Bulls n Bears Daily Market Commentary : 04 July 2018

Thu Jul 5 07:17:21 CAT 2018

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Bulls n Bears Daily Market Commentary : 04 July 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $5,538,544.16 with foreign buys at $2,767,657.55 and foreign
sales were $3,036,924.28. Total trades were 115.

The All Share index was unchanged at 103.07 points in mixed trading. OLD
MUTUAL LIMITED  gained $0.2820 to close at $4.8392, INNSCOR  rose by $0.0024
to $1.1800 and AXIA   inched up $0.0007 to end at $0.2210.

Four counters lost ground as FIRST MUTUAL HOLDINGS  shed $0.0100 to close at
$0.1500, ECONET  went down by $0.0065 to $1.0900 and SEEDCO  came off
$0.0025 to settle at $2.1001. MASIMBA  was $0.0020 weaker at $0.0600.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa 

South African rand eases on global trade tensions

(Reuters) - South Africa’s rand was slightly weaker on Wednesday, hurt by
global trade tensions which prompted losses in other emerging markets.

* At 0820 GMT, the rand traded at 13.7200 versus the dollar, 0.35 percent
weaker than its close on Tuesday.

* The rand struck a seven-month low last week of 14 to the dollar but has
since recovered some ground.

* Disappointing local economic data has weighed on investors’ appetite for
rand assets in recent weeks, along with friction between the United States
and major trade partners over tariffs and investment restrictions.

* On the bourse, the Johannesburg Stock Exchange’s Top 40 index was down 0.6
percent at 0820 GMT, while the All-Share index was down 0.5 percent.

* Government bonds were slightly stronger. The yield on the benchmark
instrument due in 2026 fell 5 basis points to 8.79 percent.

Kenya

Kenyan shilling appreciates against the dollar

Reuters) - The Kenyan shilling appreciated against the dollar on Wednesday
due to hard currency inflows from horticulture exports and banks selling
dollars amid tight liquidity in the local money markets, traders said. 

At 0734 GMT, commercial banks quoted the shilling at 100.55/75 per dollar,
compared with 100.75/95 at Tuesday's close.

China

Trade worries dent stocks, yuan steadies

(Reuters) - World stocks were flat on Wednesday amid growing anxiety ahead
of Washington’s end of week deadline to impose tariffs on Chinese imports,
while the yuan steadied after China’s central bank acted to calm investors.

The MSCI All-Country World index, which tracks shares in 47 countries, was
lower by less than 0.1 percent on the day, recovering slightly from a 0.2
percent fall earlier.

Washington has said it would implement tariffs on $34 billion worth of
Chinese imports on July 6, and Beijing has promised to retaliate in kind on
the same day. However, China’s finance ministry said it will “absolutely
not” fire the first shot in a trade war with the United States and will not
be the first to levy tariffs.

Concerns about the outbreak of a global trade war have, among other factors,
prevented a sustained recovery in global stock markets since a violent
sell-off knocked them off records highs in February.

The United States has listed another 284 product lines valued at $16 billion
that it will target with tariffs, including semiconductors and a broad range
of electronics.

U.S. President Donald Trump also threatened tariffs on as much as $400
billion worth of Chinese goods if Beijing retaliates against the U.S.
tariffs due to go into force on Friday.

Washington has launched a national security investigation into car and truck
imports, with Trump threatening Europe with a 20 percent tariff on car
imports while various countries have also already taken retaliatory steps
against U.S. tariffs on steels and aluminium products.

Over 40 countries have voiced deep concern at the World Trade Organization
(WTO) about possible U.S. measures.

He noted that most equity markets were well above lows hit earlier this
year.

The pan-European STOXX 600 index was last down 0.1 percent, see-sawing from
positive to negative territory during the day. Germany’s exporter-heavy DAX
fell half a percent and Britain’s FTSE 100 fell 0.3 percent.

A Chinese court temporarily banned Micron Technology from selling chips in
China, the world’s biggest memory chip market, hitting shares in U.S. stock
overnight and Asian semiconductor stocks on Wednesday.

