Bulls n Bears Daily Market Commentary : 24 January 2018

Thu Jan 25 08:37:16 CAT 2018

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Bulls n Bears Daily Market Commentary : 24 January 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,103,466.72 with foreign buys at $594,769.20 and foreign
sales were $195,203.83. Total trades were70 .

The All Share Index retreated by 1.39 points  to settle at 91.20 points. OLD
MUTUAL  led the losers with a $0.5000 loss to close at $5.0000,  NATIONAL
FOODS  eased $0.1900 to $6.0000 while AMALGAMATED REGIONAL TRADING  came off
$0.0138 to end at $0.0560. BARCLAYS   dropped $0.0029 to trade at $0.0451,
AXIA   was down by $0.0019 to $0.1801 while ARISTON   was $0.0010 weaker at
$0.0150. 

Gains were seen in only two counters as DELTA   rose by $0.0138 to close at
$1.6188 and SEEDCO   was marginally up by $0.0002 to end at $2.0100. 

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Ugandan shilling steady amid thin importer demand

(Reuters) - The Ugandan shilling        was steady on Monday and was
expected to trade in a tight range  ue to limited dollar demand from
importers, traders said. 

At 1033 GMT, commercial banks quoted the shilling at 3,625/3,635 to the
dollar, the same as Friday's close.

Kenya

Kenyan shilling stable ahead of interest rate decision

(Reuters) - The Kenyan shilling was stable against the dollar on Monday
before a central bank decision on lending rates. 

Most analysts expect the policymakers to hold rates, a Reuters poll showed.
At 0847 GMT, commercial banks quoted the shilling at 102.70/90 per dollar,
compared with 102.75/95 at

Friday's close. 

America

Stocks shrug off U.S. government shutdown, dollar dips

(Reuters) - World stocks and U.S. bond markets on Monday shrugged off a
government shutdown in Washington, although the dollar pulled back and
wallowed near three-year lows as the euro resumed its strong start to the
year.

U.S. Treasury yields, which have tended to fall during previous government
shutdowns, rose as investors saw limited economic fallout from the political
standoff and focused instead on a global economy motoring ahead and U.S.
inflation pressures.

After a mixed start, European shares turned positive in mid-morning trade as
markets focused on a flurry of mergers and acquisitions and upcoming
corporate earnings reports. Progress towards an end to political deadlock in
Germany helped the mood.

The pan-European STOXX 600 index was up 0.1 percent. Germany’s DAX was flat,
France’s CAC-40 up 0.1 percent and the UK’s FTSE was unchanged.

The MSCI world equity index, which tracks shares in 47 countries, rose
slightly.

U.S. stock futures were down marginally after Wall Street set record highs
on Friday, but investors were taking the view that the dispute between
President Donald Trump and Democrats could be resolved without a prolonged
shutdown.

A plan put forward by a group of senators to extend government funding to
Feb. 8 and work on resolving an immigration dispute has also helped ease
concerns about a more serious deadlock.

A vote in the Senate will be held at 12 p.m. (1700 GMT) on Monday.

In a sign that the market was undeterred by the dispute in Washington, the
benchmark U.S. 10-year Treasury yield on Monday reached close to its highest
level in more than three years, an extension of the sell-off in U.S. bonds
since September.

DOLLAR NEAR THREE-YEAR LOW

The dollar remained stuck near three-year lows, continuing its weak start to
the year.

The single currency gained 0.2 percent and was trading at $1.22435, although
volatility in the euro-dollar exchange rate was more muted than would have
been expected, given flare-ups during previous U.S. government shutdowns.

In European bond markets, Spain’s borrowing costs dropped to a six-week low
and the gap over its German peers fell to its tightest in almost three years
after Fitch Ratings gave Spain its first “A” rating since the euro zone debt
crisis.

Greece’s short-dated yields also fell after S&P Global Ratings upgraded the
country’s credit ratings for the first time in two years.

Most other euro zone bond yields were little changed. Analysts said
investors were probably moving to the sidelines before the European Central
Bank’s first meeting of 2018 this Thursday.

Oil prices climbed higher after comments from Saudi Arabia that cooperation
between oil producers who have cut production to boost prices would continue
beyond 2018.

After rising earlier, oil futures were flat. Brent crude futures stood at
$68.58 a barrel by 1230 GMT, not far from the $70.37 level hit on Jan. 15.
That was oil’s highest level since December 2014.

