Bulls n Bears Daily Market Commentary : 09 July 2018

Mon Jul 9 20:21:08 CAT 2018

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Bulls n Bears Daily Market Commentary : 09 July 2018

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Zimbabwe Stock Exchange Update

The All Share index opened the week on a high note adding 0.45 points  to
settle at 104.38 points. DELTA  put on $0.0261 to close at $1.9000, OLD
MUTUAL LIMITED  rose by $0.0169 to $4.9000 and PADENGA closed at $0.5572
after putting on $0.0072. ECONET  went up by $0.0048 to end at $1.0978 while
AFRICAN SUN  shifted up $0.0027 to settle at $0.0720.

Two counters lost ground; CBZ HOLDINGS LIMITED shed $0.0007 to trade at
$0.1018 and SEEDCO  inched down $0.0001 to close at $2.1000.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Uganda shilling strengthens as commercial banks sell off dollars

(Reuters) - The Uganda shilling  strengthened on Monday, helped by
commercial banks selling off  dollars, traders said.

At 1157 GMT, commercial banks quoted the shilling at 3,795/3,805, stronger
than Friday's close of 3,825/3,835. 

Kenya

Kenyan shilling weakens due excess liquidity

(Reuters) - The Kenyan shilling weakened against the dollar on Monday due to
excess liquidity in the money markets and demand from merchandise importers,
traders said.

At 1033 GMT, commercial banks quoted the shilling at 100.90/101.00 per
dollar, compared with 100.65/85 at Friday's close. 

The weighted average interbank lending rate was quoted at 4.8646 percent on
Friday, down from 5.4492 during the previous session. 

America

Dollar Weaker, Pound Shrugs off Brexit Uncertainty

Investing.com - The dollar was trading at three week lows against a currency
basket on Monday after the latest U.S. jobs report pointed to sluggish wage
growth, while the pound shrugged off the shock resignation of UK Brexit
secretary David Davis.

The U.S. dollar index, which measures the greenback’s strength against a
basket of six major currencies, was down 0.29% to 93.50 by 04:21 AM ET
(08:21 AM GMT), the lowest level since June 14.

The index slid 0.48% on Friday after slower than expected wage growth
figures slightly dimmed expectations for a fourth rate hike by the Federal
Reserve this year.

While wage growth remained moderate the Department of Labor said nonfarm
payrolls increased by a larger-than-forecast 213,000 in June.

Solid employment growth helped offset concerns over the escalation of the
U.S.-China trade dispute after new trade tariffs came into effect on Friday.

The dollar edged lower against the yen, with USD/JPY last at 110.40.

The euro pushed higher, with EUR/USD advancing 0.25% to 1.1774, the most
since June 14.

The single currency was boosted after data showing that German exports rose
by more than imports in May, indicating that the euro area’s largest economy
remains solid despite global trade tensions.

Sterling was also higher against the dollar, with GBP/USD climbing 0.53% to
1.3356, having recovered from an overnight low of 1.3284.

The pound initially fell following reports that British Brexit Secretary
David Davis had resigned, potentially dealing a blow to Prime Minister
Theresa May.

But sterling quickly rebounded amid indications that May would not face a
major backlash against her Brexit policy and hopes that a softer Brexit may
be on the cards moving forward.

The pound was also higher against the euro, with EUR/GBP down 0.26% to
0.8815.

The trade sensitive Australian dollar strengthened, with AUD/USD up 0.59% to
0.7472, its highest level since mid-June.

Commodities Markets

Rusal's May aluminium exports up threefold -Interfax

(Reuters) - United Company Rusal, the world’s second biggest aluminium
producer, in May increased aluminium exports to 197,000 tonnes, up almost
threefold from April, Interfax news agency reported.

Citing Russian Railways data, Interfax said January-May aluminium exports
totalled 972,000 tonnes, down 16 percent on a year earlier.

Sources told Reuters last month that Rusal, placed under U.S. sanctions in
April, has resumed shipping aluminium to some customers following an
extension of a deadline for companies to wind down contracts with the
Russian firm.

After the sanctions were imposed on April 6, some customers had asked Rusal
to stop shipping metal until their legal and compliance teams had confirmed
their contracts allowed them to take Rusal’s aluminium until October 23,
sources said at the time.

Last year, Rusal, where Oleg Deripaska’s En+ is a controlling shareholder,
sold a total of 3.95 million tonnes of aluminium, of which 42 percent was
shipped to Europe.

Copper rallies, focus on U.S.-China trade dispute

(Reuters) - Copper rallied on Monday alongside equities as worries about
economic growth receded, but an escalating trade dispute between the United
States and China is expected to cap prices.

Benchmark copper on the London Metal Exchange ended up 1.7 percent at $6,390
a tonne. Prices of the metal used widely in power and construction last week
touched $6,221.50, the lowest since July 2017.

GROWTH: Positive job data in the United States last Friday reassured
investors who have yet to witness an actual slowdown due to the
implementation of higher trade barriers.

TARIFFS: The United States and China exchanged the first salvos in what
could become a protracted trade war on Friday, imposing tariffs on $34
billion worth of each others’ goods and giving no sign of willingness to
start talks aimed at a reaching a truce.

CHINA: Recent data from China show growth may be slowing due to tighter
credit conditions and softer domestic demand ranging from government-funded
infrastructure investment to consumer spending.

CONSUMPTION: Global copper consumption is estimated at around 24 million
tonnes this year, with China accounting for about half of that.

DOLLAR: A lower U.S. currency helped to support industrial metals as this
makes dollar-denominated commodities cheaper for holders of other
currencies. This relationship is used by funds to generate buy and sell
signals from numerical models.

HOLDINGS: Large holdings of LME copper warrants and cash contracts have
fuelled concern about nearby supplies.

This has seen the discount for the cash over the three-month contract narrow
to around $3 a tonne from near $50 a tonne in the middle of April.

ESCONDIDA: The copper market is watching labour negotiations at BHP
Billiton’s Escondida copper mine in Chile, the world’s largest, before a
30-month contract expires at the end of July.

POLLUTION: China’s three-year action plan to curb air pollution by 2020 has
extended its reach into cities where the problem is worsening.

LEAD: Cancelled warrants - metal earmarked for delivery and so no longer
available - at 130,600 tonnes or more than 50 percent of lead stocks have
created worries about shortages of the battery material on the LME market.
MPBSTX-TOTAL

PRICES: Aluminium rose 2.0 percent to $2,121 a tonne, zinc slipped 1.1
percent to $2,705, lead gained 0.3 percent to $2,339, tin was up 1.7 percent
at $19,645 and nickel added 1.9 percent to $14,215.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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