Bulls n Bears Daily Market Commentary : 31 January 2018

Wed Jan 31 16:24:49 CAT 2018

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Bulls n Bears Daily Market Commentary : 31 January 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,796,555.87 with foreign buys at $1,501,674.93 and foreign
sales were $7,355.40. Total trades were 83.

The All Share Index shed 0.05 points   to end at 91.32 points. SEEDCO
eased $0.0057 to close at $2.0000, DAWN  came off $0.0011 to $0.0159 while
ARISTON  went down by $0.0005 to settle at $0.0145.

OLD MUTUAL   was the only counter trading in the positive adding $0.0017 to
end at $5.2017. Heavyweights DELTA , ECONET and INNSCOR  traded unchanged at
$1.6600, $0.7000 and $0.8025 respectively.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling stable against the dollar

(Reuters) - The Kenyan shilling was stable against the dollar on Wednesday
but end-month demand from manufacturers and oil importers was seen posing a
depreciation risk, traders said.  

At 0800 GMT, commercial banks quoted the shilling at 102.20/40 per dollar,
the same as Tuesday's close. 

Uganda

Uganda's shilling stable on flows from commodity exporters

(Reuters) - The Ugandan shilling was unchanged on Wednesday, underpinned by
end-month hard currency inflows from commodity exporters.

At 1207 GMT, commercial banks quoted the shilling at 3,620/3,630, the same
as Tuesday’s close.

America

Dollar inches lower, barely reacts to Trump speech

(Reuters) - The dollar inched lower against a basket of major rivals on
Wednesday, showing scant reaction to U.S. President Donald Trump’s State of
the Union address.

Trump called on the U.S. Congress to pass legislation to ensure at least
$1.5 trillion in new infrastructure spending.

He also urged lawmakers to work toward bipartisan compromises, but pushed a
hard line on immigration.

The dollar index, which measures the greenback against a basket of six major
currencies, was last down 0.1 percent on the day at 89.062 , staying above a
three-year low around 88.43 set last week.

The euro edged up 0.2 percent to $1.2423.

The yen slipped briefly after the Bank of Japan increased its buying of
medium-term Japanese government bonds (JGBs) in a move seen as a warning
shot against further rises in bond yields.

The dollar reached its intraday high of 109.095 yen shortly after the BOJ
announcement. The dollar later pared its gains and was last trading at
108.79 yen, steady on the day.

The BOJ’s move came after the 10-year JGB yield had risen to a 6-1/2-month
high of 0.095 percent on Tuesday. The central bank’s policy guidance is to
control the 10-year yield “around zero percent.”

BOJ officials have said that any changes to bond-buying operations are
fine-tuning and are not meant to telegraph hints on policy.

Still, some market participants probably interpreted the increase in JGB
buying as a signal that the central bank will stick with its monetary
stimulus, said Teppei Ino, an analyst for Bank of Tokyo-Mitsubishi UFJ in
Singapore.

A reduction in the BOJ’s buying of long-dated government bonds earlier this
month had sparked speculation that the central bank was moving toward an
eventual exit from its large stimulus, giving a lift to the yen.

Speaking in parliament on Wednesday, BOJ Governor Haruhiko Kuroda stressed
the need to proceed with strong monetary easing, and added that he doesn’t
see a problem with financial intermediation now.

The focus now shifts to the U.S. Federal Reserve’s monetary policy statement
due later on Wednesday, and a U.S. jobs report on Friday that will include
data on nonfarm payrolls and average hourly earnings.

The Fed is widely expected to keep interest rates unchanged this week, and
investors will be looking to its policy statement for fresh hints on the
outlook for interest rates this year.

The Fed probably won’t make major changes to its assessment of the economic
and inflation outlook at this stage, said Roy Teo, investment strategist for
LGT Bank in Singapore, adding that any material changes are likely to be
“further down the road”.

Since market participants already seem to be bracing for the possibility of
three U.S. interest rate hikes this year, the chances of the dollar getting
a lift from the Fed’s forthcoming policy statement appear low, Teo added.

Commodities Markets

Gold miner Centamin reports 2017 profit fall

(Reuters) - Centamin posted a 13 percent fall in core profit in 2017 on
Wednesday as gold production fell and costs rose but the miner declared a
final dividend that beat consensus.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell
to $326 million in the year that ended on Dec. 31, said the London-listed
miner, which operates Egypt’s only producing gold mine.

The company declared a full year dividend of 10 U.S. cents per share,
bringing 2017’s total payout to 12.5 cents. “We have done what we have said
we would do which is that any excess cash will be returned to shareholders,”
Chief Executive Andrew Pardey said in an interview with Reuters.

Centamin’s final dividend was “well ahead of expectations”, noted Jefferies
equity analyst Alan Spence. Market consensus was for a payout of 3.9 cents.

The dividend payout was down 20 percent on a year ago, however, after
Centamin in 2017 entered into a profit sharing agreement with the government
of Egypt.

Gold production slipped 1 percent to 544,658 ounces but was above a target
of 540,000 ounces. Its all-in sustaining cost of producing an ounce of gold
rose 14 percent to $790 partly due to higher fuel costs.

Pardey said there had been no change in the terms they considered
“unattractive” that were offered by the government in the first round of
exploration bids.

The Egyptian government launched an international tender for gold mining
concessions in January 2017 which included a higher royalty payment, only
partial cost-recovery before the start of production-sharing.

Australian-listed Resolute Mining said in July it was awarded two
exploration concessions in Egypt.

Centamin is looking to expand its existing Sukari mine and is exploring and
developing three gold projects in Ivory Coast and Burkina Faso.

Shares in Centamin were up 0.38 percent at 159.80 pence at 1117 GMT. They
are up about 6 percent over the past year. 

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.

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