For Reuters Live Markets blog on European and UK stock markets, open a news
window on Reuters Eikon by pressing F9 and typing “Live Markets” in the
search bar.

Commodities Markets

Copper edges higher on demand optimism, supply concerns

(Reuters) - Copper rose on Monday, leading broad-based gains across the base
metals as optimism over the outlook for global growth and supply concerns
over some metals helped the complex recover some of the previous session’s
losses.

Copper prices bounced back nearly 1 percent after a half-percent drop on
Friday, while tin climbed to another three-month high at $20,675 a tonne.

Barclays said in a note that the recent copper price rally was a response to
the distribution of global inventories, with tightness seen in key markets.

It has raised its 2018 forecast for the LME average cash price of copper to
$6,619 a tonne, and said rallies to as high as $7,700 a tonne are “both
possible and likely” if certain conditions are met.

* COPPER: London Metal Exchange copper was up 0.7 percent at $7,090 a tonne
in official midday trading, reversing losses from the previous session.
Prices last week edged down to $7,027, with the $7,000 level as yet unbroken
this year.

* CHINA GDP: China’s better-than-expected economic growth in the fourth
quarter of last year was supported by continued strength in the services
industry and an expanding agricultural sector, official data published on
Friday showed.

* COPPER TECHNICALS: LME copper may break support at $7,036 per tonne and
fall more to the next support at $7,005, Reuters technical analyst Wang Tao
said, citing its wave pattern and a Fibonacci ratio analysis.

* TIN PRICES: LME tin was 0.3 percent higher in official trading at $20,660
a tonne.

* TIN POSITIONING: One entity holds more than 90 percent of tin cash
contracts and warrants on the LME system <0#LME-WHC>. The premium of cash
tin over the three-month contract MSN0-3 jumped to $90 a tonne on Friday, a
two-month high, indicating concerns over market tightness.

* ZINC, LEAD: LME zinc was at $3,413 a tonne in official rings, 0.1 percent
lower and edging further from the 10-year peak of $3,444 seen on Friday.
Lead, which hit a seven-year high at $2,630.50 a tonne last week, was up 0.9
percent at $2,605.

* ZINC STOCKS: Stocks of zinc held in LME-registered warehouses MZNSTX-TOTAL
declined another 25 tonnes to 179,950 tonnes, their lowest in nearly a
decade. On-warrant stocks available to the market slipped to their lowest in
six months.

* OTHER METALS: LME aluminium was up 0.9 percent in official trading at
$2,238.50 a tonne. Nickel, untraded in official rings, was last bid 0.2
percent higher at $12,750.

Gold steady as dollar slips after U.S. government shutdown

(Reuters) - Gold steadied on Monday as the dollar wallowed near three-year
lows following a U.S. government shutdown, although bullishness in the wider
financial markets capped the precious metal's gains.

World stocks shrugged off the shutdown in Washington, with investors
seemingly confident the conflict between President Donald Trump and
Democrats can be resolved swiftly. 

Spot gold        was flat at $1,331.61 an ounce by 1250 GMT. The precious
metal fell 0.5 percent last week, its first weekly decline in six weeks,
having hit four-month highs last Monday.

U.S. gold futures         were down 0.1 percent at $1,331.70.

Keeping a lid on gold's gains, U.S. Treasury yields rose as investors saw
limited economic fallout from the standoff in Washington and instead focused
on a global economy motoring

ahead.

Rising yields tend to weigh on gold by increasing the opportunity cost of
holding non-yielding bullion. They also tend to boost the dollar, making
dollar-priced gold costlier for

non-U.S. investors.

The U.S. government shutdown entered its third day on Monday, with the
senate set to vote at 12 p.m. (1700 GMT) on advancing a measure to provide
temporary government funding

through Feb. 8 and end the shutdown.             

Analysts at Julius Baer sounded a note of caution. 

Holdings of SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, rose over 2 percent last week, their best week since
the week ended Sept. 3.          

Among other precious metals, spot silver        was down 0.2 percent at
$16.97 an ounce. 

Platinum        rose 0.2 percent to $1,015.10 an ounce, after touching its
highest since Sept. 8 at $1,018.80. 

Palladium        fell 0.7 percent to $1,097.10 an ounce. It touched record
highs last week at $1,138.

Flows of palladium out of UK stocks to Hong Kong are picking up as demand
from Asian industry grows.             

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
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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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