi-currency, until the economy fully recovers, Finance Minister Patrick
Chinamasa said on Wednesday.

The southern African nation in November 2016 started using bond notes in a
bid to ease shortages of U.S. dollars, the country’s official currency since
2009.

Since Emmerson Mnangagwa became president last November in the wake of a de
facto military coup that removed 93-year-old Robert Mugabe, there has been
speculation that bond notes would be scrapped.

The conditions needed to bring back a local currency include foreign
currency reserves of more than three months, a lower budget deficit and
higher exports and industrial production, Chinamasa said.

The bond notes, which are also in short supply, are pegged at par with the
U.S. dollar but trade at a discount on the black market. On Wednesday $1 was
equivalent to $1.25 in bond notes. 

Uganda

Ugandan shilling edges up against the dollar

(Reuters) - The Ugandan shilling        inched up on Wednesday, helped by
inflows from some commodity exporters and non-governmental organisations.

At 0925 GMT commercial banks quoted the shilling at 3,625/3,635, firmer than
Tuesday's close 3,630/3,640.  

Global

Bitcoin drops below $10,000 with $30 billion of value wiped off in a day as
cryptocurrency sell-off deepens

Bitcoin fell below $10,000 for the first time since November, as a sell-off
in cryptocurrencies continued for a second day Wednesday.

The world's largest cryptocurrency was trading at $9,958.31 at about 6:50
a.m. ET on Wednesday morning, and was down almost 12 percent in the last 24
hours, according to CoinDesk data. CoinDesk tracks prices from
cryptocurrency exchanges Bitstamp, Coinbase, itBit and Bitfinex. It
recovered slightly to a price of $10,261.16 at around 8:40 a.m. ET.

The last time bitcoin fell below the $10,000 mark was November 30. The
red-hot digital asset soared to a record high of $19,343 last month, but has
since been on a gradual decline. At its current price, it is now down almost
47 percent from that all-time high.

In the last 24 hours, more than $30 billion of value was wiped off of the
cryptocurrency.

Meanwhile, ethereum and ripple — the second and third-biggest digital assets
respectively — continued to move lower. According to CoinMarketCap data,
ethereum was trading 21 percent lower at $880 a coin after sinking beneath
$1,000 Tuesday. Ripple on the other hand fell more than 25 percent to $1.05.

Cryptocurrencies appeared to sell off shortly after South Korea's Finance
Minister, Kim Dong-yeon, said the country was still mulling a shutdown of
crypto exchanges. Initial reports of South Korea — one of the biggest
cryptocurrency markets in the world — moving to clamp down on virtual
currency trading last week sent the price of bitcoin and a number of other
major digital assets down sharply.

"The action we're seeing may seem dramatic but is really quite normal for
this market," Mati Greenspan, senior market analyst at eToro, told CNBC via
email. "All in all, this drop has brought us back to the prices that were
traded about a month ago for most coins."

Greenspan said Tuesday that South Korean and Japanese investors often pay a
premium of "20 percent or more per coin," but on Wednesday said they
appeared to be falling.

Bitcoin is 'definitely not dead,' says one analyst   Bitcoin is 'definitely
not dead,' says one analyst  

9 Hours Ago | 02:43

"The premiums that were being paid by Japanese and South Korean crypto
traders is also coming down, so that's a good sign as well," he said.

'No other justification than fear'

China was also reportedly looking to deepen its crackdown on the
cryptocurrency market this week. On Monday, Bloomberg reported that
authorities in China were planning to block domestic access to Chinese and
offshore cryptocurrency platforms that allow centralized trading. Regulators
will also target people and companies that provide market-making, settlement
and clearing services for centralized trading, the publication said, citing
unnamed sources.

And on Tuesday, a Chinese central bank official reportedly said that
authorities should ban the centralized trading of digital currencies, adding
weight to concerns of further suppression of the country's cryptocurrency
market.

Charles Hayter, chief executive of CryptoCompare, said that many expected
the cryptocurrency market to decline.

"The market was very overheated and had significantly dislocated from trend.
A large percentage of investors were expecting this correction and reversion
to mean."

