Bulls n Bears Daily Market Commentary : 10 July 2018

Wed Jul 11 11:23:14 CAT 2018

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Bulls n Bears Daily Market Commentary : 10 July 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $3,483,471.46 with foreign buys at $670,880.00 and foreign
sales were $2,297,246.06. Total trades were 83.

The All Share index gained a further 0.40 points to settle at 104.78 points.
OLD MUTUAL LIMITED  rose by $0.0379 to close at $4.9379, DELTA added $0.0198
to $1.9198 and INNSCOR went up by $0.0174 to end at $1.2180. ECONET
advanced by $0.0022 to $1.1000, ZIMBABWE NEWSPAPERS put on $0.0021 to close
at $0.0155 whilst mining company BINDURA  was $0.0020 to trade at $0.0530.

Two counters lost ground; SIMBISA dropped by $0.0090 to $0.4600 whilst CBZ
HOLDINGS LIMITED  slipped by $0.0018 to close at $0.1000.
<mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling weakens amid excess money market liquidity

(Reuters) - The Kenyan shilling weakened against the dollar on Tuesday due
to excess liquidity in the money markets, traders said.

At 1341 GMT, commercial banks quoted the shilling at 100.80/101.00 per
dollar, compared with 100.65/85 at Monday's close. 

The weighted average daily interbank lending rate stood at 4.6954 percent on
Monday, compared with 4.8646 percent during the previous session. 

South Africa

South Africa's rand holds on to gains in calm early trade

(Reuters) - South Africa’s rand opened firmer on Tuesday, extending gains
from the last three sessions as a lull in global trade war fears lifted
demand for emerging currencies.

* At 0640 GMT the rand was 0.26 percent firmer at 13.3850, slightly softer
than Monday’s three-week peak of 13.3100.

* On Friday the rand closed beneath 13.50 for the first time since June 22 ,
a key inflection point after tumbling to a seven-month low of 14.00 in an
emerging market selloff sparked by rising rates in the U.S. and jitters over
global growth.

* Friday’s slower-than-expected growth in U.S. wages was the catalyst for
the correction, and the rand has since pushed through technical resistance
at 13.40, with speculators targeting stops at 13.20 this week.

* Tuesday’s session is light on local data, with only June business
confidence due at 0930 GMT.

* Bonds were flat, with the yield on the benchmark bond due in 2026 steady
at 8.625 percent.

* The Johannesburg Stock Exchange was set to open lower at 0700 GMT, with
the Top 40 futures index down 0.3 percent.

Asia

Asia shares ease as trade war fears return, pound bewildered by politics

(Reuters) - Asian shares reversed early gains on Tuesday as anxieties about
the Sino-U.S. trade war recast their long shadow over investor sentiment,
while several high-profile resignations from Britain’s government kept
sterling on the defensive.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 percent
after earlier rising more than 0.5 percent. The index had gained 1.3 percent
on Monday.

The losses were led by China, with Shanghai blue chips off 0.4 percent. The
index added 2.8 percent on Monday for the biggest daily jump since August
2016.

Japan’s Nikkei climbed about 0.7 percent and South Korea 0.3 percent.

E-mini futures for the S&P 500 firmed 0.1 percent while spreadbetters
pointed to a firm start for Europe, with FTSE futures up 0.1 percent.

Investors have been on edge recently with the United States and China
slapping levies on each other’s exports, spurring fears of a global growth
slowdown and hurting stocks and commodities.

On Friday, both China and the United States slapped tit-for-tat tariffs on
$34 billion worth of each other’s goods, stirring fears of a prolonged
dispute. The row has rattled Chinese financial markets, with the yuan
suffering its worst monthly loss on record in June.

Despite the overhanging concerns about trade, market attention is expected
to turn to other developments, at least for the near-term.

Both the Dow and S&P 500 boasted their biggest gains in more than a month
overnight, as bank shares jumped ahead of earnings reports later this week.
The S&P banks index posted its sharpest rise since March 26.

POUNDED

The story in currency markets was all about political capers in London.

Prime Minister Theresa May’s foreign minister and Brexit negotiator quit on
Monday in protest at her plans to keep close trade ties with the European
Union after Britain leaves the bloc, stirring rebellion in her party’s
ranks.

Foreign Secretary Boris Johnson stepped down just hours after Brexit
minister David Davis’s resignation, emboldening some in her Conservative
Party to mull a plot to unseat her.

The uncertainty saw sterling sink as deep as $1.3189 at one stage before
bouncing somewhat to $1.3254. It was last down 0.2 percent at $1.3230.

Markets still think it likely the Bank of England will hike rates in August,
and that a full-blown political crisis could be averted.

