Bulls n Bears Daily Market Commentary : 29 January 2018

Tue Jan 30 09:15:00 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 : 29 January 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $1,582,750.48 with foreign buys at $468,902.75 and foreign
sales were $65,757.20. Total trades were 65.

The All Share Index opened the week on a high note adding 0.09 points to
settle at 91.36 points. OLD MUTUAL  gained $0.1092 to close at $5.1092,
NAMPAK  rose by $0.0079 to $0.1800 while DELTA put on $0.0024 to end at
$1.6608. AXIA  closed at $0.1810 following a $0.0010 increase.

Only two counters lost ground; SEEDCO dropped by $0.0240 to close at $2.0057
whilst INNSCOR   shed $0.0025 to end at $0.8025.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Ugandan shilling stable amid liquidity tightness

(Reuters) - The Ugandan shilling was stable on Monday, underpinned by some
tightness in local currency liquidity.

At 1010 GMT commercial banks quoted the shilling at 3,625/3,635, the same
level as Friday’s close. The central bank also held a 3-day reverse repo on
Monday, injecting an unspecified amount of liquidity to try to ease the
tightness.

South Africa

South African rand weakens on dollar recovery; eyes on Eskom

(Reuters) - South Africa’s rand weakened on Monday as the dollar recovered
and government bonds sold off, while investors waited anxiously for a
results announcement by cash-strapped power utility Eskom on Tuesday.

At 1533 GMT, the rand traded at 11.9325 per dollar, down 0.65 percent on the
day. It gained over 2 percent against the dollar last week and is up 15
percent against the greenback since the start of last month.

The rand has been one of the best-performing currencies globally since
mid-December, buoyed by hopes that the new leader of the ruling African
National Congress (ANC), Cyril Ramaphosa, will follow through on promises to
root out corruption and kick-start economic growth.

Stronger gold prices and a fall in the U.S. dollar have also helped.

Investors will be looking to Eskom’s interim results for clues on the
financial health of one of South Africa’s largest state companies. Ratings
agencies regularly cite Eskom as a threat to the country’s already strained
public finances.

In fixed income, the yield on the benchmark government bond due in 2026 rose
13 basis points to 8.555 percent, reflecting weaker bond prices.

South African stocks maintained a technical correction which started last
Thursday after momentum indicators showed the main indices had strayed into
overbought territory.

The benchmark Top-40 index eased 1.22 percent to 53,863.76 while the wider
All-share index shed 1.28 percent to 60,806.90. 

America

Dollar rises but set for big monthly drop; euro falls

(Reuters) - The dollar rose on Monday against a basket of currencies as U.S.
bond yields climbed and traders waited for a Federal Reserve meeting and a
U.S. jobs report later in the week, while the euro and pound were both
broadly down.

Against a basket of currencies, the dollar index rose 0.36 percent to 89.389
after scoring six consecutive weeks of losses.

On a monthly basis it is set to fall 3 percent.

As the greenback rose, the euro fell 0.43 percent, while the British pound
decreased 0.61 percent.

Borthwick added that traders are feeling some uncertainty going into this
week’s Fed meeting.

Reuters data points to market expectations of about three more Fed rate
hikes this year, starting in March, although some analysts, including at
Goldman Sachs and JP Morgan Asset Management, expect the Fed to raise four
times.

Traders also are awaiting a U.S. Department of Labor report, set to be
released on Friday, that will include data on nonfarm payrolls, average
hourly earnings and the unemployment rate.

On Monday a Commerce Department report said U.S. consumer spending rose
solidly in December, but savings dropped to a 10-year low. The dollar
increased marginally after the report.

Data on Friday showed U.S economic growth accelerated to 2.3 percent in
2017, faster than the 1.5 percent logged in 2016, although growth in the
December quarter slowed on a sequential basis and was below market
expectations.

Treasury Secretary Steven Mnuchin gave U.S. currency bears a major boost
last week with a tacit endorsement of a weak dollar. While U.S. President
Donald Trump, who has advocated a strong dollar, tried to minimize those
comments, the remarks had already made an impact and the greenback’s
downturn since November showed little sign of abating.

U.S. Treasury yields surged to more than three-year highs on Monday after
comments from a European Central Bank official added to expectations that
central banks globally will reduce stimulus as the economic outlook
improves. The 10-year yield rose to 2.71 percent, its highest since early
2014.

Commodities Markets

Gold slips as U.S. dollar claws back some ground

(Reuters) - Gold fell on Monday as a revival in the dollar prompted some
buyers to cash in gains in the metal after its sixth weekly price increase
in seven weeks. 

Gold has risen more than 3 percent so far this month, and after a strong end
to December touched its highest since August 2016 last week at $1,366.07 an
ounce. 

Its strength has been driven largely by a slide in the dollar index to
three-year lows       . A rise in the currency on Monday after six straight
weeks of losses prompted gold's pullback. 

Spot gold        was down 0.5 percent at $1,343.32 an ounce at 1445 GMT,
while U.S. gold futures        for February delivery were down $10.10 an
ounce at $1,342.00.

The dollar climbed against a currency basket on Monday as rising bond yields
helped underpin the greenback ahead of a week packed with U.S. data. It
remains on track for its biggest

monthly decline since March 2016, however.       

The currency came under pressure last week after Treasury Secretary Steven
Mnuchin indicated he was broadly supportive of a weak dollar, though U.S.
President Donald Trump later said he wanted to see strength in the currency.

Higher bond yields can also weigh on gold, as they increase the opportunity
cost of holding non-yielding bullion. U.S.

Treasury yields hit multi-year highs on expectations central banks would
reduce stimulus as economies improve.      

Gold traders are now awaiting the outcome of a Federal Reserve policy
meeting this week, as well as U.S. jobs data, a key indicator of the
strength of the broader economy. Both will

be watched for their implications for U.S. interest rates. 

Demand for physical metal was weak in the key Chinese market overnight in
the face of the firmer dollar, MKS said in a note, although the onshore
premium over spot in Shanghai remained

robust at $8 an ounce. 

Among other precious metals, silver        was down 1.1 percent at $17.20 an
ounce. It rose 2.3 percent last week, the biggest rise of any of the major
precious metals.

Platinum       , this year's best performing precious metal so far, was up
0.1 percent at $1,010.50, after easing 0.3 percent last week in its first
weekly decline in seven. 

Palladium        was 0.7 percent lower at $1,084.60 an ounce. 

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
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/20180130/42316ed1/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/20180130/42316ed1/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/20180130/42316ed1/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/20180130/42316ed1/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/20180130/42316ed1/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/20180130/42316ed1/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/20180130/42316ed1/attachment-0011.jpg>