Bulls n Bears Daily Market Commentary : 17 July 2018

Wed Jul 18 07:39:11 CAT 2018

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Bulls n Bears Daily Market Commentary : 17 July 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $3,566,433.56 with foreign buys at $1,862,098.04 and foreign
sales were $468,529.20. Total trades were 84.

The All Share index put on a further 0.71 points  to settle at 107.08
points. SEEDCO  rose by $0.1000 to close at $2.2000, DELTA added $0.0248 to
trade at $2.0550 and PPC LIMITED  went up by $0.0187 to end at $1.2713.
ECONET  was $0.0038 stronger at $1.1200 whilst MEIKLES advanced by $0.0030
to $0.3030.

Two counters lost ground as RIOZIM  shed $0.0100 to close at $1.4800 and
CBZ HOLDINGS LIMITED eased $0.0004 to settle at $0.1010.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South Africa's rand retreats as bears await rate decision; stocks up

(Reuters) - South Africa’s rand weakened on Tuesday, giving way to a
recovering dollar and the return of bearish positioning ahead of consumer
inflation and retail data that precede a  central bank decision on lending
rates.

At 1545 GMT the rand was 0.11 percent weaker at 13.2275 per dollar, with
traders eyeing upcoming events for the next move.

An emerging markets sell-off began on Monday after oil prices tumbled over 4
percent, adding to concerns over China’s second-quarter economic growth and
lingering worries about Turkey’s policy path since Tayyip Erdogan’s
re-election.

Headline inflation is set to have jumped in June as a plunge to a 7-year low
in March gave way to increases in value-added tax and petrol prices.

All 25 economists polled by Reuters last week expect South Africa’s Reserve
Bank to hold rates at 6.5 percent on Thursday..

Markets will also be looking at how hawkish a tone Governor Lesetja Kganyago
strikes.

In fixed income, bonds were firmer with the yield on the benchmark issue due
in 2026 down 4 basis points to 8.67 percent.

On the bourse, shares closed higher in cautious trade, snapping a five-day
losing streak.

The Johannesburg Top-40 index closed up 1.33 percent at 49,995 points, while
the broader All-Share index rose 1.21 percent to 56,113 points.

Among the biggest gainers, South African bourse operator JSE Ltd advanced
4.48 percent after it said it expects half-year headline earnings per share
to rise as much as 40 percent compared with the prior reporting period.

Platinum producer Anglo American Platinum also rose 1.88 percent to 289.52
rand after saying it has invested $100 million in a new venture capital fund
with an aim of stimulating industrial demand for platinum group metals.

Kenya

Kenyan shilling firms as banks seek local currency to meet regulatory rules

(Reuters) - The Kenyan shilling was firmer against the dollar on Tuesday,
helped by commercial banks doing conversions for local currency to meet cash
reserve regulatory requirements, traders said.

At 1025 GMT, commercial banks quoted the shilling at 100.40/60 per dollar,
compared with 100.50/70 at Monday's close.

America

Dollar holds gains after Fed chair remarks, stocks edge higher

(Reuters) - The U.S. dollar held gains on Tuesday against a basket of major
currencies following an upbeat economic assessment from the head of the U.S.
Federal Reserve, while world stocks edged higher, with Wall Street erasing
earlier losses.

In written testimony for the Senate Banking Committee, Fed Chairman Jerome
Powell said the economy was on the cusp of “several years” of the job market
remaining strong and inflation remaining around the Fed’s 2 percent target.

Asset moves were generally modest following Powell’s prepared remarks, in
which he signalled he believed the economy was doing well and that an era of
stable growth may continue, provided the Fed gets its policy decisions
right.

The U.S. dollar pared gains against a basket of currencies immediately
following the release of the testimony, but then bounced back.

The Dow Jones Industrial Average rose 8.08 points, or 0.03 percent, to
25,072.44, the S&P 500 gained 3.87 points, or 0.14 percent, to 2,802.3 and
the Nasdaq Composite added 7.87 points, or 0.1 percent, to 7,813.59.

Netflix shares tumbled 8.6 percent after the company’s subscriber growth
fell short of Wall Street expectations.

MSCI’s gauge of stocks across the globe gained 0.01 percent, while the
pan-European FTSEurofirst 300 index rose 0.17 percent.

The dollar index, tracking it against a basket of major currencies, rose
0.28 percent, with the euro down 0.17 percent to $1.1689.

Benchmark 10-year notes last fell 2/32 in price to yield 2.8619 percent,
from 2.856 percent late on Monday.

Oil steadied after steep declines on Monday, including a three-month low for
Brent. Worries over supply disruptions eased and the focus moved to
increasing production and potential damage to global growth from the
U.S.-China trade dispute.

U.S. crude fell 0.96 percent to $67.41 per barrel and Brent was last at
$72.03, up 0.26 percent on the day. 

Commodities Markets

Copper falls as upbeat U.S. Fed boosts dollar

(Reuters) - Copper prices edged lower on Tuesday along with aluminium and
nickel, pushed down by a stronger dollar and fears that demand will be
damaged by a global trade war and weaker economic growth in top consumer
China.

Benchmark copper         on the London Metal Exchange (LME) closed 0.7
percent down at $6,152 a tonne, near a one-year low of $6,081 reached on
July 11 and down about 16 percent from early June.

Nickel and aluminium were at or near their lowest since April and zinc was
close to a one-year nadir.  

Negative sentiment was pushing down prices despite good supply and demand
fundamentals, said Societe Generale analyst Robin Bhar. 

DOLLAR: The stronger dollar pressured metals by making them more expensive
for users of other currencies.               

FED: Upbeat comments from Federal Reserve Chairman Jerome Powell on Tuesday
signalled that the U.S. central bank will move ahead with interest rate
rises, which are likely to boost the

dollar further.             

U.S. FACTORIES: Also supporting the greenback was U.S. data showing a sharp
rebound in manufacturing and gains in mining output that boosted industrial
production in June.             

CHINA ECONOMY: Following data on Monday showing slightly slower growth for
the second quarter in China, the country's state planning agency said that a
2018 economic growth target of about 6.5 percent remains achievable. 

China is the world's biggest consumer of metals. Monday's data also showed
the weakest expansion in factory activity for two years in June.

TRADE WAR: China said on Monday that it had filed a  complaint to the World
Trade Organization about Washington'sproposed tariff list on $200 billion
worth of Chinese goods.

COPPER STOCKS: On-warrant copper inventories available to the market in
LME-registered warehouses rose 4,175 tonnes to 225,975 tonnes, the highest
in a month. MCUSTX-TOTAL

COPPER SPREAD: The discount of cash copper to the three-month contract has
also grown from around zero at the start of July to $36, signalling greater
availability of metal. 

ALUMINIUM: LME aluminium ended 1.1 percent lower at $2,032 a tonne after
touching $2,021.50 on Friday, the lowest since April 6 and down nearly 15
percent from early June. 

NICKEL: Nickel         finished down 1.3 percent at $13,490 a tonne after
hitting its lowest since April 12 at $13,475. 

OTHER METALS: Zinc         ended 1.5 percent up at $2,512 a tonne, retracing
some of its losses on Monday, while lead closed 0.4 percent down at $2,166 a
tonne and tin was bid flat at $19,500 a tonne.

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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