Hayter said that panic was "lead the herd to sell with no other
justification than fear," but added that it was "difficult to say" where the
market would be headed next.

Bitcoin and other cryptocurrencies are extremely volatile assets. Many
experts believe that the introduction of futures contracts for bitcoin from
the likes of CME and Cboe would tame the digital currency somewhat and bring
in more institutional money.--cnbc

Commodities Markets

Zim govt flags Prospect’s lithium project as priority

JOHANNESBURG (miningweekly.com) – ASX-listed Prospect Resources’ flagship
lithium deposit has been identified as a priority mining development by
Zimbabwe’s Office of the President and Cabinet.

The Arcadia lithium project has been selected following the new Zimbabwean
government’s directive that the Ministry of Mines and Mining Development
identifies certain projects under the rapid results initiative’s first 100
days programme.

The Perth-based lithium and gold miner is developing the Arcadia lithium
project, on the outskirts of Harare, with an expected 18-month lead time to
production with plant commissioning in the third quarter of 2018.

A 2017 prefeasibility study (PFS), confirming the project’s technical and
financial viability to become a significant producer of spodumene, petalite
and tantalite concentrates, showed a 15-year life-of-mine based on an ore
reserve of 15.8-million tonnes grading 1.34% lithium oxide and 124 parts per
million tantalum pentoxide.

The PFS anticipated production of 75 000 t/y spodumene concentrates, ramping
up to 123 000 t/y and 155 000 t petalite concentrates and 88 000 lb/y
tantalite concentrates over the mine life.

The PFS estimates cash costs of $260/t lithia concentrate produced and a low
start-up capital expenditure of $52.5-million. –miningweekly

Copper ticks higher on bargain hunting after sell-off

(Reuters) - Copper edged higher on Wednesday as investors and industrial
buyers took advantage of lower prices after a sell-off, although some
analysts said there was potential for further falls.

Copper surged 12 percent in a rally during December, but has since eased
back about 3 percent.

He said he viewed any further falls as a buying opportunity as the market
has strong fundamentals. There is uncertainty about supply due to Chinese
import restrictions on copper scrap and labour contract talks at several
mines, including the giant Escondida mine, Bhar said.

Benchmark copper on the London Metal Exchange rose 0.01 percent to $7,079 a
tonne in official open outcry trading after a fall of 1.8 percent on
Tuesday.

* POSITIONS: Futures brokerage Gelin Dahua has cut its long position on the
Shanghai Futures Exchange (ShFE) April copper contract by 75 percent over
the past two days, according to Reuters calculations based on ShFE data.

* LME ALUMINIUM: Three month LME aluminium traded 0.2 percent firmer at
$2,194 per tonne in official rings.

* SHANGHAI ALUMINIUM: The most-traded March contract on the ShFE closed down
1.8 percent at its lowest finish since Dec. 19 as improving weather
conditions smoothed the flow of ingots from China’s remote northwestern
Xinjiang region to the east of the country.

“As the weather is okay now, transport will get better and people expect to
see more ingot deliveries to (ShFE) warehouses,” said CRU analyst Jackie
Wang.

ShFE aluminium stocks hit a record 773,941 tonnes last week.

* FERROUS: Steel-linked zinc and nickel were pressured after Chinese iron
ore futures fell for a fifth day running to 2-1/2 week lows, pressured by
slow demand in the world’s biggest consuming nation amid ongoing curbs on
steel production in a campaign against smog.

* NICKEL/ZINC: LME nickel, mainly used in stainless steel, was untraded in
official activity and was bid down 0.7 percent to $12,460 a tonne, while
galvanising metal zinc was bid 0.3 percent weaker at $3,396.

*PRICES: Lead traded up 0.2 percent in official rings at $2,560 and tin was
bid down 0.2 percent at $20,425.

* For the top stories in metals and other news, click or

DATA/EVENTS AHEAD (GMT)

1415 U.S. Industrial production Dec

1500 U.S. NAHB housing market index Jan

1500 U.S. Senate Banking Committee votes on nomination

of Jerome Powell to be chairman of the Federal Reserve

($1 = 6.4320 Chinese yuan renminbi)

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

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
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.

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