Bulls n Bears Daily Market Commentary : 11 July 2018

Thu Jul 12 09:10:26 CAT 2018

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Bulls n Bears Daily Market Commentary : 11 July 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $5,539,459.34 with foreign buys at $1,772,037.00 and foreign
sales were $3,350,586.30. Total trades were 121.

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 (BIND.zw) 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

Uganda

Uganda shilling firms due to tight liquidity, low dollar demand

(Reuters) - The Uganda shilling posted gains on Wednesday, underpinned by
tight liquidity in the money markets and ebbing demand for dollars from
merchandise importers, traders said.

At 0841 GMT, commercial banks quoted the shilling at 3,760/3,770, stronger
than Monday’s close of 3,785/3,795.

Kenya

Kenyan shilling holds steady against the dollar

(Reuters) - The Kenyan shilling held steady against the dollar on Wednesday
with inflows from portfolio investors buying stocks and government debt
offsetting excess liquidity in the money markets, traders said. 

At 0800 GMT, commercial banks quoted the shilling at 100.65/85 per dollar,
compared with 100.70/90 at Tuesday's close. 

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

Metals sink on fresh U.S. tariff threat; copper, zinc at 1-yr low

(Reuters) - Copper, zinc and lead prices slumped to their weakest in about a
year and other metals also sank in a broad selloff on Wednesday after the
United States raised the stakes in a trade war with China with threats of
more tariffs.

The Trump administration said it would slap 10 percent tariffs on another
$200 billion worth of Chinese imports, raising fears the festering trade
dispute between the world's two biggest economies could hit global growth.

Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese
imports and Beijing responded immediately  with matching tariffs on the same
amount of U.S. exports to China.

Metals fell the most among commodities, with nickel, tin and aluminium
dropping to multi-month lows. 

Three-month copper on the London Metal Exchange dropped as much as 4 percent
to $6,081 a tonne, its lowest since July last year. It was down 3 percent at
$6,141.50 by 0710 GMT.

On the Shanghai Futures Exchange, the most-traded copper    fell as much as
47,520 yuan ($7,135) a tonne, itsweakest since June last year, before
closing at 48,120 yuan, down 3.4 percent. 

Zinc dropped by its 6 percent downside limit in Shanghai  to 20,620 yuan per
tonne, the lowest since June last year. It fell as much as 4.8 percent to
$2,503 in London , the lowest since June 2017.

LME lead slid by up to 4 percent to $2,220 a tonne, the lowest since July
last year. 

* U.S. TARIFFS: U.S. officials released a list on Tuesday of thousands of
Chinese imports the Trump administration wants to hit with the tariffs,
including hundreds of food products as well as tobacco, chemicals, coal,
steel and aluminium.

* CHINA RESPONSE: China's assistant commerce minister said on Wednesday that
the latest proposed tariffs from the United States harms the World Trade
Organization system and hurts

globalization.

* MARKETS: China's shares tumbled and the dollar rose to near an 11-month
high against the yuan while the Australian dollar dropped along with other
Asian equities. 

OTHER METALS: Other metals also slid to multi-month lows, with LME nickel
down 3.3 percent and aluminium down 1.5 percent. In Shanghai, nickel closed
2.6 percent lower and lead fell 2 percent.

 BASE METALS PRICES                              0710 GMT

Three month LME copper                         6141.5

Most active ShFE copper                          48120

Three month LME aluminium                    2056

Most active ShFE aluminium                     14010

Three month LME zinc                              2511.5

Most active ShFE zinc                               20695

Three month LME lead                              2227

Most active ShFE lead                               19035

Three month LME nickel                            13720

Most active ShFE nickel                             109350

Three month LME tin                                 19420

Most active ShFE tin                                  142580

 BASE METALS ARBITRAGE    

 LME/SHFE COPPER                 LMESHFCUc3        368.99

LME/SHFE ALUMINIUM              LMESHFALc3      -1951.51

LME/SHFE ZINC                   LMESHFZNc3        549.81

LME/SHFE LEAD                   LMESHFPBc3        268.82

LME/SHFE NICKEL                 LMESHFNIc3        870.73

($1 = 6.6599 Chinese yuan)        

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Lafarge

AGM

Manresa Club, Arcturus Road

19/07/2018 12pm

OK Zimbabwe

AGM

OKmart Functions Room, 30 Chiremba Road, Hillside

26/07/2018 3pm

Delta

AGM

Head Office, Northridge Close, Borrowdale

27/07/2018 12:30pm

NicozDiamond

shares delist from the ZSE

06/08/2018

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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Bulls n Bears 

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