Europe’s tech sector was fell 1-1/2 percent led by falls in chipmakers
STMicro and Infineon, which were down by nearly 8 percent and 2.5 percent
respectively.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.25
percent, a day after it hit a nine-month low. Japan’s Nikkei erased earlier
losses to stand flat by late afternoon.

Mainland Chinese shares dropped, with CSI300 Index off 0.7 percent.

U.S. markets were closed on account of the U.S. Independence Day holiday.

In the currency market, the yuan bounced back from an 11-month low following
moves by China’s central bank on Tuesday to calm jittery financial markets.

The Chinese currency fetched 6.6444 per dollar in onshore trade, off
Tuesday’s low of 6.7204.

Major currencies were treading water as traders fretted about the fallout of
the intensifying trade frictions between Washington and the rest of the
world.

The euro was off by 0.1 percent at $1.16450 while the dollar was good for
110.52 yen, down 0.1 percent.

Brent oil prices rose, driven higher by a threat from an Iranian commander
and a drop in U.S. crude inventories for the second week in a row caused by
an outage at a Canadian facility.

International benchmark Brent futures rose 0.1 percent to $77.84 a barrel.

U.S. light crude futures traded down 0.3 percent at $73.89 per barrel, after
rising above $75 for the first time in more than three years on Tuesday.

Copper, sometimes seen as a barometer of global economic strength given its
wide use in power and construction, hit a fresh nine-month low of $6,381.50
a tonne on Wednesday.

Commodities Markets

Copper hits 9-month low amid trade tensions

(Reuters) - Copper fell to a fresh nine-month low on Wednesday ahead of the
implementation of trade tariffs on goods from China and the United States
which could dampen demand for the industrial metal.

Benchmark copper on the London Metal Exchange slipped 0.6 percent to $6,450
per tonne in official rings, its weakest since September 2017.

Washington has said it would implement tariffs on $34 billion of Chinese
imports on July 6, and Beijing has vowed to retaliate in kind on the same
day.

TRADE: China’s threatened tariffs on $34 billion of U.S. goods will take
effect from the beginning of July 6, a person with knowledge of the plan
told Reuters, amid worsening trade tensions between the world’s two largest
economies.

EUROPEAN UNION: China is putting pressure on the European Union to issue a
strong joint statement against President Donald Trump’s trade policies at a
summit later this month but is facing resistance, European officials said.

FREEPORT: Indonesia has extended a temporary operating permit for Freeport
McMoRan Inc’s Grasberg project, the world’s second-biggest copper mine,
until the end of the month while discussions continue over long-term rights.

CODELCO: Workers at Codelco’s Chuquicamata copper mine in Chile, the state
miner’s second largest by output, threatened last week to strike over plans
to transform the century-old open pit into an underground mine.

CHINA DATA: Growth in China’s services sector accelerated in June to a
four-month high, buoyed by a pickup in new businesses and a sustained
increase in employment, a private survey showed.

ZINC, NICKEL: Zinc dropped 1.6 percent to $2,744 a tonne, having touched its
lowest since July 2017, and nickel was bid down 1.5 percent to $14,195 a
tonne.

WARRANTS: Traders are also watching a large holding, between 40 and 59
percent, of zinc warrants on the LME. It has fuelled worries about a
shortage on the LME market and led to a premium for the cash contract over
the three-month.

GLENCORE: U.S. authorities have demanded Glencore hand over documents about
its business in the Democratic Republic of Congo, Venezuela and Nigeria as
part of a corruption probe, sending the mining company’s shares down more
than 8 percent.

PRICES: Aluminium was bid down 0.9 percnet to $2,098 per tonne, lead was bid
down 0.7 percent to $2,374 and tin added 0.4 percent to $19,725.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Barclays

EGM to consider the change of registered statutory name to First Capital
Bank Limited

Meikles Hotel

03/07/2018 3pm

NicozDiamond

shares delist from the ZSE

06/07/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

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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