The pound’s pain was a boon for the U.S. dollar which rallied broadly on
expectations the Federal Reserve will keep raising its interest rates.

Against a basket of currencies, the dollar bounced to 94.201 from a low of
93.713. The dollar also edged up to 111.16 yen, from a trough of 110.30.

The euro was back at $1.1739, having run into profit-taking at a three-week
peak of $1.1790 overnight.

In commodity markets, oil gained on supply disruptions in Canada and Libya
and ahead of looming sanctions on Iran.

U.S. crude added 39 cents to $74.23, while Brent rose 37 cents to $78.44 a
barrel.

Spot gold was flat at $1,257.01.

Commodities Markets

Zinc hits to 1-year low, narrower deficit on the horizon

(Reuters) - Zinc prices fell to their lowest in more than a year on Tuesday
as expectations of rising supplies and a narrowing deficit sparked a
sell-off that accelerated after prices fell below key technical support
levels.

Benchmark zinc on the London Metal Exchange traded down 2.5 percent at
$2,642 a tonne in official rings. Prices of the metal used to galvanise
steel earlier fell to $2,624.50, the lowest since June 21 last year.

Shortages saw zinc prices rise 60 and 29 percent in 2016 and 2017
respectively. Losses so far this year total 20 percent.

TARIFFS: U.S. President Donald Trump has rattled the world trade order this
year by seeking to renegotiate the terms of some of the United States’
trading relationships, in particular with China. He has imposed tariffs on
some imports including steel, raising fears of a global trade war.

SUPPLY: Earlier this year, the International Lead and Zinc Study Group
(ILZSG) said some 880,000 tonnes of additional zinc mine capacity was due to
come on stream this year.

The global market balance in zinc will be much less tight this year due to
mine openings and expansions, Joao Jorge, director of market research and
statistics at ILZSG said.

FUNDS: Traders said many funds with bets on higher zinc prices were cutting
their positions, which had helped fuel downward momentum and a break of key
technical levels such as the 100-week moving average at around $2,890.

CTAs refers to Commodity Trading Advisors, funds that trade using buy and
sell signals generated by numerical models.

ALUMINIUM: Falling stocks of aluminium, down at 1.116 million tonnes from
2.297 million tonnes in January last year, have created concern about
availability on the LME market.

This has seen the premium for the cash over the three-month contract rise to
$24.50 a tonne from a discount early in June. This premium or backwardation
is expected to attract more aluminium to the LME market.

DOLLAR: Industrial metals overall came under pressure from a higher U.S.
currency, which makes dollar-denominated commodities more expensive for
non-U.S. firms.

PRICES: Copper was down 1.2 percent at $6,315 a tonne, aluminium fell 0.6
percent to $2,109 a tonne, lead lost 2.3 percent to $2,287, tin rose 0.8
percent to $19,795 and nickel ceded 1.1 percent to $14,060.

Copper climbs for second day as metals claw back ground

(Reuters) - Copper prices in London and  Shanghai were rising for a second
day on Tuesday, with investors lured to buy low after a trade war-fuelled
sell-off last week.

The United States on Friday slapped tariffs on $34 billion of goods from top
metals consumer China, which responded in kind. Fears the spat could dampen
demand for industrial metals

had weighed on prices.

    FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal  Exchange had risen 0.5
percent to $6,423 a tonne by 0150 GMT, extending a 1.7-percent gain from the
previous session. The

metal lost more than 5 percent last week.

* SHFE COPPER: The most-traded September copper contract on the Shanghai
Futures Exchange added 0.7 percent to reach 49,890 yuan ($7,545.03) a tonne.

* ZINC: There was no such respite for Shanghai zinc , however. The metal,
used to galvanise steel, fell as much as 1.8 percent to 21,855 yuan, having
lost 5.3 percent last week on trade war fears and expectations of higher
supply.

* RUSAL: 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. {nL5N1T72B2]

* BLOCKCHAIN: Online metal concentrates exchange Open Mineral is seeking to
build a consortium of mining companies and financial institutions to create
a blockchain system for

minerals trading and logistics.

* BATTERIES: Chinese battery maker Contemporary Amperex Technology Ltd
300750.SZ (CATL) will build its first production site in Europe in Germany,
agreeing a major contract with BMW  to supply lithium-ion batteries.
{nL8N1U529C]

* COLUMN: Beer versus aluminium; the U.S. battle-lines are  drawn again:
Andy Home

    MARKETS NEWS    

* Asian shares sought to rally for a third session on Tuesday as hopes for
upbeat corporate earnings buoyed Wall Street, while several high-profile
resignations from Britain's government kept sterling on the defensive.    

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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